Betfair criticises big four over horseracing levy fund deal
London-listed operator accuses big four of "hiding" online revenues from additional voluntary payments to Horserace Betting Levy Board
Betfair has criticised the UK’s four largest retail bookmakers and accused them of intentionally ignoring their online revenues when agreeing to make payments to the Horserace Betting Levy Board (HBLB).
The four operators “ William Hill, Ladbrokes, Coral and Betfred “ this week agreed to make additional voluntary donations on top of their statutory levy payments, signing a record-breaking funding deal with the HBLB which will see the 53rd Levy Scheme raise in excess of £80m.
The agreed payments of £4.5m per year for the next four years will be donated to a newly-created Incentive Fund to be managed by representatives from the HBLB, the four contributing bookmakers, the British Horseracing Authority, the Racecourse Association and the Horsemen’s Group.
However Betfair has criticised the announcement, claiming the annual sum is a “fraction” of what would be payable if the four bookmakers made a contribution based on their online businesses.
As online revenues which pass through Gibraltar are not subject to statutory payments under the levy scheme, bookmakers have been under pressure from the UK government to donate a sum that is commercially linked to these revenues.
Betfair currently donates 10.75% of revenues “ all derived from its online operations “ from horserace betting to HBLB, and has subsequently lamented other bookmakers’ failure to follow suit.
“Despite the government making it clear it would like to see similar deals to Betfair’s five-year commercial agreement which commits at least £40m to British racing, it now seems the four main high street bookmakers will continue to hide this revenue,” Susannah Gill, head of public affairs at Betfair, said.
“Until the underlying structure of the levy is addressed or others follow Betfair’s lead racing will continue to suffer financially,” she added.
The criticism has come despite British Horseracing Authority chief executive Paul Bittar commending the efforts of the big four retail operators, labelling their contribution “significant”. “We look forward to working with the big four bookmakers to put the new Incentive Fund to best use, and grow Levy income further,” he added.
Statutory payments to the 53rd Levy Scheme, which runs from 1 April 2014 to 31 March 2015, will yield £75.7m, including Betfair’s estimated £7.8m contribution to British Racing, topping the previous year’s yield of £75.6m.