Poll results: 10% levy an “unfair outcome” for operators

A 10% levy on horseracing profits is an unfair toll for operators, according to a majority of respondents to this week’s poll.

Around 59% of voters agreed the rate, confirmed by the Government on Monday, was an “unfair outcome,” with opponents suggesting it fails to take into account other costs associated with racing like media rights and advertising.

According to a Ladbrokes Coral spokesperson: “The issue has always been the rate and the question has been what does racing need and what can be afforded.

“On its own, people may think it [the 10% levy] looks fair but in the round with cost escalation in the levy, shop pictures, streaming rights and advertising, the sport is in danger of pricing itself out of friends.”

The levy, which is subject to ratification by the European Commission due to state aid rules, will only be applied to profits in excess of the first £500,000 and to all bets on UK racing, replacing the 10.75% currently levied on land-based profits.

William Hill echoed the view from Ladbrokes Coral, with a spokesperson adding: “We have no objection to extending the Levy online but we do believe media rights must be taken into the equation and it is hard to find the evidence of how it has been accounted for.

“Racing is now a loss-making product in a large percentage of betting shops and this will fail to provide adequate relief.”

However 41% of voters said the 10% rate was a fair deal for operators, presumably reasoning that racing is still such an important acquisition and retention tool that they can afford to increase their contribution.

The British Horseracing Authority also said the increased funding would benefit both racing and bookmakers, as well as the wider economy.