UK betting operators are seeking to eliminate the horse racing levy and establish a new commercial framework.
The ABB is advocating for the gradual removal of the five-decade-old levy by 2014, substituting it with a voluntary model based on track fees. They contend that this would be advantageous for both racing and wagering, granting them greater influence over the racing schedule and fostering a more robust lineup of race days.
To facilitate this transition, the ABB proposes a three-year period for both parties to engage in discussions and implement a lasting accord. They also recommend that the government incentivize the agreement by maintaining VAT exemption for betting. These points are articulated in a pre-Budget proposal submitted to the government.
Dirk Vennix, Chief Executive of ABB, was unequivocal in his stance on the levy: “The time has come to discard this antiquated tax. It has served its purpose. It should be terminated by 2014.” He underscored the necessity for a contemporary strategy, stating, “We must redefine the relationship between racing and bookmakers for mutual benefit and establish a modern, commercial arrangement befitting the 21st century. We concur with racing that a new commercial agreement should be mutually beneficial.”
The racing sector has already conveyed its willingness to engage in direct commercial discussions with bookmakers, aiming for a payment structure that is both equitable and enforceable.
Broadly supported this action and are pleased to take the government’s offer. A fruitful discussion with the horse racing sector, we feel, would be a valuable chance to forge a workable operational plan for 2014.
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