UK betting operators are advocating for a comprehensive transformation of how their sector financially supports horse racing. They aim to replace the existing levy system, established five decades ago, with a new commercially-driven agreement.
The ABB contends that the current framework is obsolete and no longer serves its intended purpose. As an alternative, they suggest a racing-centric, voluntary system granting them greater influence over the racing schedule. This, they posit, would enable the creation of a more attractive racing product, benefiting both the racing and wagering sectors.
To facilitate this shift, the ABB is requesting a three-year period to negotiate a lasting agreement with the racing industry. They also believe the government should play a role in fostering this process, such as maintaining the VAT exemption for betting.
ABB’s Chief Executive, Dirk Vennix, declared: “The time has come to eliminate the betting levy, which has simply run its course. It should be phased out by 2014.” He stressed the necessity of redefining the relationship between racing and bookmaking, establishing a contemporary business model appropriate for the 21st century.
The racing industry has signaled its openness to engaging in direct commercial discussions with the betting sector, aiming to establish an equitable and enforceable payment structure.
We concur with the overall feeling and are pleased to embrace the administration’s plan. A fruitful discussion with the equestrian sport sector is undoubtedly the path to success, and through collaboration, we can optimistically forge a sustainable operational framework for the year 2014.
