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British Racing and Betfair sign ₤ 40m commercial deal

4 July 2012

Online wagering exchange Betfair has actually signed a deal with British horse racing organisers, promising a minimum ₤ 40m of financing over the next 5 years.

It will provide 10.75% of all incomes on the sport drawn from its UK clients.

It follows conferences with industry bodies the British Horseracing Authority, the Racecourse Association and Horsemen's Group.

In return, the sport has promised a minimum variety of components per year and to increase wagering chances.

The arrangement will replace Betfair's existing annual voluntary Horserace Betting Levy payments.

Most significant wagering companies, including Betfair, now run their online operations outside the UK and are accountable to pay tax and horserace levy just on company done within the country - instead of on their total international operations.

However, previously Betfair has actually willingly paid the UK horse racing levy as though it were still British-based.

The new agreement will change this promotion code previous ad-hoc arrangement and will take result from the yohaig code 51st Levy Scheme, which covers the 2012-13 racing season.

"We are pleased that we have been able to reach an agreement with Betfair, one which represents a landmark for both the racing and betting industries," said Paul Bittar, primary executive of the BHA.

"It brings numerous advantages, including substantial and increased guaranteed funding, in addition to notably providing certainty for the sport in relation to Betfair's contribution."

The Horserace Betting Levy, a significant source of moneying to the sport, has actually been gradually diminishing for many years with the relocations offshore by betting firms.

And Mr Bittar said he hoped comparable arrangements to the Betfair one could now be concluded with other wagering operators.

Betfair's chief legal and regulatory officer Martin Cruddace dubbed the deal "historic" and also contacted other wagering companies to "adopt comparable contracts to assist make sure a strong, healthy and lively horseracing industry in this promotion code nation".

British Horseracing