- Three-year funding deal agreed with British Racing
British Racing and Betfair have reached agreement on a three-year funding arrangement underpinned by the new Authorised Betting Partner (ABP) model from April 2016, which will bring significant benefits to both parties.
The new deal will see Betfair contribute an agreed percentage of its racing revenues from its exchange and sportsbook for three years from April 2016. The percentage is based on a new rate card developed by British Racing – the British Horseracing Authority (BHA), the Racecourse Association and the Horsemen’s Group, operating under the new Members Agreement – which is designed to represent a fair contribution in the current environment.
Up until April 2016, Betfair will continue to contribute under its existing five-year funding commitment with British Racing. The first year of this ABP deal will then replace the fifth (and final) year of the existing commitment, which was due to expire in March 2017.
Those companies that sign up under the new rate card – Betfair being the first – will benefit from the full range of advantages associated with being an ABP, including use of a kitemark and promotional benefits as part of a marketing campaign to be rolled out across the sport. They will also have the opportunity to negotiate preferential commercial arrangements with participating racecourses including access to sponsorship opportunities, Wi-Fi provision and wider promotion.
Those racecourses currently signed up are those within the two largest groups, Arena Racing Company and Jockey Club Racecourses, and the five Scottish tracks. Betfair has already benefitted from its ABP status in acquiring the prestigious title sponsorship of this Saturday’s Tingle Creek Chase at Sandown Park.
The ABP model has also been supported by the Department for Culture, Media and Sport.
Discussions with other individual operators are at an advanced stage, and British Racing’s rate card will also be published in the coming days.
Speaking on behalf of British Racing, BHA Chief Executive Nick Rust said:
“We are delighted to have signed up our first Authorised Betting Partner under a multi-year deal, and welcome the enlightened approach taken by Betfair. They clearly value our sport and recognise the interdependence between Racing and Betting, as well as the benefits associated with being an Authorised Betting Partner, in particular from the commercial parties in British Racing that are signing up to the model.
“It is vital for the sport, and the tens of thousands of people deriving their livelihoods from it, that we move our funding from our biggest customer group on to a more sustainable footing, including taking the necessary steps prior to the introduction of the Horserace Betting Right to incentivise digital businesses to make a contribution back to British Racing.”
Notes to Editors:
1. The initial release introducing the Authorised Betting Partners initiative can be found here: http://www.britishhorseracing.com/press_releases/british-racing-to-establish-authorised-betting-partners/