The British Horseracing Board, in its continuing attempt to show its responsiveness to the concerns of the betting industry, today announced that its royalty for pictures and data will be reduced from 2.5% to 2% and for data from 1.5% to 1.25% for two years from 1st May 2002. The offer is available to all licensees who enter into a licence for rights to British horseracing by 31st December 2001. This complements the offer made recently to each bookmaker of a flat rate royalty of £3,000 for pictures and data on the first £300,000 of British horserace betting turnover, rather than 2.5%. Bookmakers will be able to choose whichever scheme suits them better.
BHB Chairman Peter Savill said:
“We estimate that Licensed Betting Offices currently pay an average of 2.44% of horserace betting turnover for the rights and delivery of British Racing. It is hard to see how the betting industry can object to a 2% royalty for the next two years, while the impact of Gross Profits Tax becomes clearer.
“What we can see is that the Government has introduced a taxation structure for the betting industry which, assuming punter losses remain at the same levels as currently, will result in a tax saving to bookmakers of nearly £180 million per year. Government has made it quite clear that it expects Racing to share in that benefit and, as the provider of 70% of the betting industry’s turnover, we have every right to do so.
“We are committed to the policy that bookmakers should not duplicate payments to the Levy and to BHB once a commercial contract is in place. We are therefore willing to ensure that appropriate offsets are put in place in order to prevent such an eventuality.”
For further information please contact BHB Communications Manager Alan Delmonte on 020 7343 3318