Ladbrokes, William Hill, Coral, Stanleys and Dones today each signed five-year deals with the British Horseracing Board for the commercial use of data for their British betting shops as well as their telephone and internet operations.
Assuming that other British and Irish bookmakers follow suit, the deal should be worth in excess of £600 million to British Racing over the next five years.
BHB Chairman, Peter Savill, said: “This is an historic day for the British racing and betting industries. We have agreed a long-term deal which will enable us to put aside our previous differences and work together to develop British Racing as a sport with an increasing appeal to punters, spectators, viewers and those who work in the industry. I have no doubt that this new prosperity for racing will touch every facet of the sport.”
CEO Coral Eurobet plc, Bob Scott, said: “I am delighted that our two great industries have agreed a deal which will allow Coral to continue to develop its business whilst maintaining deduction-free betting for its customers and ensuring the future of UK horseracing. The Government’s far-sighted decision to reform betting tax provides the betting and racing industries with the perfect platform to lead the world.”
CEO Ladbrokes Worldwide, Chris Bell, said: “The deal enables the betting industry to focus on growth for the benefit of all parties. This agreement can now form the basis of a new partnership between betting and racing to benefit punters, shareholders, betting shop staff, stable lads, owners and racecourses. It is the dawning of a bright era for both racing and betting and cements the progress made in securing tax-free betting.”
Managing Director of the Betting Division of Stanley Leisure, John Whittaker, said: “While we would have preferred to have seen a better differential rate for the smaller shops, we have decided to take a pragmatic view on the deal as a whole and sign the Licence Agreement. We are pleased that we have managed to overcome the issue of data and that we will be able to offer our customers the opportunity to bet on British horseracing from May 1.”
William Hill Chairman, John Brown, said: “I am very pleased that a data deal, which I believe to be fair to both industries, which will ensure the continuation of no deductions to punters, has been achieved. I am confident that the relationship between racing and betting will now flourish.”
Main Terms of Agreement
The licence is a non-exclusive licence to use data for the purpose of effecting betting transactions across all relevant platforms for operations based in Great Britain.
Each bookmaker will pay an annual charge of 10% of gross profits from horserace betting on horse racing taking place in Great Britain, other than in respect of over the counter bets transacted in betting offices where the charge payable by each bookmaker will be calculated by reference to the gross profit in each year of each betting office owned or operated by the bookmaker as follows:-
– Betting office whose gross profit on Horse race betting is £150,000 or more per year
10% of such profit
– Betting office whose gross profit on
Horse race betting is less than £150,000
(“”x””/£150,000) x 10% of such profit where “”x”” equals betting offices gross profit
– Betting office whose gross profit on Horse race betting is £75,000 or more per year
10% of such gross profit
– Betting office whose gross profit onHorse race betting is less than £75,000
(“”x””/£75,000) x 10% of such gross profit where “”x”” equals the betting offices gross profit
3. Payment procedures
A general right of offset in respect of the charges payable to BHB has been provided to bookmakers in relation to payments made under a levy scheme.
4. Other Terms
It has been further agreed that:-
1. the same terms will be offered to on course bookmakers, as set out above, except that on course bookmakers (other than bookmakers operating on course bookmaking shops where the terms set out above apply) will in the first year of the licence pay £15 inc VAT for marker sheets, an increase of £2 from the current charge of £13, in place of the standard data charge for the first year as set out above;
2. all legal proceedings regarding judicial review of the 41st Levy Scheme will be withdrawn;
3. all legal proceedings with the bookmakers who have signed data licences today with regard to the past use of data on internet sites are withdrawn on the basis that all outstanding monies are paid;
4. all complaints relating to data made to the Office of Fair Trading by the CBA and bookmakers who have signed the data licence today are withdrawn