1. What will this deal generate for British Racing?
We confidently expect that it will result in us raising in excess of £600 million for British Racing over the next five years which is almost double what we have raised from the levy over the past five years.
2. How much more will this deal raise than the Levy?
The Levy last year raised about £65 million.
Our commercial data charges in year one, including Ireland, should raise close to £110 million and close to £120 million a year in years two to five.
3. How much would BHB’s charge of 1 ½ % of turnover have generated and how much would the concessionary data charges have generated?
The 1 ½ % turnover charge would have raised approximately £120 million a year and the concessionary data charges about £100 million a year.
4. Why did you change from demands for a turnover-based scheme to a gross profits-based scheme?
When we introduced our pricing policy in July last year, before gross profits tax was introduced, it would have been irresponsible of us to agree to a form of payment based on bookmakers’ margins when there was such uncertainty as to the impact of tax-free betting on margins.
Now, with six months of statistics on GPT, we are satisfied that margins will hold up over the long term and that agreeing a gross profits commercial data licence is not a risk. In fact, in many instances, 10% of gross profits will raise more than 1 ½ % of turnover.
Insisting on a turnover-based scheme, until very recently, also maintained a stronger negotiating position in reaching this agreement.
5. Don’t the terms for your data licence disadvantage the smaller bookmaker?
Absolutely not. Small bookmakers’ representatives negotiated valuable concessions which will mean that they are paying less than their larger counterparts.
You must not forget that the current levy scheme already requires small bookmakers to pay considerably more than they paid under the old schemes.
This coming year they will not pay any more in commercial data charges than they are paying under the current levy.
At the end of the day, the bulk buyer in business usually gets a better deal than the small buyer. In racing it has always been the other way round and will continue to be that way for the next five years.
6. What is the situation if other bookmakers refuse to sign your data licence by May 1st?
The situation is that they would be using British horseracing data in an unauthorised way. That was the clear judgement of Justice Laddie last year.
We have made it very clear to the betting industry that we will pursue all unauthorised use of the data and that we are not willing to grant an offset of their levy payments other than from the date a commercial data licence is in place.
7. Will the Tote be signing?
We expect that the Tote will sign in the next few days.
8. How will you be attempting to sign licences with other bookmakers by 1st May?
We shall be sending a licence out to every bookmaker in Great Britain early next week which will give them plenty of time to fill it in and return it before 1st May so that they can take full advantage of the offset with the levy.
As far as Ireland is concerned, we shall be meeting with Irish bookmakers in Dublin on Friday and Monday.
9. What about those who signed the concessionary rates before 31st December?
They will be given the choice of remaining with their existing contract or switching to the new contract terms. However, they will be allowed to offset against the Levy.
For further information, please contact BHB Communications Manager Alan Delmonte on 020 7343 3318