Mixed welcome for Betting Right
British Racing has welcomed the introduction of the Horserace Betting Right, which was confirmed in Wednesday's Budget by Chancellor of the Exchequer George Osborne.
Consultation on the scheme only closed last week, during the Cheltenham Festival, but racing can now look forward to a new funding mechanism to replace the Horserace Betting Levy, which has been in use since 1963.
The system will see bookmakers pay for the right to bet on British horseracing and will, according to Osborne's Budget speech, be administered directly by the racing industry.
Per Osborne's statement: "A Horserace Betting Right would provide British Racing with the right to authorise all betting activity in return for the appropriate financial contribution from betting operators towards the administration, integrity and future development of the sport.
"It would be a bespoke solution to racing and betting, recognising the specific synergies between the two industries and replicating international precedents."
British Horseracing Authority chief executive Nick Rust, on behalf of British Racing, said: "Today's announcement is a welcome and tremendous boost for the tens of thousands of people across the country who derive their livelihoods from our sport.
“British Racing – its governing body, racecourses and horsemen – has a collective desire for a modern and direct relationship with the Betting industry, and believes that a Racing Right is the best solution to achieve this, and to secure the long-term prosperity of our sport and those within it.
"We are still in the situation whereby the vast majority of bets placed by punters outside of betting shops are making no contribution to the central finances of the sport. This is unsustainable, and there is recognition that this needs to change.
“We are extremely grateful in particular for the support of Helen Grant MP and Matt Hancock MP to help us reach this stage, as well as to all of those across the industry who submitted letters of support during the consultation period.
“The hard work will continue, throughout the forthcoming General Election campaign and beyond, and with the Betting industry, as we look to have a Racing Right introduced as soon as is possible. We remain committed to ensuring that a Racing Right works for all parties, and provides the right platform for the Racing and Betting industries to flourish together.”
But the announcement has not gone down well in the bookmaking fraternity, with a spokesman for the Association of British Bookmakers predicting problems for the sport if the Right is introduced.
"Unfortunately, we believe the racing right is unworkable and the detail will derail it, leaving racing seriously underfunded for a considerable length of time." the spokesman told the Racing Post.
"It will be mired in legal and other issues for many, many years.
"Arguably the proceeds from the right will not even be able to be distributed until legal certainty is obtained, with racing being the main loser.
"Our members already pay 10.75 per cent of their gross profits from their UK horseracing business to racing and, together with media rights and sponsorship, the transfer from our members to racing is some £248m, an incredible amount that has to be enough."