“Horse racing levy upped to 10.75%” plus 1 more |
| Horse racing levy upped to 10.75% Posted: 16 Feb 2011 08:32 AM PST 16 February 2011 Last updated at 11:09 ET The government has increased the levy on bookmakers, that generates money for horse racing, from 10% to 10.75%. Culture Secretary Jeremy Hunt announced the 50th Levy Scheme, by which the betting industry helps towards funding British racing. Mr Hunt acted after talks between the bookmakers and racing industry stalled. "It is really disappointing that two important industries have been unable to come to a sensible commercial agreement," Mr Hunt's statement said. The increase means the levy planned for 2011/12 should be between £73.7m ($118m) to £80.8m, he added. Racing is the second most attended sport and employs thousands of people. But it has been hit, among other things, by bookies moving offshore and not having to pay the horseracing betting levy on the right to take bets on British races. Cash from the levy, a major funding mechanism which has been in decline, goes towards veterinary science, prize money, training and breeding programs. As part of the new deal, the threshold level under which betting shops will pay a reduced rate of levy will fall from £88,740 to £50,000. 'Vital role'"Racing welcomes today's decision by Secretary of State Jeremy Hunt as a major step in dealing with long-standing failings of the current system," said Paul Roy, chairman of the British Horseracing Authority (BHA). "It will halt the severe decline in the levy, and the damage this is doing to the sport." And Simon Bazalgette, group chief executive of the Jockey Club, added: "This determination recognises the levy's vital role for the funding of British racing, and in turn, the importance of a strong racing industry to British society and the economy." He said the club welcomed the decision as positive news "in the short term". 'Concerns'Mr Hunt had said there would be no expansion of the levy to take into account bets placed in the UK on overseas horse races. "We are pleased that the Secretary of State has rejected appeals to extend the levy to foreign racing," said Will Roseff, chairman of the Bookmakers' Committee group. "It would be unfair for British horseracing to profit from something over which it has no control or rights. "We do, however, have major concerns over the changes to levy thresholds." He said the move could result in betting shop closures and lost jobs. This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php |
| U.K. Government Raises Horse-Race Levy on Bookmakers to 10.75 Percent Posted: 16 Feb 2011 07:11 AM PST The U.K. government increased a levy on bookmakers that generates money for horse racing to 10.75 percent from 10 percent, Culture Secretary Jeremy Hunt said. The annual fee on the profits of bookmakers, including William Hill Plc and Ladbrokes Plc, from bets on British horseracing helps fund the racing industry through veterinary science, prize money, training and breeding programs. Hunt brokered the compromise fee after talks between bookmakers and the racing industry broke down. "It is really disappointing that two important industries have been unable to come to a sensible commercial agreement," Hunt said in a written statement to Parliament today. Shares of William Hill rose 5 percent to 192.1 pence as of 4 p.m. in London. Ladbrokes advanced 4.6 percent to 142.3 pence. The levy planned for the year starting in April will generate between 73.7 million pounds ($118 million) and 80.8 million pounds, Hunt said. Along with the increase in the rate, the threshold below which betting shops pay a reduced levy will fall to 50,000 pounds from 88,740 pounds. Hunt said there will be no change to the program in relation to foreign racing because the levy supports British horseracing. It will only be collected in relation to bets on races in England, Scotland and Wales. "The next stage has to deliver what is due from remote betting, particularly offshore operators and betting exchanges," Paul Roy, chairman of the British Horseracing Authority, said in an e-mail welcoming today's announcement. "The range this decision sets is therefore short of the full amount the entire betting industry should be contributing." Will Roseff, chairman of the Bookmakers' Committee, the official negotiating body for the betting industry, said he was pleased Hunt had not extended the levy to foreign racing. He expressed "major concerns" over the new thresholds. "While welcoming the decision not to abolish them entirely, we believe that lowering the threshold will result in shop closures and lost jobs," Roseff said in an e-mail. To contact the reporter on this story: Kitty Donaldson in London at kdonaldson1@bloomberg.net To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php |
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