European Commission endorses UK horserace betting levy reform

The European Commission (EC) has endorsed reform of the UK horserace betting levy scheme in line with EU state aid rules.

The reform will subject all off-shore bookmakers to the horserace betting levy as opposed to only bookmakers based in the UK.

A 10 percent levy on Gross Gambling Yield (GGY) will be established and applied to all bookmakers GGY’s above the minimum threshold of GBP 500,000 per annum.

The Commission recognized the measure as being “essential for the improvement of horse breeding and horseracing without giving rise to undue distortions of competition” as well as creating a level playing field among betting operators.

The British Horseracing Authority (BHA) expects an announcement from the UK Department for Culture, Media and Sport (DCMS), confirming the effective date of the implementation of the new Levy, is imminent.

“With the final, outstanding approval now secured from the European Commission, today marks one of the last few steps in the process of securing a fair return from all betting on our sport. We look forward to receiving confirmation shortly from Government of when the new legislation will take effect,” Nick Rust, chief executive of the BHA, said.

“We look forward to working closely with bookmakers to build an exciting future for both our industries. The new Levy has the potential to put an end to unnecessary divisions between racing and betting as it creates a level playing field, removes the need for annual negotiations on the rate and provides long-term certainty for both parties.”

The European Commission’s decision stands for as long as the UK remains a member of the European Union.