In response to the Horserace Betting Levy Board statement on the launch of the betting exchange consultation process, British Horseracing Authority Chief Executive Nic Coward said:
鈥淔or many years Racing has been vociferous on the significantly negative impact exchange betting has on the Levy income into the sport.聽 As long ago as October 2008 the Levy Board highlighted this general concern to Government, and we are pleased that the Levy Board is now dealing with the specific issue of people acting as 鈥渂ookmakers鈥� on exchanges and not paying Levy.
鈥淲e do not believe a consultation is necessary and would have preferred immediate action, but we understand the Levy Board approach and we will of course make a full contribution to the consultation.聽 We would urge anyone who cares about the future of Racing to do this.聽
鈥淏etting exchanges have revolutionised the market. Consequently, their impact is a primary concern to the future of the sport, as well as to the future of betting as a whole, and the relationship between the two sectors.聽
鈥淭o date these matters have not been looked at on a holistic basis. This must now change.聽 We are confident that the Minister will want to address this as part of the 鈥減ackaged鈥� approach that he has committed to exploring, and which we fully support.
鈥淩acing is on the receiving end of exploitation by the entire gambling sector, abusing every loophole available, to the detriment of Racing and those within the sport.聽聽 A major sector of British life is in danger of being throttled.
鈥淎s one example, in 2009 Betfair made a 鈥榲oluntary鈥� payment to the Levy Board. This year that contribution has disappeared. 聽
鈥淭he Levy Board and Government have the power to take immediate action which will close these loopholes – offshore bookmakers who contribute nothing to the Levy, the situation whereby over 60% of shops avoid the full Levy under an out dated threshold system, non-payment of Levy on foreign racing in shops as was the case in the past, and the massive impact of exchange betting.
鈥淭hese are only short-term solutions.聽 We will continue to work with Government on a packaged approach to achieve mechanisms under which Racing is able to achieve its full value to betting and gaming operators. The 1960s Levy system is not fit for purpose in today鈥檚 digital economy.鈥�
