The UK government have issued a warning to horse racing and bookmakers, instructing them to fix their levy deal together, without the need for the government to intervene and create a ruling.
It’s something that racing should listen to, and take note, of how the government is giving them a chance to keep their problems in house.
At some point in the near future, the government is going to be looking at recommendations from the Gambling Commission, and it’s time to set a good impression.
If racing, and the betting authorities, can fix their levy deal without the need for help, it gives hope they will be left to fix other things themselves, avoiding a potential disaster intervention from the government.
Racing and Bookmakers Must Agree New Levy Deal
We appeared to be close to an agreement in May, when both horse racing and betting companies had been talking, but those stopped when the government called an election.
Now things are back on the table, and Sports Minister MP Stephanie Peacock urged both sides to complete the deal themselves when she spoke on the subject in parliament.
It was said that the new rate of 11.5% levy, was broadly accepted as being fine by racing in May, and that deal should be resurrected so a finalised plan can be put forward, without the government making any decisions.
This would be an increase from 10%, the current deal, and would go lower down the funnel. There are some rich races on the calendar but rather than making the rich races richer, the money would be used at the lower level, to grow and improve the sport.
There has been some talk afterwards around how close that deal actually was, but at least in the eyes of the current government, it was close to being a done deal.
We are just a few months later now, and circumstances for both sides haven’t changed too much, so there is a chance that this can still work in the same way as was allegedly agreed in May.
Possible Future Implications on the Line
Of course, the levy is incredibly important, it sets out the money racing will receive from betting partners, and can both secure the future of racing, while also giving it room to grow, if the rate is upped to 11.5%.
But the speech in parliament felt like far more than just a speech around levy.
We need to secure the future of British horse racing, with:
– a higher betting levy
– the levy applied to bets on races overseas
– changes to disproportionate affordability checks, which are hitting the wrong targets and pushing people to the black market.
This is my speech: pic.twitter.com/0JZD39fqwT— Nick Timothy MP (@NJ_Timothy) October 24, 2024
There is increasing pressure to revamp how the Gambling Commission operates, and many decisions are going to be made by the government.
This is a great time for racing to gain the trust of this new government, and show that they can manage themselves, and come to agreements.
The future of racing is tied into the future of gambling, without gambling, racing will not survive. If racing and betting companies can show that they take advice on board, and make sensible decisions when asked, then it could stand them in good stead for the future.
When the conversation turns to affordability checks and other big topics, there’s a chance these become smoother if the betting industry and racing industry are already in the good books of the government.
There was plenty of support for racing in general during the debate, with many MPs stating that they were in support of racing, due to the jobs it provides, and it’s help to Britain as a financial body.
But the mood could turn quickly, and if the levy discussion does not sort itself out relatively quickly, then that may come around sooner rather than later.