Wednesday 24th October 2012
Levy Scheme for 2013/14 Agreed
The terms of the 52nd Levy Scheme (1st April 2013 to 31st March 2014) have been agreed, with Horserace Betting Levy Board members approving unanimously the Recommendations from the Bookmakers’ Committee.
The Bookmakers’ Committee estimates that the 52nd Levy Scheme, including an estimated £7m contribution from Betfair, will yield £72.9m.
This compares to the Bookmakers’ Committee estimate of £72.4m for the 51st Levy Scheme (inclusive of an estimated £6.5m Betfair contribution) when its Recommendations for the current Scheme were approved by the Board in October 2011.
For the 52nd Levy Scheme, the three largest bookmakers - William Hill, Ladbrokes and Gala Coral - have again agreed to guarantee that their combined contribution will be not less than £45m. Betfair has undertaken to make a contribution to British Racing, through the Levy Board, which is assumed at £7m.
The 52nd Levy Scheme will in most respects continue the terms of the 51st Levy Scheme with a headline rate of Levy at 10.75% of bookmakers’ gross profits on British racing, and with uprating for inflation the thresholds applicable to Licensed Betting Offices (LBOs) and the fixed-sum payments in certain other categories. The new Levy Scheme makes adjustments to the arrangements for relieving the Levy’s impact with an increase in the Flat Rate Rebate for each LBO.
Levy Board Chairman Paul Lee said:
“The Board is extremely pleased to have reached unanimous agreement. This will provide further stability and make possible significant additional expenditure on prize money in 2013. I would like to give recognition to Betting and Racing for the constructive approach that they have taken in seeking early resolution to the terms of the next Levy Scheme.”
The details of the 52nd Levy Scheme (and the corresponding details for the 51st Levy Scheme) are as follows:
(a) Licensed Betting Offices
Each LBO will pay 10.75% of its gross profits on British Horserace Betting Business (BHBB). For an operator with 100 or fewer LBOs, an abated rate will apply to those of its LBOs (up to a maximum of 30) which have gross profits on BHBB of less than £54,180. Operators with more than 100 LBOs will pay at the full 10.75% rate on each outlet.
(51st Levy Scheme: 10.75%; threshold rate £52,500, applicable as above)
(b) Telephone and Internet
Each telephone and/or internet operator will pay 10.75% of its gross profits on BHBB.
(51st Levy Scheme: 10.75%)
(c) Spread Betting
Each spread betting operator will pay 2.15% of its gross profits on BHBB.
(51st Levy Scheme: 2.15%)
(d) Betting Exchanges
Each bet-broker including betting exchanges will pay on a basis equivalent to 10.75% of its gross profits, defined as gross commission on BHBB deducted from the winnings paid out to bettors and bet-takers.
(51st Levy Scheme: 10.75%)
(e) On-course Bookmakers
Each on-course bookmaker will pay a fixed contribution of £227.
(51st Levy Scheme: £220)
(f) Point-to-Point Bookmakers
Each bookmaker conducting BHBB on Point-to-Point and/or Harness Racing and/or trotting events will pay a fixed contribution of £181.
(51st Levy Scheme: £175)
(g) Flat Rate Rebate
A Flat Rate Rebate of £735 for the first 30 LBOs in any chain and £185 for all other LBOs will be applied. This will be a sum deducted from the bookmaker’s 52nd Levy Scheme liability during the year-end reconciliation.
(51st Levy Scheme: Flat Rate Rebate £400 for first 30 LBOs in any chain and £185 for all other LBOs)