A new commercial deal has been signed between the giant UK betting exchange, Betfair, and the UK horseracing authority, British Racing. At least £40 million worth of funding will be injected into the racing industry over the next five years, according to the betting exchange.
Until now, Betfair has paid a voluntary horse racing levy to British racing, despite the fact that it is not required to by law as it is not physically based in Britain. The new deal will see Betfair pay 10.75% of its revenues taken on the sport from UK customers. British Racing has promised to schedule a minimum number of fixtures throughout the year in order to allow punters maximum betting markets.
The Chief Executive of the British Racing Association, Paul Bittar said that his organization was delighted that it had been able to reach an agreement with Betfair, especially one which represents a landmark for both the racing and betting industries. He stressed that the new deal brought many benefits, including substantial and increased guaranteed funding, and providing certainty for racing in relation to Betfair’s contribution to the sport.
Bittar also said that similar deals could – and should – be reached with other betting operators who do business within the country but are based outside its borders.
The new deal between Betfair and the racing industry is considered an historic one. The chief legal and regulatory office for Betfair betting exchange, Martin Cruddance, encouraged other betting groups to adopt agreements similar to this one and help ensure a healthy and vibrant industry in Britain.