UK government to replace racing levy
The new system aims to include remote betting operators which have been based offshore until now.
UK.- The British government published “The Horserace Betting Levy Regulations 2017,” an initial draft law structure that aims to replace the existing system next April, as reported by The Racing Post.
Levy’s new provisions are written by a government ‘statutory instrument’ and do not require primary legislation. Both Houses of Parliament must give their consent in order for the new Levy 2017 regulations to advance. In its main function, new provisions will be extended in order to include British operator remote betting operations which have been based offshore and, until now, outside of the legal framework. The new Levy 2017 is expected to generate £30-40 million more for the sports funding.
The total 10 percent tax charge on UK racing gross profits will be enforced to all bookmakers that generate £500.000 in racing bets. Government has notified the European Commission about the Levy System changes on January 13, in order to satisfy its competition standards and fair business condition practices.
Despite the plan to have new regulations in order by April 1, the levy needs the European approval to be granted before it comes into force. The new levy regulations will stand for a period of seven years until provisions can be reviewed by ministers but, in case of delays, the existing structure will continue to run until a new one is passed.
