Bookies tax to raise up to €95m in the UK

Horseracing will receive up to £80.8m (€95.9m) a year after the Government decided today to raise taxes on bookies’ pre-tax profits.

Culture Secretary Jeremy Hunt said bookmakers will pay 10.75% rather than 10% from April, generating between £73.7m (€87.5m) and £80.8m (€95.9m) for the sport’s upkeep in Britain.

The increased rate will apply to telephone and internet betting operators as well as betting shops.

Mr Hunt also lowered the threshold level under which betting shops pay a reduced rate of levy from £88,740 (€105,360) to £50,000 (€59,360).

Hailing “a fair deal for bookmakers and horseracing”, he added: “The levy will continue to be payable only in respect of profits arising on bets placed in relation to British horseracing.”

The Government was forced to determine the levy after the racing and bookmaking industries failed to reach an agreement by the end of last October.

Mr Hunt said: “It is really disappointing that two important industries have been unable to come to a sensible commercial agreement.

“I have tried to be fair by listening to the advice of the independent members of the Levy Board and I will continue to be guided by their advice in future years until what should be a straightforward commercial negotiation can be taken permanently out of the hands of ministers.”

Mr Hunt revealed today’s decision in a written ministerial statement, saying the new levy “reflected the capacity of bookmakers to pay, what it is reasonable to expect bookmakers to pay and what the reasonable needs of horseracing are in all the circumstances”.