Betfair Signs Landmark Deal with British Horseracing

After intense negotiations between the two bodies, it was announced today that the giant betting exchange, Betfair and British Racing have signed an important five-year deal that will inject up to £40 million into the country's horse racing industry.

While Betfair has, until now, being paying a voluntary Horserace Betting Levy each year to British Horseracing, the new agreement will see Betfair start to pay 10.75% of all its revenues generated from UK horse race betting fans.

British Racing, on its part, will ensure a minimum number of UK horseracing fixtures per year.

The new deal, therefore, aligns British Racing's interests with those of Betfair, in a bid to increase revenues for both parties.

Since Betfair has already made levy payments of £6.5 million for 2012-2013 to British Racing, these will be offset by new payments which are due under the deal announced today.

Betfair Deals Opens Door to Similar Agreements

The British government has indicated that the new Betfair British Horseracing deal could be the beginning of standard practice in the industry.

The Department for Culture, Media and Sport in the UK said that all betting operators who carry a license from local gambling authorities and which take bets from British punters may need to reach similar agreements with British Horseracing.

British Horseracing comprises of the British Horseracing Authority (BHA), the Horsemen's Group and the Racecourse Association.

Bittar Delighted with Betfair Horseracing Deal

The Chief Executive Officer of the British Horseracing Authority, Paul Bittar expressed his delight in reaching the agreement with Betfair, calling it "one which represents a landmark for both the racing and betting industries."

"It brings many benefits, including substantial and increased guaranteed funding as well as importantly providing certainty for the sport in relation to Betfair's contribution," he said. "We hope that similar arrangements with other betting operators will follow."

Bittar said that this agreement required a high degree of cooperation within British Racing, with all the major organisations intensely involved in negotiations, as well as with Betfair, which showed "great commitment in our intent to be a constructive commercial partner with our sport."

"We firmly believe both in the value of British Racing as a product and the need to work closely with the betting industry for our mutual benefit," said Bittar. "Government has committed to bringing forward proposals to address the long standing and damaging flaws in our current funding mechanism."