156.25 KB ABP Rate Card for Betting Operators

Authorised Betting Partners – British Racing’s Rate Card
In order to help deliver to British Racing a fair contribution from remote betting on the
sport, the Members‟ Committee of the British Racing industry – comprising
representatives from the British Horseracing Authority (BHA), the Racecourse
Association (RCA) and the Horsemen‟s Group (HG) – indicated in October that it would
be establishing the concept of Authorised Betting Partners (ABP).
The aim of the ABP scheme is to achieve a level of certainty as to the future funding of
British horseracing, which will enable British Racing to deliver a stable and valuable
betting product alongside its other strategic objectives, for the benefit of both the betting
and racing industries.
The criteria the Members‟ Committee has set for a betting operator to achieve ABP
status is set out below.
Contribution – the following rates shall apply per operator:
Remote rate
55th Levy scheme
(April 2016-March
56th Levy scheme
57th Levy scheme
The rates apply as a percentage of gross win on British horseracing from all UK customers.
For any operator that operates a British retail estate in excess of 1,000 LBOs,
the following rebate shall apply on its gross win from its remote business
55th Levy scheme
(April 2016-March
56th Levy scheme
57th Levy scheme
Remote Rebate
Remote Rebate
Threshold (Gross
For example, in the 55 Levy Scheme, any operator that fulfills the criteria for the remote
rebate (having more than 1,000 LBOs in Britain) shall pay a rate of 7.5% on the first
£20m of its gross win from its remote business and 7% on any gross win in excess of
£20m. In the 56 Scheme, the same operator would pay 7.75% on the first £25m of its
gross win from its remote business, and 7% on any gross win in excess of £25m.
The proposed remote Contribution shall apply to bets placed via all channels not
included in the statutory mechanism, including online, mobile, text and telephone bets
routed offshore.
The Contribution shall be made in arrears on a quarterly basis. Forecasts (to be kept
confidential) will be required on a quarterly basis to aid planning.
The Contribution shall be paid to the Horserace Betting Levy Board, on the assumption
that it will be invested into prize money. Racing will consult with ABPs regarding its
preferred distribution strategy for this element of prize money.
The understanding is that VAT is not applicable. The parties shall work together to seek
to ensure that the most tax efficient structure is put in place, for the benefit of all parties.
The rate of Contribution is not intended to set any precedent for future rates that might
apply under the Horserace Betting Right.
For the avoidance of doubt, betting operators whose businesses are entirely based in
Great Britain, and who therefore pay statutory Levy on all operations, will receive the
ABP kite mark (see below) and, if they have a digital business within their portfolio, will
be eligible for any central marketing support.
Term – in order to achieve ABP status, a betting operator must commit to make the
Contribution for a minimum of 3 years, to the end of the 57 Scheme year, ending March
Racing’s Commitments – through the Members‟ Committee, Racing shall commit to the
To discuss with ABPs amendments to the current fixture criteria to deliver racing
at times more beneficial to remote betting operators. Any change must have the
aim of delivering benefit to both industries.
To develop and implement a „kite mark‟ for ABPs, indicating which betting
operators have that status and support British Racing. This would be used on all
relevant websites and communications.
The “kite mark” shall be used in a media campaign across a number of available
platforms highlighting the ABP concept with logos of ABPs prominently displayed.
The campaign would highlight the support provided to British Racing – allowing
punters to make an informed choice as to who to bet with.
Racing wishes to see a vibrant LBO market and shall assist ABPs in any
discussions with Government that may further this objective.
In addition, a number of commercial entities within Racing (including thus far the Jockey
Club, ARC, the five Scottish racecourses and the European Breeders Fund) have
indicated their support for the ABP initiative and may, acting independently, and at their
absolute discretion, negotiate with those betting operators which have satisfied the ABP
Qualifying Criteria on a preferential basis. The individual ABP arrangements put in place
between each ABP and relevant commercial entity will be a matter for individual, bilateral
negotiation, but may include the following:
Only betting operators that are ABPs will be able to negotiate sponsorship or
commercial marketing rights at racecourses that choose to make such benefits
available, or commercial deals for access to, exploitation of, use and licensing of
their customer databases;
Only operators that are ABPs will be able to negotiate access to on-course Wi-Fi
services when provided at a racecourse that chooses to make such benefit
available (subject to the operator entering into relevant agreements in respect of
such access);
Co-operative marketing – there will be areas where supportive racecourses can
assist betting operators‟ businesses through cross-promotions, ticket offers etc.
This co-operative marketing activity will only be undertaken by supportive
racecourses with ABPs;
Access to racecourse press room, parade rings etc. could be restricted to
representatives of ABPs;
Preferential pricing structures with media rights holders.
As at 09/12/15