Horserace Betting Levy Board

Transcription

1 Horserace Betting Levy Board Tasha Power Head of Operations BHA Overview Day Newmarket Racecourse Wednesday 30 th September 2015

2 History, Status and Function Early 1960s: Legalisation of off-course cash betting on horseracing = loss of income to racecourses. Act of Parliament established the horserace betting levy and the Levy Board. Non-Departmental Public Body. Sponsoring Government Department: Culture, Media and Sport. Section 24(1) of the Betting, Gaming and Lotteries Act 1963 requires the HBLB to assess and collect monetary contributions from bookmakers and the Tote, and to apply them for purposes conducive to any one or more of: (a) (b) (c) the improvement of breeds of horses; the advancement or encouragement of veterinary science or veterinary education; the improvement of horseracing.

3 Levy Collection Levy applies to GB-based bookmakers. Betting offices, phone and internet operations pay 10.75% of gross profit on British horseracing betting business. On-course bookmakers pay a flat fee (currently 240 a year).

4 Levy Income 2005/ /16 Levy Income 2005/ /16 ( millions, includes voluntary contributions) * 70.5* / / / / / / / / / / /16 44th 45th 46th 47th 48th 49th 50th 51st 52nd 53rd 54th * estimated

5 Revenues to Racing from Betting Levy On-Course Pictures to LBOs RACING Sponsorship Pictures overseas

6 What does the Levy Board do? Fixture list structure Funding for Racecourses/ Horsemen Loans to racecourses Betting: analysis of data HBLB Prize money for all classes of race Independent viewpoint Veterinary/ Breeds Funding for integrity

7 What does the Levy Board do? Race date Weekday Race Time Number of races Race Class Race type Handicap Type Race Distance Rating Band Surface Going Race code (flat/jump) Racecourse Session (afternoon/evening) Race by Race Data Type of TV coverage Race status (e.g. abandoned) Overround Index Turnover (TOI) Index Gross Win (GWI) Total Prize Money Race Incentive Fund (yes/no) Divided race (yes/no) Favourite SP Winner SP No. of Runners No. of non runners

8 How the Levy Board spends its money Prize Money 52.4m (2014: 51.9m) Raceday Services 16.4m (2014: 16.4m) Fixture Incentives 3.0m (2014: 3.0m) Veterinary Science 1.8m ( m) Industry Training 1.22m ( m)

9 Record year for Prize Money in 2014 and again in 2015 In 2013 the Levy Board allocated 50.2m to prize money; +30% on 2012 and +45% on 2011 levels. In 2014, a further increase to 51.9m and in 2015 to 52.4m Total prize money in 2014 of 123m, a new record. Levy Board prize money allocations approaching pre-levy decline levels. Maintained Levy Board prize money plus media rights and extra racecourse contribution lead to expected new record prize money level of around 130m in 2015.

10 Levy Board Prize Money ,471 fixtures of which 1,451 are HBLBfunded in some way; 1,314 receive prize money. 36m of the 56m is allocated by formula: each racecourse receives prize money grants from the Levy Board, based on: 40% on its betting turnover 60% on its own prize money contribution The more a racecourse generates in Levy and the more prize money it puts in from its own coffers, the more we pay. A racecourse will receive a prize money grant relative to the total prize money on offer for that qualifying fixture.

11 Veterinary Science and Education

12 Veterinary Science and Education Codes of Practice - Racehorse Health HBLB funding of 1.8m (12.5% increase on 2013) HBLB celebrated 50 years of equine veterinary science in 2014 and education having funded some 47 million with aim of improving the health and welfare of the racing and breeding Thoroughbred horse. This investment has led to significant advances in the understanding, prevention, treatment and management of a wide variety of diseases, injuries and issues affecting the Thoroughbred.

13 Supporting Breeds in 2015

14 Current Issues Quality Vs Quantity Horse population falling and field sizes Core Racing Programme right races at right time for right horses Interactive Race Planning responsive system trainers proactive Offshore operators and non-leviable bets Maintaining a balanced budget Popularity of horseracing Replacement? Pressure remains on gross profit from horseracing

15 Future of the Levy? Last Government announced in March 2015 plans to introduce a Horserace Betting Right New Government soon expected to confirm plans