WebConnect

ROA Chief Executive Richard Wayman (pictured) has welcomed the increase in prize-money resulting from the agreement on the levy for 2013-14.

He said: "The Levy Board's increased allocation to prize-money of around £11 million is a very welcome and much-needed development, as is the improvement in the relationship between the racing and betting industries.

"It is essential this agreement provides the springboard for a more modern framework to reflect the fact that today's betting industry is very different from 50 years ago, when the original legislation was introduced."

Levy Board members unanimously agreed the 52nd levy scheme for 2013-14 a full week before the statutory deadline of 31 October.

The Bookmakers' Committee estimated that the scheme will yield £72.9 million. That compares to the estimate of £72.4m for the current scheme.

William Hill, Ladbrokes and Coral have again agreed to guarantee that their combined contribution will not be less than £45m. Betfair have undertaken to make a contribution to British Racing, through the Levy Board, which is assumed at £7m.

The next levy scheme will roll over many of the terms from the previous deal with a headline rate of levy at 10.75% of bookmakers' gross profits on British racing, and with the thresholds applicable to betting offices increased to reflect inflation.

The new scheme makes adjustments to the arrangements for relieving the levy's impact on smaller operators with an increase in the flat rate rebate for each betting office.

Levy Board chairman Paul Lee (pictured) said: "The board is extremely pleased to have reached unanimous agreement. This will provide further stability and make possible significant additional expenditure on prize money in 2013.

"I would like to give recognition to betting and racing for the constructive approach that they have taken in seeking early resolution to the terms of the next levy scheme."

The Levy Board's prize-money allocation, expected to be £50.2m, compares to £38.9m in 2012 and £34.8m in 2011, inclusive of contributions to breeders' prizes.

Lee added: "Increasing prize-money is an objective of the board in 2013 and we are delighted to announce this substantial rise. We believe that it will be warmly welcomed.

"Importantly, we are able to make this increase without changing the measured approach which we have taken with all expenditure decisions over the past three years. Because we have been prudent, we can now increase our contribution on a sound and responsible basis.

"On the basis that racecourses continue to make their own much increased contributions, there is a real prospect of 2013 providing record levels of prize-money."

24 October 2012