Offshore Gambling and the Horseracing Levy

Laurence Robertson Excerpts

Wednesday 13th July 2011 Commons Chamber

[Matthew Hancock]

My hon. Friend raises an important question. Betting exchanges should of course be brought onshore as part of the creation of a level playing field. We must also address the question of what constitutes a bet, for tax and levy purposes. I strongly believe that when two people interact to make a bet, that is a bet. We should go forward on that basis.

[Mr Laurence Robertson (Tewkesbury) (Con)]

I congratulate my hon. Friend on raising this issue. As he knows, I represent Cheltenham race course, which I would argue is the greatest race course on earth, especially in the national hunt field. He is absolutely right to say that the levy is broken and needs to be replaced. Does he agree that its replacement, whatever it might be, should be based on a commercial arrangement so that there can be no room for manoeuvring or slippage? Should it not be a purely commercial arrangement, perhaps between bookmakers and race courses? Does he have that in mind as the best way forward?

[Matthew Hancock]

The future of the levy should be based on a commercial arrangement so that the Government do not constantly have to get involved, but that commercial arrangement must be based on the sale of a right to bet on a race. Otherwise, racing will be putting on something for nothing, and the gambling industry will be making a profit—which I support—using the input from racing for which it is not paying. So long as such a commercial arrangement was based on a contract relating to the sale of a right, I would support it.

Resolving this issue is critical to ensuring that we can build the future of racing on a sustainable foundation, so that this vital sport can be fully and properly funded and the people who run it and work in it can know that it has a strong, long-term future. In the name of racing, and of all those whom I represent and who support me, I urge the Minister to act.