Draft Horserace Betting Levy Regulations 2017

Rosena Allin-Khan Excerpts

Monday 27th March 2017 General Committees

[Dr Rosena Allin-Khan (Tooting) (Lab)]

It is an honour to serve under your chairmanship, Sir Alan. I beg your pardon for being a fraction late. It is the first time it has happened and you are absolutely right that there was a very good reason for it. I am happy to indulge you further on the matter after the Committee rises.

The horserace betting levy was introduced many years before the Minister and I were born. Although it serves a good purpose, it was introduced more than half a century ago and it is time to bring it into 2017. The levy funds central areas within the racing industry, including the equal distribution of prize money; higher racing integrity; advances in equine welfare and veterinary sciences; and, importantly, improvements in the mental and physical wellbeing of participants.

The current levy does not apply to overseas and online betting operators. Given that the profits generated, which serve such important causes, have been exponentially declining, we believe it is time to revise the levy. In 2005-06 alone, the levy produced more than £99 million, but the number drastically dropped to just £54 million a decade later. With the popular rise in online gambling, especially since the development of smartphones, we have seen many aspects of our daily lives move online. We put photos in frames less and on Facebook more. Phones have become the new shops.

Just as those parts of our lives have moved online, so has betting. With relative ease, punters can place bets on any and every sports event taking place across the world. I am sure we all welcome such technological developments, but it is our duty to ensure a level playing field across all markets, including gambling. That means bringing the horserace betting levy into the 21st century, where online bookmakers are required to contribute, just as high street bookmakers are.

The levy comes into effect only when a bookmaker makes £500,000 profit on British horseracing, so it will not adversely affect smaller companies competing against larger companies. The Opposition welcome that move. In the discussions I have held with relevant organisations and bodies, there was agreement that that was a step forward worth making. Having said that, there are a few areas that I must explore and question in order to feel confident that the Government have taken them into consideration, and that they will act if they have not done so already.

I hope the Minister can reassure me on the following points. While smaller in scale, greyhound racing is a section of the market where it is not compulsory for bookmakers to contribute towards a levy. They give voluntarily at a rate of only 0.6%. Why have the Government not gone further and sought the introduction of a greyhound racing levy? Has the Minister made any predictions or estimations on the extra sums that will be generated with the changes to the levy? What discussions have there been and what considerations have been given to the welfare of horses, and will any of the additional sums raised be ring-fenced to ensure that horse welfare is made a priority?

Given that extra money will be given to racecourses across the country, will the Government ask them to commit to paying staff the living wage as set by the Living Wage Foundation? Why has the Minister chosen to review the levy after seven years? Will she explain her decision? The Opposition do not intend to divide the Committee, but I look forward to the Minister’s response to my questions.