Thursday, 5 July 2012
: Betting exchange Betfair has come to a five-year commercial arrangement with the British Horseracing Authority that will provide a guaranteed minimum of £40 million to UK racing.
The deal, achieved in conjunction with Britain's Horsemen's Group and Racecourse Association, will see Betfair pay 10.75% of all horseracing revenues from their British users.
The BHA has committed to setting a minimum level of annual fixtures in order to optimise betting opportunities.
The announcement was made to London's stock exchange and coincided with the BHA decision to withdraw from a high court judicial review that betting exchange customers should not pay a levy on betting activities.
"We are delighted that we have been able to reach an agreement with Betfair, one which represents a landmark for both the racing and betting industries," said BHA Chief Executive Paul Bittar.
"It brings many benefits, including substantial and increased guaranteed funding, as well as importantly providing certainty for the sport in relation to Betfair's contribution.
"We hope that similar arrangements with other betting operators will follow.
"This agreement has required a high degree of co-operation both within racing, with all the major organisations closely involved in negotiations, and of course with Betfair, who have shown great commitment in their intent to be a constructive commercial partner with our sport.
Betfair's Martin Cruddace added, "This deal is a genuinely historic.
"For the first time, British racing and Betfair have proved it is possible for us to work together on a truly commercial basis."