Betfair reaches commercial agreement with British racing

Betting exchange Betfair has reached a commercial agreement with the British Horseracing Authority, the Racecourse Association and the Horsemen's Group promising at least £40m of funding over five years. Under terms of the agreement, the betting exchange will pay 10.75pc of all revenues on the sport from their UK customers.

The agreement replaces Betfair's current annual voluntary Horserace Betting Levy payments, with the agreement taking effect from the 51st Levy Scheme covering 2012-13.

Paul Bittar, chief executive of the BHA, said: "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.

"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."

Martin Cruddace, chief legal and regulatory officer at Betfair said: "This deal is a genuinely historic moment. For the first time, British Racing and Betfair have proved it is possible for us to work together on a truly commercial basis.

"Of course it has not been easy but the end result completely justifies all the hard work.

"We hope that this marks a new era and call on other betting operators to adopt similar agreements to help ensure a strong, healthy and vibrant horseracing industry in this country."