SBC News Voice of the Sports Betting Industry
Britain’s Labour Party announced it was considering imposing new tax levies on online betting and Premier League TV incomes, in order to support grass root sports in the UK. The Party issued a public mandate on Thursday, outlining measures and policy ideas to raise capital for UK sports.
The Labour Party, leading in national opinion polls before next May’s national election, floated the idea of extending a levy that bookmakers currently pay to fund horse racing, broadening its scope in order to bring in other sports.
Labour Shadow Culture Secretary Harriet Harman, is said to be leading the proposals on new tax levies on sports betting and Premiership TV income. “Our consultation looks at a number of ideas which aim to boost investment in community and grassroots sports by getting tough with the Premier League and betting companies,”
The proposals also aims to raise capital from Premier League football clubs, who will be ordered to donate fixed funds from TV broadcast deals, currently valued at £5 billion ($8.5 billion) over three years.
The proposed measures have drawn critical reaction from the sports betting industry. Ladbrokes Director of Communication Donald McCabe commented on Labours Proposals “As far as we are aware no bookmaker or betting operator ever closed a community sports field or club. We are not sure why an extra tax is being proposed on an industry already facing two tax increases and which pays out over 65 percent of all its earnings in taxes and levies,”
In 2015 UK bookmakers are facing an additional annual tax bill of almost 400 million pounds ($682 million) from a change in the treatment of online betting and higher duties on machines in high street shops.
