Home Miscellaneous • New Levy System to be Introduced for the UK Bookies and its Effect on Tiki Island Slot

New Levy System to be Introduced for the UK Bookies and its Effect on Tiki Island Slot

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It came as a surprise to the UK betting operators when they heard the news of government planning to offer the coveted betting right to the horserace industry. Last Wednesday, it was revealed the Racing Post that the Tony government is going to declare its plan to substitute the Levy system with the new regime. According to this new regime, the entire online bookmakers and all the land-based ones are bound to handover a certain share of their revenue made from the UK race betting.

New Levy System

Expected Solution to the Levy System

As per the reports, Bob Blackman, Tory MP is expected to bring forth the question regarding the steps taken for annual levy system. Bob is all set to raise this issue in front of Minister for culture, media and sport. He wants to get an idea about the government’s promise to implement a permanent solution requiring all the land-based bookmakers to cut around 10.75% of their entire revenue of the UK race betting to the sport.

In addition to this, the concerned minister is expected to listen to the issue and respond to it with a promise to launch the secondary law. This legislation actually extends the kickback to the other race wagers whether they are placing a bet on an online site or a traditional betting store. This new law is in process and shall be in place by the next year in April.

The Current Levy Scheme

According to the existing levy scheme, it produces almost around 100 million pounds to racing per year. However, after the introduction of the new law, the same amount is expected to boost by 30 million pounds annually. Of course, the final implementation of the plan is only possible when it will acquire majority of votes in both the House of Lords and parliament. In fact, it will require the permit from the European Union and an assurance that the law does not involve any illegal state aid.

Authorised Betting Partner Scheme (ABP)

It is sure that the British Horseracing Authority is going to remain with the Authorized Betting Partner Scheme until the time new law is implemented. In addition, the ABP limits all the racing sponsorship companies that have agreed to provide a part of their online race betting revenue back to the sport.

Considering the present status of firms under the ABP scheme, BetFair, Bet365, 32Red and BetVictor are four of them that have been given the official status of ABP. Moreover, the popular four ABP holdouts including SkyBet, Ladbrokes, William Hill and Coral were deprived of the right promote on the TV subscription channel. The bookmakers were only allowed to advertise on the TV after signing up to the ABP partners.

Conclusion

It is true that the UK bookies have beheld the introduction of the latest 15 percent online point-of consumption tax. They have also witnessed the increase in the Machine Games Duty from 21 percent to 25 percent. This simply means that the UK bookies are constantly being introduced to newest tax laws and they all are bound to accept it.

Author:Steve

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