WILL ONLINE SPORTSBOOKS BE INCLUDED IN NEW UK SPORTS CONTRIBUTION SCHEME?

25 May 2007

As if taxation is not enough, there is now a suggestion that companies "donate" more cash

Although it is not yet certain whether online sportsbetting companies are included, a new proposal on sharing profits with sports bodies in the UK will have bookmakers re-doing their sums this week.

Reports in the UK media have suggested that the government will put its weight behind proposals that bookmakers should contribute a share of their profits to Britain's five major sports - football, tennis, both codes of rugby and cricket. The argument put forward by sports administrators is that growth in gambling revenues from sports other than racing (which already has such a program in place) should entitle the sports concerned to benefit. A secondary argument is that because betting increases the likelihood of integrity challenges in sports events, more investment will have to be made in monitoring and enforcement practices.

The latest state of play is that UK Sports Minister Richard Caborn will be communicating with bookmakers to set up negotiations on a suitable level of contribution. Some bookies are understood to be supporting a voluntary contribution totalling GBP 5 million annually in the immediate future, with provision for increases in the years ahead. Others favour a levy similar to that deployed in the horse racing industry, where a percentage of profits is set aside for the governing bodies.

With estimated annual sports betting revenues of the order of GBP 500 million in Britain, the UK government is reportedly in agreement that the sports bodies have a persuasive moral case.

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