Betfair has joined forces with the BHA (British Horseracing Authority) in a deal that will see the world’s largest betting exchange contribute at least £40 million to the sport over the next five years. If Betfair‘s profits exceed an agreed rate, then that figure could rise even further.
In the first ever deal of its kind, the BHA and betting exchange Betfair have made a commercial arrangement that will provide at least £40 million to the sport of horse racing over the next five years, replacing the voluntary Levy contributions made by Betfair.
The deal also guarantees that if Betfair profit from horse racing in Britain by more than an agreed rate, then they must put even more money back into to the sport.
BHA chief executive Paul Bittar said of the deal: “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. We hope that similar arrangements with other betting operators will follow.”
Bittar added that, “We firmly believe both in the value of British racing as a product and the need to work closely with the betting industry for our mutual benefit.”
Martin Cruddace, chief legal and regulatory officer for Betfair, said: “For the first time, British racing and Betfair have proved it is possible for us to work together on a truly commercial basis. 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.”