nder this new deal, the company will now hand over 10.75 percent of its revenues from British horse racing customers to British Racing, the sport's authority.
Paul Bittar, CEO of the British Horseracing Authority, said the reciprocal agreement with Betfair was a landmark for racing and betting industries. "It brings many benefits, including substantial and increased guaranteed funding as well as providing certainty for the sport in relation to Betfair's contribution," he said. "We hope that similar arrangements with other betting operators will follow."
The deal replaces Betfair's voluntary contribution to a 50-year-old annual levy which is now regarded as outdated and has largely dwindled in recent years.
The value of the levy has fallen to a forecast us$ 102.3 million in 2011/12 from an annual figure of over us$ 156.4 million less than a decade ago.