Online Betting Exchange Betfair To Contribute £40 million to British Racing

Published Wednesday, July 04, 2012 -

The horse racing industry has been suffering a slow decline in the U.K. as well as in other parts of the world. One argument the racing industry has been having is with betting operators who have been slow to react to the decline in revenues and have not been paying the requested dues to sustain the horse racing industry.

Betfair the world’s biggest sports book and betting exchange has been trying hard to avoid the cost of support to the racing industry but has finally come around and signed an agreement with British Racing. The commercial deal revealed that Betfair will pay approximately £40 million to support the racing industry. The five year significant arrangement was agreed upon by all parties involved. Chief Executive Officer of the British Horseracing Authority, Paul Bittar, just one segment of British Racing, commented on the arrangement, “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.”

Betfair didn’t feel required to contribute since they moved their headquarters to Gibraltar. Martin Cruddace, Chief Legal and Regulatory Officer at Betfare, suggested in the past that the horse racing industry was not as valuable as it considers itself. Cruddace, is now calling the agreement a, “genuinely historic moment”. Cruddace continued to add, “For the first time, British Racing and Betfair have proved it is now possible for us to work together on a truly commercial basis. Of course it has not been easy but the end result completely justifies all the hard work. 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”

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