Racing Seeking ‘Fair’ Return: Rust

In the wake of Wednesday’s announcement that the British government would introduce a ‘Racing Right’ that would see bookmakers pay for the right to take bets on racing, British Horseracing Authority Chief Executive Nick Rust has insisted that racing will seek a “fair and reasonable return” from bookmakers under the newly proposed system. The Racing Right is expected to be a replacement funding mechanism to the current Levy system. 

Rust, who has a background in the bookmaking industry, told At the Races yesterday, “The Levy Board does a really good job, but unfortunately they can only act within a statutory framework which governs what they can and can’t do. Unfortunately, whilst the Levy has stood the test of time for the last 50 years, probably for the last 10, since the digital age came about, it is not an effective mechanism.” 

The Association of British Bookmakers spoke out against the Racing Right Wednesday, but Rust said, “The Racing Right gives us the opportunity to work directly with bookmakers and set a reasonable rate with them to authorize betting on British racing and hopefully build the dialogue between us moving forwards. I think the major issue for the bookmakers is a cost for them of such a right and I want to reassure them we are looking for a fair and reasonable return.” 

He added, “Anyone who offers bets on British racing will pay an authorization right–we are not looking to treble revenues and I am acutely aware of the business models of betting shop business and digital business.” 

“After the election, we would hope we can press forward with the machinery of the legislation to put this in place, but we will still almost certainly have one more Levy year,” Rust concluded. “We are not being complacent, we still need a big effort to move it forward, but I think this was a very big statement that the government is prepared to move it forward.”