UK betting operators could be forced to pay racing bodies 10% of online race betting revenue, according to the responsible government minister.

Over the weekend, the Racing Post reported that Tracey Crouch, who represents the Department of Culture, Media and Sport (DCMS), had told racing industry stakeholders that the government would establish a rate of 10% of race betting revenue that both retail and online bookmakers would be required to remit to the racing industry as a replacement for the existing Levy scheme.

The current Levy system requires retail bookies to return 10.75% of their race betting revenue to racing, but there is no formal requirement for a similar kickback from online race betting operations. Some major UK online betting operators had struck deals with racing to remit lump sum payments to racing but racing stakeholders claimed these voluntary contributions were too low.

Companies like Gala Coral Group had offered to pay a harmonized 7.5% rate on race betting revenue but the British Horseracing Authority (BHA) deemed this insufficient. The BHA launched a new Authorized Betting Partner (ABP) scheme that reserved racing sponsorship opportunities for bookmakers who’d agreed to ante up 7.5% of online race betting revenue on top of the 10.75% retail levy.