The UK government has confirmed that betting operators will be required to kick back 10% of their race betting revenue to the UK racing industry effective April 2017.

On Friday, Minister for Sports, Tourism and Heritage Tracey Crouch confirmed the new 10% rate will apply to all betting operators, be they on-course, off-course, retail, online, pool betting operators, betting exchanges or spread betting sites.

The new 10% rate of gross gambling yield above the first £500k bookies make from racing will replace the existing Horserace Betting Levy system, which featured protracted annual negotiations that made the Israeli-Palestinian schism look positively convivial.

As a result, the Levy Board will be dismantled early in 2018, while the UK Gambling Commission will be responsible for collecting the new fees. A newly established Racing Authority will be tasked with deciding how best to distribute the pound of flesh racing has cut from the bookies’ hides.