The opposition Labour political party in the UK is considering a proposal that would introduce a levy on all sports betting, with all revenue generated to be ploughed into grassroots sports and used to help tackle problem gambling.
The proposal has been set out in a new ‘sport for all’ document issued by shadow culture secretary Harriet Harman and shadow sports minister Clive Efford.
Under current regulations, only gambling on horseracing is subject to a levy with the money – around £82 million (€103.8 million/$19.8 million) in 2014 – returned to the racing industry.
“We are consulting on whether we should introduce a levy on betting, including online betting, to fund gambling awareness and support for problem gambling but also to improve community sports facilities and clubs,” Efford said, according to the Guardian newspaper.
“It’s my preference that the income from the levy went into a general pool to help grassroots sport and from which the respective sports would draw their future elite sportsmen and women.
“Football gambling online and in betting shops is now far larger than horseracing gambling and yet it does nothing to help the sport itself. I think they have a moral obligation to help the industry from which they make billions, and the results could be dramatic.”
The betting industry has argued that it already pays tax on profits and there is no need to contribute more to the public purse, while some sports organisations argue that their tournaments are intellectual properties and bookmakers should pay for the right to take bets on events.
Despite the UK gambling industry being hampered by complicated tax regulations due to many operators being based offshore, Efford said that Labour, if in government, would be able to levy football betting conducted overseas since a 15% levy on horseracing bets has recently been extend to operators not located in Britain.
“The Premier League also needs to be forced to return to its previous obligation to ensure that a five per cent voluntary levy of its income from domestic TV rights are ploughed back into grassroots sport,” Efford said.
Citing a report by the 1999 Football Task Force, Efford said income from domestic football rights had risen by 75% in recent years, but instead of the English Premier League top-flight club football competition helping grassroots sports, much of the money was being used for parachute payments or donations to lower league clubs.
Commenting on Labour’s proposals, a spokesman for the Conservative party said: “This is yet another short-term gimmick from Labour. It is a tax on football fans which will mean higher ticket prices for ordinary people wanting to watch our national sport.”
The industry is waiting for further detail before taking a firm view but would be expected to strongly oppose any proposals similar to the UK horserace betting levy or the French right to bet currently in place.
source : www.igamingbusiness.com
