Article: Betfair could join exodus from UK

OK well since the posting the damn link isnt working here is the article!

Betfair could join exodus from UK

Betfair, the online betting site that floated on the Stock Exchange last week, has warned that it could join the exodus of digital gaming companies from the UK if the Goverment does not act to level an "uneven playing field".

David Yu, the Betfair chief executive, told The Sunday Telegraph in his first interview with a British national newspaper: "We're very happy to be licensed and to pay sensible tax but if we don't see movement we'd have to consider what's right for the business over the long term."

Mr Yu's comments come as he awaits the results of a review of the regulation of remote gambling by the Department of Culture, Media and Sport.


Online betting companies based in Britain pay a gross profits tax of 15pc, which has prompted bookmakers including Ladbrokes and William Hill to move their online betting operations offshore.

Mr Yu feels Betfair is penalised for staying in the UK, where 1,000 of its 2,000 staff work. Separately, Betfair and other bookmakers are locked in a wrangle over the 10pc levy they pay to the UK horseracing industry. Today is the deadline for next year's levy to be agreed.

"We've been very, very proud to be a British business and I think we're one of the real UK success stories," said Mr Yu.

We've been engaged in a dialogue with the Government and what we would hope is that we can find a way for that playing field to be levelled."

"The situation we have is where we're one of a very small number of bookmakers who are still here onshore.

"What we have to consider is that many others have gone offshore and we don't think that is a fair and level playing field right now. We've been engaged in a dialogue with the Government and what we would hope is that we can find a way for that playing field to be levelled.

"Last year, we paid about £20m in gross tax on our profits, so we're making a significant contribution back into the UK."

Asked whether he was looking for a special deal from the taxman, he responded: "Not necessarily at all.

"What we're saying is that there must be a way that by being an onshore business and paying tax we would be entitled to do things in a way that makes it fair for us because right now there's no distinction between somebody who's offshore compared to somebody who's onshore.

"It might be around advertising, for example.

"Maybe one thing might be that you would need to be licensed in the UK and paying tax if you want to advertise in the media or do other things here in the UK."

Mr Yu also made his first public comments on the disclosure in Betfair's flotation prospectus that he was absent from work for a brief period in March with a cardiological complaint.

"Thanks for asking about it but I feel great," he said.

"We decided that in the interests of transparency we should put something in but I feel fine. I wouldn't have gone through this process if I wasn't."

If you read the Betfair submission to the levy board, it becomes clear why Betfair are a bookmaker.

Some more walofs in the evening standard....


Simon Milham
01.11.10



Racing faces the real possibility of strike action by owners and trainers after the Levy yield negotiations broke down last night.

The Government will now decide how much money racing should receive for 2011-12 after the Bookmakers' Committee and Horserace Betting Levy Board could not reach agreement by the midnight deadline.

Last week, Paul Dixon, president of the Racehorse Owners' Association and chairman of the Horsemen's Group, whom he represented at the negotiations, said it was inevitable strike action would take place if racing did not get the £150million it was demanding.

Bookmakers are believed to be offering less than half that sum. Many feel racing's wrath should not be with the high street bookmakers - despite moving their operations off shore to avoid paying into the Levy - but with the Betfair betting exchange.

In the past, Betfair have claimed they are a bookmaker but it appears they have changed their identity to become a 'technology platform' in a bid to pay around three times less than traditional UK bookmakers.

William Hill's CEO Ralph Topping said: "The emergence of Betfair has distorted the UK betting market and led to significant tax and Levy leakage. The taxpayer and the racing industry have been the losers."

It is only the second time in recent history that the Levy yield will be determined by the government and Jeremy Hunt, the secretary of state for Culture, Olympics, Media and Sport, has a difficult task keeping all parties happy.

Racing was also represented at the Levy negotiations last night by British Horseracing Authority chairman Paul Roy and Racecourse Association chairman Ian Barlow.

Levy Board chairman Paul Lee said: "It is very disappointing that it has not proved possible to reach agreement on the 50th scheme."

Thing is, the big books would be quite happy for cartoon racing to take over from the real stuff - whereas its betfair's bread and butter product, horses in running they'll basically never have any decent competition to it, compared to in-running footy and tennis and other products which you can get at most books now.

A chance to make BF look bad and endanger the general future of horse racing, of course the books are going to seize it with both hands!

Askari makes a good point above.

betfair are whinging about 15% tax on gross profits? when they have a 20% premium charge? whip out the violins...

I went into a Corals about 11am the other day there were 4 blokes sitting round a table playing some sort of Bingo game and getting quite excited about it...........I have seen the future of high st bookmaking.

60 years ago there were 33 greyhound tracks in London, now there are just 2.