Commentary on Sections Section 2: Payment of Horserace Betting Levy by holders of remote operating licences
21.Section 2 gives power to the Secretary of State to make regulations to secure that the liability for payment of the horserace betting levy under section 27 of the Betting, Gaming and Lotteries Act 1963 includes all bookmakers who are required to hold a remote operating licence under the Gambling Act 2005.
22.The horserace betting levy was established by the Betting Levy Act 1961. The levy was subsequently consolidated into the Betting, Gaming and Lotteries Act 1963. The current horserace betting levy is assessed and collected by the Horserace Betting Levy Board in accordance with the 1963 Act.
23.Liability to pay the levy is imposed on bookmakers under section 27 of the 1963 Act. Currently, liability to pay the levy under section 27 does not extend to bookmakers who are based outside of Great Britain. It applies only to those who are based within Great Britain. Section 2(1) gives power to the Secretary of State to make regulations to extend the category of bookmakers liable to pay the levy to include all bookmakers required to obtain a remote operating licence from the Gambling Commission. This will include bookmakers based overseas who will be required to obtain a remote operating licence from the Gambling Commission as a result of this Act.
24.Section 2(2) sets out a non-exhaustive list of the types of provision that could be included in any regulations made under subsection (1). It makes it clear that the power in subsection (1) is a broad power, including power to make changes to the existing levy system to secure its extension to all bookmakers required to obtain a remote operating licence.
25.Any regulations made under subsection (1) would have to be approved by a resolution of each House of Parliament before they could be brought into force (section 2(3)).
26.Section 2(4) clarifies that nothing in section 2 is to be read as preventing the Secretary of State bringing Part 2 of the Horserace Betting and Olympic Lottery Act 2004 into force, or exercising any power under that Part. Part 2 of the 2004 Act enables the Secretary of State by order made by statutory instrument to make provision for the abolition of the Horserace Betting Levy Board and the levy system, and make transfer schemes to transfer any property, rights and liabilities of the Levy Board to specified persons at specified times.