The horse racing industry has been in turmoil in recent years with a huge squeeze of the Levy settlement having a massive impact on the amount of prize money on offer.
This in turn has had an impact on both the quality and quantity of racing with a knock-on effect for horse betting punters.
Traditionally, the levy has been a payment made between the bookmakers and the racing industry, which is calculated as a percentage of betting receipts made UK horse racing events.
However, there have been huge problems caused by a disagreement before the between the two parties leading to a year-on-year reduction on the total received by racing.
The problem has been made even worse with many UK bookmakers moving their business offshore and also the rise of the betting exchanges – with both falling outside the scope of the Levy.
Culture secretary, Jeremy Hunt, announced that the Levy amount set for 2012 will be between £75m-£80m and there will be a full review of the funding of sport from gaming activities.
Although racing would like to be viewed apart from other sports it appears that there will be a “level playing field” for all sports.
The consultation is expected to favour the sports administrators over the bookmakers who are seen to have benefited from a poor system of checks and balances in the past.
In fact, it was feared that under the present 50 year Levy system, racing might have been in line for contributions as small as £50m in future years.
This would have had a devastating impact on the industry, which is in dire need of expansion rather than contraction if it is to survive and flourish.