Bookmakers are bracing themselves to handle an annual bill of close to £4 million as racing struggles to replace funding lost by the soon to be introduced on course tax-free betting initiative.
Tax-free betting will start in July, but with the abolition of the levy, which brings in almost £5.5 million a year, alternative sources of income will have to be found to finance racing.
Dr Michael Dowling, the Government appointee as "facilitator", will meet with bookmakers next week as part of his negotiations with the various parties who will have to make up the cost and the jockeying for favourable negotiating positions is well under way.
Sources among the on-course bookmakers predict they will ultimately have to pay in the region of £750,000, leaving the off course bookmakers with a bill of £3 million. However, the betting shops predict their cost will be nearer £2.4 million. The other groups in the negotiations are the racecourses and the breeders.
The on-course bookmakers already intend that their allocation will be collected in two ways. One with a fixed fee on their members and the other is on a percentage of turnover. A formula for replacing the levy has to be found by next month in order to be included in the finance bill. The Minister for Finance Charlie McCreevy has said that if alternative sources of funding are not found, then tax free on course betting will not be introduced.
