UK opposition weighs betting levy to fund grassroots sport

By Keith Weir

LONDON, July 24 Wed Jul 23, 2014 6:01pm EDT

LONDON, July 24 (Reuters) - Britain's opposition Labour Party is considering imposing a new levy ononline betting and Premier League TV income to support measures to encourage more people totake part in sport, it said on Thursday.

Boosting the number of Britons whoplay sport regularly was one of theaims of the 2012 London Olympics,but the results have been patchy twoyears on.

"Our consultation looks at a number ofideas which aim to boost investmentin community and grassroots sportsby getting tough with the PremierLeague and betting companies," saidLabour's Harriet Harman, who isshadow culture secretary.

Labour, leading in the opinion pollsbefore next May's national election, floated the idea of extending a levy that bookmakers currentlypay to fund horse racing, broadening it to bring in other sports.

It also wants to ensure that more of the money raisedby the 20-team Premier League flows down to fund thegame at its lowest level of park soccer. The currentPremier League TV deals are worth more than 5 billionpounds ($8.5 billion) over three years.

The proposals drew a frosty initial response from thebetting industry and the Premier League.

British bookmaker Ladbrokes said the betting industrywas not a "bottomless pit" for politicians to raid.

"As far as we are aware no bookmaker or bettingoperator ever closed a community sports field or club,"said Donal McCabe, the company's director of externalrelations.

"So we are not sure why an extra tax is being proposedon an industry already facing two tax increases and which pays out over 65 percent of all itsearnings in taxes and levies,"

Bookmakers including William Hill and Ladbrokes are facing an additional annual tax bill of almost400 million pounds ($682 million) from a change in the treatment of online betting and higher dutieson machines in high street shops.

The Premier League said it was channelling 56 million pounds per season to grassroots soccer andgood causes, and distributing a further 60 million to clubs below the top flight to help fund theprofessional game.

"We understand that all those interested in the long-term health of English football want to seebetter grassroots facilities and higher levels of participation, particularly amongst young people,"the Premier League said in a statement.

"This is why we are committed to continue theunprecedented levels of funding we provide as well asbeing happy to engage on these matters." ($1 = 0.5871British Pounds) (Writing by Keith Weir, Editing by ElaineHardcastle)

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