Explanatory note

This Order is made under section 1 of the Legislative and Regulatory Reform Act 2006 (c. 51). It repeals the existing legislation relating to the Horserace Betting Levy (“the Levy”) and its operation, substantially re-enacting it in the Gambling Act 2005 (c. 19) (“the 2005 Act”) with amendments to reflect the following.

This Order abolishes both the Horserace Betting Levy Board (“the Levy Board”) established under section 24 of the Betting, Gaming and Lotteries Act 1963 (c. 2) (“the 1963 Act”), and the Levy appeal tribunals established under section 29 of the 1963 Act.

The primary functions of the Levy Board are first, to assess and collect the proceeds of the Levy to be paid by bookmakers and betting exchange providers, and secondly, to apply the proceeds of the Levy for the benefit of the horseracing and equine sector and the advancement or encouragement of veterinary science or education.

This Order also transfers the Levy Board’s assessment and collection functions to the Gambling Commission, and transfers its application functions to a body to be designated by the Secretary of State for these purposes.

Articles 2 and 3 abolish the Levy Board and the Levy appeal tribunals respectively.

Article 4 of and Schedule 1 to this Order restate and amend the law regarding the Levy by inserting a new Part 17A into the 2005 Act. The offence in section 28A of the 1963 Act regarding disclosure of information by a member of the Levy Board or appeal tribunal is not replicated in Part 17A of the 2005 Act.

Article 4 and Schedule 1 also insert new provisions into the 2005 Act relating to the application of the Levy, including a duty for the Secretary of State to designate a body to apply Levy funds which meets the specified conditions, the functions and duties of such a designated body and provisions dealing with the termination of any designation.

Article 5 of and Schedule 2 to this Order make consequential amendments to primary and secondary legislation. As well as removing references to the Levy Board, these provisions repeal and revoke existing legislation relating to the operation of the Levy: the Horserace Betting Levy Act 1981 (c. 30), the remaining provisions of the Horserace Betting Levy Act 1969 (c. 14) and the Gambling Act 2005 (Horserace Betting Levy) Order 2007 (S.I. 2007/2159) (“the 2007 Order”) and the saving for sections 24 to 30 of the 1963 Act. Consequential amendments are made to legislation which refer to this legislation, and also to the Horserace Betting and Olympic Lottery Act 2004 (c. 25) which contains a power for the Secretary of State to abolish the Levy system.

This Order also makes amendments to the 2005 Act in consequence of the new Part 17A. Among other things, these amendments provide that Part 15 (inspection) and the offence in section 342 (false information) do not apply to Part 17A. In addition, sections 116 (review) and 120 (conditions for suspension or revocation of operating licences), as modified by the 2007 Order, are substantially restated so that a licensee’s failure to pay the Levy becomes a reason for review or suspension of an operating licence granted under the 2005 Act, but only if that licensee has been in default for a period of at least three months and has failed to pay the Levy on a previous occasion within the last five years.

Article 6 and Schedule 3 provide that the Secretary of State may make property and staff transfer schemes in connection with the abolition of the Levy Board and Levy appeal tribunals.

Article 7 of and Schedule 4 to this Order make transitional and saving provisions as a result of abolishing the Levy Board and the Levy appeal tribunals.

An impact assessment of the effect that this Order will have on the costs of business, the voluntary sector and the public sector is available from the Department for Digital, Culture, Media and Sport, 100 Parliament Street, London SW1A 2BQ. It is also published with the Explanatory Document alongside the Order on www.legislation.gov.uk.