Levy talks to resume on Monday as government says a voluntary deal is in the sector's 'best interest'

Talks between racing and bookmaker representatives over a deal to reform the levy are set to resume on Monday but there is still work to be done with time ticking down to when ministers must report to parliament on progress.

The government has said a voluntary agreement would be "in the best interests of the sector".

The levy, British racing's central funding system which is set to yield around £100 million in the latest financial year, was last reformed in April 2017. At the time the government pledged to carry out a review of the levy rate within seven years to ensure it reflected any changes in the market.

When the government published its gambling white paper in April last year it launched that review to make sure the sport did not suffer any financial consequences from its plans to introduce affordability checks on bettors.

However, ministers asked racing and betting to come to their own arrangement.

Talks have been taking place since last summer but progress towards an agreement has been slow. British racing's leadership has asked for the levy rate to be increased and for the system to be extended to capture a share of the money bet on foreign racing by British punters.

Bookmakers, through the Betting and Gaming Council (BGC), have instead made an offer based on a percentage increase in the levy but with the money dedicated to promoting and marketing the sport.

A number of meetings between representatives of racing, the BGC and ministers at the Department for Culture, Media and Sport, including secretary of state Lucy Frazer, have taken place this week.

Stuart Andrew: Pressing for a voluntary dealCredit: Edward Whitaker

Gambling minister Stuart Andrew is due to make a statement to parliament on progress in the coming days and has been pressing both sides to agree a deal.

In February Andrew said there was no legislative opportunity to amend the levy, emphasising the need for a voluntary deal, although racing believes that changes can be made relatively simply through a type of secondary legislation called a statutory instrument.

A separate levy on gambling operators to raise funds for the research, education and treatment of problem gambling is also set to be introduced through secondary legislation in the coming months.

Andrew's view was reflected in the government's response to a report on gambling regulation by the Culture, Media and Sport Committee, which was published on Friday.

The select committee's report, which came out just before Christmas, had said the government must ensure that a new settlement arising from the levy review will mitigate the impact of the white paper reforms on racing.

In its response this week the government said it recognised "the significant contribution that racing makes to British sporting culture and its particular importance to the British rural economy".

The government said it was "exploring legislative options" to change the levy, but added: "However, we believe a voluntary agreement is in the best interests of the sector in the first instance.

"We are looking at all options and encouraging racing and betting to work together in the best interests of the sport. Reaching a mutual agreement on the way forward for the levy would be beneficial to everyone."

Read these next:

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Senior figures take racing's concerns over affordability checks and levy to 10 Downing Street 

Racing makes counter-offer to BGC as levy reform talks continue in atmosphere of 'good faith' 

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