Betting ready for big boost

The Grand National will become an even bigger event

BBC Sport Online asks Racing Post editor Alan Byrne about the introduction of tax-free betting in Britain.

Q. How and why has tax-free betting been introduced?

AB. Tax-free betting was initially the brainchild of the betting industry.

After lengthy talks Gordon Brown accepted the proposal because offshore betting was becoming big business in Gibraltar and Antigua and Britain was losing out.

How will it benefit the punters?

It will benefit the betting public enormously. Under the old system, if you placed a bet of £10 on a horse to win a race you would have to pay an extra 90p tax.

This will no longer be the case. For people who spend a lot of time in the bookmakers it will save them a lot of money.

Will it be better for spread betting - shorter odds or longer odds?

It is more complicated when it comes to spread betting and I think they are still finalising the finer details.

However, there will still be no tax for the punters.

So, if you put £10 on Robbie Fowler to score first against Greece, how would that affect that bet?

You would put £10 on him with no extra charge for tax and, if he scored the opening goal you would not be taxed on your winnings.

Are you expecting a stampede of betting from punters when the tax free kicks in on Saturday?

There will certainly be more than on your average weekend. It is hard to predict how the betting industry will be affected in the long term.

The move is good news for bookies

The industry hopes that punters will invest the money they save on tax in the form of another bet.

Perhaps the main change to the industry will be that the companies who are based offshore will return to Britain - this was a condition which Brown insisted on if tax-free betting was introduced.

How will it affect bookmakers in the long term?

It should improve the industry as a whole. But firms must remember that they must still offer betting as an attractive package.

How much will turnover rise?

Turnover will go up by about 40%. Profits will probably only improve by about 20-30%.

Will events like the Grand National become even bigger betting days?

Absolutely. If everyone puts what they would have paid in tax straight on a horse, the Grand National will become even bigger.

Will this be the biggest day in betting history?

Certainly one of the most momentous days in betting's history.

The betting business will become bigger and the fact that this industry has persuaded the government to go for the idea shows how much clout it has got.

Gordon Brown wanted to turn Britain into the betting capital of world.

This is the first step towards that dream being realised.