The British Horseracing Authority (BHA) has announced the long awaited Levy deal will come into effect in the first race at Yarmouth this afternoon.
Bookmakers and the BHA struck the milestone in January, as racing was missing out on income from companies based offshore.
Originally, the 1961 Levy deal meant only betting companies based in the UK were bound to pay 10% of their profits back into racing.
The new deal brings these offshore companies into the same bracket as the limited number of firms that remained in the UK.
Nick Rust, Chief Executive of the BHA said: “Today is a very important day for British racing as the new Levy will make a significant contribution to securing the long-term health and growth of our sport.”
It is believed that racing will receive an extra windfall of around £40 million a year to be spent on the grassroots of the sport.
There has been much criticism surrounding prize money at the lower end of racing and this extra income will be used to boost this area.
Minister for Sport, Tourism and Heritage, Tracey Couch said: “The legislation will make a profound difference to the British racing industry and to the thousands of hard-working stable staff, jockeys and trainers” while ensuring British racing “can continue to be the home of the best quality racing in the world for years to come.”
Many significant and legal hurdles have been passed since January to come to a full and binding agreement and it is hoped it can have the significant impact that has been claimed.
Only time will tell, but racing is in need of some positive changes and inspiration through the grassroots and this can be the start.