Ladbrokes and Coral have finally signed up to Turf TV, with William Hill and Betfred likely to follow suit in the next few days, but the fallout from the row will deepen divides over the upcoming levy determination and could have profound implications for the future funding of racing in the UK.

Both bookmakers and racecourses expressed disappointment yesterday after the government announced it would set the 2008/09 levy on horserace betting at the same rate as last year. The government also rejected bookmaker’s requests to offset their licensing costs and their bills for Turf TV and delivered a warning over the future regulation of B2 gaming machines in shops.

British racing has angered the UK’s biggest bookmakers with its demands for additional fees for broadcast signals from its best-known tracks, but a court battle could open up prickly competition law concerns for both sides.

Sports Minister Gerry Sutcliffe has brokered a national deal to finally settle the long-running pitches dispute between the UK’s racecourses and on-course bookmakers.

The introduction of the 2005 Gambling Act in September should have signalled a time of renewed optimism for UK gambling operators. However, the material impact of the smoking ban and tax increases announced earlier this year, added to the cost of compliance with the Act, have caused this optimism to all but disappear.

Speaking on the second day of the Betting Show in Birmingham, the vice-president of the Independent Bookmakers Association expressed concern that the current licensing fee structure has left independent bookies carrying a far greater financial burden than their larger competitors.

The Culture, Media and Sport Select Committee has said it is to investigate the allocation of on-course bookmaker’s pitches, against a background of extreme uncertainty over exactly which group will replace the existing National Joint Pitch Council on September 1.

The UK’s largest high street betting chain Ladbrokes suffered as its wealthy punters pulled back on their spending, but the operator said it was not yet planning any betting shop closures in Ireland, despite evidence in its full-year results published yesterday of the extent of the blight also affecting the Irish retail market.

The UK’s major bookmakers have denied collaborating in their response to the threat of Turf TV as their High Court case with the racing service moves into its crucial third week.

The UK’s Conservative opposition is considering halving the stake limits on category B2 machines, otherwise known as FOBT’s, in UK betting shops, according to sources.