Nick Rust, chief executive of the British Horseracing Authority, has welcomed the news that a reformed Levy system is set to be implemented in April.
The Government has announced plans to reform the Levy which ensures all operators who takes bets on British racing from customers based in Britain will have to pay 10 per cent of their gross profits above the first £500,000 they make.
The current system has been in existence since 1961 but has become outdated and while some offshore firms have been making voluntary contributions towards British racing, it is not compulsory.
The Government is hoping to implement the new scheme in April this year - subject to state aid approval for the proposals - and it will be enforced via a statutory Horserace Betting Levy.
Rust believes the reformed system will provide a "fair" return and expects a "significant uplift" in the funding of the sport.
He said: "I welcome today's announcement from Government regarding the implementation of the Levy replacement which will restore to racing a return from all betting on our sport at a fair and proportionate rate. This is critical to the future health of British racing.
"Once the new system is implemented in April 2017, we will see a significant uplift in the sport's central funding that will benefit our participants and the many local communities which racing supports across all corners of the country.
"Everyone in British racing would like to extend their thanks to the Minister for Sport, Tourism and Heritage, Tracey Crouch MP, and her dedicated team at the Department for Culture, Media and Sport.
"British racing is committed to working closely with our partners in the British betting industry to make a success of this new environment, and grow what is the most natural, exciting betting product to the future advantage of both our industries and the wider economy."