It has been reported that Betfair has reached a five-year deal with the British Horseracing Authority that will see the massive online betting exchange send 10.75 per cent of its horse-racing revenue from its UK customers back to the industry.

The news comes courtesy of an article by The Telegraph, which has explained that the deal replaces the company's current voluntary payments to the horse racing levy.

The report has quoted BHA CEO Paul Bittar as saying the agreement is "a landmark" for both industries and that it "brings many benefits, including substantial and increased guaranteed funding as well as importantly providing certainty for the sport in relation to Betfair's contribution."

(With files from The Telegraph)