TLDR
- The UK government has decided not to increase the 10% horserace betting levy after a review lasting nearly three years
- The levy generated £108 million last year from bookmakers with gross profits above £500,000 on British racing
- The British Horseracing Authority called the decision disappointing and said costs of staging the sport outpace returns from betting
- The government also ruled out extending the levy to bets placed on overseas racing
- Both racing and betting industry bodies warned that proposed affordability checks could push bettors toward the illegal market
The UK government has confirmed it will not raise the horserace betting levy from its current rate of 10%. The decision ends a review process that ran for nearly three years.
The announcement was made in a written statement by Baroness Twycross and repeated in the House of Commons by Ian Murray. The review originally began under the previous Conservative government and ran well past its initial deadline.
Racing bodies had been pushing for an increase. They argued that British racing gets a lower return from bookmakers compared to countries like France and Ireland.
Murray said the government wanted to provide “stability and certainty to the gambling sector” following recent changes to gambling taxation. He added that pursuing legislative changes to the levy rate was not appropriate at this time.
The government also confirmed it would not extend the levy to bets placed on overseas racing. It said current commercial arrangements already reflect the relationship between the racing and betting industries in Great Britain.
BHA Criticizes Lengthy Review and Unchanged Rate
The British Horseracing Authority responded quickly. Chief executive Brant Dunshea said it was “disappointing that it had taken almost three years to determine there should be no change in the levy rate.”
Dunshea said racing had provided the government with clear evidence showing that the costs of running the sport are growing faster than the money coming back from betting.
He pointed out that the Department for Culture, Media and Sport had previously told the Treasury that the sector would not benefit from a recent tax exception unless the levy was raised. He said the latest statement left it unexplained why the DCMS now believed no change was needed.
The BHA also raised concerns about affordability checks being introduced by the Gambling Commission. Dunshea warned these checks risk pushing bettors away from the regulated market and could cut millions from racing’s finances.
Dunshea compared Britain’s returns to those in France and Ireland. He warned that refusing to extend the levy to overseas wagers meant British racing was effectively funding its international competitors.
He urged the government to recognize the impact the decision would have on the sport’s finances. He also called for the scrapping of affordability checks, saying they “threaten the sport’s future.”
Betting Industry Joins Racing in Warning Over Affordability Checks
The Betting and Gaming Council welcomed the stability the announcement provides after recent tax increases. However, it shared the same concerns about affordability checks raised by racing authorities.
The BGC urged ministers to make “urgent progress” on the issue. A spokesperson warned that if implemented as currently proposed, the checks would drive customers to the illegal black market.
The spokesperson said the illegal market offers no customer protections and makes no contributions to sport. The BGC said it remained committed to working with racing to grow and protect the industry.
The Horseracing Bettors Forum also backed the BHA’s position. It said affordability checks were not a “realistic option” without reform of the levy.
The HBF posted on X that politicians needed reminding of the “cultural, historical and financial importance of a healthy racing industry.”
The levy applies to bookmakers with annual gross profits above £500,000 on British racing. It generated £108 million last year, up slightly from £105 million the year before.
