Key Points
- Following nearly three years of assessment, UK officials have opted to maintain the 10% horserace betting levy at its current level
- Bookmakers with annual gross profits exceeding £500,000 on British racing contributed £108 million through the levy in the previous year
- Racing authorities expressed disappointment with the outcome, emphasizing that operational expenses for the sport are growing faster than betting revenues
- Officials also declined to expand the levy’s scope to include wagers on international racing events
- Industry stakeholders across racing and gambling sectors raised alarms that upcoming affordability verification requirements might drive bettors to unregulated platforms
British officials have determined that the horserace betting levy will remain at its existing 10% rate. This conclusion marks the end of an evaluation period spanning close to three years.
Baroness Twycross delivered the news through a written parliamentary statement, with Ian Murray echoing the announcement before the House of Commons. The assessment originally commenced under the former Conservative administration and significantly exceeded its projected completion timeline.
Industry representatives from racing had advocated for an upward adjustment. Their position centered on evidence suggesting British racing receives comparatively lower returns from betting operators than similar nations including France and Ireland.
Murray explained that maintaining the current structure would deliver “stability and certainty to the gambling sector” amid recent adjustments to gambling tax frameworks. He noted that pursuing statutory modifications to the levy percentage was deemed inappropriate under present circumstances.
Authorities further confirmed that the levy would not be broadened to encompass wagers on international racing. Officials stated that existing commercial frameworks adequately represent the connection between Britain’s racing and betting sectors.
Racing Authority Expresses Frustration Over Extended Timeline and Unchanged Outcome
The British Horseracing Authority issued a prompt response. Chief executive Brant Dunshea characterized it as “disappointing that it had taken almost three years to determine there should be no change in the levy rate.”
Dunshea emphasized that racing officials had supplied comprehensive data demonstrating that operational expenditures for staging the sport are escalating more rapidly than revenues derived from betting activities.
He highlighted that the Department for Culture, Media and Sport had previously informed the Treasury that the racing sector would gain no advantage from a recent taxation exemption unless levy rates increased. He questioned why the DCMS now appeared to reverse this assessment without explanation.
The BHA additionally voiced apprehension regarding affordability verification measures being implemented by the Gambling Commission. Dunshea cautioned these requirements pose a serious risk of redirecting bettors toward unregulated markets and potentially eliminating millions in racing funding.
Dunshea drew comparisons between Britain’s financial returns and those achieved in France and Ireland. He cautioned that declining to extend levy coverage to international wagers essentially meant British racing was subsidizing its overseas rivals.
He appealed to government officials to acknowledge the financial consequences of their determination. He simultaneously advocated for abandoning affordability verification requirements, describing them as measures that “threaten the sport’s future.”
Gambling Sector Echoes Racing Concerns Regarding Affordability Verification
The Betting and Gaming Council acknowledged the predictability the decision offers following recent taxation increases. Nevertheless, the organization shared identical apprehensions about affordability verification raised by racing officials.
The BGC pressed ministers to achieve “urgent progress” on addressing this challenge. A representative cautioned that implementing the checks according to current proposals would redirect customers toward illegal unregulated markets.
The representative noted that illegal platforms provide zero customer safeguards and contribute nothing to sporting activities. The BGC reaffirmed its dedication to collaborating with racing to expand and safeguard the sector.
The Horseracing Bettors Forum similarly endorsed the BHA’s stance. It declared that affordability verification was not a “realistic option” without corresponding levy reforms.
The HBF communicated via X that elected officials required reminders about the “cultural, historical and financial importance of a healthy racing industry.”
The levy mechanism applies to bookmaking operations with yearly gross profits surpassing £500,000 on British racing. Last year’s levy collections reached £108 million, representing a modest increase from the previous year’s £105 million.
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