UK Government Maintains 10% Horserace Betting Levy

The UK government has confirmed it will maintain the current 10% Horserace Betting Levy. This comes following a long-running review. Ministers opted against changes to the existing funding model for British racing.

The decision brings to a close a consultation process that began under the previous administration. Ministers said stability across the gambling sector was a factor behind the outcome.

Levy Structure Remains Unchanged

The decision was outlined in a written statement by Baroness Twycross. It was reiterated in Parliament by Ian Murray.

Under the current system, bookmakers generating more than £500,000 in annual gross profits from British horseracing bets must pay a 10% levy. The funds are collected by the Horserace Betting Levy Board. They’re then distributed to support the sport.

Latest figures show the levy generated £108m over the past year. This is up from £105m previously and show shows a steady growth in returns.

The government also confirmed it will not extend the levy to include bets on overseas racing. Officials argued that the existing framework, alongside commercial deals between operators and racing bodies, already shows the relationship between the two sectors.

Government Prioritises Stability

Murray emphasised the importance of consistency following recent regulatory and tax changes across the gambling industry.

He said the government does not consider it appropriate to pursue legislative changes to the levy at this time. Murray cited a need to provide certainty for operators and stakeholders:

“In light of the recent changes to gambling taxation, we want to provide stability and certainty to the gambling sector. For this reason, the government does not feel it is appropriate to pursue legislative changes to the rate of the horserace betting levy at this time.” – Ian Murray

The approach goes with a broader strategy to avoid additional disruption. This is due to other reforms, including financial checks and taxation adjustments, that are ongoing.

Industry Voices Frustration

The outcome has drawn criticism from the British Horseracing Authority. The latter had called for reform to increase funding for the sport.

Chief executive Brant Dunshea described the decision as disappointing. He drew particularly on the length of the review process.

Dunshea argued that British racing receives a comparatively low return from betting activity. According to the BHA, the sport captures less than 3% of betting revenues. We can compare this with 7.7% in France and 8.4% in Ireland.

Dunshea also described the widening gap between the cost of staging races and the income generated through betting. He warned that this imbalance could impact the sport’s long-term sustainability.

Collaboration Encouraged

Despite the criticism, the government reiterated its support for British racing. It encouraged closer collaboration between the racing and betting industries.

Officials suggested that commercial partnerships, rather than legislative reform, could play a greater role in strengthening financial returns for the sport.

For now, the levy remains unchanged. The industry has been left to navigate funding pressures within the existing framework.