Despite a reported decline in betting turnover on the sport, contributions to the UK Horserace Betting Levy are expected to reach a new annual record in the 2024-25 financial year. According to the Horserace Betting Levy Board (HBLB), it anticipates receiving £108 million in levy payments, prompting careful commentary from the HBLB on long-term trends and strong warnings against further taxation from the Betting & Gaming Council (BGC).

The Horserace Betting Levy Board (HBLB) has stated it expects to receive £108 million (approximately $144 million) in levy payments during the 2024-25 financial year, which concluded on March 31, 2025. This figure, while preliminary and subject to further validation, represents a new annual record for the organisation, surpassing the existing record of £105 million set in 2023-24. The Horserace Betting Levy is a mandatory fund paid by bookmakers with annual gross profits on British horseracing over £500,000, calculated at a rate of 10%. This funding plays a crucial role in supporting various aspects of the sport.

Record Levy Income Despite Falling Turnover

The expected record levy income comes despite a reported dip in turnover on horseracing during the year. The HBLB had initially anticipated that levy income would decline year-on-year to approximately £100 million. However, bookmakers’ gross profit - which forms the basis of the levy calculation - was notably above recent years’ levels in February and March, particularly influenced by race results at the Cheltenham Festival in March, leading to the increased projected total.

Conversely, racing betting turnover for the 12-month period ending March 2025 was lower year-on-year, with average turnover per race down 8%. The 2024-25 total also fell 15% short of the 2022-23 figure and was 19% behind the figure recorded in 2021-22.

HBLB Allocates Funds and Comments on Outlook

In view of the anticipated record yield, the HBLB has outlined its plans for allocating these funds. The board agreed approximately £11 million worth of new grants to various projects and initiatives supporting British horseracing. In addition, it has pledged £93 million towards prize money and the sport’s regulation and integrity. HBLB Interim Chair Anne Lambert commented on the figures, as reported by iGaming Times, stating that a higher expected yield provided additional reassurance to the board moving forward and that the organisation’s cash position was currently “healthy,” enabling them to make additional funds available next year. However, she also acknowledged the fall in turnover, noting that this may have an impact on longer-term spending. Lambert stated, as reported by iGaming Times, that the HBLB “will exercise appropriate prudence in expenditure decisions and maintain sufficient reserves as bookmakers’ increased profits are being generated from falling turnover,” adding that “It remains to be seen whether this trend will continue in the longer term.” HBLB Chief Executive Alan Delmonte also offered insight into the year ahead, as reported by iGaming Times, stating that as a starting point, the organisation assumes a levy yield of £103 million for the year beginning April 2025, based on agreed bookmaker payments on account. He noted that these assumptions will be reviewed regularly and that HBLB sometimes carries out a mid-year reassessment if actual data significantly deviates from the aggregate payments on account.

BGC Warns Against Further Taxation

In response to the expected record levy yield, the Betting & Gaming Council (BGC) took the opportunity to issue a warning against further tax rises within the sector. This warning comes in the context of a recent Treasury tax consultation, proposing replacing the current three online betting and gaming tax rates with a single rate. However, the BGC has stated its concern that this proposal threatens an overall tax increase for online gaming, which could heavily impact the horseracing sector.

BGC CEO Grainne Hurst commented on the figures, as reported by iGaming Times, stating that for the fourth year running, contributions have increased to record levels, which she highlighted demonstrates the growing, long-term investment regulated betting provides British horseracing. However, she also expressed concern, as reported by iGaming Times, that “despite record levy contributions, racing continues to struggle, both as a sport and as a betting product, with betting turnover down again year-on-year.” Hurst stated, as reported by iGaming Times, that BGC members remain “committed fans of racing” and recognise its “huge economic impact in communities across the country.” Hurst argued, as reported by iGaming Times, that it is important that this “vital” contribution is not undermined by further new tax rises. She specifically warned that a single tax for online betting risks driving punters away from the sport or towards the black market. She characterised black market operators, as reported by iGaming Times, as “parasite operators” who “don’t pay tax, don’t care about safer gambling, or contribute a penny to the levy.” Hurst concluded, as reported by iGaming Times, that the BGC wants sustainable growth, for its members and for racing, and warned that “Any new taxes would halt investment, hurt punters and harm racing.”

In conclusion, despite declining turnover on horseracing, the Horserace Betting Levy is projected to hit a record £108 million for the 2024-25 financial year, driven by strong bookmaker profits in key months. This outcome prompts the allocation of funds by the HBLB and cautious commentary on long-term trends amidst falling turnover. Concurrently, the BGC has used the news to reiterate its warning against potential future tax increases on the betting sector, arguing that such measures would harm racing’s finances and inadvertently benefit the black market. The situation highlights the complex financial dynamics within the British horseracing and betting ecosystem as regulatory and fiscal policies continue to be debated.