Horseracing Body Closes Consultation On Easing Costs For UK Bookmakers

The Horseracing Betting Levy Board (HBLB) has been gathering feedback on its fiscal plan to lower operating and auditing costs for UK bookmakers. Having just wrapped up the consultation phase, the racing body is focusing on giving smaller and mid-sized bookies a helping hand financially.

A consultation phase was initially launched on August 25 to address the profit threshold at which point betting operators must supply a full accountant’s report verifying assessable profits from UK racing markets. And the HBLB is hoping their idea will level out the playing field.

Reducing administrative burden

According to the HBLB, 18 operators in 2025/26 were required to provide an independent accountant’s report for £2,000 as their assessable profits were between £250,000 and £500,000. It was suggested a further 16 bookies were within a small band that sat either side of this range.

At the moment, the HBLB is contemplating narrowing the reported band so that fewer operators incur the associated costs. This tackles a central component of levy administration as bookmakers can often face annual verification costs even when their profits fall below the threshold for paying levy.

Although the plan failed to stipulate a replacement threshold or an implementation date, the HBLB is adamant that narrowing the band would “capture a smaller number of operators”. And they are of the belief that this would reduce administrative burden and costs.

Levy fixed for now

For now, the existing levy rate imposed remains at a fixed 10% and affects those bookies with annual gross profits on racing of £500,000 or more. This was confirmed earlier this year by the UK Government, which dismissed an extension to bets overseas.

At the time, the Department for Digital, Culture, Media and Sport (DCMS) cited a need for stability following a raft of gambling tax changes that were introduced.

This included a near doubling of remote gaming duty (RGD) paid on online casino bets from 21% to 40% of gross gambling yield (GGY), which came into effect in April.

However, Brant Dunshea, Chief Executive of the British Horseracing Authority (BHA), slammed the decision, as he said:

“It is disappointing that it has taken almost three years to determine there should be no change in the Levy rate.

“Throughout protracted negotiations British horseracing engaged with the Government in good faith, including providing clear evidence of a substantial - and growing - gap between our costs of providing the sport and the return we receive on betting. Today’s WMS leaves unexplained why, only a few months after the Budget, the DCMS believes there is no need to change the Levy rate.”

Forging closer ties

Racing has found itself at a bit of a crossroads to ensure that it remains an enticing proposition for a younger demographic. Added to that, the economic landscape has had a bruising impact on retail, and a proposed increase in Machine Gaming Duty (MGD) to 40% in tomorrow’s Budget could spell further problems.

The British Horseracing Authority (BHA) Chair, Simon Cox, who started his new role earlier this month, was recently urged by Simon Clare, Entain’s group director of consumer PR and a member of the BHA’s jumps patterns committee, to forge closer ties with bookies.

He said: “Racing and betting are both facing significant headwinds, but our two industries are interdependent, and I’d urge Simon to continue to embrace a constructive relationship with bookies. Racing and betting are stronger together than apart and ultimately share many of the same challenges and the same customers.”