UK Government Stays Firm On Racing Betting Levy; BHA Are Unhappy

The UK government has confirmed it won’t be budging for now on the 10% levy rate for horse racing betting, dismaying many in the gambling industry in the process.

This levy figure refers to the gross profits accrued by bookmakers that garner more than £500,000 from wagers placed on British racing.

Managed and collected by the Horse Race Betting Levy Board (HBLB), a non-departmental public body (NDPB) sponsored by the Department for Culture, Media & Sports (DCMS), their yield last year was £108 million, eclipsing the £105m amassed in 2024. However, the government’s decision has ultimately proved to be unpopular.

A long-running campaign

For years, gambling reform campaigners have worked closely with the racing sector lobbying to bolster the levy. The funds assorted by the HBLB are used to raise breeding standards and advance veterinary science, and it is viewed as a godsend for the sport.

But a review process originally conducted by the Conservative administration ran nearly two years past its deadline. Although horse racing was spared from an increase to the Remote Gambling Duty (RGD) rate in the November budget, costs across the board have been soaring, and racing is feeling the squeeze.

And the announcement has arrived at a bad time, considering a wave of new affordability checks has been proposed by the United Kingdom Gambling Commission (UKGC), spelling bad news for bookies and punters.

Government attempts to justify its decision

Tensions have been building in the racing community, but the government admitted it sees no reason to change course on the betting levy. And it is also opposed to extending the levy to international competitions.

Relaying a Written Ministerial Statement (WMS) by Baroness Twycross, the Minister for Museums, Heritage, and Gambling, Labour Minister Ian Murray said:

“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 at this time.

“Secondly, we do not support the extension of the levy to overseas racing. This is because the combination of the existing levy and commercial opportunities already appropriately reflects the specific relationship between the racing and betting industries in Great Britain.

“A sustainable future for British horse racing is the shared goal of the betting and racing industries, and joint action is required to achieve this.”

BHA reacts furiously

Unsurprisingly, some feel horse racing is being short-changed. The British Horse Racing Authority (BHA) claim horse racing gets a sparse return on bets placed compared to its competitors, and they can’t fathom why the levy rate isn’t shifting.

In a passionate response to the government statement, the BHA’s CEO, Brant Dunshea, said:

“The WMS leaves unexplained why, only a few months after the Budget, the DCMS believes there is no need to change the rate.

“British horse racing already gets a significantly lower return from the gambling industry compared to our nearest rival jurisdictions. While French and Irish horse racing gets 7.7% and 8.4% respectively, we receive less than 3%.

“This is compounded by the failure to recognise that in refusing to extend the levy to bets placed on overseas racing, the sport in Britain is funding our international rivals, which diminishes our global standing.”