Horseracing Betting Levy contributions to hit record £108 million

The anticipated increase in levy revenue occurs amidst a downturn in horse racing turnover for the year.

The Horserace Betting Levy Board (HBLB) has projected a remarkable £108 million ($144 million) in levy payments for the fiscal year 2024-25, marking a historic high for the organization, even as turnover in betting has decreased during the year.

Established as a mandatory fund, the Horserace Betting Levy requires bookmakers with annual gross profits exceeding £500,000 from British horse racing to contribute at a rate of 10%. These funds play a vital role in sustaining the racing sector and its associated initiatives.

If the target is met, it will exceed the previous record of £105 million set for 2023-24; however, the figures for the year ending March 31, 2025, remain provisional and pending further validation.

Initially, the HBLB had forecast a decline in levy income, estimating it would fall to approximately £100 million year-on-year. However, increased bookmaker gross profits—particularly notable in February and March—contributed to a favorable adjustment in the projected total. The HBLB cited the outstanding performance during the Cheltenham Festival as a significant factor influencing these results.

Nonetheless, overall racing betting turnover for the past 12 months experienced a decline, with average turnover per race decreasing by 8%. Additionally, the total for 2024-25 fell short by 15% compared to 2022-23 and was 19% behind figures from 2021-22.

In light of the robust levy income, the HBLB has allocated approximately £11 million towards new grants for various projects and initiatives. Furthermore, it has committed £93 million for prize money and to uphold the sport’s regulation and integrity.

HBLB’s Commitment to Strategic Funding Initiatives

Addressing the current statistics, HBLB Interim Chair Anne Lambert expressed confidence that the increased yield provides additional assurance for future endeavors. She noted the organization’s financial position is “healthy,” allowing for increased funds to be available in the upcoming year.

However, Lambert acknowledged the downturn in turnover, cautioning that this may influence longer-term expenditure patterns. “We will prudently assess our spending and maintain adequate reserves since increased bookmaker profits are arising from declining turnover,” she remarked. “It remains to be seen if this trend is sustainable in the long run.”

HBLB Chief Executive Alan Delmonte provided additional insights regarding the forthcoming year. He indicated that the organization anticipates a levy yield of £103 million as an initial estimate, based on agreements with bookmakers effective from April 2025.

“We will continuously reassess these assumptions throughout the year based on our analysis and valuable insights received from major bookmakers,” Delmonte elaborated. “The HBLB may conduct a mid-year review with betting operators if actual figures deviate significantly from the planned payments.”

Betting and Gaming Council Advocates Against Increased Taxation

In conjunction with the projected record levy yield, the Betting and Gaming Council (BGC) has raised concerns regarding potential tax increases within the industry.

The Treasury recently initiated a tax consultation proposing to consolidate the existing three online betting and gaming tax rates into a single rate. The BGC has cautioned that this could lead to an overall tax increase for online gaming, which may adversely affect the horseracing sector.

“For the fourth consecutive year, contributions have risen to unprecedented levels,” remarked BGC CEO Grainne Hurst. “This underscores the enduring investment that regulated betting is making in British horse racing.”

Hurst expressed concern over the continuing struggles faced by racing, both as a sport and as a betting product, as evidenced by a year-on-year decline in betting turnover. “BGC members are ardent supporters of racing and fully recognize its significant economic contributions to communities throughout the nation,” she added.

Highlighting the potential repercussions of increased taxation, Hurst warned that a unified tax rate for online betting may inadvertently push bettors towards the black market. “These unregulated operators evade taxes, disregard safer gambling practices, and contribute nothing to the levy,” she said. “The BGC advocates for sustainable growth that benefits both our members and the racing industry. Increased taxation would stifle investment, negatively impact punters, and jeopardize the future of racing.”