The Department for Culture, Media and Sport (DCMS) has confirmed there will be no changes to the rate of the horseracing betting levy paid by UK-licensed bookmakers.
DCMS said in the statement published on Wednesday, 25 March, that the government “does not feel it is appropriate to pursue legislative changes to the rate of the horserace betting levy at this time”.
Bookmakers with annual gross profits above £500,000 currently pay 10% of these profits on British racing, with the Horserace Betting Levy Board responsible for distributing the funds towards prize money and areas such as equine welfare, veterinary research and industry support.
Introduced in 1961, the levy – the sport’s central finding system – collected just shy of £109m for the latest financial year, up from £105m the prior year and £100m in 2022-23.
An overhaul to the levy implemented in 2017 expanded British horseracing’s funding by including offshore operators taking bets from jurisdictions like Gibraltar, alongside a commitment by the government to further levy review by 24 April 2024.
The review was undertaken by the previous Conservative government, with the conclusions published by DCMS revealing the levy rate will remain unaltered.
The reason for not seeking a change in legislation, the DCMS said, was to “provide stability and certainty to the gambling sector” in the wake of recent changes to gambling taxation.
While the tax paid by operators on horseracing has been left at 15% of gross revenue, as announced in last November’s Autumn Budget, remote gaming duty is to be hiked from 21% to 40% as of 1 April.
Remote sports betting is set to jump from 15% to 25% from the following April, in what is a double blow for the regulated industry and has led to certain operators terminating sponsorship deals with racetracks as they look to cut costs.
Furthermore, it was announced by the DCMS that the government does not support the extension of the levy to cover betting with UK-licensed bookmakers on overseas horseracing, such as French, Irish and Australian action.
The reason given was that the combination of the existing levy and commercial opportunities “already appropriately reflects the specific relationship between the racing and betting industries in Great Britain”.
The British Horseracing Authority (BHA), the Racehorse Owners Association and the Racecourse Association supported the extension to overseas action as a way of creating a level playing field with other horseracing nations and increase funding for the sport in Britain.
Proponents of the levy covering foreign horseracing say it would raise an additional £20m to £25m a year.
Reacting to the announcement, the BHA said it was “disappointing” it took almost three years to determine there should be no change to the levy rate.
The sport’s governing body also suggested British horseracing receives a “significantly lower return” from the gambling industry compared with rival jurisdictions.
The BHA stated: “While French and Irish horseracing 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.”
DCMS said a sustainable future for British horseracing is the “shared goal of the betting and racing industries” and that the government is “steadfast in its support for racing”.
The department’s statement concluded: “British racing is the envy of the world, and we would encourage the industry to work as one – and with the betting industry – to ensure a sustainable future to ensure the continued success of this national treasure.”
While the almost £109m in levy collected for 2024-25 was the highest since 2017, due in part to bookmaker-friendly results at last year’s Cheltenham Festival, the Horserace Betting Levy Board warned in December that British horseracing faced “significant challenges” due to the decline in betting – or turnover – on the sport.
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DCMS also confirms it does not support extending the levy to gross profits on overseas racing, though the department emphasises its “steadfast support” for the sport
The post UK government decides to make no changes to horseracing’s betting levy first appeared on EGR Intel.