The UK government has confirmed that the Horserace Betting Levy will remain unchanged at 10%, concluding a review process that extended well beyond its original timeline. The decision, delivered through a Written Ministerial Statement, ends expectations of a near-term adjustment to the levy structure and has prompted a critical response from the British Horseracing Authority (BHA).

Government Holds Position on Levy and Scope

Ministers cited the need for stability across the wider gambling sector as a key reason for maintaining the current rate. Recent changes to gambling taxation were also referenced in the government’s position. As Thoroughbred Daily News (TDN) reports, Ian Murray, minister for creative industries, media and arts, stated: “[I]n 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 of the horserace betting levy at this time.”

The levy applies to bookmakers generating more than £500,000 in gross profits from bets on British horseracing, with a 10% contribution collected by the Horserace Betting Levy Board. These funds are allocated to support various aspects of the sport, including breeding, veterinary research, and infrastructure improvements. The most recent figures show levy revenue reaching £108 million, an increase from £105 million the previous year.

Alongside maintaining the existing rate, the government confirmed it would not extend the levy to cover betting activity on overseas racing. Officials indicated that the current framework, combined with commercial arrangements between racing and betting operators, already reflects the relationship between the two industries.

The review process began under the previous administration and continued for nearly two years beyond its expected completion date. Its conclusion removes any immediate prospect of legislative changes affecting the levy.

Ministers also emphasized ongoing support for the racing sector, pointing to its cultural and economic role within the UK. High-profile events such as the Grand National and Royal Ascot continue to draw significant attention both domestically and internationally.

BHA Response Highlights Funding Gap

The outcome has drawn a firm reaction from the BHA, with chief executive Brant Dunshea expressing dissatisfaction with both the process and the final decision.

“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 from betting.”

Dunshea also pointed to comparisons with other jurisdictions, stating: “British horseracing already gets a significantly lower return from the gambling industry compared to our nearest rival jurisdictions. While French and Irish horseracing gets 7.7% and 8.4% respectively, we receive less than 3%.”

The BHA further raised concerns regarding policy consistency, referencing earlier government advice: “In its pre-Budget advice to the Treasury, the DCMS also warned that ‘unless a carve-out for racing was accompanied by an increase in the Horserace Betting Levy…racing would be unlikely to feel any benefit.’”

He added: “Today’s WMS leaves unexplained why, only a few months after the Budget, the DCMS now believes there is no need to change the Levy rate.”

Concerns Over Regulation and Market Impact

Beyond the levy itself, the BHA has highlighted additional regulatory issues that could affect the sport’s financial position. In particular, Dunshea raised objections to the proposed introduction of affordability checks for gamblers.

“It was the last Conservative Government that introduced the concept of affordability checks on gambling, despite our repeated warnings of their impact on horseracing and the growth of illegal betting with all its associated risks for consumers.

“We agree that this Labour Government should not consider itself bound by the policies of its predecessor.

“In which case it is surely time for the DCMS and HMT to recognise that adding more red tape to an already highly regulated sector will only fuel a significant rise in illegal betting, deprive horseracing of funding and prevent the Government collecting millions of pounds in much-needed taxation.”

Dunshea also addressed the broader implications of the decision, stating: “The Government would be genuinely congratulated if it took this moment to recognise the impact that no increase in the Levy will have on horseracing’s finances and stopped the introduction of affordability checks which threaten the sport’s future.”

The government has indicated that cooperation between racing and betting stakeholders will be necessary to maintain long-term sustainability. However, the latest outcome has intensified debate around funding structures and regulatory direction within the industry.