The UK government has confirmed it will maintain the Horserace Betting Levy at 10 percent following the conclusion of its long-awaited review, prompting criticism from the British racing industry.
The decision was outlined in a Written Ministerial Statement delivered in the House of Lords by Baroness Twycross and repeated in the Commons by Ian Murray, who serves as the Labour government’s Minister for State for Media, Tourism and Creative Industries. UK horse betting was spared, remaining at 15 percent, when Chancellor Rachel Reeves confirmed a gambling tax increase in November that would take effect in April 2027.
Government prioritises stability
The UK government said it would not pursue legislative changes to the levy rate, citing the need to provide “stability and certainty” to the gambling sector following recent taxation reforms. Officials also confirmed they would not extend the levy to cover overseas racing bets, arguing that the current framework already reflects the relationship between betting and racing industries in Great Britain.
The Horserace Betting Levy requires bookmakers with annual gross profits on British racing above £500,000 to contribute 10 percent, with funds collected by the Horserace Betting Levy Board. The levy generated £108 million in 2025, up from £105 million the previous year.
BHA calls move ‘disappointing’
The decision has drawn a strong response from the British Horseracing Authority (BHA), with chief executive Brant Dunshea expressing frustration. Dunshea said it was “disappointing” that nearly three years of review had resulted in no change, despite what he described as clear evidence of a widening gap between the cost of delivering the sport and returns from betting.
BHA CEO said, “It is disappointing that it has taken almost three years to determine there should be no change in the Levy rate.” He also questioned the government’s consistency, noting that previous advice from the Department for Culture, Media and Sport had suggested racing would not benefit from broader gambling reforms without a levy increase.
Concerns over global competitiveness
The BHA highlighted that British horseracing receives a significantly lower share of betting revenue compared to international rivals. Dunshea said, “While French and Irish horseracing gets 7.7 percent and 8.4 percent respectively, we receive less than 3 percent.”
Dunshea warned that the refusal to extend the levy to overseas racing effectively benefits competing jurisdictions, potentially undermining the UK’s global standing in the sport. He also raised concerns about regulatory pressures, including affordability checks, arguing they could drive bettors towards illegal markets and reduce funding for racing.
In 2024, figures revealed that the British horseracing industry’s online betting turnover had plummeted by £3 billion in the last two years. This amounted to a 25 percent reduction in wagers and was blamed on affordability checks.
The industry stakeholders have opposed these checks strongly, calling them an intrusive measure that would alienate players. The Gambling Act review introduced affordability checks. The idea was to prevent people from betting more than they could afford. However, the plan immediately ruffled feathers, especially in the horse racing world. There is a belief that the checks will lead players not willing to undergo regulation towards the black market. This would eventually result in losses for the legal industry. Despite the criticism, the government reiterated its “steadfast support” for the sector and encouraged closer collaboration between racing and betting stakeholders.
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