The Horserace Betting Levy Board (HBLB) has announced projections to receive £108 million ($144 million) in levy payments for the fiscal year 2024-25, setting a new annual record for the organization, despite a decrease in betting turnover during the period.
The Horserace Betting Levy is a compulsory fund imposed on bookmakers with annual gross profits from British horse racing exceeding £500,000, at a rate of 10%. This funding is crucial for supporting the industry.
If this target is met, it will surpass the current record of £105 million set in 2023-24. Nevertheless, the figures for the year ending on March 31, 2025, are preliminary and subject to further validation.
According to the HBLB, initial expectations foresaw a decline in levy income to around £100 million annually. However, a surge in bookmakers’ gross profit – the basis for calculating the levy – during February and March led to an increase in the total amount. The HBLB attributed this rise to race outcomes at the Cheltenham Festival in March.
Nonetheless, betting turnover for the 12-month period was lower compared to the previous year, with average turnover per race dropping by 8%. The total for 2024-25 also fell short by 15% compared to 2022-23 and lagged behind by 19% from 2021-22.
Given the higher levy income, the HBLB has allocated around £11 million in new grants for projects and initiatives. Additionally, it has committed £93 million towards prize money and the regulation and integrity of the sport.
HBLB commits to additional funds from levy income
In response to the figures, HBLB Interim Chair Anne Lambert stated that the increased revenue provides further stability for the board going forward. She highlighted the organization’s solid financial standing and its intention to allocate additional funds in the upcoming year.
However, Lambert also acknowledged the decline in turnover, noting that this might impact long-term expenditure decisions.
“We will be cautious in our spending decisions and maintain adequate reserves as bookmakers’ increased profits are stemming from reduced turnover,” Lambert remarked. “The sustainability of this trend in the long run remains uncertain.”
HBLB Chief Executive Alan Delmonte shared insights on the upcoming year, indicating an assumed levy yield of £103 million to start, based on agreed bookmaker payments for the period starting April 2025.
“These assumptions will be regularly reviewed throughout the year based on our analysis using valuable data voluntarily provided by major bookmakers,” Delmonte explained. “HBLB may conduct a mid-year reassessment with betting operators if actual data significantly deviates from the projected payments.”
Betting and Gaming Council warns against additional taxes
Regarding the anticipated record yield, the Betting & Gaming Council (BGC) cautioned against further tax hikes within the industry.
The Treasury recently proposed a tax consultation aiming to replace the existing three online betting and gaming tax rates with a single rate. However, the BGC expressed concerns that this change could lead to an overall tax increase for online gaming, potentially impacting the horseracing sector significantly.
“For the fourth consecutive year, contributions have reached record levels,” stated BGC CEO Grainne Hurst. “This underscores the sustained investment regulated betting brings to British horse racing.
“Despite the record levy contributions, it is worrying to see racing struggling once again, both as a sport and a betting product, with another year-on-year decline in betting turnover. BGC members are dedicated supporters of racing, recognizing its substantial economic impact on communities nationwide.”
Hurst emphasized the importance of preserving this “critical” contribution from being undermined by additional tax increases. She warned that a single tax rate for online betting could drive bettors away from the sport or toward illicit markets.
“These rogue operators evade taxes, ignore responsible gambling practices, and contribute nothing to the levy,” she remarked. “The BGC advocates for sustainable growth, benefiting both our members and the racing industry. Any new taxes could impede investment, harm bettors, and jeopardize the future of racing.”
