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Future of British horseracing

Background

The British Horseracing Authority (BHA) is responsible for the governance, administration, and regulation of horseracing and the wider horseracing industry in the UK.

In 2023, the BHA estimated that the horse racing industry had direct revenues in excess of £1.47 billion and that it made a total annual contribution to the UK economy of £4.1 billion. The industry supports over 85,000 jobs and is the nation's second largest spectator sport with over five million people visiting British racecourses each year.

The Horserace Betting Levy

Horseracing is the only sport in receipt of a direct government-mandated levy.

The Betting Levy Act 1961 introduced a statutory levy on the proceeds of horserace betting. This was to offset the decline in raceday revenue after the legalisation of bookmakers’ off-course operations – meaning that people wishing to bet on a race no longer needed to attend it. The levy ensured that some of the proceeds from off-course betting were returned to racing.

The current legislative framework is provided by the Betting, Gaming and Lotteries Act 1963.

The Horserace Betting Levy is paid by bookmakers with annual gross profits on British horseracing over £500,000, at a rate of 10%. The levy is collected by the Horserace Betting Levy Board (HBLB), a non-departmental public body, sponsored by the Department for Culture, Media and Sport (DCMS).

Changes were made to the levy in 2017 when the Horserace Betting Regulations 2017 extended the levy to all gambling operators (including overseas operators) offering bets on horseracing in Great Britain. The regulations also established a fixed rate of 10% at which the levy is calculated. Section 5 of the regulations required a review of the levy to be completed by April 2024 (see below).

The levy is distributed each year in accordance with the Horserace Betting Levy Board Business Plan. Under section 24 of the Betting, Gaming and Lotteries Act 1963, the money raised from the levy is collected by the HBLB and applied for one or more of the following purposes:

• support for horse breeds
• support for veterinary science and education
• the improvement of horseracing

The majority of levy income (90%) is applied to the improvement of horseracing. This expenditure is directed principally to prize money. Other payments are made to racecourses as a contribution toward raceday costs, and as an incentive to stage fixtures at times of the year that are relatively unattractive for racegoers but beneficial for off-course betting and therefore levy generation.

According to the HBLB Annual report and accounts 2024-25 (PDF), the levy raised almost £109 million in the 12 months to 31 March 2025, the fourth successive year of increase and the highest since the 2017 reforms. The highest levy yield was £116.5 million in 2007/08.

Stakeholders within the horseracing industry have called on the government to introduce further changes to the levy. The BHA, for example, has suggested that changes are needed in order to "remain competitive with other racing nations.” These include changes such as extending the scope of the levy to include bets placed on international racing and virtual racing.

Levy review announced (April 2023)

The gambling white paper of April 2023 noted "the significant contribution that horse racing makes to British sporting culture and its particular importance to the British rural economy" as well as horse racing's "mutually beneficial relationship with betting". 

The white paper said that the then government was starting a review of the levy, as required by the 2017 regulations, "to ensure an appropriate level of funding for the sector". The government would also consider measures proposed by the sector, such as including overseas races in the scope of the levy and/or increasing the overall level of contribution and/or basing the calculation on gross amount staked rather than gross gambling yield (stakes less winnings paid out).

Levy review conclusions announced (March 2026)

In a written ministerial statement of 25 March 2026, Ian Murrary, Minister of State at the DCMS, said that the previous government's review had been completed by the 2024 deadline and that he was now setting out its conclusions - there would no changes to the levy:

Firstly, in 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. Secondly, we do not support the extension of the levy to overseas racing. This is because the combination of the existing levy and commercial opportunities already appropriately reflects the specific relationship between the racing and betting industries in Great Britain.

A sustainable future for British horseracing is the shared goal of the betting and racing industries and joint action is required to achieve this.

The Government is steadfast in its support for racing. We welcome initiatives to improve the governance structure within the sport, modernise the fixture list and improve horse welfare. We will continue to support the BHA and wider racing stakeholders to achieve these aims. 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.

BHA reaction to the announcement (March 2026)

Brant Dunshea, BHA Chief Executive, said the BHA had provided "clear evidence" of a substantial and growing gap between its costs and the return it received from betting. It was therefore "disappointing" the government would not be making any changes to the levy:

Following the BHA’s lobbying campaign, the Government in its last Budget recognised the vital cultural, social and economic importance of horseracing by not imposing an increase in betting duties on the sport.

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.’

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.

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%.

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

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.

The current Chancellor recognised these dangers in her last Budget by awarding the Gambling Commission £26m to tackle the illegal sector.

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.

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.

Financial vulnerability checks

The gambling white paper required the Gambling Commission (the gambling regulator) to consult on new obligations for operators to conduct financial checks to understand if a customer’s gambling would be likely to be harmful in the context of their financial circumstances.

Following the white paper's publication, the BHA raised concerns that "sweeping blanket checks on affordability are not appropriate" and that any measures should be "proportionate and targeted at individuals and their specific circumstances".

Financial risk assessments (FRAs) are not yet live. As explained in an April 2026 Gambling Commission blog, a pilot of FRAs was carried out in 2025. The commission is analysing the data and considering how FRAs "match up to the outcomes and impacts set out for them" in the gambling white paper and "how they could be used in a practical way to make gambling safer for high spenders who are in current financial difficulties".

As the BHA's April 2026 response to the government's levy announcement shows, industry concerns about the introduction of checks remain. See also:

• Affordability checks, Gambling White Paper and the APPG for Gambling Reform’s latest report, BHA blog, 10 June 2026

• Government washes its hands of responsibility as uncertainty over affordability checks continues, Racing Post [online], 25 May 2026

Stakeholder websites

British Horseracing Authority

Horserace Betting Levy Board

National Association of Racing Staff

Professional Jockeys Association

Racecourse Association