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The Horserace Betting Levy

The Horserace Betting 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 (SI 2017/589) 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.

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)

In its April 2023 gambling white paper, the then government announced that it 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 said that it would also consider measures proposed by the sector, such as including overseas races in the scope of the levy, increasing the overall level of contribution, and 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, confirmed that the previous government’s review had been completed by the 2024 deadline. He said 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.

British Horseracing Association reaction (March 2026)

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

After the government's March 2026 announcement, the BHA said that it 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. The BHA also pointed out that British horseracing received a "significantly lower" return from the gambling industry compared to "rival jurisdictions" such as France and Ireland. This was compounded by the government's "failure to recognise that in refusing to extend the levy to bets placed on overseas racing", the sport in Britain was funding international rivals.