Government at odds with industry as UK racing levy is confirmed to remain at 10%

(AsiaGameHub) –   The horse racing industry has voiced its disapproval following Gambling Minister Baroness Twycross’ confirmation that the Horserace Betting Levy will not be increased.

Labour Minister Ian Murray delivered the update to the House of Commons on the Baroness’s behalf, noting that the decision reflects racing’s vital role in the UK’s economy and sporting heritage.

Consequently, horse racing remains the sole sport benefiting from a government-enforced levy, set at 10% of the annual gross profits for bookmakers earning over £500,000 from British racing wagers.

These funds are overseen by the Horserace Betting Levy Board (HBLB) to support breeding, scientific research, and veterinary training. The levy generated £108m in 2025, an increase from the £105m recorded in 2024.

Baroness Twycross identified two primary factors for maintaining the current rate, starting with the broader gambling tax adjustments outlined in the 2025 Autumn Budget.

Chancellor Rachel Reeves previously revealed that Remote Gaming Duty will jump from 21% to 40% this April, while General Betting Duty (GBD) is set to rise from 15% to 25% in April 2027.

While these hikes impact online operators, British horse racing is excluded from the GBD increase, keeping its rate at 15% alongside the existing 10% racing levy.

Additionally, the government declined to expand the levy to include international racing, keeping the focus strictly on domestic British events.

Officials argued that the current levy, combined with commercial prospects, ensures a sufficiently strong future for the relationship between the betting and racing sectors.

The announcement referenced findings from a review initiated by the previous administration, which concluded in April 2024.

“The Government remains a firm supporter of racing. We back efforts to modernize governance, update the fixture calendar, and enhance horse welfare,” stated Baroness Twycross, adding that they will continue collaborating with the BHA and other stakeholders.

BHA expresses opposition

The British Horseracing Authority (BHA), the sport’s governing body, has made its frustration with the decision very clear.

BHA CEO Brant Dunshea criticized both the duration and the conclusion of the process, stating it was disappointing that a three-year review resulted in no change to the rate.

Dunshea noted that the industry participated in discussions in good faith, providing evidence of the widening gap between the costs of staging races and the revenue received from betting.

He also suggested a shift in the government’s position, pointing out that the Department of Culture, Media and Sport (DCMS) appears to have moved away from its earlier stance.

Prior to the Budget, the DCMS had cautioned the Treasury that racing would see little benefit from a tax carve-out unless it was paired with a levy increase.

Dunshea questioned why the DCMS now considers a rate change unnecessary just months after that warning.

He warned that the industry faces significant challenges, including post-pandemic attendance issues, a stagnant levy, and the implementation of affordability checks from the Gambling Act Review White Paper.

He suggested that if the government refuses to raise the levy, it should at least halt the introduction of affordability checks that could jeopardize the sport’s financial future.

The BHA also disputed the government’s perspective on returns, claiming the sport receives less than 3% from the gambling sector, compared to 7.7% in France and 8.4% in Ireland.

This decision may further strain the link between racing and betting, which was already under pressure during last year’s tax debates, despite the BHA’s ongoing cooperation with firms like Flutter Entertainment.

Internal friction is also reportedly rising among major stakeholders like the BHA, the Jockey Club, Arena Racecourse Company (ARC), and the Racecourse Association (RCA) regarding the sport’s strategic direction.