UK Government Maintains 10% Horserace Betting Levy After Review

The UK government has completed its review of the Horserace Betting Levy without altering the current 10% rate, bringing to an end a consultation process that began under the previous administration.

The outcome was confirmed in a written ministerial statement by Baroness Twycross, minister for museums, heritage and gambling, and repeated in the House of Commons by Ian Murray, minister for creative industries, media and arts.

Under the existing system, bookmakers with annual gross profits exceeding £500,000 from bets on British horseracing are required to pay a 10% levy. The charge is collected by the Horserace Betting Levy Board, with the latest annual yield reaching £108m, up from £105m the previous year.

The government also confirmed it will not extend the levy to cover bets placed on overseas racing. Officials said the current framework, combined with commercial agreements between racing and betting operators, already reflects the relationship between the two industries in Great Britain.

Murray said: “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.”

The decision has been criticised by the British Horseracing Authority, which had argued that the sport receives a lower financial return from betting compared with other racing jurisdictions.

Brant Dunshea, chief executive of the British Horseracing Authority, said: “It is disappointing that it has taken almost three years to determine there should be no change in the levy rate.”

He added that the industry had provided evidence to government during the consultation highlighting what it sees as a growing gap between the cost of staging racing and the income generated from betting.

Dunshea also pointed to international comparisons, saying: “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%.”

He further questioned the consistency of government policy, noting that earlier advice from the Department for Culture, Media and Sport had suggested racing would see limited benefit from broader tax reforms without a corresponding change to the levy.

The government said it remains supportive of British racing and encouraged the industry to work collaboratively with the betting sector to ensure the sport’s long-term sustainability.