The Horserace Betting Levy Board (HBLB) announced the UK’s betting levy receipts are forecast to reach £110 million for the year ending March 31, marking the fifth consecutive annual increase. This would be the highest since the reform in 2017. Despite this milestone, the British horseracing sector isn’t celebrating. The government decided in March to keep the levy unchanged, frustrating those in the industry who have been pushing for a recalibration of how it’s calculated.
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BHA’s Continued Push for Levy Change
The British Horseracing Authority (BHA) continues to express dissatisfaction, pointing out that racing garners “less than 3 percent” of the gambling sector’s total returns. While horseracing betting escaped tax hikes in the Autumn Budget, concerns about the Gambling Commission’s looming Financial Risk Assessments remain. Final decisions on these assessments are still in the balance, leaving the industry on edge. The HBLB’s reforms, enacted nine years ago, require all betting operators to funnel 10 percent of their British racing-related profits back into the sport. However, horse racing — once the top betting sport — has seen betting volumes dwindle. Although levy contributions hit a record, betting turnover per race from 2025 to 2026 decreased by 1.2 percent. This follows a sharper 7.7 percent drop from the prior period. The average turnover is now 9.2 percent lower than the three-year average and 19 percent below 2021-2022 levels.
Sustainability Questions Loom Large
Alan Delmonte, HBLB Chief Executive, flagged concerns over the sustainability of maintaining the current level of levy. With falling turnover, he warned about the risk to long-term viability, noting the rising threat of black market betting. “There’s a major concern about this downward trend,” Delmonte said, acknowledging that this issue persists alongside the need to sustain gross win levels. For 2026, HBLB pledged around £113 million, balancing spending with keeping reserves intact to cushion potential dips in levy yield. To support the sport, HBLB recently hiked its prize money contributions by £4.4 million to £77.1 million, alongside allocating £10.5 million for non-fixture projects. However, racing is losing ground in popularity, with younger audiences gravitating towards sports like Formula 1 and darts. This challenge has persisted, making it difficult for horse racing to capture similar market interest.
Industry Dynamics and Future Outlook
Voices within the industry warn that punters are either disengaging or turning to less transparent markets. Despite these challenges, Delmonte appreciated the timely data submissions by bookmakers, aiding HBLB’s betting analysis. Additionally, Catherine Colloms was appointed to the HBLB board for a four-year term, bringing experience from Flutter’s Paddy Power and the Senet Group. The board anticipates a levy yield of £109 million for the 2026/27 period, based on current trends and pre-arranged payments with bookmakers. But while the board strives to support horseracing through financial boosts, the sport faces an uphill battle attracting new fans and adjusting to market shifts. The fluctuating market leaves stakeholders pondering the future path of British horseracing. But the HBLB will likely reevaluate strategy at the next annual review, with decisions impacting industry directions anticipated by early Q3.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
