Hong Kong PR

(AsiaGameHub) –   The horseracing industry has criticized the government’s decision to not maintain the Horserace Betting Levy at its current level following an extensive review.

UK.- British horseracing received positive news in November when horse betting was excluded from the upcoming increase in UK betting duty set to take effect in April 2027, though not all developments have been favorable. Gambling Minister Baroness Twycross has let the industry down by confirming that the Horserace Betting Levy will stay unchanged.

Horseracing stands as the sole sport in Britain backed by a statutory levy, first introduced in 1961 via the Betting Levy Act. Since its modernization in 2017, the levy has been set at 10 percent of bookmakers’ gross profits from British racing once earnings exceed £500,000.

In 2025, the levy generated £108m, up from £105m the prior year. The Horserace Betting Levy Board (HBLB) manages the collection and distribution of these funds, directing them toward investments in areas such as breeding, veterinary science, and horse welfare.

Stakeholders in horseracing have long pushed for a review of this calculation, but Ian Murray, the Labour government’s Minister of State for Media, Tourism, and Creative Industries, confirmed in the House of Commons that the levy will remain unaltered.

Baroness Twycross cited reasons for keeping the levy steady, including gambling tax reforms announced in the 2025 Autumn Budget. These reforms included a hike in General Betting Duty from 15 to 25 percent in 2027, while the rate for horse racing will stay at 15 percent.

The government also turned down requests to expand the levy to cover international racing, asserting that the existing framework already supports a robust connection between betting and British horseracing.

Twycross referenced findings from the previous government’s levy review, completed in April 2024, stating: “The Government remains firmly committed to supporting racing. We endorse efforts to enhance the sport’s governance structure, modernize its fixture list, and improve horse welfare. We will continue to assist the BHA and broader racing stakeholders in achieving these goals.”

Horseracing sector reaction

The British Horseracing Authority (BHA), the sport’s regulatory body, criticized the decision. CEO Brant Dunshea stated: “It is disheartening that it has taken nearly three years to conclude that no adjustment to the Levy rate is necessary.

“Throughout lengthy negotiations, British horseracing engaged with the Government in good faith, providing clear evidence of a significant—and growing—gap between the costs of delivering the sport and the returns received from betting.

“Following the BHA’s advocacy campaign, the Government acknowledged the vital cultural, social, and economic significance of horseracing in its latest Budget by not raising betting duties on the sport. In its pre-Budget advice to the Treasury, the DCMS also warned that ‘without an increase in the Horserace Betting Levy to accompany the carve-out for racing… racing is unlikely to see any benefit.’

“Today’s written ministerial statement fails to explain why, just months after the Budget, the DCMS now deems no change to the Levy rate necessary. British horseracing already receives a substantially lower return from the gambling industry compared to our closest competitor jurisdictions. While French and Irish horseracing secure 7.7 and 8.4 percent respectively, we receive less than 3 percent.

“This issue is compounded by the failure to recognize that by refusing to extend the Levy to bets on overseas racing, British horseracing is effectively funding its international rivals, weakening our global position.

There are concerns that this issue could exacerbate tensions between the racing and betting industries that emerged during the campaign against gambling tax hikes. The gambling sector responded to the BHA’s decision to take a stand over the tax threat and support tax increases on igaming, provided horseracing received an exemption. Internally, divisions have also arisen among stakeholders such as the BHA, the Jockey Club, Arena Racing Company (ARC), and the Racecourse Association (RCA), each with differing visions for the sport’s future.