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BGC voices concerns over Horseracing Betting Levy Board contribution increase
The BGC warns that an increase in levy payments, combined with a potential tax rise for online sports betting, may put an already struggling industry at further risk.

Key points:

- The Betting and Gaming Council has voiced concerns at the increasing levy payments it must make to the Horseracing Betting Levy Board, despite a fall in horseracing turnover

- There was also concern regarding a proposed single online sports betting tax, which may negatively impact the horseracing industry further

The UKs Betting and Gaming Council (BGC) has raised concerns regarding horseracing levy payment increases to the Horseracing Betting Levy Board (HBLB), despite race turnover being down year-on-year.

BGC members are expected to contribute £108m ($143.8m) to the HBLB in levy payments for 2024, a record high, having gone from £97m in 2021/22, £100m in 2022/23 and £105m in 2023/24, meaning levy payments have increased by an additional £3m.

The increase in levy payments comes despite a decrease in betting turnover for the industry and potential increases to online sports betting taxes. Indeed, according to the HBLB, turnover per race was down 8% year-on-year, or down 15% on 2022/23 figures and 19% on 2021/22 figures.

The change to online sports betting taxes proposes that a single tax for online betting be implemented. Such a raise in taxes may go on to negatively impact players, risking the already struggling horseracing market declining even further.

On the tax rise, BGC CEO Grainne Hurst said: “For the fourth year running levy contributions have increased to record levels, demonstrating the growing, long-term investment regulated betting provides British horseracing.

“But it is concerning to see once more that despite record levy contributions, racing continues to struggle, both as a sport and as a betting product, with betting turnover down again year on year.

The UK horseracing industry is funded primarily by the levy and taxes paid by operators. For greyhound racing, however, the levy is currently not mandatory. We discussed this with Mark Bird, CEO of the Greyhound Board of Great Britain in the Sports Betting Focus issue of Gambling Insider

“BGC members remain committed fans of racing and recognise better than most the huge economic impact it makes in communities across the country.

“It’s now more important than ever this vital contribution is not undermined by further new tax rises through the creation of a single tax for online betting, which risks driving punters away from the sport, or into the arms of the growing, unsafe gambling black market.

“These parasite operators don’t pay tax, don’t care about safer gambling, and do not contribute a penny to the levy. The BGC wants sustainable growth, for our members and for racing, but any new taxes would halt investment, hurt punters and harm racing.”

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