UK Government Leaves Horserace Betting Levy Unchanged
LONDON, England – The UK government has decided to keep the Horserace Betting Levy at its current rate after a long-running review.
LISTEN TO THIS ARTICLE:The decision frustrates racing stakeholders and leaves the sport facing continued pressure over funding, prize money, and long-term financial support.
The Department for Culture, Media and Sport (DCMS) has confirmed that the statutory Horserace Betting Levy will not be altered following a long-running review, a decision that has been met with strong criticism from the racing industry. Ministers cited wider gambling tax reforms in the 2025 Autumn Budget and an earlier government review completed in April 2024 as reasons for maintaining the status quo.
Introduced in 1961 through the Betting Levy Act and modernised in 2017, the levy requires bookmakers to pay 10% of gross profits on British racing once profits exceed
In 2025 the levy raised
Ministers, including Minister of State for Media, Tourism and Creative Industries Ian Murray, told Parliament that the decision reflects the government's assessment that the current framework continues to support a productive link between betting firms and British racing. Gambling Minister Baroness Twycross emphasised that the 2025 Autumn Budget's restructuring of betting taxes influenced the decision; the Budget raised the general betting duty from 15% to 25% from April 2027 while preserving a 15% rate for horse race betting.
Government documents and ministers have also rejected proposals to extend the levy to bets on overseas racing, saying cross-border enforcement and the structure of international markets make such an extension impractical under current legislation.
Related: BGC Members Contribute Record Levy to Support UK Horseracing
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Industry Response and Next Steps
The British Horseracing Authority (BHA) and other racing stakeholders reacted sharply. BHA chief executive Brant Dunshea said the sector had engaged in prolonged negotiations and supplied evidence of widening financial strain. He said: "It is disappointing that it has taken almost three years to determine there should be no change in the levy rate. Throughout these protracted negotiations, British horseracing engaged with the Government in good faith, providing clear evidence of a substantial—and growing – gap between our costs of providing the sport and the return we receive from betting.
"In its pre-Budget advice to the Treasury, DCMS warned that unless a carve-out for racing was accompanied by an increase in the Horserace Betting Levy, racing would be unlikely to feel any benefit. Yet today's statement leaves unexplained why the department now believes no change is necessary, just months after the Budget recognised racing's cultural and economic importance."
The BHA highlighted comparative funding models overseas, noting French and Irish racing receive roughly 7.7% and 8.4% respectively from betting revenues, compared with under 3% in Britain. Officials argue this shortfall is compounded because many UK bettors place wagers on international fixtures, effectively subsidising rival jurisdictions.
Bookmakers and industry trade groups have signalled a cautious welcome for the certainty offered by the decision. Representatives from major operators, including firms headquartered in the UK and Gibraltar, stressed the importance of regulatory stability while urging collaborative reforms around fixture scheduling and welfare investment.
Independent analysts say the setback is likely to intensify internal debates within the sport. Key organisations such as the Jockey Club, Arena Racing Company and the Racecourse Association have differing priorities, from commercial partnerships to governance reform. Some industry figures say legal or legislative options could be revisited if the funding gap continues to widen.
Looking ahead, the Horserace Betting Levy Board (HBLB), the BHA and racecourse owners are expected to press for renewed engagement with ministers and to publish more detailed financial modelling showing the levy's impact on prize money, breeding and equine welfare. The coming months will test whether the sector can translate frustration into a unified plan that persuades policymakers to reopen the levy review or deliver alternative funding measures.
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