BGC Criticizes Racing Levy Rise Amid Turnover Decline
The Betting and Gaming Council (BGC) has raised concerns over rising contributions to the Horseracing Betting Levy Board (HBLB), pointing to falling betting turnover and warning that further tax changes could harm the industry.
Record Payments Despite Declining Engagement
Members of the BGC are expected to contribute £108 million in levy payments to the HBLB in 2024 — the highest annual contribution to date. That figure has grown steadily from £97 million in 2021/22, to £100 million in 2022/23, and £105 million in 2023/24.
The rise in payments comes at a time when turnover per race is falling. According to the HBLB, betting turnover per race is down 8% year-on-year, and has dropped 15% compared to 2022/23 levels and 19% compared to 2021/22.
Industry Pushback on Proposed Tax Reform
Concerns from the BGC extend beyond the levy to the government’s proposal for a single online sports betting tax. The organisation warns that introducing a flat tax rate for online betting could further weaken horseracing’s already fragile position.
“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”, said BGC CEO Grainne Hurst.
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”, Hurst added.
Horseracing in the UK is primarily funded through a statutory levy and taxation on betting operators. In contrast, greyhound racing is not subject to a mandatory levy — a policy gap that has been the subject of ongoing debate. The financial health of racing, already under pressure, could face further strain if new tax measures proceed without industry support.