BGC Warns Tax Hikes Could Harm Racing Amid Record Levy

The Betting and Gaming Council (BGC) has raised concerns about potential new tax increases on its , emphasizing the risk these pose to the funding of British horseracing. Recent data from the Horseracing Betting Levy Board (HBLB) shows that Levy contributions from BGC reached a record £108 million last year. This marks the fourth year running that payments have risen steadily, increasing from £97 million in 2021/22 to £100 million in 2022/23, £105 million in 2023/24, and now the current record.

Despite this increase, betting turnover has seen a decline. The HBLB reports an approximate 8% drop in average turnover per race compared to 2023/24, alongside a 15% decrease from 2022/23 and a 19% fall relative to 2021/22.

Treasury Consultation Sparks Industry Concerns

Earlier this month, the UK Treasury initiated a consultation proposing to replace the current three tax rates on online betting and gaming with a single rate. This has generated apprehension within the industry, particularly regarding the potential impact on sports like horseracing, which rely heavily on betting revenues.

Grainne Hurst, CEO of the BGC, commented on the issue: “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.”

Economic Impact and the Threat of Tax Increases

Hurst emphasized that BGC are dedicated ers of horseracing and recognize its economic significance for communities across the UK. She warned against tax hikes that could deter bettors from regulated platforms and push them toward unregulated, black market operators. “These parasite operators don’t pay tax, don’t care about safer gambling, and do not contribute a penny to the Levy,” she added.

The BGC advocates for a sustainable future for both its and the horseracing industry, cautioning that further taxes would restrict investment, harm bettors, and weaken the sport.

Horseracing’s Role and Industry Contributions

The £108 million Levy total is based on provisional year-end submissions from most bookmakers, continuing an upward trajectory since the Levy reforms of 2017/18.

Horseracing ranks as the second largest spectator sport in the UK after football, attracting about six million attendees to approximately 1,400 events yearly across 59 racecourses. However, the sport has experienced a decline; horseracing betting participation dropped from 17% of the population in 2007 to 10% in 2018.

It is estimated that BGC contribute around £350 million annually to British horseracing through Levy payments, media rights, and sponsorship deals. The wider regulated betting and gaming sector generates £6.8 billion in economic activity, £4 billion in tax revenues, and s roughly 109,000 jobs nationwide.

Each month, approximately 22.5 million adults in Britain take part in betting activities, including lotteries, bingo, casino games, online betting, and wagering on sports such as football and horseracing. The NHS Health Survey for England estimates that 0.4% of adults experience problem gambling.

Source:

Tax hikes will undercut racing’s funding warn the BGC, as HBLB levy contributions hit record new high, bettingandgamingcouncil.com, May 14, 2025.