UK Horserace Betting Levy hits new record, but industry concerns remain
The British horseracing sector has welcomed the rise in levy revenue, but betting revenue per race dropped again in 2025-2026.
UK.- The Horserace Betting Levy Board (HBLB) expects a fifth consecutive year of rising income from British betting. For the year ending March 31, betting levy receipts are forecast to reach approximately £110m, which would be the highest figure since reforms were introduced in 2017.
However, the racing sector isn’t celebrating the news, which comes after the government decided in March that the Horseracing Betting Levy will remain unchanged despite the horseracing sector having long called for an adjustment to the way it is calculated. The British Horseracing Authority (BHA) maintains that racing still receives “less than 3 per cent” of the gambling industry’s overall returns.
The horseracing sector did win a victory in the Autumn Budget, when horseracing betting was made exempt from tax rises on other gambling verticals. However, the industry also remains concerned about the impact of the Gambling Commission’s proposed Financial Risk Assessments, on which a final decision has been delayed.
A downward trend in horseracing betting?
The betting levy reforms were enacted nine years ago and require all betting operators to contribute 10 per cent of profits from British racing bettors to the sport. Horse racing remains the UK’s second most popular betting sport after football, which overtook it in 2019. However, despite the record levy contribution, the sector continues to see a decline in betting volumes overall.
Betting turnover per race in 2025 – 2026 fell by 1.2 per cent compared with the previous year, following a steeper 7.7 per cent drop between 2023-2024 and 2024-2025. The HBLB noted that this year’s average turnover was 9.2 per cent below the three-year mean (2022–2025) and 19 per cent lower than in 2021-2022.
HBLB Chief Executive Alan Delmonte warned: “The board has noted previously that with turnover falling, there is concern as to the sustainability of maintaining gross win, and therefore levy, at around current levels. The board has nonetheless been able to commit to expenditure of around £113m in the current levy year, balancing a desire to provide additional funding in targeted areas with ensuring that reserves remain in place to give a cushion should levy yield fall.
“There remains significant concern about the downward trend of recent years, including the reported increase in black market betting activity which continues to threaten the sport’s viability in the longer term.”
Looking ahead, the board’s baseline assumption for 2026/27 is a levy yield of £109m, derived from the 2025/26 outturn and advance payments agreed with bookmakers.
The board has attempted to bolster the sport, increasing its prize money contribution by £4.4m to £77.1m for 2026, and in March approving £10.5m for non-fixture projects and wider initiatives. Still, racing continues to struggle with waning interest. Industry voices warn that punters are either disengaging or being driven to the black market. Other sports such as Formula 1, darts, and golf have attracted younger audiences, but horse racing has not yet been able to replicate that success.
Delmonte also expressed gratitude to bookmakers who had made their end-of-year submissions in good time or voluntarily provided data throughout the year to support HBLB’s betting analysis. The HBLB has confirmed the appointment of Catherine Colloms as a Member for a four-year term. She brings experience from Flutter’s Paddy Power, the Senet Group and Openreach.
