UK horseracing at risk due to gambling tax proposal and lack of levy reform, report warns
The All-Party Parliamentary Group (APPG) for Racing and Bloodstock says the sector faces a triple whammy of challenges.
UK.- A new parliamentary report has sounded the alarm about the future of British horseracing. Published by the All-Party Parliamentary Group (APPG) for Racing and Bloodstock, the study highlights concerns about the UK government’s proposal to change online gambling taxes along with affordability checks for bettors and the lack of a timeline for a reassessment of the Horserace Betting Levy.
The Horserace Betting Levy, which helps fund prize purses for races as well as animal welfare programmes and veterinary research, is currently charged to British bookmakers at 10 per cent of profits. However, the report notes that stakeholders feel a more equitable distribution model is warranted and argues that the return to racing in Britain is smaller than that in other major racing nations.
“This puts Britain at risk of falling behind our international competitors, and acting as a drag anchor on growth,” it says. It also criticised the system’s structure, noting that domestic bets are subject to the levy, while those placed on overseas races are exempt, which it says creates an “inverse tariff on British racing.”
The report also warned that plans to unify betting tax rates under a new Remote Betting Tax could harm the sector as the Remote Betting & Gaming Duty for online bookmakers would rise to 21 per cent, adding an extra burden of around £40m a year. Legislators fear that this could lead operators to focus on more profitable online gaming offerings, lowering the visibility of horseracing betting.
The report also warned of unintended consequences of affordability checks, which it says are being applied in an “inconsistent” manner. It suggests exploration of a more “proportionate and frictionless system” for financial risk assessments that would better distinguish between casual bettors and those at real risk of harm.
“Exempt horse racing from plans to harmonise gambling duties”
Ultimately, the APPG is urging the British parliament to consider horse racing as distinct from other forms of gambling. “Our call to the government is clear: exempt horse racing from plans to harmonise gambling duties, reflecting its fundamentally different nature and level of risk,” it concludes. “A blunt, one size fits all approach to harmonisation comes with serious and unnecessary unintended consequences for the sport.
“The government has a choice. Move ahead as intended and risk the future of British racing, or take the more considered route and give racing the exemption it needs from harmonisation. In doing so, policymakers will safeguard a national asset and have the thanks and gratitude not just of stakeholders across the sport, but of people across the country who enjoy racing and depend on it for their livelihoods.”
The report states that the racing sector contributes over £4bn a year to the UK economy and supports around 85,000 jobs. Dan Carden, co-chair of the APPG, said 53 per cent of people in the UK consider the sport to be integral to their community life.
He said: “It helps to make up the identity and sense of place in racing towns. It brings together people from all backgrounds, unites families across generations, and is a way of life for rural communities.”
Betting operators are hoping for strong betting at Royal Ascot this week amid a prolonged decline in horseracing betting revenue in real terms. The British Horseracing Authority’s annual report states that combined online and retail horse racing betting turnover fell by 6.8 per cent year-on-year in 2024 and was down by 16.5 per cent in comparison with 2022.
Last week, Roger Devlin was named as the new chair of the Horserace Betting Levy Board (HBLB). The former Chair of bookmaker William Hill will take up the position from July 1, for a four-year term until June 30 2029.Devlin chaired William Hill until its acquisition by US casino giant Caesars in 2021. He also chaired online gambling business Gamesys.
