TAX HIKES WILL UNDERCUT RACING’S FUNDING WARN THE BGC, AS HBLB LEVY CONTRIBUTIONS HIT RECORD NEW HIGH

STANDARDS body the BGC has today warned against further new tax rises on members, as it was confirmed Levy payments to the Horseracing Betting Levy Board are expected to increase for the fourth year in a row.

Betting and Gaming Council members are expected to contribute a record £108m in Levy payments to the HBLB for last year, new figures reveal.

The figure, provided by the independent HBLB, is an increase of £3m on the previous year.

It is the fourth year in a row that Levy contributions have increased, from £97m in 2021/22, to £100m in 2022/2023, £105m in 2023/2024 and £108m in 2024/2025.

This increased contribution came despite a concerning fall in betting turnover, and amid threats of a further new tax hike on online sports betting.

The independent HBLB said average turnover per race was down by about 8% on 2023/24, representing a 15% fall on 2022/23 and 19% drop on 2021/22.

Meanwhile, earlier this month the Treasury announced a new tax consultation, proposing replacing the three current online betting and gaming tax rates, with a single new one, sparking fears for sports like racing.

Betting and Gaming Council CEO Grainne Hurst, said: “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.

“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.”

This fourth annual increase is a new record since the Levy collection reforms of 2017/18.

According to the HBLB, the £108m total is derived from the receipt of provisional end of year submissions from most Levy-paying bookmakers.

Horseracing is the second biggest spectator sport in the UK, second only to football, with around six million people attending approximately 1,400 fixtures annually across 59 racecourses.

However, the sport has been in decline in recent years. In 2007, 17 per cent of the population enjoyed horserace betting the previous year, but that fell to 10 per cent in 2018.

It is estimated BGC members contribute around £350m a year to British horseracing in Levy, media rights and sponsorship deals.

Meanwhile the wider regulated betting and gaming sector contributes £6.8bn to the economy, generates £4bn in tax while supporting 109,000 jobs.

Each month around 22.5m adults in Britain enjoy a bet, whether it’s buying a lottery ticket, having a game of bingo, visiting a casino, playing online or having a wager on football, horseracing and other sports.

The most recent NHS Health Survey for England estimated that 0.4 per cent of the adult population are problem gamblers.