BGC Cautions Against Tax Hikes as HBLB Levy Reaches £108m

iGaming operators represented by the Betting and Gaming Council (BGC) are expected to contribute a record £108 million to the Horserace Betting Levy Board (HBLB) for 2024–2025, despite ongoing concerns around declining turnover and proposed tax reforms targeting the sector.

Figures released by the HBLB show that the levy contribution from betting operators has increased for the fourth consecutive year. The latest total reflects a £3 million rise from the previous financial year, with the levy growing from £97 million in 2021–2022 to £108 million in the most recent period. This increase arrives in the context of an estimated 8% decline in average turnover per race compared to 2023–2024, and a 19% drop when measured against 2021–2022 levels.

The BGC has warned that further tax increases, particularly on online betting, could adversely impact funding streams for British horseracing. Earlier in May, the UK Treasury launched a consultation proposing to merge the three current tax bands applied to online betting and gaming into a single rate, prompting industry concerns over the financial implications for racing and other sports.

According to industry estimates, BGC members contribute approximately £350 million annually to British horseracing, factoring in levy payments, media rights, and sponsorship. Horseracing remains the UK’s second most-watched sport after football, drawing six million attendees to around 1,400 fixtures held each year across 59 racecourses.

Despite its cultural and economic significance, horseracing has experienced a decline in betting engagement. Research indicates that in 2007, 17% of the UK adult population had participated in horserace betting in the previous year. By 2018, that figure had dropped to 10%.

The broader regulated betting and gaming industry generates £6.8 billion in gross value added to the UK economy, contributes £4 billion in tax revenue, and supports over 109,000 jobs. Current data from the NHS Health Survey for England estimates the national problem gambling rate at 0.4% of the adult population.

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.”