The British Horseracing Authority (BHA) has hit out at the British government over its failure to make changes to the Horserace Betting Levy rate.

The government last introduced changes to the levy in 2017 by regulations made under the Gambling (Licensing and Advertising) Act 2014, which made a commitment to a further levy review by 24 April 2024. 

That review was undertaken by the last Conservative Party government by the 2024 deadline, and finally completed this week by the current Labour Party government.

Baroness Twycross, Minister for Museums, Heritage and Gambling, said that in light of the recent changes to gambling taxation, the government wanted to provide stability and certainty to the gambling sector.

“For this reason, the government does not feel it is appropriate to pursue legislative changes to the rate of the horserace betting levy at this time,” said the Baroness in a Written Ministerial Statement (WMS). “Secondly, we do not support the extension of the levy to overseas racing. This is because the combination of the existing levy and commercial opportunities already appropriately reflects the specific relationship between the racing and betting industries in Great Britain.”

The levy is paid by bookmakers with annual gross profits on British horseracing over £500,000, at a rate of 10 per cent. Last year’s levy yield was £108 million, which exceeded the previous year’s figure of £105 million.

“A sustainable future for British horseracing is the shared goal of the betting and racing industries and joint action is required to achieve this,” continued Baroness Twycross. “The government is steadfast in its support for racing. We welcome initiatives to improve the governance structure within the sport, modernise the fixture list and improve horse welfare. 

“We will continue to support the BHA and wider racing stakeholders to achieve these aims. British racing is the envy of the world and we would encourage the industry to work as one – and with the betting industry – to ensure a sustainable future to ensure the continued success of this national treasure.”

BHA chief executive Brant Dunshea said that it was disappointing that it had taken almost three years to determine there should be no change in the levy rate. 

“Throughout protracted negotiations British horseracing engaged with the government in good faith, including providing clear evidence of a substantial – and growing – gap between our costs of providing the sport and the return we receive from betting,” said Dunshea, who was recognised in the Gaming Intelligence Hot 50 of 2026. “Following the BHA’s lobbying campaign, the government in its last Budget recognised the vital cultural, social and economic importance of horseracing by not imposing an increase in betting duties on the sport.”

Dunshea also noted that in its pre-Budget advice to the Treasury, the DCMS had warned that “unless a carve-out for racing was accompanied by an increase in the Horserace Betting Levy…racing would be unlikely to feel any benefit.”

“Today’s WMS leaves unexplained why, only a few months after the Budget, the DCMS now believes there is no need to change the Levy rate,” he continued. “British horseracing already gets a significantly lower return from the gambling industry compared to our nearest rival jurisdictions. While French and Irish horseracing gets 7.7 per cent and 8.4 per cent respectively, we receive less than 3 per cent.  

“This is compounded by the failure to recognise that in refusing to extend the Levy to bets placed on overseas racing, the sport in Britain is funding our international rivals which diminishes our global standing. It was the last Conservative Government that introduced the concept of affordability checks on gambling, despite our repeated warnings of their impact on horseracing and the growth of illegal betting with all its associated risks for consumers. 

“The current Chancellor recognised these dangers in her last Budget by awarding the Gambling Commission £26 million to tackle the illegal sector. We agree that this Labour Government should not consider itself bound by the policies of its predecessor. 

“In which case it is surely time for the DCMS and HMT [HM Treasury] to recognise that adding more red tape to an already highly regulated sector will only fuel a significant rise in illegal betting, deprive horseracing of funding and prevent the government collecting millions of pounds in much-needed taxation.”

Dunshea added: “The government would be genuinely congratulated if it took this moment to recognise the impact that no increase in the levy will have on horseracing’s finances and stopped the introduction of affordability checks which threaten the sport’s future.”