Government support for the horse racing industry

The British Horseracing Authority (BHA) is the governing body and regulator of thoroughbred racing in Great Britain, and is responsible for the governance, administration, and regulation of horseracing and the wider horseracing industry in the UK.

In written evidence submitted to a Digital, Culture, Media and Sport (DCMS) Committee inquiry in 2020 (PDF), the BHA stated that horseracing was “the UK’s second largest sport behind football in respect of attendances, employment and revenues generated annually”. Additionally, in a study submitted as part of a call for evidence regarding the review of the gambling act in April 2023, the BHA stated that “the racing industry has direct revenues in excess of £1.47 billion and makes a total annual contribution to the UK economy (including induced effects) of £4.1 billion”. The horseracing industry generates an estimated 85,000 jobs, including over 20,000 people directly employed at licenced BHS racecourses.

The BHA’s 2024 fixture list (PDF) listed a total of 1,468 races, with the total of fixtures in 2025 (PDF) set to be 1,460. In 2023, according to data analysis by the Racecourse Association, in the first half of 2024, over 2.3 million people attended a British racecourse, representing a decrease in overall attendance of around 1.9% from 2023 (largely due to fewer fixtures and more abandonments), but an increase in the average attendance per race of 1.9%.

The Betting Levy Act 1961 introduced a statutory levy on the proceeds of horserace betting. This was to offset the decline in raceday revenue after the legalisation of bookmakers’ off-course operations – meaning that people wishing to bet on a race no longer needed to attend it. The levy ensured that some of the proceeds from off-course betting were returned to racing.

The current legislative framework is provided by the Betting, Gaming and Lotteries Act 1963 (as amended).

The Horserace Betting Levy is paid by bookmakers with annual gross profits on British horseracing over £500,000, at a rate of 10%. The levy is collected by the Horserace Betting Levy Board (HBLB); a non-departmental public body, sponsored by DCMS.

The government last introduced changes to the levy in 2017. The Horserace Betting Regulations 2017 extended the levy to all gambling operators (including overseas operators) offering bets on horseracing in Great Britain. It also established a fixed rate (10%) at which the levy is calculated.

The levy is distributed each year in accordance with the Horserace Betting Levy Board Business Plan. As established by the Betting, Gaming and Lotteries Act 1963 (section 24) (as amended), the money raised from the Levy is collected by the HBLB and applied for one or more of the following purposes:

• support for horse breeds
• support for veterinary science and education
• the improvement of horseracing

The majority of levy income (90%) is applied to the improvement of horseracing. This expenditure is directed principally to prize money. Other payments are made to racecourses as a contribution toward raceday costs, and as an incentive to stage fixtures at times of the year that are relatively unattractive for racegoers but beneficial for off-course betting and therefore levy generation.

According to the HBLB Annual report and accounts 2022-2023 (PDF), the levy raised £100m in 2022/23; the highest annual total since the levy collection reforms were introduced in 2017.

Stakeholders within the horseracing industry have previously called on the government to introduce further changes to the levy. Industry figures, for instance the BHA, have suggested that changes to the levy are necessary in order to “remain competitive with other racing nations.” These include changes such as extending the scope of the levy to include bets placed on international racing and virtual racing.

A review of the Horserace Betting Levy was announced by the Sunak government in its April 2023 gambling white paper. There have been no developments since this announcement.

In the gambling white paper, a range of gambling reforms were put forward. Amongst them, was the proposal to introduce financial affordability checks for online betting if “a customer’s gambling is likely to be affordable and harmful” in order to reduce ‘binge gambling’ and better protect financially vulnerable customers.

The changes proposed in the white paper were estimated to have a reduction in the online element of the Horserace Betting Levy of between £5-£8m, as well as potential reductions in gambling sponsorship and media rights due to decreased income of gambling operators (an overall reduction of 0.5% to 1% of total horseracing income).

These proposals prompted concerns amongst the industry, as the introduction of financial checks may put customers off, resulting in a loss for the Horserace Betting Levy and consequently the horseracing industry as a whole. However, in a response to a question regarding the impact of the white paper on the horseracing industry in June 2023, then DCMS minister Stuart Andrew said that any impacts would be minimal, and any financial checks would be “designed so that they are frictionless”.

The BHA said in a statement following the publication of the white paper’s recommendations that they welcomed the publication of the white paper as “an important step in ensuring the Government makes gambling regulation fit for the digital age”, but said that “sweeping blanket checks on affordability are not appropriate, with any measures needing to being proportionate and targeted at individuals and their specific circumstances”.

From 26 July to 18 October 2023, the Gambling Commission ran a consultation on the vulnerability checks proposed in the white paper. The commission’s response, published in May 2024, confirmed that light-touch financial vulnerability checks would be introduced. These would identify financial vulnerability such as where a customer was subject to a bankruptcy order or had a history of unpaid debts. The checks, introduced at a higher threshold from the end of August 2024, would move to a lower threshold in February 2025.

Gambling: Harmful Effects, HC Deb 17 October 2024, cc969

Horse Racing, UIN 4724, answered 17 September 2024

Horseracing and Bloodstock Industries, HL Deb 29 July 2024, cc800-803

Gambling White Paper: Horse-racing Sector, HC Deb 15 June 2024, cc417-418

Horseracing, HC Deb 23 May 2024, cc1006-1007

Financial Risk Checks for Gambling, HC Deb 26 February 2024, cc1-48WH

Horseracing Industry, HL Deb 17 November 2022, cc218-232GC

Horse Racing and Care – How Big Is the UK Market?, Business Matters [online], 21 October 2024

Culture secretary Lisa Nandy plays down tax rise reports and talks up horseracing industry, Racing Post [online], 17 October 2024

'A reckless thing to do' - proposal to double betting duty would have devastating effect says leading industry analyst, Racing Post [online], 14 October 2024

Levy Board increases prize-money contribution in 2025 - but betting turnover continues to decline, Racing Post [online], 8 October 2024

Standards body the Betting and Gaming Council welcome Simon Clare’s appointment to the Horserace Betting Levy Board, Politics Home [online], 7 October 2024

BHA statement following the publication of the Gambling Act White Paper, British Horseracing Authority [online], 27 April 2023

Blow to racing's hopes of levy reform as minister sets out government position, Racing Post [online], 14 January 2021

Government to examine reform of the Horserace Betting Levy in 2021, British Horseracing Authority [online], 8 December 2020

Horserace Betting Levy Board, Background and Statutory Responsibilities

Horserace Betting Levy Board, Three-Year Business Plan: April 2022- March 2025

Gambling Commission, Summer 2023 consultation – Proposed changes to LCCP and RTS: Consultation Response - Our position: Light-touch financial vulnerability checks, 1 May 2024

House of Commons Library, The future of horseracing, 24 October 2023

House of Lords Library, Horseracing industry: Government support and recent developments, 6 September 2023

Department for Culture, Media and Sport, High stakes: gambling reform for the digital age, 27 April 2023

British Horseracing Authority

Horserace Betting Levy Board

National Association of Racing Staff

Professional Jockeys Association

Racecourse Association