The UK government has closed the book on its prolonged review of the Horserace Betting Levy, opting to maintain the current 10% rate despite sustained pressure from racing authorities for an increase. The decision, announced via written statement by Baroness Twycross and reiterated in the Commons by Ian Murray, draws a line under a consultation process that dragged nearly two years past its original completion date.

Racing’s governing bodies had built a detailed case for a higher levy, pointing to comparative figures from France and Ireland where the sport receives substantially more from betting operators. Those arguments fell on deaf ears. Murray framed the decision around broader fiscal policy, stating that “in light of the recent changes to gambling taxation, we want to provide stability and certainty to the gambling sector.” The government judged legislative changes to the levy rate inappropriate at this juncture.

Overseas Racing Exemption Remains

Ministers also confirmed they would not extend the levy to cover bets placed on overseas racing events. The government maintains that existing commercial arrangements adequately reflect the relationship between British racing and the betting industry. That position drew sharp criticism from racing executives who argue it amounts to subsidising international competitors.

The levy applies to bookmakers with annual gross profits exceeding £500,000 on British racing. It generated £108 million in the most recent reporting period, up modestly from £105 million the previous year.

Racing Authority Expresses Frustration

Brant Dunshea, chief executive of the British Horseracing Authority, did not mask his disappointment. He called the three-year timeframe only to land on no change “disappointing.” Racing had provided clear evidence of a widening gap between the costs of staging competitive sport and the financial return from betting activity.

Dunshea acknowledged that racing avoided an increase in betting duties during the recent budget. But here’s the thing: the Department for Culture, Media and Sport had previously advised the Treasury that the sector would not benefit from the tax exception unless the levy itself was raised. The government’s latest position leaves that reasoning unexplained just months after the budget announcement.

The BHA chief drew unfavourable comparisons with France and Ireland, warning that Britain’s refusal to extend the levy to overseas wagers means “the sport in Britain is funding our international rivals, which diminishes our global standing.” He also expressed concern over affordability checks being introduced by the Gambling Commission. They risk driving bettors towards unregulated channels and stripping millions from racing’s revenue stream, he said.

Industry Seeks Regulatory Balance

The Betting and Gaming Council offered measured support for the government’s decision, welcoming the stability it provides following recent tax increases. However, the industry body echoed racing’s concerns over affordability checks, urging ministers to make urgent progress on the issue. A spokesperson warned that if implemented as currently proposed, the checks could push customers towards the black market. Protections evaporate there, and contributions to sport disappear entirely.

The Horseracing Bettors Forum aligned itself with the BHA’s position. Affordability checks are not a realistic option without corresponding reform of the levy structure, they argued. The forum suggested politicians need reminding of racing’s cultural, historical and financial importance to the UK.

What emerges is a familiar standoff. Racing wants more. Betting wants certainty. Government wants stability. For now, stability has won, but the underlying tension over how to properly fund British racing while maintaining a competitive betting market remains unresolved.

The affordability debate may yet force the issue back onto ministers’ desks sooner than they expect.