Despite the continuous decline in horse racing betting turnover, the Horserace Betting Levy Board (HBLB) in the UK expects to receive a record £108 million in taxes for the fiscal year 2024-25. This revenue comes from betting companies with gross profits over £500,000, taxed at 10%, and is used to support the British horse racing industry.
This figure is expected to break the historical record of £105 million from the 2023-24 fiscal year. The HBLB notes that although previous estimates predicted revenues would drop to about £100 million, profits from betting companies in February and March 2024, particularly due to the results of the Cheltenham Festival, led to an upward revision of the total.
However, the overall betting amount continues to decline. Over the past 12 months, the average betting amount per horse race has decreased by 8% year-on-year; it is down 15% from the 2022-23 season and down 19% from the 2021-22 season.
In response to the tax revenue increase, the HBLB has decided to allocate £11 million for new projects and invest £93 million in prizes, regulation, and integrity work. The interim chair, Anne Lambert, states that the organization's financial situation is "healthy," but there is still a need to remain vigilant about the ongoing decline in turnover.
HBLB CEO Alan Delmonte said that the preliminary forecast for tax revenue at the beginning of next year is £103 million, which will be dynamically adjusted based on the prepayments and data from major betting companies.
Meanwhile, the Betting and Gaming Council (BGC) expresses concern over the government's potential plans to adjust the online betting tax rate. The Treasury is consulting on consolidating the three current online betting taxes into a single rate. The BGC fears that this move could increase the tax burden and hinder the development of the horse racing industry.
BGC CEO Brinley Hurst points out that despite record-high industry donations year after year, horse racing itself is facing severe challenges such as declining participation. She emphasizes that taxes should not be increased in a way that undermines the ongoing support of betting companies for horse racing, as this could drive gamblers to the black market, harming industry stability and consumer safety.
"We urge the government to fully consider the profound impact on the horse racing industry when reforming the tax system," Hurst said.
