The horserace betting levy raised £108.9m for British racing in 2024-25, up from £105.3m and the fourth rise in a row. It is collected by the Horserace Betting Levy Board (HBLB) from bookmakers’ profits on British races, and in March 2026 the government decided to keep the rate at 10%.
What the horserace betting levy is
Horseracing is the only sport in Great Britain with a direct government-mandated levy on betting. The levy board (HBLB) collects the money and spends it on three statutory purposes: improving horseracing, supporting horse breeds, and advancing veterinary science and education.
The current rules are the 2017 levy regulations, which came into force on 25 April 2017. They apply to all bookmakers and betting exchanges taking bets on British racing from customers in Great Britain, including remote operators licensed by the Gambling Commission.
The HBLB is an arm’s-length body sponsored by DCMS. Its board includes appointees of the Secretary of State, the British Horseracing Authority (BHA) and the bookmakers.
The levy only reaches operators serving customers in Great Britain. Players who use European online casinos or other sites licensed abroad generate nothing for racing through this scheme.
How much bookmakers pay: the betting levy 10% rule
The levy is charged at 10% of the amount by which an operator’s gross profits on British horseracing bets exceed £500,000 in each 12-month period. Smaller bookmakers below the threshold pay nothing.
Because it is based on gross win rather than stakes, the yield swings with results. In 2024-25 the board had expected around £100m until bookmaker-friendly results at the Cheltenham Festival lifted February and March well above recent norms.
| Year | Levy income | Note |
|---|---|---|
| 2007-08 | £116.5m | Record under the old scheme |
| 2023-24 | £105.3m | Regulations income |
| 2024-25 | £108.9m | Highest since the 2017 reforms |
| 2025-26 | £103.2m | Budget, based on bookmaker determinations |
Total HBLB income in 2024-25 was £113m including £3.6m of interest. For context on wider betting volumes, see our UK sports betting statistics.
Where the levy board spends the money
HBLB spending supporting racing reached £94.3m in 2024-25, a 4% rise on £90.7m the year before. About 71% of that, by our calculation, went to prize money.
A further £19.4m paid for Raceday Services Grants across 1,482 fixtures, covering integrity and other raceday costs at racecourses. Other grants funded training for stable staff and jockeys, welfare charities, Retraining of Racehorses, grassroots Pony Racing and Point to Point, and veterinary research.
Largest single grant: in February 2025 the board authorised £3.62m for racing’s national marketing campaign in summer 2025.
In a 2024 stakeholder survey run by a third party, over 84% of stakeholders said the HBLB was effective and responsive.
Some offshore operators take bets on British races but are not licensed in Great Britain and so fall outside the levy. Our page on offshore casinos explains how unlicensed sites are treated.
Racing prize money funding in 2024
Prize money is budgeted on a calendar-year basis. For 2024 the board allocated £70.5m, against an actual £66.8m in 2023, but actual spending came in at £66.9m.
| Prize money scheme, 2024 | Budget (£000) | Actual (£000) |
|---|---|---|
| Ratecard Plus (incl. Sunday floodlit trial) | 58,950 | 55,152 |
| Incremental Prize Money | 3,850 | 4,050 |
| Great British Bonus | 3,500 | 3,458 |
| Winter Jump Fund | 1,300 | 1,343 |
| Divided Races | 1,000 | 1,244 |
| Programme Protection Payments | 1,000 | 930 |
| Sunday Appearance Scheme | 900 | 757 |
| Total | 70,500 | 66,934 |
The Great British Bonus is an industry-wide prize scheme for owners and breeders of British-bred Flat and Jump fillies, worth up to £20,000 per eligible horse. The board is its majority funder and added £1.2m for 2025 after an evaluation found broadly positive results.
The underspend of about £3.8m on Ratecard Plus was caused by 78 partial or full abandonments. Funding was split 61% Flat and 39% Jump, matching each code’s share of betting turnover in 2024.
New Premier fixtures received £1.9m of extra funding as part of racing’s two-year fixture trial.
The higher 2024 budget came as the board paid the second £3.1m instalment on its £21.5m Sport Survival Package loan from government. In 2025-26 it also chose to repay the remaining £4.6m of a Racing Foundation loan early, saving about £300,000 in interest.
Falling turnover and the 2025-26 forecast
The levy rose while the amount bet fell. The HBLB says average turnover per race was down about 8% on 2023-24, 15% on 2022-23 and 19% on 2021-22.
Gambling Commission data, which cover all horse racing including overseas races, tell the same story. Remote turnover on horses fell from £10,005.9m in 2021-22 to £7,849.2m in 2025-26, a 21.6% drop, while betting shop turnover on horses was £2,897.5m in 2025-26.
The board budgeted £103.2m of levy for 2025-26, which would mean an operating deficit of £3.4m. Reserves stood at £58.7m in March 2025, above its target range of £25m to £35m, so the board was willing to run that deficit. Cash stood at £77.7m at the same date.
Gambling Commission yield figures are compared across sectors in our UK gambling industry statistics. Some bettors also use bookmakers outside GamStop, whose British racing bets do not generate levy unless they hold a GB licence.
Levy reform: the 2026 decision
A review of the horserace betting levy was due by 24 April 2024. On 25 March 2026 DCMS published its conclusion: no change to the 10% rate, and no extension of the levy to bets on overseas racing.
The government said it wanted stability for the gambling sector after recent tax changes, and noted that last year’s yield of £108m beat the previous year’s £105m. The BHA called the outcome disappointing after almost three years.
The BHA argues British racing gets less than 3% back from betting, against 7.7% in France and 8.4% in Ireland. These are the BHA’s own figures and use different measures from the levy accounts.
Racing is not the only cause funded from gambling. National Lottery good causes received far more, and betting habits vary by area, as our report on gambling by region England shows.
FAQ: the horserace betting levy
Short answers based on HBLB accounts and the 2026 DCMS statement.
What is the levy rate?
10% of a bookmaker’s gross profits on British horseracing above £500,000 a year.
How much did the levy raise?
£108.9m in 2024-25, up from £105.3m in 2023-24. The 2025-26 budget is £103.2m.
Who collects the levy?
The HBLB, a DCMS arm’s-length body set up to collect and allocate levy funds.
Will the levy rise in 2026?
No. In March 2026 the government kept the rate at 10% and did not extend it to overseas racing.
What does the levy pay for?
Mainly prize money, plus raceday integrity services, breeding schemes, welfare, training and veterinary science.
HBLB figures cover the levy year April 2024 to March 2025, the latest audited accounts; prize money tables are calendar 2024. Gambling Commission turnover covers all horse racing, not only British races. Percentages marked as our calculation are derived from the published figures.
- HBLB, Annual report and accounts 2024-25.
- DCMS, Conclusion of the 2024 levy review, written statement HCWS1450, March 2026.
- British Horseracing Authority, Statement on the levy review, March 2026.
- Gambling Commission, Industry statistics, April 2025 to March 2026 (xlsx), sheets 6a and 12.
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