Concerns over horse racing’s finances continue to be raised, despite the expectation that income to the Horserace Betting Levy Board (HBLB) will increase for the fifth year running.
Expected income for the year ended 31 March 2026 is projected to be around £110m, representing the highest total since the levy collection reforms of 2017.
New legislation was introduced nine years ago, with all betting operators – whether they operate on or off-course, on or offline or on or offshore – required to pay 10% of profits from British customers to British racing.
The changes were made due to the sharp spike in online betting – a trend which has continued over the last decade, but the British Horseracing Authority (BHA) argues that the sport only gets “less than 3%” return from the gambling industry.
But with more stringent regulation in the UK, including the increase in remote gaming duty tax to 40%, and horse racing facing somewhat of a structural crisis, the mood seems a little pessimistic despite the levy’s nine-figure income.
Upon the announcement yesterday, HBLB Chief Executive Alan Delmonte warned of “the downward trend” in horse racing in recent years.
“The board has noted previously that with turnover falling, there is concern as to the sustainability of maintaining gross win, and therefore levy, at around current levels,” he said.
“The board has nonetheless been able to commit to expenditure of around £113m in the current levy year, balancing a desire to provide additional funding in targeted areas with ensuring that reserves remain in place to give a cushion should levy yield fall.
“There remains significant concern about the downward trend of recent years, including the reported increase in black market betting activity which continues to threaten the sport’s viability in the longer term.
“For the 2026/27 levy year, the board’s starting assumption is a levy yield of £109m, based on a combination of 2025/26 outturn and the confirmed advance payments on account for the year agreed with individual bookmakers. This will be reviewed regularly throughout the year as new information becomes available.
“We are grateful to bookmakers who have made their end-of-year submissions in good time and thank those who have voluntarily provided data throughout the year which has been invaluable in supporting HBLB’s betting analysis.”
UK horse racing’s recent decline
Betting on horse racing has dropped significantly in the UK in recent years, though it remains the second most bet on sport after football, which took the top spot in 2019.
This year’s (2025/26) turnover per race was down 1.2% on 2024/25.
It mirrors an, albeit steeper, decrease seen between 2023/24 and 2024/25, when turnover per race dropped sharply by 7.7%.
The HBLB said that this year’s average was 9.2% under the three-year historic average between 2022-2025 and 19% lower than 2021/22.
A decline also comes despite the HBLB making efforts to contribute to horse racing, having upped its prize money contribution for 2026 by £4.4m to £77.1m.
In March this year, the HBLB also agreed to grant funding of £10.5m for non-racing fixture related projects and initiatives across the sport.
But horse racing, particularly in the UK, continues to face pressure and decline.
The way the sport is regulated and promoted has sparked conversations around whether punters are either becoming disinterested or pushed towards the black market.
Driving punters to the black market has been a key concern raised by industry figures, and Simon French, Director at Orange County Services, recently stating that racing is now “fundamentally not profitable for most bookmakers”.
“If you’re a punter, all you care about is getting paid – you don’t worry about anything else,” he explained.
Sports including Formula 1, darts and golf have also seen growth in recent years, particularly from a younger generation.
Formula 1 has reinvented itself under the ownership of Liberty Media, and industry stakeholders there have pointed to similarities between horse racing and Formula 1, claiming that horse racing may be able to follow its successes.
Whether horse racing can mirror that move remains to be seen, but it seems it may need to in order to keep levy income high and the sport an affluent one.
The HBLB also announced the appointment of Catherine Colloms as a Member today.
Colloms joins for a period of four years, bringing experience from Paddy Power, Senet Group and Openreach.
