Levy Board increases prize-money contribution in 2025 - but betting turnover continues to decline

The Levy Board (HBLB) is to put an extra £2.2 million into prize-money next year but warned it has had to temper its approach due to falling returns in the current financial year.

The board has budgeted to contribute £72.7m to prize-money in 2025 compared to the £70.5m initially budgeted for 2024 and around £13m more than for the pre-Covid years of 2018 and 2019. It said the increased funding level had been made possible by levy income of £105m in 2023-24, the highest figure since the levy was reformed in April 2017, and the maintenance of reserves.

However, the board has repeatedly warned that levy income, which is based on a percentage of bookmaker profits on British racing, could not be maintained in the face of falling betting turnover on the sport.

Last month Racehorse Owners Association president Charlie Parker said the 2024-25 levy period had started "worryingly behind last year" and HBLB chief executive Alan Delmonte confirmed betting turnover on British racing had continued to decline.

Alan Delmonte: "The board has taken a necessarily tempered approach"

Delmonte added: "While bookmakers’ operating margins have exceeded recent comparative levels in the last two financial years, so as to provide mitigation against falling turnover, this has not been the case in the current financial year to date, with indicative gross win, and therefore levy, below that of 2023-24.

"The board has therefore taken a necessarily tempered approach in its 2025 budget decisions. However, the board has prudently budgeted and the increases for 2025 are made possible due to having sufficient reserves."

The extra contribution to prize-money will be split between an extra £1.1m for the Great British Bonus, which gives targeted support for middle-distance and staying Flat fillies and for steeplechasing mares, and additional funding for the core race programme.

Delmonte said the HBLB would review the situation in May and its anticipated prize-money spending up to June 22, the end of programme book two.

He added: "On the assumption that there are no material reasons to adjust plans, the board will maintain its planned contribution for the remainder of 2025, leading to an estimated total prize-money contribution for the year of around £72.7m."

The extent of the fall in betting turnover was outlined in a blog by BHA director of racing Richard Wayman published on Tuesday, which said that by the end of August year-to-date betting turnover was down in total by 9.5 per cent, while the average per race was down 6.9 per cent.

Richard Wayman: outlined fall in betting turnover

Wayman added: "Our colleagues in the betting industry have told us many of our recently introduced initiatives have been positively received but they haven't been sufficient to compensate for other factors impacting betting on racing, not least the continuing impact of affordability checks."

The HBLB said it would also increase its funding for the sport’s regulation and integrity activities by £700,000 next year, taking spend in that area to £20.1m.

It also confirmed £5.7m in awards to various projects and initiatives across the sport in addition to the £2.3m it will be investing in its disease surveillance, veterinary science and education programme.

Delmonte said: "The range and depth of the funding to areas other than towards fixtures reflects how much work is supported by the levy across the key areas in the sport. These grants enable a substantial number of activities to take place for the benefit of racing, the people within the sport and for the horse."

Read these next:

Owners' chief: 'British racing's finances are in an extraordinary position - we have no clarity on 2025 prize-money' 

BHA seeks government engagement on range of topics - including levy review 

Entain director Simon Clare joins Levy Board as bookmaker representative 

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