Levy yield set to rise £5 million to £105m in 2023-24 but board warns of long-term challenge ahead

The levy is expected to yield income of £105 million in the 12 months to the end of March, up £5m on the previous year, the Levy Board revealed on Tuesday.

It is the highest figure produced by British racing's central funding system since the £115.3m raised in 2007-8 and means the board will be able to maintain its planned contribution to prize-money for the remainder of 2024, which it has increased by £3.2m to £70.5m. However, it warned again there was a long-term challenge maintaining levy income against a backdrop of falling betting turnover on racing.

The news comes with ministers due to update parliament this week about the progress of talks on levy reform between racing, the government and bookmakers. The Betting and Gaming Council (BGC) said Tuesday's announcement highlighted the fact British racing could not survive without the financial support flowing from betting.

The Levy Board said the £105m figure was derived from the receipt of provisional end of year submissions from most levy-paying bookmakers. It added the pattern for the year has been similar to that seen in the fourth quarter of the 2022-23 levy year in that betting turnover had fallen but with margins higher than recent averages.

Levy Board chairman Paul Darling said: "The trend that was seen towards the end of 2022-23 has continued, with betting turnover lower and bookmakers’ profits higher than recent norms. In the light of reports and analysis from the HBLB executive during the year, the board had been anticipating income of around the total that is expected.

“The effect of this financial out-turn gives the board additional comfort in its expenditure commitments already made for 2024 and further flexibility when it comes to considering options for 2025."

The levy was last reformed in 2017 when it was extended to include operators based offshore. Last year the government began a review of the system having promised to ensure racing did not suffer financially from the effects of the affordability checks contained in its gambling white paper.

Ministers called on racing and betting to come up with a voluntary deal to increase the sport's levy income but talks between the two sides have so far failed to culminate in an agreement. The Department for Culture, Media and Sport was due to update parliament on progress on Wednesday, although that may yet be pushed back as discussions continue.

BGC chief executive and acting chair Michael Dugher welcomed the news from the Levy Board which he said demonstrated "the enduring, mission critical support that regulated betting provides British horseracing".

He added: "Despite a double digit decline in horserace betting turnover over the past five years – and a double digit decline in racecourse attendances – this shows that levy contributions and prize-money are both up, and it once again provides a timely reminder racing could not survive without the record financial support that is flowing from betting.

"Our members remain committed to the long-term success of horseracing, and the huge economic contribution it makes across the country, especially in rural communities. Attention must now turn to how we challenge vested interests, introduce real change and reform the sport, ensuring we reverse the current decline and provide racing with a genuinely long-term sustainable future."

Darling said that for the current levy year the Levy Board's starting point was to assume a yield of £100m. He added: "This will be reviewed every month through the year in the light of information provided to us and our own analysis.

"The board has noted previously the potential longer-term challenge of maintaining levy income against a backdrop of declining turnover. We are again grateful to bookmakers who have made their end-of-year submissions in good time and our thanks go to the largest bookmakers who have provided us with confidential race-by-race information throughout the year which has been of invaluable help."

Read these next:

Levy talks going to the wire with ministers due to update parliament on progress this week 

Government says it is 'pushing hard' for racing and betting to agree voluntary levy deal 

Heavyweight political allies of racing call on ministers to drop affordability checks and reform the levy 

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