The Horserace Betting Levy Board (HBLB) is seeking feedback on its fiscal plans to lower operating and auditing costs on smaller and mid-sized bookmakers.
The body launched a consultation on 25 August, to review the profit threshold at which betting operators must provide a full independent accountant’s report verifying their assessable profits from UK racing markets. The consultation phase will end on 26 October
The HBLB disclosed that “currently, small betting operators with assessable profits of between £250,000 and £500,000 provide HBLB with an Independent Accountant’s Report annually at a cost of up to £2,000 each.
“In 2025/26 there were 18 of these operators with a further 16 within a small band either side of this range.”
Explaining its consultation phase, the HBLB stated: “These reports provide necessary assurance for HBLB in its duty to collect the appropriate amount of Levy.”
However, the Board is considering narrowing the reporting band so that fewer operators incur the associated costs, but does not specify a replacement threshold or an implementation date.
The proposal addresses a feature of levy administration: bookmakers can face annual verification costs even when their profits fall below the threshold for paying the levy.
Under the HBLB’s published guidance, the levy is charged at 10% on profits from qualifying bets on British horseracing above £500,000. However, the requirement to supply an independent accountant’s report extends to operators with profits above £250,000.
These figures concern profits from relevant betting activity, rather than the total value of stakes accepted or a bookmaker’s overall corporate earnings. The reports support the Board’s assessment of whether a liability exists and how much an operator owes.
The HBLB cites that it is “under consideration that narrowing this band would capture a smaller number of operators and thus reduce their administration burden and costs”.
Racing Levy remains on fixed terms
However, in March 2026, the Labour government confirmed that the levy would remain at 10% on qualifying profits above £500,000, rejecting an extension to bets on overseas fixtures. The renegotiation of the Racing Levy was sidelined out of the Gambling Review by the former Conservative government.
DCMS cited the need for stability following wider gambling tax changes, including the increase in Remote Gaming Duty from 20% to 40%.
Brant Dunshea, Chief Executive of the British Horseracing Authority (BHA), criticised the outcome: “It is disappointing that it has taken almost three years to determine there should be no change in the Levy rate.”
He said British racing had engaged with ministers throughout lengthy negotiations, presenting evidence of a growing gap between the cost of staging the sport and its returns from betting.
For racing, the decision reinforced concerns that its funding demands had been sidelined during a generational overhaul of UK gambling’s regulations and fiscal planning.
