Horserace Betting Levy Board

Levy income to the Horserace Betting Levy Board (HBLB) for the year ended 31 March 2024 is expected to be approximately £105m, up £5m on the previous year.

The £105m total is derived from the receipt of provisional end of year submissions from most Levy-paying bookmakers.

As the Levy year progressed, HBLB considered that the most likely range for Levy income would be £101m to £105m, with data in the January to March period indicating that this would most likely be in a range of £103m to £107m.

The pattern for the year has been similar to that seen in the fourth quarter of 2022/23 in that betting turnover has fallen on the preceding year but with margins higher than recent years’ averages.

HBLB Chairman Paul Darling KC commented: “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 outturn gives the Board additional comfort in its expenditure commitments already made for 2024 and further flexibility when it comes to considering options for 2025.

“For the 2024/25 Levy year, the Board’s starting point is to assume Levy of £100m which is based on bookmaker payments on account for the year. 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.”

Notes:

1.The indicative yield is based on returns received to date from bookmakers, which includes the submissions from the largest operators, and an assumption around the returns that are yet to be received. Each return will be subject to final assurance and processing by HBLB on receipt of an independent accountant’s certificate.

Levy yields in recent years, since the reform of the Levy collection remit in 2017, have been:

2022/23 £100m

2021/22 £97m

2020/21 £83m (no racing took place in the first two months of the Levy year)

2019/20 £98m

2018/19 £84m

2017/18 £94m

2.In October 2023, HBLB announced an increase of £3.2m in its prize money contribution for 2024 versus 2023, from £67.3m to £70.5m. The Board agreed that it would review whether there had been any material reasons to adjust these plans for the remainder of 2024 in the light of Levy outturn. Given expected income for the past year of £105m, the Board fully expects to maintain its planned contribution for the rest of the year.

For further information, please contact Levy Board Chief Executive Alan Delmonte on 07931 701536