The Betting and Gaming Council (BGC) has raised concerns about the potential negative impact of further tax increases on the gambling industry, particularly on horseracing funding. Despite this, new figures reveal that betting operators have contributed a record £108m in Levy payments to the Horseracing Betting Levy Board (HBLB) for the 2024/2025 period—marking a £3m increase compared to last year and continuing a trend of rising contributions for the fourth consecutive year.
Levy Contributions Rise, But Betting Turnover Declines
This year’s rise in Levy payments comes amid a worrying decline in betting turnover, with the HBLB reporting an 8% drop in average turnover per race from 2023/2024 figures. This represents a 15% fall compared to 2022/2023 and a 19% drop from 2021/2022. Despite the increased Levy contributions, which have been growing since 2021, the ongoing struggle of the racing industry to maintain its economic strength persists.
The HBLB’s Levy payments data shows a continued commitment to British horseracing, even as betting turnover continues to decline year-on-year. The BGC’s CEO, Grainne Hurst, commented on the ongoing struggle of the industry: “For the fourth year running Levy contributions have increased to record levels, demonstrating the growing, long-term investment regulated betting provides British horseracing. But it is concerning to see once more that despite record Levy contributions, racing continues to struggle, both as a sport and as a betting product, with betting turnover down again year on year.”
BGC Concerned About the Impact of Tax Hikes
The concern for the BGC is compounded by the recent Treasury announcement regarding new tax consultations, which could replace the current online betting tax structure with a single new rate. The BGC has warned that this move could lead to even higher taxes on the gambling sector, with a significant risk of pushing punters towards the growing, unregulated gambling black market. According to Hurst, these “parasite operators” do not contribute to the Levy or adhere to safer gambling standards, posing a danger to the regulated industry.
The rise in tax could disrupt the flow of investments into the racing sector, harming both punters and the sport itself. Hurst emphasized the need for a balanced approach, where taxes do not hamper the essential contributions the regulated betting market makes to horseracing’s financial stability.
MOU Between AGA, ECA, and BGC to Address Global Gaming Challenges
In a major step forward for the global gaming industry, the American Gaming Association (AGA), the European Casino Association (ECA), and the Betting & Gaming Council (BGC) have signed a memorandum of understanding (MOU) to tackle shared challenges in the gaming sector. The MOU is a collaborative effort aimed at addressing key issues such as illegal gambling, industry innovation, and responsible gaming.
The partnership will facilitate joint research projects and knowledge-sharing between the three organizations, allowing them to leverage their combined expertise in tackling global gambling challenges. One of the first major initiatives of this collaboration is a law enforcement roundtable scheduled for January 2025, focused on addressing the impact of illegal gambling. The event will bring together industry leaders, regulators, and law enforcement officials to discuss strategies for combatting unregulated gambling and ensuring consumer protection.
Promoting Responsible Gaming and Security
The MOU underscores the commitment of the AGA, ECA, and BGC to a responsible and sustainable gaming industry. The organizations are dedicated to promoting security measures and tackling illegal gambling, which continues to harm the legal sector. As part of the partnership, the groups will continue to work together to create solutions that enhance consumer protection while driving the responsible growth of the industry.
By joining forces, the AGA, ECA, and BGC are aiming to make significant strides in addressing the most pressing issues in global gaming, setting the stage for continued innovation, security, and responsible gaming practices. The partnership is poised to play a crucial role in shaping the future of the global gaming industry.
Source:
“TAX HIKES WILL UNDERCUT RACING’S FUNDING WARN THE BGC, AS HBLB LEVY CONTRIBUTIONS HIT RECORD NEW HIGH”, May 14, 2025
