Earlier this week, it was announced that the UK government will have an early review of the Horserace Betting Levy. The news was well-received by the British Horseracing Authority (BHA) as the racing industry was working on a recovery plan to overcome the huge losses that came as a result of the COVID-19 pandemic.
The last time the levy was reformed was in 2017 when it extended to offshore bookmakers that offer bets on British racing. Although the next review was scheduled for 2024, the government announced that it will have an earlier review of the way the sport is funded in 2021.
After the racing industry published its Recovery Plan in August, BHA’s Chair, Annamarie Phelps, and Chief Executive, Nick Rust, had a meeting with the Minister of Sports. They required an earlier examination of the Horseracing Betting Levy, which is currently ensuring a 10% return on the profits that bookmakers generated thanks to racing bets.
Racing Industry Welcomes Government’s Decision for Horseracing Levy Review
Rust announced that the racing industry is welcoming the announcement for the earlier examination of the Horseracing Betting Levy as there is an urgent need for recovery from the COVID-19 pandemic. Rust also announced that they are happy to work together with the Department for Digital, Culture, Media, and Sport (DCMS) officials in the upcoming year.
Another point of the government’s publication that received the BHA’s approval was the protection of vulnerable individuals who may be exposed to gambling-related risks. The goal of the gambling review will be to introduce reforms to the legislation so it can fit the modern digital age we currently live in. The modernization of the legislation should also be carried out while taking into consideration the contribution of the gambling sector and other related industries to the economy of the UK.
Rust shared that even though horse racing has a low problem gambling prevalence rate, it is an industry that supports responsible gambling and will cooperate to further decrease the risk levels. Sports Minister, Nigel Huddleston, shared that the review of the levy will take into consideration the financial losses the sports betting industry has experienced due to the pandemic. The review will also concentrate on the legitimacy of the relationship between sports and gambling and its positive and negative impact.
Since the last reform of the Horseracing Betting Levy in 2017, the taxes generated in 2018 and 2019 brought the country an additional income of £45 million compared to previous years. The racing industry is hoping that the upcoming review of the levy will allow the sport to recover from the impact of the pandemic. If the new reform introduces a levy system based on turnover and it extends to foreign racing bets, it has the potential to earn the industry additional £10 million in the upcoming year.
- Author
Daniel Williams
