UK Racing Seeks Feedback on Levy Auditing Thresholds

The Horserace Betting Levy Board (HBLB) is gathering feedback on proposals to reduce operating and auditing costs for small and mid-sized bookmakers. This consultation, launched on August 25, reviews the profit threshold for mandatory independent accountant reports.

What Happened

The Horserace Betting Levy Board (HBLB) has initiated a consultation to solicit feedback on its fiscal strategies aimed at reducing operational and auditing expenditures for smaller and mid-sized bookmakers, as reported by SBC News. The consultation, which commenced on August 25, is focused on evaluating the profit threshold that mandates betting operators to furnish a comprehensive independent accountant’s report. This report is crucial for verifying their assessable profits derived from UK racing markets, and the consultation phase was scheduled to conclude on October 26, according to SBC News.

Currently, operators with assessable profits ranging from £250,000 to £500,000 are required to provide an annual Independent Accountant’s Report to the HBLB, each incurring a cost of up to £2,000. In the 2025/26 fiscal year, 18 operators fell into this category, with an additional 16 positioned within a narrow range around this bracket, the HBLB disclosed. The Board explained that these reports offer essential assurance for the HBLB in fulfilling its duty to collect the appropriate Levy amounts.

Key Details

• The HBLB is considering narrowing the reporting band to reduce the administrative burden and associated costs for operators, as per SBC News.
• The current levy is charged at 10% on profits exceeding £500,000 from qualifying bets on British horseracing, as stated in HBLB’s published guidance.
• The requirement for an independent accountant’s report applies to operators with profits above £250,000, even if they fall below the levy payment threshold, according to SBC News.
• In March 2026, the Labour government affirmed the levy would remain at 10% on qualifying profits over £500,000, declining to extend it to overseas fixtures, SBC News reported.

Why It Matters

The HBLB’s consultation addresses a longstanding administrative challenge within the levy system, where bookmakers can face annual verification costs even when their profits do not reach the threshold for levy payment, as detailed by SBC News. By considering a narrower reporting band, the HBLB aims to alleviate the financial and administrative strain on a segment of operators while maintaining necessary oversight for levy collection. This initiative reflects an ongoing effort to balance regulatory requirements with industry operational realities, particularly for smaller entities.

The broader context of this consultation includes recent government decisions regarding the Racing Levy. Despite extensive negotiations and evidence presented by British racing regarding increasing sport staging costs versus betting returns, the Labour government maintained the levy at 10% on qualifying profits above £500,000, rejecting an extension to overseas bets. This decision, following the former Conservative government’s sidelining of levy renegotiation during the Gambling Review, has reinforced concerns within British racing about its funding demands being secondary during significant overhauls of UK gambling regulations and fiscal planning, according to SBC News.

What’s Next

While the consultation phase concluded on October 26, the HBLB has not specified a replacement threshold or an implementation date for any potential changes, according to SBC News.

Originally reported by SBC News·Published 26 Oct 2026, 11:47