The Betting and Gaming Council (BGC) has raised issues in regards to the potential adverse influence of additional tax will increase on the playing trade, notably on horseracing funding. Despite this, new figures reveal that betting operators have contributed a file £108m in Levy funds to the Horseracing Betting Levy Board (HBLB) for the 2024/2025 interval—marking a £3m enhance in comparison with final yr and persevering with a development of rising contributions for the fourth consecutive yr.
Levy Contributions Rise, But Betting Turnover Declines
This yr’s rise in Levy funds comes amid a worrying decline in betting turnover, with the HBLB reporting an 8% drop in common turnover per race from 2023/2024 figures. This represents a 15% fall in comparison with 2022/2023 and a 19% drop from 2021/2022. Despite the elevated Levy contributions, which have been rising since 2021, the continuing wrestle of the racing trade to take care of its financial power persists.
The HBLB’s Levy funds knowledge reveals a continued dedication to British horseracing, at the same time as betting turnover continues to say no year-on-year. The BGC’s CEO, Grainne Hurst, commented on the continuing wrestle of the trade: “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 current Treasury announcement relating to new tax consultations, which may change the present on-line betting tax construction with a single new price. The BGC has warned that this transfer may result in even greater taxes on the playing sector, with a big threat of pushing punters in the direction of the rising, unregulated playing black market. According to Hurst, these “parasite operators” don’t contribute to the Levy or adhere to safer playing requirements, posing a hazard to the regulated trade.
The rise in tax may disrupt the circulate of investments into the racing sector, harming each punters and the game itself. Hurst emphasised the necessity for a balanced strategy, the place taxes don’t hamper the important contributions the regulated betting market makes to horseracing’s monetary stability.
MOU Between AGA, ECA, and BGC to Address Global Gaming Challenges
In a serious step ahead for the worldwide gaming trade, the American Gaming Association (AGA), the European Casino Association (ECA), and the Betting & Gaming Council (BGC) have signed a memorandum of understanding (MOU) to deal with shared challenges within the gaming sector. The MOU is a collaborative effort aimed toward addressing key points reminiscent of unlawful playing, trade innovation, and accountable gaming.
The partnership will facilitate joint analysis initiatives and knowledge-sharing between the three organizations, permitting them to leverage their mixed experience in tackling international playing challenges. One of the primary main initiatives of this collaboration is a legislation enforcement roundtable scheduled for January 2025, centered on addressing the influence of unlawful playing. The occasion will convey collectively trade leaders, regulators, and legislation enforcement officers to debate methods for combatting unregulated playing and making certain shopper safety.
Promoting Responsible Gaming and Security
The MOU underscores the dedication of the AGA, ECA, and BGC to a accountable and sustainable gaming trade. The organizations are devoted to selling safety measures and tackling unlawful playing, which continues to hurt the authorized sector. As a part of the partnership, the teams will proceed to work collectively to create options that improve shopper safety whereas driving the accountable progress of the trade.
By becoming a member of forces, the AGA, ECA, and BGC are aiming to make important strides in addressing probably the most urgent points in international gaming, setting the stage for continued innovation, safety, and accountable gaming practices. The partnership is poised to play a vital function in shaping the way forward for the worldwide gaming trade.
Source:
“TAX HIKES WILL UNDERCUT RACING’S FUNDING WARN THE BGC, AS HBLB LEVY CONTRIBUTIONS HIT RECORD NEW HIGH”, May 14, 2025
