Levy Board reports 20 per cent decline in betting turnover in two years and warns yield is set to fall

Financial checks by bookmakers have been identified as one of the reasons behind a 20 per cent fall in betting turnover on racing over the last two years revealed by the Levy Board on Tuesday.

The figure was contained in the Levy Board's annual report for 2023-24, which warned levy yield for the current financial year is set to fall, adding further pressure on British racing's finances. The levy is British racing's central funding system and the board has budgeted to contribute £72.7 million to prize-money in 2025.

The annual report formally confirmed that statutory levy income – which is based on a percentage of bookmakers' gross profits on British racing – for the year ended March 31, 2024 was £105m, the highest since the reforms of 2017 which brought online betting operators based overseas into the levy net. That figure exceeded the £100m reached in 2022-23 and was achieved despite a further fall in betting turnover thanks to improved margins and bookmaker gross win.

However, the annual report said that while betting turnover had continued to fall in 2024-25 margins had not compensated for the reduction, adding that on current estimates this will lead to a lower levy yield than last year.

In his chief executive’s report, Alan Delmonte said: "The board is itself not privy to the commercial information around individual bookmakers’ businesses. However, it is clear there has been a material change in the industry environment with turnover down by around 20 per cent in two years.

"There is bound to be an interplay of factors causing this, including the impacts of risk-based financial checks by operators, in particular on higher-staking customers, and changes to certain turnover-based commercial rights deals.

"The board has also observed changes in the types and frequency of promotions of betting on British racing, also likely to have had a downward effect on turnover levels."

The Levy Board said "there must remain a concern about whether income in the £100m to £105m range can be considered a reasonable benchmark for the future"Credit: Alan Crowhurst (Getty Images)

Delmonte said that while the Levy Board had been able to consider "judicious" increases in expenditure as a result of the latest yield, "there must remain a concern about whether income in the £100m to £105m range can be considered a reasonable benchmark for the future".

He added: "Until the board sees evidence of some stabilisation in turnover, it will necessarily have to pay regard to the turnover trends in considering additional spending applications."

Total income for the year reached £108.7m thanks to investment income increasing to £3.4m, mainly due to higher interest rates, with end of year reserves of £44.4m.

The Levy Board said its cash position remained "healthy" at £73.5m, adding that it required an appropriate level of cash to meet anticipated demand for loans to racecourses for their redevelopments of weighing rooms.

This month it emerged that only 12 of Britain's courses had met the original deadline for providing minimum-standard weighing room facilities following the announcement of a long-term improvement programme in November 2021.

The Levy Board said that fewer than expected applications emerged during the year but that it "remains anticipated by racing that demand will pick up during 2024-25". The application deadline has also been extended to March 31, 2026.

Cash was also required for the Levy Board's first repayment of the government loan taken in 2021 used to assist British racing's recovery from the economic impact of the Covid-19 pandemic. The board will repay £24m, including interest to the government over eight years, in two instalments per year, to 2030.

The report also paid tribute to the late Levy Board chair Paul Darling, whose sudden and unexpected death in August "deprived the sport of one of its best-known and most influential industry figures".

Anne Lambert was appointed as interim chair until June 15, unless a permanent successor is found before then.

The Department for Culture, Media and Sport has begun advertising the position, describing it as "an exciting opportunity to work with both the public and private sector in supporting one of Britain's greatest sports". Applications close on January 14.

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British racing lays blame for £3bn black hole at door of 'out of control and unaccountable' Gambling Commission 

Levy Board increases prize-money contribution in 2025 - but betting turnover continues to decline 

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