Levy yield back to pre-Covid levels as betting on racing remains resilient

Income from British racing's central funding system has bounced back to pre-Covid levels, the Levy Board revealed on Tuesday.

The levy yield for the year to the end of March this year is expected to be around £97 million based on provisional submissions from bookmakers, up from £82m in 2020-21 when no racing took place for the first two months of the levy's financial year, a period which included the Grand National. The 2019-20 yield had been £98m.

The Levy Board, which last December had forecast the levy would yield between £96m and £100m, said the figure reflected the resilience of betting on British racing.

There had been concerns that small field sizes and uncompetitive racing would hit the levy, which is based on ten per cent of bookmaker profits from bets taken on British racing. The board did say that there had been a below-par start to 2022 before a stronger end to the levy year.

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Levy Board chairman Paul Darling said the yield figure was "very welcome", adding that it "reflects that betting on British racing has continued to be resilient as it has been since the resumption of racing in June 2020".

The Racecourse Association last month announced British prize-money was forecast to be a record £170m this year, although chief executive David Armstrong went on to warn that levels could dip in 2023.

Darling said the Levy Board would be contributing more than £70m in prize-money in 2022, compared to around £60m in a normal pre-Covid year, but reiterated his warning that increased spending levels could not continue.

He added of the board's expenditure: "We said when announcing this last year that it would be very difficult to maintain this into 2023 and this remains the case.

Paul Darling: Levy Board planning ahead 'with additional certainty and optimism'

"First, a contribution of this level continued to draw on our reserves, which is not a sustainable longer term position, and secondly it included some of the proceeds of a £21.5m loan from government. The first loan repayment instalment must be made in 2023 and repayment continues each year until 2030."

Nevertheless, Darling said the board would now be able to plan ahead for 2023 "with additional certainty and optimism".

He added: "We will look to provide an indicative prize-money allocation after our June board meeting at which we will also consider other potential major calls on expenditure next year.

"I would like to thank bookmakers for their timely submission of end-of-year declarations. Particular thanks go to the major bookmakers who have provided valuable information to us through the year which has helped us with accurate forecasting."

Read more:

How soaring overseas prize-money is heaping more pressure on British racing

Levy Board to extend support with up to £75 million for prize-money in 2022

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