Reformed racing levy delivers 46% rise in income
Levy Board says it is well placed to overcome potential impact of FOBT stake reductions
The reformed horseracing levy has delivered a 46% rise in funding to the sport, with the Levy Board reporting a total annual income of £94.7m for the year to 31 March.
The figure marks a 10-year high and a significant bump from the £65.1m raised last year, before the levy was reformed to capture revenue from offshore operators.
“I am delighted to report that the first year of the operation of the new Levy Scheme has been successfully implemented,” said Levy Board chairman Paul Lee, in the body’s annual report.
“This is due in no small measure to the cooperation of the bookmakers who have been most constructive in their attitude.”
The figure raised is about 5% above projections, with £74m returned to the sport as prize money, up from £73m last year.
The board also increased its reserves to £46m, in part due to improved operational efficiency.
Lee added: “Throughout the year, we maintained tight control of administrative expenditure, which fell again. As an example of this, some of our office space has been taken by the “Gambling Commission who are making a valuable contribution to ensuring that we remain cost-effective.”
Lee also addressed concerns the Levy would fall following the planned reduction to FOBT stakes, saying the board was “well placed to react judiciously if market changes occur”, in part thanks to the strong reserves.
Some racing stakeholders have called for a minimum bet margin or a return to a turnover-based levy to protect income.
Going forward, the Levy Board is on track to be abolished in April next year, pending secondary legislation, with its collection functions to be carried on by the Gambling Commission and distribution by a newly created Racing Authority.