HBLB Launches Consultation to Narrow Levy Audit Band for Smaller Bookmakers
HBLB is consulting until 26 October on narrowing the £250,000-£500,000 band that requires independent audits costing up to £2,000 for 18 operators in 2025/26. The move follows the March 2026 confirmation that the 10% levy on profits above £500,000 remains unchanged. No new threshold has been proposed.
SCCG Take — Narrowing the audit band would ease compliance costs for mid-tier bookmakers without altering levy liability. Racing’s unchanged 10% rate leaves its funding concerns unaddressed after three years of negotiation.
The Horserace Betting Levy Board (HBLB) is seeking final feedback on plans to lower operating and auditing costs for smaller and mid-sized bookmakers. The consultation, launched on 25 August, closes on 26 October. It reviews the profit threshold at which operators must supply a full independent accountant’s report on assessable profits from UK racing markets.
As reported by SBC News, operators with assessable profits between £250,000 and £500,000 currently submit these reports annually at a cost of up to £2,000 each. In 2025/26 there were 18 such operators, with a further 16 within a small band either side of this range. The HBLB states these reports provide necessary assurance for collecting the appropriate amount of Levy.
The Board is considering narrowing the reporting band to capture a smaller number of operators and reduce their administration burden and costs. No replacement threshold or implementation date has been specified. The proposal addresses cases where bookmakers face annual verification costs even when their profits fall below the threshold for paying the levy.
Levy Rate Held at 10 Percent
In March 2026 the Labour government confirmed the levy would remain at 10% on qualifying profits above £500,000, rejecting any extension to bets on overseas fixtures. The renegotiation was sidelined from the Gambling Review. DCMS cited the need for stability after the Remote Gaming Duty rose from 20% to 40%.
Brant Dunshea, Chief Executive of the British Horseracing Authority (BHA), criticised the outcome. He said: “It is disappointing that it has taken almost three years to determine there should be no change in the Levy rate.” Dunshea added that British racing had engaged with ministers throughout, presenting evidence of a growing gap between the cost of staging the sport and its returns from betting.
Where the Cost Burden Falls
The gap between the levy payment threshold of £500,000 and the auditing floor at £250,000 creates compliance expense for operators that owe no levy. Narrowing the audit band would directly cut those costs for the affected cohort. Racing continues to face an unchanged funding mechanism despite repeated calls for reform.
Reporting: SBC News
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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