Gambling - Horse Racing Levy extended to Online Gambling businesses

The Horserace Betting Levy Regulations 2017 took effect from 25^th April 2017. The regulations make provision in relation to the Horserace Betting Levy to extend the class of persons liable to pay the Levy to include betting exchange providers and make provision for calculating the revised levy.

This represents a significant change to the Levy. When proposing a motion to approve these new regulations Lord Ashton of Hyde reiterated the Government’s view that the change would “create a level playing field between all betting operators and provide a fair return to the racing industry, helping to sustain and develop the sport”.

For the first time,  the levy will apply equally to all: bookmakers, including pool-betting and spread-betting operators, and betting exchange providers. The levy rate will be set at 10% of a betting operator’s gross profits on such activity and it will apply whether the bet is placed at a course, a high-street bookmaker, or online.​

The first £500k of gross profits will be exempt from the levy which the Government believes will result in the majority of small and medium-sized operators escaping levy payments altogether.