Britain’s Horserace Betting Levy Board has forecast PS99.0m in Levy Income for the 12-month period ending 31 March 2023. This is based on preliminary submissions by most Levy paying bookmakers.
This figure will surpass the initial estimates of between PS90.0m to PS95.0m based on the events that occurred in the first half of the year. This would be 2.1% more than the PS97.0m of the previous year.
HBLB stated that the forecast was increased due to a continued decline in turnover which is being partly mitigated by margins. In both February and in March, when turnover was down year-on-year, actual margins were above average.
HBLB Chairman Paul Darling stated that the board would be making decisions about prize money from September to December at its next meeting. This likely outcome provides more clarity when coming up with those decisions.
“Although the overall yield appears to be the same or slightly higher than last year, the total turnover and race-by-race turnover are both down. This was consistent from July until the end of the levies year.
The board must carefully consider what assumptions it will make regarding future yields given this trend.
Darling warns that the initial collective estimates of bookmakers for 2023-24 show a yield materially lower than 2022-23.
Since the reform in 2017 of the levy-collection remit, HBLB has recorded mixed results. These were impacted by the Covid-19 Pandemic which began in 2020.
The figure for 2020-21 was PS83.0m. HBLB noted that there were no races in the first two month of the levy period due to the pandemic.
HBLB has reported a levy revenue of PS98.0m for 2019-20. The 2018-19 levy was PS84.0m, and the 2017-18 levy was PS94.0m.
