The latest figures on online horseracing betting paint a stark picture for the industry. A detailed analysis by Horse.bet reveals that betting turnover has fallen sharply, leaving the industry grappling with significant financial implications. This decline has raised concerns about the future funding of British horseracing and the wider impacts on bettors and operators alike.
The Decline in Horse Bets Online: A £1.75 Billion Gap
Horse.bet’s analysis of Gambling Commission data shows that online betting turnover on horseracing fell to £9.12 billion in 2022-23—a drop of £900 million compared to the previous year. When adjusted for inflation, the turnover was expected to rise in line with historic trends, reaching £10.87 billion. This £1.75 billion gap highlights the unprecedented scale of the downturn in real terms.
A Shift in Betting Behavior
One of the standout trends is the divergence between turnover and Gross Gambling Yield (GGY), which measures bookmaker profits. While turnover has plunged, GGY has continued to rise in line with inflation, as shown in the graphs. This suggests that operators are compensating for reduced betting activity by increasing margins, potentially through fewer promotions and reduced place terms for horseracing bets.
The sharp fall in turnover also coincides with the widespread introduction of affordability checks, as bookmakers faced mounting pressure from regulatory bodies. These checks, designed to mitigate gambling harm, may be driving some punters to reduce their activity or turn to unregulated black-market alternatives.
How Turnover Affects the Industry
For British horseracing, the impact is twofold:
- Media Rights Revenue Decline: Online media rights revenue, largely linked to betting turnover, has seen a sharp decline. This threatens the sport’s ability to compete globally with jurisdictions like Ireland and France, where revenues remain robust.
- Levy Stability vs. Long-Term Risk: While the levy—a tax on bookmaker profits—has remained stable thanks to GGY growth, the reliance on higher bookmaker margins rather than higher turnover raises concerns about long-term sustainability.
Comparison of UK Horseracing Betting Turnover and Profit Trends (2017-2023)
| Financial Year | Actual Turnover (£m) | Expected Turnover (£m) | Turnover Change (%) | Gross Gambling Yield (Profit Change, %) |
|---|---|---|---|---|
| April 2017 – March 2018 | 9,100 | 9,100 | 0.0 | 0 |
| April 2018 – March 2019 | 9,700 | 9,400 | 6.6 | -10 |
| April 2019 – March 2020 | 9,500 | 9,700 | -2.1 | 5 |
| April 2020 – March 2021 | 9,400 | 10,100 | -1.1 | 35 |
| April 2021 – March 2022 | 10,020 | 10,450 | 6.6 | -5 |
| April 2022 – March 2023 | 9,120 | 10,870 | -9.0 | 10 |
What Does the Future Hold?
Horse.bet predicts that unless action is taken to address this turnover slump, the gap between British horseracing and its international counterparts will widen. Regulatory uncertainty, particularly surrounding affordability checks and financial risk measures, could further accelerate this trend.
However, operators may find themselves in a challenging position, balancing compliance with profitability while trying to attract and retain bettors. Without meaningful interventions, the sport risks losing both funding and fan engagement.
It seems that some betting companies are still optimistic about horse betting online prospects in the US market as bet365 is live with their horse bet app.
Looking Ahead: What Horse.bet Recommends
Based on this analysis, Horse.bet recommends several measures to mitigate the downturn:
- Clearer Regulatory Guidelines: Establishing clear, fair, and practical affordability measures to prevent further migration of bettors to the black market.
- Enhanced Marketing Efforts: Reinvigorating bettor interest through promotions and improved odds to make racing betting more attractive.
- Cross-Industry Collaboration: Greater collaboration between regulatory bodies, bookmakers, and the horseracing industry to balance compliance and financial sustainability.
Top Online Horse Betting Sites in the USA
As the British market grapples with these challenges, Horse.bet highlights the top online horse betting sites in the USA based on market share and bettor satisfaction. Sites like TwinSpires, TVG, new DK Horse Bet continue to grow their offerings, providing lessons on how to balance user-friendly platforms, competitive odds, and bettor trust.
Here is our list of the best horse bet apps for the UK.
Predictions for 2025 & Betting Offers UK
Looking ahead, Horse.bet forecasts:
- A potential stabilization in turnover if regulatory clarity improves.
- Continued growth in black-market betting unless the affordability check framework becomes more flexible.
- A greater focus on customer rewards and engagement to revive turnover growth.
UK vs. US Horseracing Betting Markets: A Growing Divide
The UK horseracing betting market, once a global leader, is now facing significant challenges that contrast starkly with the growing momentum in the US market. As highlighted in Horse.bet’s analysis, the UK’s turnover is shrinking in real terms due to regulatory hurdles such as affordability checks and the cost of living crisis. These factors have created a less favorable environment for bettors and operators alike, leading to a migration of some punters to black-market alternatives.
In contrast, the US horseracing industry is experiencing a surge in popularity, fueled by technological advancements, the expansion of US online betting platforms, and increased investment in marketing. Operators like TwinSpires and TVG are leveraging competitive odds and user-friendly platforms to attract a growing base of customers. Furthermore, the US market benefits from a lighter regulatory framework compared to the UK horse betting sites, allowing operators more flexibility to incentivize bettors with promotions and higher payout margins.
This divergence highlights a critical challenge for the UK: balancing responsible gambling measures with maintaining competitiveness in the global betting market. Without addressing these systemic issues, the UK risks falling further behind, both in terms of revenue and bettor satisfaction, while the US continues to set the pace for growth and innovation in horseracing betting.
