Audit Costs for Small Bookmakers in the UK Under Review

The Horserace Betting Levy Board in the UK closed a consultation on 26 October aimed at easing the audit burden on small and medium-sized betting companies. The core of the proposal is to narrow the profit range that triggers the requirement for a full independent accountant's report.

Under the current arrangement, operators with reportable profit of roughly 299 thousand euros to 597 thousand euros must submit this report every year. According to the Board, the report can cost up to about 2,389 euros per business. In the 2025/26 period, 18 operators fell within this range, while 16 operators just outside either side of the band were excluded by a small margin.

The Board states that the reports are used to confirm that the Horserace Betting Levy collected in Britain has been calculated correctly. The levy is charged at 10 percent on the eligible profit from bets on British racing above roughly 597 thousand euros. The regulation is based on reportable profit arising from the relevant betting activity, not on total betting volume.

As a result, the current system can require independent reports from operators that have not yet started paying the levy. Narrowing the reporting band may reduce compliance costs, but controls against possible tax liability must still be maintained. The Board is expected to review the consultation responses before deciding whether the requirement should be changed.