Where Prize Money Comes From: A Guide For Syndicate Members
The Short Answer
In Britain, prize money comes from three main places: the Levy Board (a share of bookmakers' profits), the racecourses (whose income includes media rights paid largely by bookmakers) and owners' entry fees. The BHA says the total was £194.7m in 2025. In Ireland, most of the money comes from the government, through Horse Racing Ireland. That's why betting taxes and shop closures matter to British racing, and why racing's bodies are worried about the October 2026 Budget.
British figures from the BHA's 2025 Racing Report; Irish figure from Horse Racing Ireland. Read 29 Oct 2026.
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Where British Prize Money Comes From
The BHA's 2025 Racing Report splits British prize money into three main sources plus a small development fund:
| Source | 2025 | Share |
|---|---|---|
| Levy Board The Horserace Betting Levy: bookmakers pay 10% of their profits on bets on British racing to the Levy Board, which puts much of it into prize money. | £63.3m | 32.5% |
| Racecourses Racecourses' own income: racegoers, hospitality, sponsors and the media rights fees paid for live pictures and data, much of it by betting shops and online bookmakers. | £103.3m | 53.1% |
| Owners' entry fees What owners (syndicates included) pay to enter their horses in races. Part of the prize fund is owners' own money. | £26.8m | 13.8% |
| BHA Development Fund A smaller fund run by the BHA. | £1.3m | 0.7% |
| Total Up 3.5% on 2024, the BHA says. | £194.7m | 100% |
Amounts from the BHA 2025 Racing Report; the share column is our sum, rounded, so it may not add to exactly 100%. The descriptions are our plain-English summary. The BHA's figures leave out extra payments such as the Great British Bonus, which it says paid out almost £6m in 2025.
The Levy: Racing's Share Of Betting
Bookmakers pay a Levy of 10% of their profits on bets on British racing to the Horserace Betting Levy Board. The Levy Board spends it on prize money, integrity, vet science and training.
- About £110m. The Levy Board expects about £110m for 2025/26, which it says would be the highest since the Levy reforms of 2017. It also says it has "significant concern" about the downward trend in betting turnover (HBLB, June 2026).
- £77.1m for prize money in 2026. That's up £4.4m on 2025, with most of the increase going to developmental races. Flat novice and maiden races now run for at least £10,000 (£8,000 for restricted races), the BHA says (BHA 2025 Racing Report).
- No rise in the rate. The BHA says the government closed its Levy review in spring 2026 with the rate staying at 10% (BHA, April 2026).
Media Rights And Betting Shops
Racecourses sell the rights to show their races and use their data. Betting shops and online bookmakers are big buyers, so a busy high street feeds racing in two ways: through the Levy and through media rights.
- The Guardian reports there are about 5,500 betting shops in the UK, and that each one contributes about £25,000 a year to racing through the Levy and payments for live pictures and data (Guardian, 28 Oct 2026).
- The BHA's chief executive says British racing gets nearly a third of its £350m a year from betting through high street shops. He also says racing could lose £57m a year after the Budget's rise in Machine Games Duty, based on modelling the BHA shared with the Treasury. That's the BHA's estimate, not an official one (same source).
- The government's own costing says the duty rise, from 20% to 25% on machines with stakes over £1 or prizes over £100, starts on 1 April 2027 (GOV.UK).
We explain the tax changes, and what they could mean for share prices, in Betting Tax Rise: Will Racehorse Shares Get More Expensive?
Bookmaker Sponsorship
Many races, and some of the biggest meetings, carry a bookmaker's name. Sponsorship goes to the racecourse and often adds to a race's prize fund, so it's part of the racecourses' share in the table above rather than a separate line. The BHA says that, beyond the Levy, tighter checks on gamblers would hurt "media rights payments and sponsorship arrangements with betting operators" (BHA, April 2026). That's the BHA's view. We don't have a figure for how much sponsorship goes into prize money.
Owners Pay In Too
About one pound in every seven of British prize money is owners' own entry fees: £26.8m in 2025, up 3.1%, according to the BHA. When your syndicate enters its horse in a race, it pays an entry fee. Some syndicates include entries in the monthly fee and others charge them on top, so check the terms (see what syndicate fees cover).
How A Race's Prize Fund Is Split
Once a race is run, the BHA's Rules of Racing fix how its prize fund is divided between the placed horses' owners, trainers, jockeys and stable staff. For an ordinary race with four prizes:
| Who gets it | Flat race | Jumps race | From a £10,000 Flat race |
|---|---|---|---|
| Owner of the winner | 42.67% | 41.73% | £4,267 |
| Owner of the second | 21.33% | 20.87% | £2,133 |
| Owner of the third | 10.67% | 10.43% | £1,067 |
| Owner of the fourth | 5.33% | 5.22% | £533 |
| All four owners | 80.00% | 78.25% | £8,000 |
| Trainer of the winner | 4.19% | 4.19% | £419 |
| Jockey of the winner | 4.61% | 6.01% | £461 |
| Stable staff of the winner | 2.53% | 2.53% | £253 |
Percentages of the total prize fund from the BHA Rules of Racing, Stakes & Prize Money Code, paragraph 36 (BHA Rules of Racing, 15 October 2026 edition, version 2026.4.1, read 21 Oct 2026). Other race types use different tables. Your syndicate then shares out the owner's part under its own terms: see can you make money from a syndicate?
Ireland: Government Funding
Irish racing works differently. Most of its money comes from the State, through the Horse and Greyhound Racing Fund:
- The Irish government says the fund is €99.1m for 2026, with 80% (€79.3m) going to Horse Racing Ireland (Dáil written answer, 25 Mar 2026).
- HRI says its prize money budget for 2026 is a record €74.7m, up €4.2m, across 390 race meetings. It also says its allocation from the fund "remained static in 2026", and that efficiency savings made the increase possible (HRI, Dec 2025).
So Britain's machine and shop taxes don't feed into Irish prize money in the same way. 14 listings in our directory are Irish and priced in euros, as published: see syndicates by region.
What It Means For Your Share
- Prize money is a bonus, not the plan. If race values fall, your share of any winnings falls with them. Your monthly fee won't, because fees pay for training, vets and transport, not prize money.
- Your costs follow the yard's costs. Staff wages are a big part of a training fee. The National Living Wage rises 3.9% to £13.21 an hour from April 2027, the government says (GOV.UK).
- Check what comes back. Some syndicates pass on all of the owners' prize money and some keep part of it to cover costs. Ask, and try the "What if it wins?" part of our cost calculator.
- Watch the real prices. Our Price Index began in October 2026 and records the median cost of a first year every month. Price Per 1% and Shares For Sale show today's share prices. There's no trend yet, so we'll report changes as the months come in.
Not Advice
This guide is general information from what racing's official bodies and the UK and Irish governments publish. Figures from the BHA and others are their own claims and estimates. We don't tip, we don't promote betting and we don't recommend a syndicate. Racehorse ownership is a hobby, not an investment.
Sources
- BHA: 2025 Racing Report (prize money by source)
- HBLB: Levy yield of around £110m expected for 2025/26
- BHA: affordability checks and the Levy review (April 2026)
- GOV.UK: Machine Games Duty rate rise and the Guardian on the BHA's response (28 Oct 2026)
- BHA Rules of Racing: Stakes & Prize Money Code
- Dáil Éireann written answer on the Horse and Greyhound Racing Fund and HRI: budget for 2026
- Read 29 Oct 2026. Our own figures are from the RacingDatabase.com directory.
Questions People Ask
Where Does Horse Racing Prize Money Come From?
In Britain, mainly from three sources: the Levy Board (a 10% Levy on bookmakers' profits from British racing), racecourses (whose income includes media rights and sponsorship) and owners' entry fees. The BHA puts the 2025 total at £194.7m. In Ireland, most funding comes from the government through Horse Racing Ireland.
Do Owners Pay Towards Prize Money?
Yes. Owners' entry fees made up £26.8m of British prize money in 2025, about one pound in seven, according to the BHA. Syndicates pay entry fees too, either from the monthly fee or as an extra charge.
Will The Betting Tax Rise Cut Prize Money?
Nobody knows yet. The Machine Games Duty rise starts on 1 April 2027. The BHA estimates racing could lose up to £57m a year if betting shops close, but that's its own estimate. The Levy Board says its income held up at about £110m in 2025/26.
General information from published prices and terms, not financial advice. Racehorse ownership is a hobby, not an investment. Always read the syndicate agreement before paying anything. Spotted something out of date? Tell us.