British Horse Racing Industry Relieved as Betting Tax Rate Remains Unchanged in Recent Budget Announcement
British horse racing has been relieved as the Chancellor did not increase the tax rate on betting on the sport in the recent Budget announcement. The racing industry had feared job losses due to potential tax hikes, but the 15% tax rate paid by bookmakers on racing bets remains unchanged. However, other gambling tax increases are expected to impact the industry, with remote gaming duty set to rise from 21% to 40% in April 2026 and general betting duty increasing from 15% to 25% online from April 2027. The Government's plans, leaked early by the Office for Budget Responsibility, aim to generate £1.1bn from the gambling industry by 2031.
Bookmakers had warned of potential betting shop closures if taxes were raised, as these shops provide significant funding to racing through the levy and media rights payments. Racing officials expressed concerns that cost-cutting measures by bookmakers could lead to reduced sponsorship, promotion, odds, and bonuses for customers, potentially driving people towards the black market. The sport, which ranks as the second-largest spectator sport in Britain after football, with over 1,400 fixtures annually, faced uncertainty leading up to the Budget announcement.
In response to the potential tax changes, the British Horseracing Authority organized the Axe The Racing Tax campaign, which included the unprecedented decision to rearrange four fixtures in August at Lingfield Park, Carlisle, Uttoxeter, and Kempton Park. This move aimed to demonstrate the industry's opposition to proposed tax increases that could have a detrimental impact on racing. The BHA campaigned against the introduction of a single remote gambling tax that would align the tax rate on racing with online gaming at 21%, potentially resulting in significant revenue losses and job cuts in the industry.
Despite the concerns and uncertainties surrounding the potential tax changes, the British racing industry has been spared from immediate tax hikes on betting. The industry remains vigilant about future developments and will continue to advocate for policies that support its sustainability and growth.