Racing avoids betting tax rises in Budget

British racing was spared from the tax increase that it feared would result in thousands of job losses.

The rate paid by bookmakers on racing bets was not increased in Chancellor Rachel Reeves’ budget.

British racing held an unprecedented one-day strike in September as a result of reports of a proposed rise.

However, other gambling tax increases could have a positive impact on the sport if the Treasury does not increase the 15% rate paid by bookmakers to racing.

From April 2026, the percentage of remote gaming fees imposed on online casino games will increase from 21 to 40%.

General betting duty, which is due on other sports betting activities, will remain at 15% in bookmakers, but it will increase from 15% to 25% online starting in April 2027.

Prior to Reeves’ statement in the Commons, the Office for Budget Responsibility erroneously provided details of the government’s plans.

By 2031, the measures are anticipated to bring in £1.1 billion from the gambling industry, and shares of major companies immediately fell following the announcement, though some recovered afterward.

Bookmakers warned of closing betting establishments if Reeves raised taxes on gambling companies before the Budget.

Through the media rights payments and levy, each shop offers thousands of pounds to racing.

With more than 1,400 matches played annually, horse racing is the second-largest spectator sport in the world after football.

The British Horseracing Authority changed the schedules for four matches at Lingfield Park, Carlisle, Uttoxeter, and Kempton Park in order to support its industry-wide Axe The Racing Tax campaign.

Leading jockeys, trainers, and owners converged on Westminster to lobby lawmakers and demonstrate their opposition to potential changes, marking the first time the sport has voluntarily refused to race in its modern history.

The organization’s leadership was pushing against the possibility of the Treasury enacting a single remote gambling tax, which would have increased the 15% rate paid by bookmakers for racing and matched it with the 21% rate for online gaming.