Britain's Proposed Unified Gambling Tax Stirs Anxiety About Horse Racing's Future

Title: Warning Bell Rings for British Horse Racing as Unified Gambling Tax Threatens its Survival

Published: 29th April 2025, Last Updated: 30th April 2025

The UK horse racing industry is sounding the alarm over the prospect of a unified tax rate for online gambling, with potential consequences that could deal a heavy blow to the industry. Got questions? Ask 'em!

UK Government's Proposed Online Gambling Tax Reform

The British government plans to overhaul the gambling tax system by creating a single tax rate for online gambling - Remote Betting & Gaming Duty [Link in English]. The government seeks feedback from the gambling industry on the proposed changes, with the deadline for feedback set for July 21, 2025.

Currently, the UK maintains a 15% tax rate for online fixed-odds sports betting, including popular events like the Cheltenham Festival and Grand National, whereas online casino games carry a 21% tax.

Horse Racing Stakeholders Worry Over Potential Tax Increase

The Betting and Gaming Council (BGC) and the British Horseracing Authority (BHA) have voiced concerns that the tax rate for horse racing bets may surge from 15% to 21%. James Murray, Exchequer Secretary to the UK Treasury, commented on the proposed tax reform:

Horseracing's Declining Popularity and Financial Struggles

The British horse racing industry has been grappling with declining attendance for years. In 2022, the industry hit a new, 25-year low with fewer than 5 million spectators. Last year, BBC Radio 4 halted its daily horse racing tips after 47 years, shedding light on horse racing's diminishing significance in the UK.

Concerns Over the Impact on Revenue and Jobs

BGC has raised further concerns over the harmonization of gambling taxes, citing the possibility of betting operators increasing margins for bettors, thus reducing their profits and lesser sports bets. This, in turn, would affect horse racing revenues and potentially result in the relocation of gambling companies overseas, leading to lost jobs in the horse racing industry.

Financial Strain, Revenue Decline, and Attendance Drop

If the tax rate increases, bookmakers could be faced with higher operational costs, leading to higher margins for bettors (worse odds) and decreased betting turnover, ultimately reducing the sport’s funding from levy and media rights tied to wagering revenue.

Job Losses and Economic Contraction

The horse racing industry supports approximately 85,000 jobs. Financial instability could lead to layoffs at racecourses, training yards, and ancillary businesses, with potentially significant ripple effects on regional economies.

Wider Market Risks

Higher taxes may lead consumers to unlicensed platforms, eroding regulated revenue streams and undermining responsible gambling safeguards. The British Horseracing Authority (BHA) emphasizes the potential for asymmetrical impacts that could disproportionately harm racing compared to other gambling sectors.

If implemented without safeguards, the tax reform could destabilize an industry already grappling with economic pressures, with over £400 million in annual contributions to the UK economy at stake. The timeline for changes (estimated 2027-2028) allows for lobbying, but uncertainty persists.

[1]: Date obtained from NEXT.io[2]: Source: Racing Post[3]: Source: the Guardian[4]: Source: SportsPro Media Ltd[5]: Source: Statista

"What about the potential impact on the UK's horse racing industry if the tax rate for online horse racing bets increases from 15% to 21%, as proposed in the government's Remote Betting & Gaming Duty reform?"
"Is the move to harmonize taxes on online gambling, including a possible single tax rate for sports betting, likely to affect the revenue generated by horse racing, given the current 15% tax in contrast to the proposed 21%?"
"What could be the economic consequences for the British horse racing industry if the proposed tax reform leads to job losses and the relocation of gambling companies overseas, as suggested by the Betting and Gaming Council (BGC)?"