Budget: Horse Racing Exempted from Increased Betting Taxes
British racing has received a significant reprieve from increased betting taxes, following recent government budget announcements. Chancellor Rachel Reeves opted not to raise the tax rate on bookmakers’ racing bets, a decision that industry leaders believe will help prevent job losses.
Impact of No Tax Increase on Horse Racing
The 15% tax rate on betting related to horse racing remains unchanged. This decision follows a previous one-day strike by British racing authorities, which rallied against the potential tax hike. Racing executives had expressed serious concerns about the detrimental effects of such an increase on employment and the overall industry health.
Concerns About Gambling Industry Changes
While horse racing has been exempt from increased taxes, the overall gambling landscape is seeing significant changes. Other gambling taxes have been set to increase:
- Remote gaming duty, applicable to online casino betting, will rise from 21% to 40% starting April 2026.
- General betting duty for online sports betting is planned to increase from 15% to 25% by April 2027.
These changes could indirectly affect horse racing and its financial ecosystem. The measures are part of a strategy projected to generate approximately £1.1 billion from the gambling industry by 2031.
Market Reactions and Future Concerns
The announcement prompted an immediate decline in shares of major betting companies. This drop reflects apprehension regarding the potential repercussions on the gambling sector and related sports.
Bookmakers had warned that tax increases could lead to betting shop closures. These establishments contribute substantial funding to horse racing through levies and media rights payments. If tax pressures lead to cost-cutting measures in betting shops, the effects could ripple throughout the racing industry, potentially reducing sponsorships and promotions.
As the racing industry grapples with these fiscal uncertainties, the focus remains on maintaining stability and safeguarding against the allure of the black market for bettors seeking better odds and benefits.
