The UK’s horse racing sector has avoided a feared increase in betting taxes that threatened thousands of jobs. In her recent budget announcement, Finance Minister Rachel Reeves chose not to raise the tax bookmakers pay on horse racing bets, which remains at 15%. This decision follows a rare one-day strike in September by the horse racing community, sparked by concerns over potential tax hikes.
Although the horse racing tax rate was unchanged, other gambling taxes are set to rise, potentially affecting the sport indirectly. From April 2026, the remote gaming duty on online casino bets will nearly double from 21% to 40%. Additionally, the general betting tax for sports betting via online platforms will go up from 15% to 25% starting April 2027, while betting shop rates remain steady at 15%.
The government’s plans leaked prematurely through the Office for Budget Responsibility suggest these changes could bring in £1.1 billion in revenue by 2031. After the announcement, shares of major gambling companies initially dropped but have since partly recovered. Bookmakers had warned that higher taxes could force the closure of betting shops, which play a critical role in funding horse racing through levies and media rights. Industry leaders caution that any cost-cutting by bookmakers could diminish sponsorships, promotions, and customer bonuses, possibly driving bettors toward illegal markets.
Horse racing, the UK’s second most popular sport after football with over 1,400 races annually, has taken strong action in response. In August, four races were postponed under the Ax the Racing Tax campaign—a historic first where the sport collectively refused to hold races. Prominent jockeys, trainers, and owners even rallied in Westminster to oppose the proposed tax changes. The British Horseracing Authority (BHA) warned that a single remote gambling tax increasing the rate for horse racing to match online gaming’s 21% would severely damage the industry, risking £330 million in lost revenue and over 2,700 jobs within the first year.
Fan Take: This development is a huge relief for Horse Racing enthusiasts, as it helps preserve the sport’s financial health and job security. Avoiding a tax hike means more stable sponsorship and better incentives for fans and participants, ensuring the sport’s vibrant future.
