The Chancellor’s latest Budget delivered a rare moment of relief for the British horse-racing industry. After months of speculation and an unprecedented one-day racing strike earlier in the year, the government has confirmed that the 15% General Betting Duty on racing bets will not increase. For a sport that feared job losses, shrinking prize money and reduced investment, the decision is being viewed as a lifeline.
According to the BBC’s reporting, senior figures from across British racing had warned that raising racing’s betting tax to align it with online gaming would cause significant harm — including a projected £330 million loss in revenue and nearly 2,800 jobs at risk in the first year alone. The scenario was concerning enough that four fixtures were voluntarily cancelled in August as part of the industry-wide “Axe The Racing Tax” campaign.
What the Budget Announced
No tax increase on racing bets
- The duty paid by bookmakers on bets placed on horse racing remains at 15%.
- This avoids the feared alignment with online gaming duty, which would have pushed the rate far higher.
Other gambling sectors face steep rises
- Remote Gaming Duty (online casinos): rising from 21% to 40% in April 2026.
- Remote General Betting Duty (online sports betting excluding racing): rising from 15% to 25% in April 2027.
- Betting shops, by contrast, keep the current 15% rate.
These wider rises are expected to raise £1.1bn by 2031, though the industry warns they may drive consumers towards the black market and risk damaging regulated operators.
Racing Leaders Welcome the Decision
British Horseracing Authority acting chief executive Brant Dunshea told the BBC that racing had “spoken with one voice”, and that the Chancellor had recognised the sport as a “unique national asset”. The relief is evident: each betting shop, and every major bookmaker, contributes millions to the sport through the levy and media rights. Any squeeze on their margins risks reduced sponsorship, fewer promotions, and ultimately a smaller pool returning to racing.
The government has also pledged £26m in additional funding for the Gambling Commission, aimed at tackling the illicit market — a growing concern as taxes and restrictions tighten elsewhere.
What This Means for Horse Racing
For racing, the decision not to raise its specific betting duty helps protect:
- Jobs across racecourses, training yards and rural communities
- Prize money, already under pressure from competing jurisdictions
- Media rights income tied to betting turnover
- Sponsorship, increasingly fragile in a tightened regulatory climate
While other gambling sectors brace for steep tax hikes, racing has avoided a move that could have weakened the sport at every level — from small independents to flagship festivals.
Horse.bet’s Position
At Horse.bet, we welcome the government’s decision to spare racing from punitive tax increases. The sport depends on a stable and fair betting environment, and raising racing-specific taxes at a time when operators face rising costs elsewhere would have caused real, lasting damage.
We are also mindful of the consequences facing online UK casinos and other regulated gambling products. The upcoming 40% Remote Gaming Duty and the increase in online sports-betting duty will be disruptive for betting operators and customers alike. We believe the government must monitor their impact closely — high taxation risks driving players away from safe, regulated platforms and into unlicensed environments.
But for racing, today’s outcome is a genuine positive. Protecting the 15% duty helps secure the sport’s funding pipeline and ensures that horse racing can remain competitive, invest in its future, and continue to deliver the world-class fixtures that define it.
