Racing Sector Welcomes Stability After Gambling Tax
Elle
Nov 28th 2025
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The British racing industry was able to breathe a big sigh of relief after the government decided not to increase the gambling tax that is levied on betting on the sport, a decision that the leaders of the industry had predicted could have the effect of laying off a large number of people. In her most recent Government budget, Chancellor Rachel Reeves made the announcement that the 15% rate that is applied to betting on racing will remain as it is.
Industry groups had been on alert in recent months following reports that the Treasury was considering increasing the rate. News of the early proposals prompted British racing to organise a one-day strike in September, halting activity across the sport in an attempt to signal the seriousness of the issue. The action highlighted the industry’s concerns about losing investment, shrinking prize money, and threats to employment, particularly in rural communities where racing plays a large economic role.
Although the sector avoided the feared rise, adjustments to other gambling taxes are expected to influence the landscape. The gambling tax on online gaming, which is specifically targeted at online casino betting, will increase from 21% to 40% starting in April 2026. The betting duty for general betting, which excludes racing, will be kept at 15% for bets made in physical shops, but it will be raised to 25% for bets placed online from April 2027.
Representatives from the industry state that these changes, although not directly related to racing, may still have an impact on the way bookmakers distribute their budgets and promotional expenses. Some analysts believe operators may adjust costs in response to the wider increases, potentially affecting racing-related products or sponsorship commitments.
British Horseracing Authority (BHA) acting chief executive Brant Dunshea welcomed the government’s decision to maintain the current rate. In a message to the BBC, he stated: “We have seen the power of our industry speaking with one voice.” He added: “The Chancellor has listened to our concerns and rightly recognised that racing is a unique national asset – culturally, socially and economically – and we welcome this support.”
Industry figures have long argued that racing contributes notable value to the UK, not only through taxation but through employment and tourism. Training yards, racecourses, breeders, veterinary teams, transport services, and hospitality businesses all rely on the sport’s regular activity. A substantial gambling tax increase, they said, risked establishing this network.
The budget outcome has been welcomed as a reprieve by those who lose – trainers, owners, jockeys, and bookmakers, and who were apprehensive of the resulting decrease in their revenue streams. Quite a few people in this industry are of the opinion that keeping the gambling tax rate steady will give them the freedom to plan for the future and thus go on with the investment in racecourses, prize funds, and safety enhancements.
However, some commentators note that the increases in other gambling taxes could still create challenges. As online betting operators face higher charges on non-racing products, they may reassess their financial strategies. According to some experts, the companies might reallocate the marketing Government budget or reduce the operational expenses, and these savings could flow into the areas that are indirectly related to racing.
Betting firms play a central part in the sport’s finances, contributing to media rights payments and sponsorship deals. Any shift in the commercial priorities of bookmakers has the potential to filter through to racecourses and participants. Although the immediate threat of a direct gambling tax rise has passed, industry leaders continue to monitor the knock-on effects.
The BHA has made it known that it will continue conversations with the government aiming at achieving government policies that will make the sport environmentally sustainable. The officers are of the opinion that the harmony which was evident during the time of the strike has been their strong argument especially when they meet with the people in power. The industry hopes this collaborative stance will support future negotiations, especially as discussions continue over long-term funding.
A few trainers and owners gave the signal of their positive feelings mixed with some doubt after the announcement. Most of them pointed out that even if the budget outcome saved the day from an option they feared, racing is still grappling with the problems that have been there for a long time like increasing expenses, the challenge of getting the attention of the audience, and the issue of keeping the prize money at a certain level. They also felt it necessary to say that efforts should not slack off between regulators, racecourses and bookmakers.
Stakeholders also noted that attention must now shift to securing wider growth opportunities for the sport. These include attracting new fans, improving media distribution, and supporting grassroots racing communities. Industry leaders argue that with the immediate pressure of a higher gambling tax removed, there is an opening to pursue these goals with renewed energy.
As the sector reflects on the budget outcome, the broader economic context remains important. The rise in remote gaming duty is one of the most significant fiscal shifts in the gambling tax for many years. Analysts expect further commentary from bookmakers over the coming months as they assess how the changes will shape their operations through 2026 and 2027.
For now, the racing sector has welcomed the stability delivered by the Chancellor’s decision. While the sport acknowledges that challenges remain, the avoidance of a direct tax rise has brought a measure of reassurance after months of uncertainty.
