Tax on racing bets remains unchanged following Budget

Fears of a marked rise in betting duty on racing have been allayed in the Budget announced by Chancellor Rachel Reeves, although tax on other forms of gambling will be increased.

Tax on horse racing bets, both in shops and online, will remain unchanged at 15 per cent, news which comes following a campaign against the idea of harmonising gambling duties.

Such had been the concerns within the racing industry of the impact of gambling tax rises that an unprecedented day of strike action was held on September 10. The scheduled meetings at Carlisle, Lingfield, Kempton and Uttoxeter were all cancelled, while many of the sport’s leading figures gathered at Westminster for the British Horseracing Authority-led ‘Axe The Racing Tax’ event.

Economic analysis commissioned by the BHA suggested a rise from 15 per cent to 21 per cent, the current rate of remote gaming duty, could cost the sport at least £66million and put 2,752 jobs at risk in the first year, in what BHA chair Lord Allen termed “nothing short of an existential threat for our sport”.

That threat is now lifted with confirmation duty will not be adjusted, but the government does expect to raise over £1billion by 2031 through changes to other gambling taxes.

General betting duty, paid on other forms of sports betting, will remain at 15 per cent in betting shops, but will rise to 25 per cent online, while remote gaming duty, paid on online casino betting, will rise from 21 to 40 per cent.

Machine betting duty, paid on land-based betting terminals such as those in betting shops, has not been adjusted.

Bookmakers had warned ahead of the Budget that any changes impacting their profits could have a knock-on effect for racing, with the potential for less generous odds and betting shop closures. Racing receives income through media rights payments and the levy from every shop.