British racing dodges betting tax increase

British racing has avoided a feared betting tax increase after UK chancellor Rachel Reeves unveiled major gambling tax reforms that will impose hundreds of millions of pounds in extra costs on online wagering companies — but leave horseracing bets untouched.

Reeves confirmed that remote gaming duty will jump from 21 per cent to 40 per cent from April 2026, while online betting duty will rise from 15 per cent to 25 per cent by April 2027. The changes form part of a sweeping overhaul designed to increase government revenue from digital gambling markets.

However, bets placed on UK horseracing will be exempt from the new rates, a decision welcomed by industry leaders after months of intensive lobbying.

Brant Dunshea, acting chief executive of the British Horseracing Authority, said the move showed the government had listened to concerns raised throughout the consultation period.

“We recognise and appreciate that they have taken on board the issues that we raised over the last five or six months since the announcement of the consultation and they’ve made it clear they understand the threat that harmonisation would have posed. We welcome the result. We believe it’s a positive one for racing.”

The betting sector’s response, however, was scathing.

Betting and Gaming Council chief executive Grainne Hurst described the new tax structure as a “devastating hammer blow”, warning operators would be forced to slash marketing, sponsorship and promotions — measures likely to reduce funding that flows back into racing.

Entain chief executive Stella David went further, calling the budget “a disaster for British betting and gaming as well as British customers,” adding: “The only winner is the black market, which has hit the jackpot.”

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