Since April 2025, the British Horseracing Authority (BHA) has been sounding the alarm: the British government is planning to merge taxes on online betting, raising the tax on horse racing betting from 15% to 21%, the same rate as for casino gambling. This change would represent a loss of at least £66 million a year (around €76 million) for the industry, with a risk of £160 million (€185 million) if the rates rise further.
What impact will this have on the industry?
According to the BHA, an increase in tax on online betting would first affect operators, who would be forced to scale back their offerings, notably by reducing promotions and advertising or passing on costs to consumers. This imbalance would then affect the entire value chain: revenues linked to profit margins, broadcasting rights and commercial agreements would fall sharply. This economic contraction would lead to job losses, particularly in rural areas where horseracing is an essential pillar of local employment.
According to the BHA’s economic models, if the rate were raised to 25%, the loss would rise to £97m (€112m); at 30%, to £126m (€145m); and at 40%, to £160m (€185m). A truly catastrophic scenario if nothing changes.
The “Axe the Racing Tax” campaign
To fight back, the BHA has launched the “Axe the Racing Tax” campaign, scheduled to run throughout the summer. The aim? To mobilise players, punters and the general public to support a petition to MPs and voice their opposition between now and the close of the ministerial consultation on July 21.
Brant Dunshea, Acting Chief Executive of the BHA:
“It is vital that everyone working in racing, the media and bettors fully support and promote this campaign. The Government’s consultation on harmonising online betting duties, if followed through, poses one of the gravest risks to racing the sport has ever seen. It will punch a huge hole in racing’s finances, risk thousands of jobs across Britain and threaten the future of the country’s second most-popular sport and a cherished national institution. From now until the Budget we will be hammering home a very simple message to MPs, peers and the Government on behalf of millions of racing fans. It’s time for the Government to back British racing and axe the racing tax.”
The Racing TV website offers a dedicated portal making it easy to send personalised emails to MPs. The appeal from renowned trainer Stuart Williams is unequivocal:
“We’re a skill-based betting opportunity. It’s difficult to get people who don’t understand that all gambling isn’t the same but that’s what we must get across. Racing betting is not the same as casino-based games or the lottery, which everybody seems happy to take place without restrictions. This could have huge consequences for racing and the way it is funded. Racing is an expensive product for bookmakers. If we could get to a position whereby through the tax regime it became less expensive for operators, surely they would then promote it even more than they do at the moment.”
Voices from across the industry
Beyond the BHA, breeders and trainers are uniting. Philip Newton, chairman of the Thoroughbred Breeders’ Association, warns that the breeding industry could suffer a 25% drop in births by 2026 if incomes fall. He insists:
“The breeding industry is losing breeders exponentially and the foal crop is under the most severe pressure. Another straw and eventually the camel’s back is going to go.”
Stuart Williams:
“In this country, it doesn’t get much more historic. The history and pageantry of it all is amazing but it could all be in jeopardy soon if we’re not careful. It would be a bad look for any government to see the demise of British racing.”
The All-Party Parliamentary Group for Racing and Bloodstock agrees, calling on the government to act quickly to preserve this precious national institution. At the same time, Newmarket trainers have met with Kemi Badenoch, extending the political and media pressure.
Collateral consequences
In addition to the direct losses, the measure is likely to increase the exodus to the black betting market, where protection is more limited and no tax is paid. In addition, the limit on accessibility checks, introduced to curb excessive gambling, further complicates matters with a significant drop in turnover.