Flutter backs racing tax rebellion but warns of wider gambling fallout
The campaign to prevent a tax hike on horse racing bets has gained heavyweight backing from Flutter Entertainment, as the UK’s largest betting operator throws its support behind the British Horseracing Authority’s (BHA) Axe The Racing Tax initiative. At the centre of the racing tax rebellion is a government proposal to harmonise gambling duties across verticals, raising the 15 percent tax on racing bets to match the 21 percent rate applied to online 바카라 games. While the BHA warns of catastrophic losses for the sport, Flutter is now amplifying that message and expanding the warning to the entire gambling ecosystem.
What is the ‘Axe The Racing Tax’ campaign?
in response to Treasury consultations ahead of the autumn Budget. The central fear is that tax parity across gambling products would disproportionately damage racing, which relies heavily on its close relationship with betting operators.
The BHA estimates that aligning horse racing tax with online 바카라 duty would result in an annual loss of ?66 million (77.9 million) to the sport. If the tax rose to 40 percent, losses could top ?160 million (188.8 million). Such losses would threaten the viability of racecourses, slash prize funds, weaken welfare programmes, and destabilise rural economies built around the sport.
Racings economy reaches far past the finish line, supporting stable staff, transporters, feed merchants, and vets. Across rural Britain, racing operates as more than entertainment. It’s more than jobs; it’s the fabric of rural life. The BHAs racing tax rebellion argues that tax harmonisation would fundamentally destabilise this balance.
Why Flutter is backing the racing tax rebellion
Flutter has come out in full support of the BHA, with strategic racing director Sebastian Butterworth making it clear that racing needs to maintain its own tax band. The company has long viewed horse racing as a unique pillar of British sport and one that deserves policy protection.
But Flutter’s message goes further. While racing’s tax rate deserves protection, Flutter warns that raising gambling duty more broadly could do serious, long-term damage.
Flutter’s warning: economic fallout ahead
The operator’s primary concern is that higher duties across the board would trigger a domino effect of disruption:
- Job losses: Flutter forecasts that doubling the gaming duty could cost the gambling sector up to ?1 billion (1.18 billion), with redundancies inevitable.
- Reduced investment: Higher taxes would divert funds away from innovation, safer gambling technology, and marketing, weakening the competitive edge of licensed operators.
- Black market migration: Punters could be lured offshore by unregulated, untaxed platforms offering better odds and fewer restrictions. This concern mirrors a statement by Flutter CEO Peter Jackson, who warned that higher taxes risk pushing players offshore.
- Market instability: The rumour of tax hikes recently shaved 6 percent off Flutter’s share price. Such volatility reflects investor concern over unpredictable fiscal policy.
Flutter argues that this approach would backfire. Instead of increasing tax revenue, the government risks eroding its returns while handing more power to the black market. This reflects findings from Parliament, where the APPG on Betting and Gaming has warned of a potential 65 percent shift to the black market if tax pressures escalate.
Why racing deserves separate treatment
Supporters of the racing tax rebellion point to the BHAs long-standing partnership with the betting industry, which is unlike any other in the world. The statutory Horserace Betting Levy channels regulated profits back into the sport, helping fund trainers, stables, and animal welfare.
Racing is also Britain’s second-largest spectator sport, deeply ingrained in the country’s cultural and rural fabric. According to the BHA, removing racings tax status would undermine a national institution for the sake of short-term fiscal optics. For those backing the racing tax rebellion, this is about more than sport. Its about safeguarding a fragile economic chain. The wider debate now centres on whether racing is being taxed into decline or simply losing political ground.
Budget pressure builds as political debate heats up
Although the government has yet to confirm its position, Flutters public stance has seriously raised the political and economic stakes. Ministers are now facing pressure from both sporting stakeholders and major corporate taxpayers to reconsider any move towards tax harmonisation. The Treasury has yet to issue a formal response, though officials are said to be weighing the potential impact of harmonisation on both revenue and regional economies.
The Treasurys silence has only added fuel to the racing tax rebellion, as industry pressure builds in the run-up to the autumn Budget. Industry voices argue that the unintended consequences of tax reform lost revenue, jobs, and confidence are too steep a price.
As the battle lines are drawn, one thing is clear: this is not just about horse racing. Flutter didn’t just side with the BHA. It raised a red flag that goes well beyond racing. Tax with care, or risk cracking the whole structure. If the government miscalculates, the fallout will not stop at the stables. The effects wouldn’t stop at racing. They could shake every corner of Britain’s betting and gaming sector.
Whether ministers listen remains to be seen. But the pressure is mounting, and the clock is ticking.
