The UK racing tax proposal has triggered an urgent industry fightback, with British horseracing leaders warning it could cost the sport up to ?160 million a year. With the Treasury’s consultation set to close on Monday, 21 July, the “#AxeTheRacingTax” campaign has entered full gallop. Backed by leading trainers, operators, MPs, and thousands of racing fans, the movement frames the proposal as an existential threat to the sport’s future.
What is the racing tax proposal in the UK, and why now?
Currently, bets placed on sports such as horse racing are taxed at a rate of 15 percent, while games of chance such as online slots and roulette are taxed at 21 percent. Gambling operators in the UK pay duty based on gross gambling revenue C the amount wagered minus winnings paid out. Ministers are now consulting on a flat-rate gambling tax that could group horse race betting with online slots, despite their fundamental differences. The racing tax proposal could eliminate the distinction between skill-based sports betting and high-risk 바카라-style games.
The proposal is part of a wider review of the UK’s gambling tax framework and comes at a time when British horseracing is already navigating serious financial turbulence. Turnover from online horse racing bets has dropped by ?1.6 billion (1.87 billion) over two years, driven in part by affordability checks and operator restrictions imposed under the Gambling Commission’s developing player protection rules. These concerns follow previous warnings of collapse from key industry figures as the government first began weighing the overhaul.
Affordability checks, brought in under the UK Gambling Commission’s safer gambling rules, ask operators to review a customer’s finances once they pass certain limits. This may involve income verification, credit checks, or limits on deposits and stake size. While campaigners call them essential safeguards, critics argue that the checks are overreaching, unevenly enforced, and ill-suited to strategic betting formats such as horse racing.
The British Horseracing Authority (BHA) says this tax move could compound the financial squeeze at a time when levy reform remains stalled. The Horserace Betting Levy is a statutory charge on bookmakers that returns a share of profits from British racing bets back to the sport. While there’s wide agreement that the levy needs fixing, when racing, bookmakers, and the Treasury can’t share a table, the conversation can never move forward. Critics describe the current system as outdated and vulnerable to shocks, and government departments resist efforts to revise ring-fenced funding models.
Timeline: How did we get here?
The racing tax proposal is the latest in a series of reforms reshaping Britain’s gambling landscape. Here’s how it fits into the broader picture:-
- April 2023 C After years of delay, the government finally released its Gambling Act White Paper, promising modern rules fit for the online era.
- Summer 2023C2024 C Reforms begin to roll out, with financial risk checks phased in and plans for a new Gambling Ombudsman put on the table.
- Autumn 2024 C Industry raises alarm over delays to Horserace Betting Levy reform, despite repeated commitments to review its structure post-White Paper.
- March 2025 C HM Treasury quietly opens a consultation on gambling tax harmonisation, outlining a possible move to align sports betting with 바카라-style taxation.
- July 2025 C Industry campaign #AxeTheRacingTax launches ahead of the 21 July consultation deadline, warning of major financial consequences for Racing.
The projected cost to British Racing
Financial modelling commissioned by the BHA lays bare the stakes. If the tax on racing betting rises to 21 percent, British Racing could lose ?66 million (77 million) a year across levy income, media rights, and sponsorship deals. Should that rate climb further to the 40 per cent that some stakeholders fear, the racing tax proposal could lead to massive losses and could drain up to ?160 million (187 million) annually from the sport.
“It could be such a catastrophic thing for the sport,” said Brant Dunshea, Acting Chief Executive of the BHA, in an interview on Luck on Sunday. “We’ve got great support from the All-Party Parliamentary Group. We’ve got a very exercised group who are now raising questions in parliament, thus we must focus on convincing politicians that this is a bad idea.”
He added, “There must be a differentiation between the two different product types, in our view. Racing contributes to the broader community C 85,000 jobs, ?300 million plus to the exchequer already. We’re part of British culture and heritage.”
The Horseracing Bettors’ Forum (HBF) also weighed in. Chair Sean Trivass said many members felt “insulted to see betting on the sport being lumped in with 바카라s and slots.”
“Be noisy”: a grassroots mobilisation to protect Racing
The BHA has launched a direct-to-voter campaign under the banner #AxeTheRacingTax, urging fans and stakeholders to write to their MPs. A step-by-step letter template is now live on the , making it easy for individuals to lobby the government directly.
“We’d encourage everyone across the sport to get on the front foot,” said Dunshea. “Write to your minister, be noisy, and state the concerns you have.”
Courses across the UK are getting involved. York Racecourse displayed campaign messages on its big screens and printed them in racecards over the weekend. CEO William Derby said, “Racing is such a huge employer in Yorkshire. It’s so important for the economy, society and culture that horse racing is cherished and supported by the government.”
His counterpart at Ripon, James Hutchinson, added: “From an independent point of view, it’s very hard to know how the tax would impact us individually. But in terms of the wider scale, the outcome would be devastating. There are no measures to be able to replace that level of income.”
The call to arms has now attracted support from senior figures across the racing ecosystem:
? Martin Cruddace (Arena Racing Company)
? Nick Mills (Racecourse Media Group)
? Trainers John Gosden and Andrew Balding
? Philip Newton (Thoroughbred Breeders’ Association Chair)
? Professional punter Patrick Veitch
Is harmonisation fair or flawed?
From a policy perspective, HM Treasury’s rationale is simplicity: unify the tax rates across all verticals to create parity. Not all gambling is created equal, and opponents argue that the current plan overlooks this distinction.
The Treasury’s consultation document suggests the move is intended to simplify the gambling tax system, remove anomalies between products, and “ensure fair and consistent treatment” across gambling verticals. While no final decision has been made, the consultation sits within a broader fiscal strategy to modernise tax codes and improve efficiency across departments.
Betting on horse racing is largely skills-based. It demands knowledge, analysis, and time. In contrast, online 바카라 games like roulette and slots are randomised, high-velocity, and high-risk, which is a categorisation supported by responsible gambling research and treatment organisations. Campaigners say treating both as identical for tax purposes could lead to significant consumer harm, as betting operators redirect players toward products with faster turnover and higher profit margins.
Some independent tax analysts argue that sector-specific rates can distort fiscal policy and create unnecessary complexity. Not all bets are built alike. Where player control, risk level, and skill differ, many say tax treatment should too. In countries like Ireland, horse race betting is taxed separately through a turnover-based model, while Australia uses a point-of-consumption tax that still distinguishes between product types. The UK, by contrast, has historically allowed horseracing to retain a bespoke levy model due to its heritage and economic footprint.
It could also reduce government revenue, campaigners claim. As bettors migrate to unregulated sites or stop betting altogether, both the Treasury and the sport may lose income. As reported in a previous SiGMA News article, some MPs have already warned that the racing tax proposal could trigger a shift to black market betting, undermining both consumer protection and Treasury income.
Why this matters for wider iGaming
While this proposal targets British horseracing, its implications extend far beyond the paddock. It raises questions about how gambling products are categorised and what protections or privileges those distinctions offer. If the logic of harmonisation wins in this case, the precedent may be used to flatten tax distinctions across other segments of the industry.
Operators in esports, daily fantasy sports, skill games, or emerging microbetting formats may one day face similar scrutiny.
For iGaming firms and platform providers, the message is unmistakable: political decisions about product classification and taxation must be actively engaged with, not just absorbed once regulations are published.
What’s next, and how stakeholders can respond
With the Treasury’s consultation on gambling tax reform closing on 21 July, time is running short. From punters to trainers, from syndicates to boardrooms, this is a moment where silence could cost the sport dearly. There’s still time for stakeholders to oppose the racing tax proposal before the deadline, but momentum must build quickly.
Supporters can use the BHA’s campaign hub to contact their MPs directly. The action is simple; the effect depends on how many speak up and how clearly they’re heard.
“The message has to come from as many voices as possible,” said James Hutchinson of Ripon Racecourse. “It’s the only way it’ll be heard powerfully enough.”
This moment arrives at a delicate time. Affordability checks and stalled levy reform have already reshaped operator margins and betting habits. While Racing continues to deliver social, cultural, and economic value across Britain, this latest proposal risks cutting off one of its few reliable funding arteries.
Even recent goodwill gestures, like bookmakers donating racing day profits to charity, could be undone if a tax shift forces the industry to favour faster, riskier forms of gambling just to survive.
The question now is straightforward: Should horse race betting be treated like a spin of the roulette wheel, or recognised as the skill-based, community-anchored institution it truly is? Because if this proposal gallops through unchallenged, it won’t just hobble racing; it will redraw the map for how every gambling product is taxed, valued, and understood in Britain.
While the immediate focus is on stopping the harmonised tax proposal, some in the sector believe Racing must also evolve its funding strategy. Suggestions include extending the levy to offshore or international betting markets, investing in digital media rights and global content licensing, or developing new commercial partnerships that reduce reliance on betting alone. Whichever path it takes, the long-term challenge remains: building a future-proofed revenue model that protects Racing’s heritage without being entirely tethered to its wagers.
