Budget Announcement Horse Racing Exempt from Increased Betting Tax

Basio badr

ago 8 days

Chancellor Rachel Reeves’ recent Budget announcement has significant implications for British horse racing. The feared increase in betting tax has been avoided, providing relief to the racing industry, which expressed concerns over potential job losses.

Budget Announcement: Horse Racing Exempt from Increased Betting Tax

Reeves confirmed that the 15% tax rate paid by bookmakers on racing bets will remain unchanged. Prior to this decision, discussions about a possible tax hike prompted an unprecedented one-day strike by British racing in September.

Impact of Tax Revisions on the Gambling Industry

While the horse racing sector is exempt from additional tax, other gambling tax increases could still affect the sport. These changes include:

Remote gaming duty for online casino betting will rise from 21% to 40% starting April 2026.
General betting duty for sports betting will remain at 15% in betting shops.
Online betting duty will increase from 15% to 25% in April 2027.

Economic Implications and Industry Response

The government’s tax strategy aims to generate £1.1 billion from the gambling sector by 2031. However, despite the relief for horse racing, shares in major gambling companies dropped sharply following the announcement.

Prior to the Budget, bookmakers had warned that a tax increase could lead to shop closures. Each betting shop plays a crucial role, contributing substantial funds to the racing industry through levies and media rights payments.

Industry leaders have cautioned that if bookmakers are forced to reduce costs, the consequences could ripple through the racing sector. Potential outcomes include:

Decreased sponsorship and promotional activities.
Worsened odds for bettors.
Less appealing bonuses for customers.
An increased likelihood of punters shifting to the black market.

As the situation develops, the British horse racing industry will be closely monitoring the broader implications of these tax changes on their operations and financial stability.