Axe the Racing Tax: How Advocacy Secured a Win for Horse Racing  

Romilly Carrick, Client Executive 
10/12/2025

Many industries across the UK lobbied government ahead of Reeves’ Budget, which was widely expected to raise taxes across the board. Sport was no exception, and few sectors were as vocal in their resistance as horseracing. Since the Government first floated plans for a consolidated Remote Betting & Gambling Duty (RBGD), that combined General Betting Duty, Remote Gaming Duty and Pool Betting Duty, the industry fought to avoid being swept into a broader tax rise. Under the RBGD proposal, the current 15% duty on online horseracing bets risked rising to a reported 21%, potentially threatening the entire sport’s financial stability.

Led by the British Horseracing Authority (BHA), the sector put forward a detailed and coherent challenge to the proposed change. It warned the higher rate would threaten more than 2,750 jobs in the first year alone and drain at least £330 million over the first five years. Beyond financial analysis, the BHA stressed that horseracing supports a wider ecosystem of small businesses and volunteers, rural supply chains, studs, training yards, and represents a tradition deeply embedded in Britain’s cultural fabric. By highlighting that racing carries minimal social harms compared with high-frequency online gaming, the industry positioned itself as distinct from the wider gambling sector.

This distinction found early growing support in Parliament. In early November, the Treasury Select Committee, having conducted a series of oral evidence sessions examining the Chancellor’s choices in the run up to Budget, concluded the then-current tax policy did not adequately account for the social risks posed by different forms of gambling. The Committee recommended the Government draw sharper lines between lower-risk, traditional gambling such as horseracing and bingo, and high-risk, addictive forms. Its chair, Dame Meg Hillier MP, also warned against gambling companies attempting to conceal riskier operations behind the more traditional façade of racing.

Now, after months of lobbying, the horseracing industry has secured a partial win: Reeves did not implement a single, consolidated remote betting and gaming duty in her Budget. While online gambling duties will increase (Remote Gaming Duty to 40% in April 2026 and a new Remote Betting Rate of 25% from April 2027 for most sports betting), remote horseracing bets are explicitly excluded, staying at 15%. This will help to protect the sport’s funding model, supporting infrastructure, rural communities, and jobs, and shows how well-targeted advocacy, built on both economic and social arguments, can shape policy in tune with the public interest.

The wider picture, however, is far from uniformly positive. Sky Bet has already moved its headquarters to Malta, potentially reducing its UK tax bill by £55 million a year, while Betfred prewarned the Chancellor it may close its 1,300 shops if duties rose in the Budget. The relocation or downsizing or major betting operators could gradually weaken the long-term financial stability of horseracing, leaving it vulnerable to wider economic pressures beyond the immediate reach of government policy. Nevertheless, the industry’s lobbying demonstrates the power of well-targeted advocacy rooted in social purpose and economic logic.