Budget 2024: Horse racing avoids betting tax rise as online gambling reforms loom
Chancellor Rachel Reeves keeps the betting tax on horse racing unchanged, shielding the sport in the short term, while online gambling duties rise—potentially impacting funding, sponsorship, and jobs in British racing.
In Friday’s Budget, the government chose not to raise the tax on bets placed on horse racing, delivering relief to the sport and its workforce. Chancellor Rachel Reeves signaled that racing will not face a higher levy, even as other gambling taxes are set to change, potentially sending ripple effects through the sector.
What the Budget means for horse racing
The 15% tax rate on bookmakers’ racing bets remains in place, preserving a crucial funding stream for racing’s levy and media rights payments. The decision helps safeguard thousands of jobs and sponsorships in the near term.
Online gambling duties set to rise
The government confirmed a sharp rise in remote gaming duty from 21% to 40% from April 2026, and a future online general betting duty increase from 15% to 25% by April 2027. Land-based betting shops will keep the 15% rate for now. The changes are designed to boost public revenue but could add pressure on operators and consumers alike.
Industry impact and potential knock-ons
Racing relies on a mix of levy receipts, media rights, and sponsorship funded by bookmakers. If operators face higher costs or tighter online margins, concerns grow about reduced promotional spend, less favorable odds, and fewer bonuses for customers, potentially nudging some to seek unregulated alternatives.
Industry action and warnings
Previously, racing authorities and industry figures staged a Westminster protest to oppose the idea of a single remote gambling tax aligning with online gaming. The British Horseracing Authority warned that such a move could devastate revenue and threaten thousands of jobs in its first year alone.
Key Industry Takeaways
- Racing bets continue to be taxed at 15% for bookmakers.
- Remote gaming duty rises to 40% from 2026; online betting duties increase to 25% by 2027.
- Funding and sponsorship for racing could be affected if bookmaker margins shrink.
- Policy changes carry potential risks to jobs and integrity in the sport.
Expert view
“The Budget keeps racing funded in the short term, but higher online duties could squeeze bookmakers, affecting sponsorship and promotion.”“The industry is watching closely to see whether operators pass costs to consumers or cut back on racing investments.”
Summary
The Budget avoids a direct tax hike on horse racing betting, preserving funding streams for now. Yet planned increases in online gambling duties could raise costs for bookmakers, with downstream effects on sponsorship, promotions, and job security in the sport. Industry groups are preparing for a period of adjustment and vigilance as reforms roll out.
Key insight: The main takeaway is that while direct betting taxes on horse racing are held steady, the broader online gambling tax reforms pose a significant revenue and funding challenge for the sport. BBC Sport