Experts warn a 21% betting tax could cost British racing millions and threaten thousands of jobs
The British Horseracing Authority (BHA) is rallying the UK racing industry to oppose a government proposal that would raise the tax on horse racing bets from 15% to 21%. The BHA has launched a campaign titled “Axe the Racing Tax”, warning that the move could devastate the sport’s financial ecosystem and jeopardize its future.
UK Government Considers Aligning Racing Tax with Online Gambling Duties
As part of the Autumn Budget, the UK government is exploring a plan to harmonize remote gambling duties—bringing the tax on horse racing bets in line with the 21% rate currently applied to online casino and gaming operators. The BHA argues that such a change would disproportionately harm the racing sector, which is already grappling with regulatory pressures and declining revenues.
According to industry analysts, raising the betting tax to 21% could strip the sport of £66 million annually through reduced Levy contributions, media rights, and sponsorship deals. Operators are expected to offset the tax burden by slashing bonuses, cutting marketing spend, and raising prices—further eroding racing’s appeal to bettors.
BHA Sounds the Alarm: “Axe the Racing Tax”
In an official statement, the BHA warned that escalating tax rates could have catastrophic consequences:
- A 25% tax rate could result in a £97 million loss
- A 30% tax rate could lead to a £126 million loss
- A 40% tax rate could cost the industry £160 million
These losses would not only cripple racing’s financial foundation but also put thousands of jobs at risk, particularly in rural communities that rely on the sport. The BHA also cautioned that the proposed tax hike could undermine Britain’s global leadership in equine welfare standards.
Affordability Checks Add to Industry Pressure
The racing sector is already under strain from the introduction of affordability checks, which have sparked controversy among punters and operators alike. The BHA argues that layering a tax hike on top of these measures would further destabilize the sport.
BHA Calls for Industry-Wide Action
The BHA has formally rejected the proposed tax increase and is urging all stakeholders—racecourses, trainers, owners, breeders, and fans—to join the “Axe the Racing Tax” campaign. The organization will also submit a detailed response to the UK Treasury’s consultation, outlining the economic and social risks of the proposal.
In a positive development, the BHA welcomed a commitment from Treasury Minister James Murray MP to engage with the industry and avoid unintended consequences.
Brant Dunshea: “This Is One of Racing’s Greatest Threats”
BHA Chief Executive Brant Dunshea emphasized the urgency of the situation:
“The government’s consultation on harmonising online betting duties poses one of the gravest risks to British racing we’ve ever faced. It would punch a huge hole in our finances, threaten thousands of jobs, and endanger the future of the UK’s second most-popular sport.”
Dunshea added that the BHA will be “hammering home a very simple message: axe the racing tax.”
