The British horseracing industry is probably still celebrating the key announcements of last year’s Autumn Budget. There had been fears that the Chancellor would increase the level of tax the industry pays. The fears did not come to fruition, but there remains some cause to be concerned about the future.
There were concerns that the level of tax for online bets would be increased from 15 to 21 per cent. Targeting the horse racing industry made sense to those eager to raise funds and close black holes. The industry makes an annual economic contribution of over £4 billion with over 80,000 jobs for everyone from jockeys to farriers. Local economies also prosper when events such as the Cheltenham Festival, Epsom Derby and Aintree Grand National are held.
If the tax rate had been raised to 21 per cent, the British Horseracing Authority believed it would cost the industry £66 million a year, and job losses would be inevitable. Guy Lavender is the CEO of Cheltenham Racecourse and said, “the relationship between betting and racing is unique.” If the tax rate were to be increased, he believed it would “have a significant impact on racing.”
The horseracing industry is the second largest spectator sport in the UK, and meetings are held almost every day of the year. That wasn’t so on 21 September, 2025, when in response to the threat of tax increases the industry held a one-day strike. Earlier in the month, jockeys descended on Westminster wearing ‘Axe the Racing Tax’ silks, as per UK’s horse.bet.
When the Autumn Budget was announced in November, there were no tax increases announced for the horse racing industry. That was clearly good news for the industry, but there are still reasons why some concern should be shown regarding their financial future.
While it was good news for the horse racing industry, the contents of the Autumn Budget were not well received by the UK’s gambling industry, particularly the online sector. The gambling industry had also been fearing tax increases just as had been the case the previous year. 2024 saw them escape tax increases, but 2025 was not going to see a repeat of that.
Already in 2025, a mandatory levy had been introduced for the UK’s gambling industry. A percentage of gross gambling yield now has to be paid. The monies received (aimed to be £100 million a year) goes towards treatment of and research into gambling harm. Some of the money received will be given to the NHS.
More bad news came in the Autumn Budget, but even worse than some had imagined it would be. The rate for Remote Gaming Duty that has to be paid by online sites is to increase from 21 to 40 per cent from April 2026. That wasn’t the end of the bad news because 2027 will see General Betting Duty, which covers sports betting, rise from 15 per cent to 25 per cent. Again, there was good news for the horse racing industry as the 15 per cent rate will remain unchanged.
The online gambling industry is also facing stricter regulation. Action has already been taken against online slot games that are considered to be highly addictive. New maximum stakes are now in place. January 2026 has seen new rules come into force regarding the bonuses offered by online sites.
The wagering requirement on offers must not exceed 10 per cent. There has also been a clampdown on offers that cover more than one kind of gambling. Offering free bets on sports if a certain amount is wagered on the casino has been outlawed.
The actions being taken against online gambling may not help the horse racing industry. The Betting and Gaming Council believe the industry “will still feel the consequences” of the announcements made in the Autumn Budget. Their view is that the decision not to raise taxes is “cosmetic.” The rises announced for the online gambling sites will deliver a devastating blow to the very ecosystem that racing relies on.”
There is a strong relationship between the two industries. One major way in which this is illustrated is in sponsorship of races. Betfred sponsors the Epsom Derby and Oaks as well as many other races. The tax increases that Betfred and other gambling companies will face may mean they cut down on the amount of money spent on sponsorship.
The tax rises could also see more gamblers heading to the unregulated black market. One way the online sites try to limit the impact of the increases may be to reduce the offers and services their members receive.
Unlicensed and unregulated sites are not bound by the new regulation and do not pay any tax. Players joining such sites will lead to the regulated companies losing revenue and the Treasury not receiving as much as they are expecting. That could lead to a need to further increase taxes and not exempt the horse racing industry.