Horse Racing May Escape Tax Increase as Treasury Eyes Online Gaming

_{Signs the Chancellor will raise taxes for gambling. (Image: Associated Press/Alamy)}

UK Chancellor Rachel Reeves has signalled that gambling firms could soon face higher taxes, after holding an unscheduled press conference ahead of the government’s Autumn Budget on 26 November.

In her remarks outside Downing Street, Reeves said the upcoming budget would focus on “fairness and opportunity” and outlined plans to strengthen the UK economy. Though she avoided specifics, political analysts say the tone of her comments strongly suggests a rise in gambling-related duties.

“Later this month, I will deliver my second Budget as Chancellor,” Reeves said. “At that Budget, I will make the choices necessary to deliver strong foundations for our economy, for this year, and years to come.”

She added that the budget would be driven by Labour’s “values of fairness and opportunity” while prioritising the National Health Service, reducing national debt, and easing cost-of-living pressures.

Tax Changes on the Table

For months, industry observers have speculated about potential changes to gambling taxation. One likely scenario, according to analysts, is that the three main gaming duties, Remote Gaming Duty (currently 21%), General Betting Duty (15%), and Pool Betting Duty (15%), could be merged into a single 21% rate.

A more aggressive proposal would see sports betting duty doubled from 15% to 30%, machine games duty increased from 20% to 50%, and remote gaming duty raised from 21% to 50%.

The Treasury has previously dismissed such speculation as premature, a point Reeves referenced at her press conference.

“You will all have heard a lot of speculation about the choices I will make,” she said. “I understand that – these are important choices that will shape our economy for years to come.”

Reeves’ decision to hold the press briefing three weeks before the budget has added weight to predictions that tax increases are coming, particularly as the government seeks new revenue sources to fund public spending.

Lobbying from Racing and Betting Sectors

The uncertainty has prompted a lobbying surge from the gambling industry and the horse racing sector, both of which could be affected by tax changes.

The Betting and Gaming Council (BGC) has met with MPs and ramped up media outreach to warn that steep duty increases could threaten jobs and investment. Its representatives appeared before the Treasury Select Committee last week, where MPs pressed them on gambling harm and regulation.

Meanwhile, the British Horseracing Authority (BHA) has taken an unusually activist stance, launching the #AxeTheRacingTax campaign this summer. On 10 September, the BHA coordinated a one-day strike, halting races to protest proposed tax harmonisation plans that it said would devastate the sport’s funding model.

That action drew criticism from the BGC, but it may have achieved its goal. According to The Telegraph, government sources indicated that racing may be excluded from any new gambling duty increases, leaving online gaming and machine games to shoulder most of the burden.

A BHA spokesperson declined to comment directly on the speculation when reached by SBC Media’s iGaming Expert, saying only that the organisation remains focused on influencing government policy.

“Over the last few months, the Axe The Racing Tax campaign has consistently called on the Treasury to drop its proposals – as set out in its consultation paper published in April, to harmonise online gambling duties into a single rate due to the unintended and devastating consequences this would have for British Racing,” the spokesperson said.

With the Autumn Budget now less than a month away, the gambling industry awaits confirmation on which sectors will face the steepest rise in taxes.

Analysts Warn of Impact on Jobs

A significant rise in gambling taxes could have wide-ranging effects across the UK gaming landscape. Analysts warn that higher duties on online gaming could squeeze operator margins, potentially leading to reduced consumer offers, fewer sponsorship deals in sport, and job cuts across the industry.

At the same time, the move could help the government boost public spending on the NHS and social programmes, an increasingly pressing political priority as economic growth slows and public debt rises.

The Chancellor’s approach will determine how fairly the burden is shared between online operators, bookmakers, and racing, industries worth more than £14 billion annually to the UK economy, according to the Gambling Commission.