UK Horse Racing Faces Threat from Proposed Online Betting Tax Hikes

_{Horse racing is second only to football in popularity among UK sports fans and gambling participants. (Image: Olga Rudneva / Alamy)}

Historically, horse racing has been one of the most prominent and cherished sports in the United Kingdom, second only to football as the nation's premier spectator sport.

The sport can be traced back centuries and has now become a highly regulated industry, integral to British cultural identity and the economy. Alongside betting shops and online casinos, horse racing continues to play a central role in the UK’s broader gambling landscape.

Golden Era of Horse Racing Diminishing  

The calendar of events for horse racing includes races such as the Grand National, which attracts thousands of racetrack goers in person, with many more watching live on TV. The event at Royal Ascot has garnered international attention and draws visitors from around the world. 

Post-World War II, horse racing experienced a period of growth, supported by betting, sponsorship, and media coverage. 

Within the last decade, the golden era of horse racing has diminished and has faced challenges like declining attendance, changes in betting habits, and regulatory shifts. 

It is a different story for Asian racing markets: in Hong Kong, for example, betting handle reached $17.9 billion in 2022, while Japan reported $21.7 billion in horse racing turnover in 2023.  

Horse Racing Industry Contributes Enormously to the Economy  

The Betting and Gaming Council (BGC) estimates that industry contributions—including Levy payments, media rights, and sponsorship—amount to around £350 million annually.

The horse racing sector now faces ongoing pressures from regulatory proposals, including potential new taxes on online betting, which threaten to undermine the sport's growth and sustainability.  

According to the Betting and Gaming Council, its members are expected to contribute a record £108m in Levy payments to the HBLB for last year. The figure, provided by the independent HBLB, is an increase of £3m on the previous year. 

Levy Contributions Rise for Fourth Year in a Row  

It is the fourth year in a row that Levy contributions have increased, from £97m in 2021/22 to £100m in 2022/2023, £105m in 2023/2024 and £108m in 2024/2025.

The independent HBLB said average turnover per race was down by about 8% on 2023/24, representing a 15% fall on 2022/23 and a 19% drop on 2021/22. Meanwhile, earlier this month the Treasury announced a new tax consultation, proposing replacing the three current online betting and gaming tax rates with a single new one, sparking fears for sports like racing.  

BGC CEO Grainne Hurst said, “For the fourth year running, Levy contributions have increased to record levels, demonstrating the growing long-term investment regulated betting provides British horse racing. 

“But it is concerning to see once more that despite record Levy contributions, racing continues to struggle, both as a sport and as a betting product, with betting turnover down again year on year.  

“BGC members remain committed fans of racing and recognise better than most the huge economic impact it has on communities across the country.  

CEO of Betting and Gaming Council Highlights ‘Parasite Operators’

The CEO of BGC also spoke about the risk of driving punters to the unregulated and unsafe black market. 

She said, “It’s now more important than ever that this vital contribution is not undermined by further new tax rises through the creation of a single tax for online betting, which risks driving punters away from the sport or into the arms of the growing, unsafe gambling black market. 

“These parasite operators don’t pay tax, don’t care about safer gambling, and do not contribute a penny to the Levy. The BGC wants sustainable growth for our members and for racing, but any new taxes would halt investment, hurt punters and harm racing.” 

This fourth annual increase is a new record since the Levy collection reforms of 2017/18.