UK horseracing might have dodged the gambling tax hike bullet expected to be fired with the 2026 UK Budget on 26 November.

Reported by the Telegraph citing anonymous sources, such a decision by HM Treasury would bring a months-long anti-tax campaign by the horseracing industry to a successful end.

A gambling tax increase is expected to happen regardless, with UK Chancellor of the Exchequer, Rachel Reeves, looking to raise around £1bn from taxes to fill holes in next year’s spending budget.

What’s expected to increase?

Initial concerns from the betting industry were that the General Betting Duty and the Pool Betting Duty – both currently at 15% – would be merged together with the Remote Gaming Duty and go up to 21% as a result.

Bookmakers protested that this could severely impact operator margins while racing stakeholders asserted a dire hit to their own finances as a result, with the sport heavily dependent on revenue from the betting levy and operator sponsorships.

However, if the duty merger idea falls out of the Treasury’s plans, the focus will land on Machine Gaming Duty (MGD) and the Remote Gaming Duty (RGD) only – both currently at 20% and 21% respectively.

MGD refers to land-based games, such as casino-style slots and pub/arcade machines, while RGD covers tax imposed on all online bookmakers and casinos. 

There are talks going around that MGD will be increased to 50%, a prospect widely supported by gambling reform campaigners, while experts predict RGD will go up to 40% to cover Reeves’ £1bn plans.

Horseracing brought to extremes

The horseracing industry has fought tooth and nail over the last months to escape what is widely seen as a tax-induced cull of the sport by the Chancellor. 

Earlier in September, jockeys staged an unprecedented protest in front of Westminster against the tax increase, leading to the first cancellation of racing fixtures in the history of Britain.

The walkout put racecourses at friction with the Betting and Gaming Council (BGC), which criticised racing stakeholders for not consulting with betting operators prior to the protest.

The BGC was concerned that this would lead to disjointed campaigning while the strike action on 10 September would put operator revenues at risk. 

However, the duo still share the objective of seeing tax hikes curtailed, and BGC member operators like Flutter continue to find common ground with horseracing counterparts.

Is the writing on the wall?

Horseracing had another chance at gaining the Treasury’s alms earlier this October, when a parliamentary hearing brought two camps against each other to debate the need for a gambling tax increase.

Notably, the pro-tax advocates – including retired Paddy Power Co-Founder Stewart Kenny – staunchly defended the horseracing industry, recognising it as deeply engraved into British society.

Instead, Kenny and company relentlessly bashed the iGaming sector, arguing that it poses a high risk to society and that it should be as highly taxed as tobacco and alcohol.

Standing against them were Grainne Hurst, CEO of the Betting and Gaming Council (BGC), and Stephen Hodgson, Chair of the Tax Committee at BGC. Raising the concerns of the horseracing sector as well, they also tried to make a case against all other tax increases. 

However, while the MPs of the Treasury Committee did seem receptive to the idea of sparing horseracing, they were not too exhilarated about the rest of the BGC’s arguments.

It seems then, according to The Telegraph at least, that the BHA’s #AxeTheRacingTax campaign has paid off, albeit with a bit of controversy along the way. 

The BGC and the operators it represents may not be so lucky, however, as the budget announcement approaches on 26 November.