BHA launches campaign to stop betting tax rise

The British Horseracing Authority (BHA) has issued a sharp and urgent warning regarding a potential overhaul of the United Kingdom's remote gambling tax structure. In response to a Treasury proposal that would merge all existing online betting taxes into a single uniform rate, the BHA has launched a widespread campaign titled “Axe the Racing Tax”. The initiative is expected to roll out throughout the summer and will engage key stakeholders, including racing professionals, bettors, and members of the media.

At the heart of the dispute lies the concern that harmonizing the current 15% tax on online horserace betting with the 21% rate applied to games of chance (such as online slots and casino games) would deal a potentially devastating financial blow to the horseracing industry. The BHA’s economic modelling suggests losses could reach up to £66 million under the new unified tax rate — a shortfall that would impact the Levy, media rights agreements, and sponsorship deals, all of which are critical revenue streams for the sport.

The campaign to safeguard the sport’s future

Brant Dunshea, the Acting Chief Executive of the BHA, issued a formal statement highlighting the gravity of the situation:

“It is vital that everyone working in racing, the media and bettors fully support and promote this campaign.
The Government’s consultation on harmonising online betting duties, if followed through, poses one of the gravest risks to racing the sport has ever seen.”

His remarks underscore the existential threat the proposed reform represents—not only in financial terms but also in the broader context of the cultural and social role British racing plays. The industry is not only a cornerstone of the UK's sporting calendar but also a vital part of rural economies, employing tens of thousands of people in both direct and supporting roles.

Financial projections raise alarm

The BHA has commissioned an economic analysis that starkly illustrates the financial implications of the proposed tax changes. Even a modest increase in the current 15% betting duty could have serious knock-on effects. According to the analysis:

• At 21% (aligning with the tax on games of chance), racing could lose £66 million annually
• A 25% tax rate would result in a £97 million loss
• A 30% rate would increase losses to £126 million
• A 40% rate would escalate the damage to a staggering £160 million

These losses would not be absorbed solely by bookmakers. The racing ecosystem — including owners, trainers, jockeys, breeders, stable staff, media broadcasters, and event organizers — would all feel the consequences. The potential reduction in sponsorship and media rights revenues, coupled with higher costs and diminished consumer incentives like bonuses and promotions, would hollow out a key segment of British sport.

Why the tax unification poses unique challenges to racing

Unlike online games of chance, betting on horseracing involves a high volume of low-margin transactions. This makes it structurally different from other online gambling activities that are more profitable per unit wagered.

The proposed tax harmonization fails to account for this distinction. Applying a flat rate to all forms of remote gambling disregards the unique financial and operational profile of the horseracing sector. The BHA has argued that such policy uniformity ignores a fundamental reality: horseracing is not just a commercial activity; it is a national institution, intricately linked to British heritage and the rural economy.

A broader pattern of financial pressure

The proposal to raise taxes on online horseracing betting is the third significant financial challenge currently faced by the sport as a result of recent government decisions. Previous hits to the industry have included stricter affordability checks on bettors and changes to advertising rules, both of which have placed pressure on the commercial viability of racing.

With this third blow, the cumulative effect could become insurmountable for smaller racing venues and independent operators. Larger racecourses may weather the storm with reduced margins, but grassroots and rural racing—already under financial strain—may struggle to survive.

Collective action and legislative advocacy

In light of these risks, the BHA is calling for a united front from all corners of the sport and its supporters. The “Axe the Racing Tax” campaign will target Members of Parliament, Peers in the House of Lords, and government officials in an effort to prevent the tax harmonization from proceeding.

The BHA’s strategy includes:

• Public outreach and grassroots mobilization of racing fans
• Strategic engagement with lawmakers
• Partnership with betting operators, especially those most exposed to horserace betting
• A concerted media campaign to raise awareness of the stakes involved

The campaign intends to run continuously until the Autumn Budget is finalized. In the words of Brant Dunshea:

“From now until the Budget we will be hammering home a very simple message to MPs, Peers and the Government on behalf of millions of racing fans. It’s time for the Government to back British racing and axe the racing tax.”

Broader implications for the UK economy and jobs

The horseracing industry is one of the UK’s largest sporting employers. According to Racing Together, over 85,000 people are either directly or indirectly employed by British racing. These include:

• Racecourse staff and event planners
• Trainers, jockeys, and stable hands
• Breeders and veterinarians
• Transportation and logistics workers
• Media professionals and bookmakers

The Treasury’s proposed tax changes risk destabilizing a sector that contributes £4.1 billion to the UK economy annually. While the Government has justified its proposal as a means to create consistency and increase tax revenues, critics argue that the long-term damage would far outweigh any short-term gains.

Seeking an alternative path

The BHA has made it clear that it does not oppose fair taxation. Rather, it opposes poorly designed policies that fail to consider the nuances of the industry. It has encouraged the Government to engage in a more tailored, evidence-based discussion around gambling regulation, one that reflects the diverse nature of gambling products and their economic interdependencies.

• Proposals that have been floated by stakeholders as more reasonable alternatives include:
• Maintaining differential rates for skill-based and chance-based gambling
• Introducing tax relief or rebates for sectors with lower margins, such as horseracing
• Ringfencing Levy funds from additional taxation burdens

Public sentiment and political traction

Early responses to the BHA’s campaign have indicated that the public—particularly racing fans and those in rural communities—are receptive to the message. Political allies of the sport have also begun to voice concern, with several MPs expected to raise the issue in parliamentary debates.

However, it remains uncertain whether this momentum will translate into policy change. The Government is under pressure to generate new tax revenues and close perceived loopholes in online gambling regulation. The horseracing industry must therefore make a compelling case that it is an exception worth preserving — not a loophole to be closed.

Conclusion

The proposed restructuring of the UK’s online betting tax system poses a significant threat to the financial stability and cultural heritage of British horseracing. By seeking to harmonize tax rates across all forms of remote gambling without accounting for the unique economic model of horserace betting, the Treasury risks inflicting long-term damage on one of the country’s most historic and widely followed sports.

The British Horseracing Authority’s “Axe the Racing Tax” campaign represents a crucial effort to safeguard the sport's future. It calls on the Government to recognize the distinct role horseracing plays in the UK — not just as an entertainment product, but as an essential component of rural economies, a major employer, and a cherished national institution. With tens of thousands of jobs at stake and millions of fans across the country, the campaign urges a more thoughtful, tailored approach to tax policy that supports the sustainability of horseracing rather than undermining it.

As the Government prepares its Autumn Budget, the racing industry, along with its supporters, must remain united and vocal. This is a pivotal moment not just for the finances of the sport, but for the preservation of a national legacy that has endured for centuries. The message to lawmakers is clear: back British racing and stop the racing tax before irreversible harm is done.

FAQs

What is the “Axe the Racing Tax” campaign?
It is a public campaign launched by the British Horseracing Authority to oppose proposed changes to online betting tax that could harm the racing industry.

Why is the BHA against a single online betting duty rate?
Because horserace betting is less profitable than other forms of gambling, a unified tax rate would disproportionately hurt the racing sector’s finances.

How much could the horseracing industry lose?
Up to £160 million annually, depending on the final rate implemented by the Treasury.

What would the impact be on jobs?
Tens of thousands of jobs could be at risk across the horseracing and rural economy sectors.

Is horseracing taxed differently from online casino games currently?
Yes, racing is currently taxed at 15% while online games of chance are taxed at 21%.

What is the Horserace Betting Levy?
It’s a statutory charge bookmakers pay to support British racing, based on their revenue from bets placed on the sport.

Has the government made a final decision yet?
No, the proposal is still under consultation, and final decisions will be made in the Autumn Budget.

What alternatives are being proposed by the BHA?
The BHA has suggested maintaining different tax rates and exploring rebates or exemptions for the racing sector.

Will this affect racing fans and bettors directly?
Yes, as operators may reduce bonuses, increase prices, and limit promotional activities.

How can the public support the campaign?
By contacting their MPs, supporting racing-related petitions, and spreading awareness on social media.