British Horseracing Authority Opposes Betting Tax Hike

The British Horseracing Authority (BHA), the governing body for horse racing in the United Kingdom, has issued a formal appeal to HM Treasury urging reconsideration of proposed tax reforms on betting revenues. With the Autumn Budget approaching, the BHA warns that potential tax increases targeting betting operators could have devastating consequences for the horseracing industry—an industry that contributes significantly to the UK’s rural economy, cultural heritage, and employment landscape.

Formal submission highlights sector-wide concern

The BHA’s official submission to HM Treasury’s open consultation has united key stakeholders from across the horseracing sector, forming a coalition that includes The Jockey Club, Arena Racing Company, the Racecourse Association, the Racehorse Owners Association, and the National Trainers Federation. Together, these entities have expressed grave concern about the financial and social implications of tax reform that fails to differentiate between various types of betting.

Their core argument is that horseracing holds a unique position within the wider gambling ecosystem and therefore warrants distinct tax treatment. The BHA is advocating for a lower tax rate on horseracing bets, separate from other betting activities, such as those involving casino games or high-frequency virtual products.

Economic risk: Up to £160 million loss annually

Internal assessments conducted by industry experts forecast significant financial damage if the proposed tax policies are implemented without exemption for horseracing. Conservative estimates suggest the sector could lose at least £66 million annually, while the worst-case scenario estimates losses of up to £160 million.

Such a loss, the BHA argues, would reverberate across the horseracing economy—from racecourse operators and training yards to breeders, stable staff, jockeys, and regional businesses dependent on the sport. The consequences could also threaten the viability of numerous racing fixtures and accelerate the decline of small, community-supported courses.

Impact on employment and rural communities

The British horseracing sector is not only a source of entertainment but also a major employer, particularly in rural regions. An increase in the tax burden on betting operators could prompt those companies to reduce their involvement in horseracing sponsorships and media rights agreements, thereby indirectly stripping funding from the sport itself.

This loss in funding would likely result in job losses, particularly in sectors closely tied to the racing infrastructure such as training stables, hospitality, transport, and veterinary services. Regions like Newmarket, Cheltenham, and Middleham—often dubbed the heartlands of British racing—stand to suffer disproportionately.

Precedents for differential tax treatment

The BHA’s call for a lower tax rate is not without precedent. In its response to the Treasury, the organisation referenced previous instances in which horseracing received special tax considerations due to its interconnected nature with regulated betting. According to the BHA, the symbiotic relationship between racing and betting should once again be acknowledged by policymakers.

Brant Dunshea, Acting Chief Executive of the BHA, emphasised this point in a public statement:
“Horseracing has a uniquely symbiotic relationship with betting and the Government must recognise this. It is why we are calling for betting on racing to be taxed at a different and lower rate to all other forms of betting.”

Risk of unintended consequences: growth of the black market

A central concern raised by the BHA is the possibility that higher taxes on regulated betting could unintentionally push bettors towards unlicensed operators. The body cites a study conducted by the International Federation of Horseracing Authorities, which found that between 2021 and 2024, global visits to illegal horseracing betting sites surged by 131%, compared to a 25% increase in visits to legal platforms.

The BHA warns that increasing the tax burden may accelerate this trend, as consumers seek better odds or lower fees offered by unregulated markets. This migration not only reduces tax revenues but also exposes bettors to platforms that may not offer appropriate safeguards or responsible gambling mechanisms.

Equine welfare may suffer under budget cuts

Reduced revenues stemming from overtaxed betting activities could force racecourses and racing organisations to curtail funding for equine welfare programs. These initiatives—ranging from veterinary research to injury prevention and retirement schemes—are often supported through income derived from betting levies and sponsorships.

Without adequate funding, the industry’s commitment to high standards of animal welfare could be compromised. The BHA has long maintained that welfare is central to racing’s social license to operate, and diminishing resources in this area could damage public trust.

Campaign mobilisation and public engagement

The BHA has also launched a public campaign under the banner ‘Axe the Tax’, encouraging supporters of British racing to contact their local Members of Parliament. A downloadable letter template is available on the BHA’s official website, aimed at simplifying the process for concerned individuals to express their views during the Treasury’s consultation window.

The BHA’s messaging emphasises not just the economic damage but the social and cultural losses that could occur if the Government proceeds without making concessions for horseracing. They argue that betting on horseracing is fundamentally different from other forms of gambling—less reliant on chance and more rooted in form analysis and skill.

Policy misalignment with affordability checks

The BHA’s opposition is further intensified by the broader regulatory climate in which these tax discussions are occurring. The Government is simultaneously introducing affordability checks for bettors—an initiative aimed at protecting vulnerable individuals from gambling-related harm.

However, racing stakeholders argue that layering a tax hike on top of affordability checks creates a disproportionate burden on the horseracing sector. When combined with the ongoing lack of levy reform—another long-standing grievance within the industry—these overlapping pressures threaten to destabilise British racing's financial model.

What comes next: Treasury consultation timeline

The open consultation period by HM Treasury is set to close on 21 July 2025, after which policymakers will review stakeholder submissions before finalising any changes to betting tax policy. The BHA and its coalition of partners hope their evidence and advocacy will persuade the Government to carve out a sustainable path forward—one that ensures the long-term viability of the sport.

Until then, industry leaders remain on high alert, recognising the significance of the coming months for the future of horseracing in the UK.

Conclusion

As the UK Government weighs potential changes to the taxation of betting revenues, the British horseracing industry faces a period of profound uncertainty. The British Horseracing Authority, alongside a coalition of major stakeholders, has made a clear and reasoned case for a distinct tax approach—one that reflects the sector’s unique relationship with betting and its substantial contribution to rural economies, cultural heritage, and animal welfare.

The BHA’s concerns are grounded not only in economic data but also in the broader implications of driving bettors toward unregulated markets and weakening the financial sustainability of a centuries-old sport. The organisation’s plea to “axe the tax” is not a demand for special treatment in the abstract but a call for proportionate and evidence-based policy that safeguards both the integrity and the future of British racing.

With the Treasury’s consultation closing imminently, the coming decisions will shape the trajectory of the industry for years to come. Policymakers now face the challenge of balancing fiscal objectives with the long-term viability of one of the country’s most historic and economically impactful sports. The question remains whether the Government will choose to preserve this national institution—or risk undermining it through a policy that, while well-intended, may prove counterproductive.

FAQs

What is the BHA’s main concern with the proposed betting tax hike?
The BHA fears that increased taxes on betting revenue could result in financial harm to the horseracing industry, including job losses, reduced income, and weakened community support.

Why does the BHA believe horseracing should be taxed differently?
The BHA argues that horseracing has a unique and mutually dependent relationship with betting, unlike casino or instant win games, justifying a lower tax rate.

How much does the BHA estimate the industry could lose?
Internal analysis suggests a potential loss of between £66 million and £160 million per year if the proposed tax policy is implemented without exemptions.

What are the potential impacts on employment?
Thousands of jobs, particularly in rural areas and among support services tied to racing, could be jeopardised by reduced industry funding.

What is the ‘Axe the Tax’ campaign?
It is a public advocacy campaign launched by the BHA encouraging racing supporters to contact MPs and oppose the proposed tax changes.

Could the new tax policy increase black market betting?
Yes, the BHA cites studies indicating that heavier taxation on legal betting may drive bettors to illegal platforms, undermining regulation and increasing risk.

How would animal welfare be affected?
Less revenue may lead to budget cuts for equine welfare programs, potentially compromising the high standards of care currently maintained.

Is the proposed tax policy final?
No, HM Treasury is currently accepting responses through a consultation period that ends on 21 July 2025, after which a final decision will be made.

What role do affordability checks play in this issue?
The industry is already under pressure from new affordability regulations, and a tax hike could add an additional financial strain.

What has been the industry's response to the consultation?
A coalition of major racing stakeholders, led by the BHA, has submitted formal objections and is calling for differentiated tax treatment for horseracing.