Budget: Horse racing survives higher taxes on betting

British racing has been exempted from a tax hike on sports betting, which it feared would lead to thousands of job losses.

In her Budget, Chancellor Rachel Reeves did not increase the price punters pay on race bets.

Reports of the proposed rise led British racing to go on an unprecedented one-day strike in September.

But although the Treasury has not increased the 15% tax rate paid by racing bettors, other tax increases on gambling could have a knock-on effect on the sport.

Remote gaming fees, paid on online casino bets, will rise from 21 to 40% from April 2026.

General betting fees, paid on other forms of sports betting, will remain at 15% in betting shops – but from April 2027, they will rise from 15 to 25% online.

Details of the government’s plans were mistakenly published early by the Office for Budget Responsibility ahead of Reeves’ statement in the House of Commons.

The measures are expected to generate £1.1bn from the gambling industry by 2031, and shares in major companies fell immediately after the announcement.

Ahead of the Budget, punters warned against betting on stores closing if Reeves raised taxes on gambling companies.

Each store provides thousands of pounds of funding to the race through taxes and media rights payments.

Racing bosses say if bookmakers need to cut costs, it could impact the sport through reduced sponsorship and promotion, worse odds and reduced bonuses for customers, potentially diverting people towards the black market.