British racing spared betting duty rise in Rachel Reeves’ autumn budget

The betting industry had warned that thousands of high street betting shops would be under threat of closure had taxes been raised on in-person gambling

Fears of a marked rise in betting duty on racing have been allayed in the Budget announced by Chancellor Rachel Reeves, although tax on other forms of gambling will be increased. A new rate of general betting duty for remote betting will be introduced at 25 per cent but self-service betting terminals, spread betting, pool bets and horse racing remain unchanged at 15 per cent.

The racing industry had campaigned against the idea of harmonising gambling duties, cancelling all race meetings on September 10 on an unprecedented day of strike action which culminated in a British Horseracing Authority-led ‘Axe The Racing Tax’ event in Westminster.

Economic analysis commissioned by the BHA suggested a rise from 15 per cent to 21 per cent, could cost the sport at least £66million and put 2,752 jobs at risk in the first year, in what BHA chair Lord Allen termed “nothing short of an existential threat for our sport”.

READ MORE: John Hunt announces auction for causes dear to wife and daughters murdered in crossbow attackREAD MORE: Aidan O’Brien gives himself two more chances of equalling Group 1 world record

That threat is now lifted with confirmation duty will not be adjusted, but the government does expect to raise over £1billion by 2031 through changes to other gambling taxes.

The Chancellor said general betting duty, paid on other forms of sports betting, will remain at 15 per cent in betting shops, but will rise to 25 per cent online, while remote gaming duty, paid on online casino betting, will rise from 21 to 40 per cent.

Machine betting duty, paid on land-based betting terminals such as those in betting shops, has not been adjusted.

Bookmakers had warned ahead of the Budget that any changes impacting their profits could have a knock-on effect for racing, with the potential for less generous odds and betting shop closures. Racing receives income through media rights payments and the levy from every shop.

In announcing the rises, the Chancellor said: “Remote gaming is associated with the highest levels of harm and so I am increasing remote gaming duty from 21 per to 40 cent per, with duty on online betting increasing from 15 per cent to 25 per cent.

“I am making no change to the taxes on in-person gambling or horse racing and I am abolishing bingo duty entirely from April 2026. Taken together, my reforms to gambling tax will raise over £1billion per year by 2031.”