Every week brings fresh developments in the escalating debate over UK betting tax, as the British Horseracing Authority (BHA) ramps up its campaign once again.

On Sunday, 26 October, the BHA published an open letter to Chancellor of the Exchequer Rachel Reeves, calling for a reconsideration of plans to increase betting taxes in the upcoming Autumn Budget. The letter, signed by 363 industry stakeholders—including jockeys, trainers, racecourse managers, and associations such as Scottish Racing—warned that merging betting and gaming taxes into a single Remote Betting and Gaming Duty (RBGD) would have “devastating and irreversible consequences” for the horse racing sector.

The proposed changes could threaten tens of thousands of jobs and businesses that rely on the sport. With the Autumn Budget scheduled for 26 November, speculation is rife that the government may merge the 21% Remote Gaming Duty, the 15% General Betting Duty, and Pool Betting Duty into one unified 21% tax.

Economic Impact of a Higher Betting Tax

The BHA has been vocal about the potential financial consequences, launching the #AxeTheRacingTax campaign in July and taking strike action in September. According to its latest letter, a 21% RBGD could cost the sport £66 million annually, jeopardizing jobs, investment, and businesses connected to racing, such as media and hospitality.

Horse racing currently contributes £4.1 billion to the UK economy, generates £300 million in annual tax revenue, and supports 85,000 jobs. A worst-case scenario—a 40% RBGD—could cost £160 million a year and result in 2,000 job losses in the first year.

“These proposals go beyond Britain’s second-largest spectator sport,” the BHA warned. “They threaten local businesses, workers, and communities that depend on a thriving racing industry—from trainers and stable staff to racecourse employees, hoteliers, and small shops in towns and rural areas.”

Historical Context and Industry Division

This is not the first clash between the BHA and the government. The 2020–2023 Gambling Act review sparked heated debates over affordability checks, which the BHA argues contributed to a £3 billion deficit in horse racing finances.

While horse racing and bookmakers previously aligned on affordability issues, the current betting tax debate has created divisions. The Betting and Gaming Council (BGC) criticized the BHA’s strike and continues to campaign against the proposed tax, highlighting risks such as job losses, increased black-market gambling, and reduced economic contribution.

The Road Ahead

Chancellor Rachel Reeves faces pressure from both sides. During the recent Labour conference, she stated that gambling firms should “pay their fair share,” signaling a potential leaning toward a tax increase. With the Autumn Budget announcement looming on 26 November, the UK gambling and horse racing industries remain on high alert.