Rachel Reeves has announced significant increases in gaming duty in her Wednesday budget.
While the tax paid on racing will remain at 15% both in shops and online, the general betting duty on other forms of sports betting will rise from 15% to 25% online from April 2027.
Remote gaming duty paid on online casino betting goes from 21% to 40% in April 2026.
While the tax freeze on racing will be seen as a victory for the ‘Axe The Racing Tax’ campaign, bookmakers have long warned that any increase on gaming duty would have an impact on racing’s finances.
The British Horseracing Authority issued a statement which read: "British horseracing welcomes the decision by the UK Government today (November 26) to spare the industry from any punishing increase in direct gambling taxation.
"In her Budget, the Chancellor Rachel Reeves confirmed that racing’s remote betting tax rate would remain at 15% in recognition of its vital importance as a cultural and sporting asset enjoyed by millions of people across the country every year.
"A rise in taxation on online horserace betting would have had catastrophic implications for an industry that is an integral part of British society and culture, supporting 85,000 livelihoods and with an economic impact of £4bn.
"It is welcome that the Chancellor has today rightly recognised the vital importance of racing as a cultural, social and economic asset and acted to help secure the sport’s long-term future.
"The Chancellor’s positive decision recognises the potential damage to our sport, and the jobs supported by it, if the Government followed through on its proposal to “harmonise” remote gambling taxes and place horserace betting at the same rate as online casino betting.
"While the BHA led the sport’s response to the Treasury’s consultation, it was an all-of-sport effort to come together in a way which demonstrated the strength and solidarity of racing when collaborating with a shared purpose. We are grateful that the Treasury and No10 have listened to racing, speaking as one, and acted to protect the future of racing.
"We also note the increases in other gambling duties for the betting industry a result of the Budget, given the Government’s need to raise more money from general taxation. The relationship between racing and betting remains as important as ever and we will be working with our partners in the betting industry to understand the impact of this on British racing.
"The BHA will now analyse the Budget documents in greater detail to establish whether there are any other potential issues that may impact racing. We look forward to continuing to work with the Government to champion our sport and ensure that British racing can support its agenda for growth moving forward."
However, Shadow sports minister Louie French hit out at the tax hike, saying it will drive more people to the unregulated market.
Speaking on X he said: "Labour's gambling tax hike is reckless. It will push people onto the unsafe black market and cost thousands of jobs across Britain. This is just another stealth tax on working people having fun, and it will hurt our economy.
“Labour's hostility to people having a bet could cost our country billions in tax revenues, see businesses close and jobs lost, and jeopardise funding for British sport and charities. Rachel Reeves is gambling with lives and livelihoods."
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