Chancellor Rachel Reeves is contemplating a significant increase in betting taxes, raising the levy on horse racing from 15% to 21% to align it with online gaming and casinos. This proposed change has raised concerns about the potential negative impact on the struggling racing industry, which relies heavily on sponsorship and financial support from betting companies.
Critics, including Grainne Hurst from the Betting and Gaming Council, argue that such a tax hike could be disastrous for the already fragile finances of the racing sector. They warn that it may lead to reduced sponsorship, prize money, and could push businesses to relocate overseas, ultimately harming the industry and driving punters toward unregulated online gambling markets.
The Treasury maintains that the proposed changes aim to streamline regulations and reduce administrative burdens for betting firms, asserting that high street bookmakers and bingo halls would not be adversely affected. However, no specific tax rates have been finalized, and the debate continues over the potential consequences of these fiscal policies on the racing industry.
