In the 2025 Budget, delivered by Chancellor Rachel Reeves, sweeping changes to gambling taxation were announced.

The headline move is a major hike in tax on online gambling, with the duty on remote gaming (casino games, slots, etc.) rising from 21 per cent to 40 per cent from April 2026.

Alongside this, a new rate for remote sports betting is being introduced; general betting duty for remote bets will increase to 25 per cent. However, this particular change has been delayed for a year and will come into effect in April 2027.

Crucially for the horse racing world, bets on UK horse racing have been explicitly excluded from that rise. Betting on horse racing, whether online or shop-based, will remain subject to the existing 15 per cent duty.

Racing has been pushing hard to avoid the gambling tax, saying it would cripple the industry, and their work has been rewarded, as there are no changes.

BREAKING: Horse racing is exempt from general betting duty tax rises in today’s Budget, meaning it will remain at 15%.

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

Remote… pic.twitter.com/B1HShyghHB

— At The Races (@AtTheRaces) November 26, 2025

For an industry that had spent months campaigning under the banner “Axe the Racing Tax,” including a horse racing strike for one day, this feels like a win. It’s a welcome result for all those concerned about rising taxes threatening the sport’s economic viability.

However, there’s plenty more to it, and, of course, while racing may not be part of it, the fact is that there are now higher tax rates for gambling operators, and they will want to claw that back somehow.

Good News for Racing, For Now

The fact that horse racing betting wasn’t hit with the new remote betting tax brings immediate relief.

It means that operators accepting bets on UK races won’t pay more, so, in theory at least, odds, returns, and the overall betting structure should stay roughly the same.

For racecourses, owners, and the many jobs tied to racing, that clarity is important.

There is a chance of a boost to racing, too, if you want to look on the optimistic side of this. New, higher tax rates on casino and slots online could mean brands spend less on marketing these products and on trying to get people to use them.

While this money could be saved to make up for the additional taxes they’re going to pay, it could also be pushed into the marketing budgets of other departments, such as sports and perhaps racing, potentially benefiting.

For fans of the sport, its status quo and punters who enjoy backing horses aren’t being penalised. This means racing retains its place as a comparatively affordable betting option in an environment that is seemingly only going to tighten.

Risks and Knock on Effects to Consider

Now, while I’ve been pretty positive so far, there is definitely a negative aspect of the news today, not directly aimed at racing, but certainly when it comes to knock-on effects.

It would be naïve to assume racing is going to be fine, because it hasn’t directly been hit with these tax hikes. There are many knock-on effects that could create trouble over time.

Firstly, gambling companies hit by the steep increases in remote gaming taxes, 21% to 40%, are likely to see profits squeezed. This is expected to lead some to reduce overall investment in promotions, stakes, and advertising budgets.

That could affect how much they invest in race sponsorships, prize money, and media coverage of races. Smaller spending here could ultimately reduce racing’s revenue stream and its attractiveness to sponsors.

Secondly, there’s a danger that heavy taxation on online gambling drives some punters toward unregulated or offshore betting markets.

If that happens, regulated bookmakers, who fund the sport, could see lower turnover, which again could translate into reduced support for racecourses and lower levy payments.

Thirdly, rising taxes for online betting (non-racing) may lead operators to prioritise casino gaming or other high-margin products, further reducing focus on sports and racing.

Let’s be honest and say the risk remains, even though racing has avoided a gambling tax rise, and the sport needs to stay alert for what comes over the next few months and years.

I’d urge everyone to breathe a sigh of relief in the aftermath, but be ready for change in the future. I’m not sure this is over.