Horseracing exempt from gambling tax in UK budget changes
Horseracing will be exempt from Rachel Reeves’ gambling tax raid as the Chancellor hikes betting duty in her second Budget, reports BritPanorama.
The changes are set to come into force in April 2027, Ms Reeves confirmed in the Commons today. A new rate of general betting duty (GBD) for remote betting will be introduced at 25 per cent in 2027, “excluding self-service betting terminals, spread betting, pool bets, and horse racing”.
Remote gaming duty is to rise to 40 per cent from 21 per cent starting April 2026. The Office for Budget Responsibility (OBR) did not mention any alterations to machine games duty (MGD). These tax changes are estimated to raise £1.1 billion by 2029/30, according to the OBR.
Betting shop operators have raised concerns, warning that thousands of betting shops could close if the MGD rate were increased. Shadow sports minister Louie French expressed criticism on the social media platform X, referring to the Labour party’s tax hike as reckless. He warned, “It will push people onto the unsafe black market and cost thousands of jobs across Britain.”
In her Commons statements, Ms Reeves elaborated on the plans for reforming gambling taxes in response to the rise in online gambling. She noted, “I will also reform gambling taxes in response to the rise in online gambling,” highlighting an increase in remote gaming duty and online betting duty.
According to the OBR, the tax reforms are expected to cost the industry £1.6 billion starting 2027/28, coinciding with the changes to the general betting duty. A source from the betting industry remarked, “This is an early Christmas present for the black market, even the Treasury admits huge amounts of tax will be lost to illicit operators.”
Notably, while the tax framework adjusts, the implications for the general gambling landscape raise serious questions about the future of regulated betting and the ongoing challenge posed by unregulated markets.
