UK Budget 2025 Spares Horseracing from Online Gambling Tax

The UK’s newly approved 2025 Budget has introduced some of the most sweeping gambling-tax reforms in years yet one major sector emerged untouched: British horseracing.

While online casino games and most forms of remote gambling will soon face steep tax hikes, betting on horseracing whether online or in shops will continue under the existing duty framework.

Major Tax Shifts: Online Gambling Hit Hard

Chancellor Rachel Reeves confirmed on 26 November 2025 that Remote Gaming Duty will surge from 21% to 40% starting April 2026, nearly doubling the tax burden on online casino products, including slots and other games of chance.

Remote sports betting (excluding racing) will also see an increase, with General Betting Duty climbing from 15% to 25% in April 2027.

In contrast, horserace betting retains its 15% rate and bingo duty will be abolished entirely.

Why Horseracing Was Spared

The exemption, long lobbied for by racing stakeholders, acknowledges the sport’s deep cultural roots and its economic footprint across rural Britain.

Earlier proposals considered “harmonising” remote bet taxes across all gambling products, which would have pushed racing into much higher duty brackets potentially destabilising the sport.

The British Horseracing Authority (BHA) praised the decision, citing the sport’s role in supporting tens of thousands of jobs and generating £4bn annually for the UK economy. Racecourses, trainers, breeders and supply-chain businesses had warned that higher taxes could have been catastrophic.

What the Tax Rises Mean for the Wider Industry

For online operators, the Budget marks a decisive shift. A 40% Remote Gaming Duty is expected to squeeze margins significantly and could trigger changes in customer-facing policies, bonuses and odds.

The government has framed the tax increases as a dual effort: boosting public revenue and addressing gambling-related harm.
Once fully implemented, the new measures are expected to raise over £1.1bn per year by 2029–30.

Land-based venues and betting shops, however, avoid the worst of the reforms, as in-person betting duties remain largely stable.

Horseracing Wins a Major Victory—But Long-Term Risks Remain

Although racing successfully defended its existing tax rate, analysts warn the sector is not fully insulated. As online operators face rising costs elsewhere, racing sponsorships and marketing budgets could be trimmed.

Additionally, the possibility of future governments revisiting racing duty levels remains a lingering concern.

There are wider industry risks, too: stricter tax environments often push bettors toward unregulated offshore sites, weakening both racing’s levy income and legal operators’ revenues.

What Comes Next

With legislation now moving forward, the UK gambling industry is heading into a reshaped regulatory environment. Online casinos and most remote sportsbooks must adjust to dramatic cost increases, while horseracing enjoys a reprieve that preserves its current ecosystem for now.

The 2025 Budget ultimately creates clear winners and losers.
Horseracing secures stability at a crucial moment, whereas much of the online gambling sector prepares for a more expensive and tightly regulated future.