Axe the Racing Tax: Why the Government’s Proposals Threaten Racing

For the first time in living memory, British horse racing is set to stage a strike. On Wednesday 10th  September 2025, there will be no racing at Carlisle, Uttoxeter, Lingfield, or Kempton. A day without racing — by choice, not weather or pandemic — is unprecedented.

Why has such action been called? A government proposal to raise betting taxes could cut racing off at the knees.

The Proposal?

At present, bookmakers pay 15% tax on horse racing bets. That sits alongside the Horserace Betting Levy, where 10% of bookmaker profits go directly back into the sport. Together, these streams help fund prize money, racecourse facilities, integrity services, and the thousands of jobs that underpin racing.

But the Government wants to “simplify” gambling tax by merging everything into a single flat rate of 21% — to align with online casino games. That means horse racing bets would suddenly cost bookmakers more to lay.

On paper, it looks neat and tidy, and boosts government funds. In reality, it risks significant damages to the sport.

Racing's Response?

The British Horseracing Authority (BHA) has crunched the numbers. They warn the reform would take £66 million a year out of racing’s pocket. In a worst-case scenario, that could rise to £160 million annually. Independent economists have forecast an overall £330 million loss across five years and more than 2,700 jobs gone in year one alone.

Where does that money vanish from?

• Prize money: which is already under par with Ireland, France, and Australia. Smaller pots mean owners will send horses elsewhere.
• Racecourses: particularly smaller, rural tracks that rely on levy income to survive.
• Training yards and staff: the grooms, farriers, and stable lads/lasses.

In other words: it isn’t just a line in a Treasury spreadsheet. It’s livelihoods, communities, and the very future of British racing.

The Strike – A Historic Moment

On 10th September, the sport will down tools in protest. Four meetings cancelled. Thousands of racegoers turned away. A one-day blackout designed to send a single message: racing is in a precarious position and will struggle with this tax hike.

It’s symbolic, of course, but it’s also a serious situation.  A sport that has continued through some torrid and challenging times in history is now voluntarily cancelling its schedule in an unprecedented response.  It shows just how desperate the situation has become.

Impact to Racing Fans

One might think that this is a bookmaker problem rather than a punting problem, but bettors won't escape unscathed.

Possible impacts that could ripple down:

• Tighter odds: If racing bets are more heavily taxed, bookmakers may shave margins to protect profits. That means shorter prices and less value.
• Fewer fixtures, smaller fields: Reduced prize money will make some races unviable. There will be less variety, fewer runners, and less betting opportunities.
• Lower quality racing: Owners chase prize money — if Britain can’t compete, horses will run abroad. That’s bad news for big races and everyday betting alike.
• Bookmaker behaviours: Increased costs may also mean more aggressive stake restrictions, particularly for sharp punters.

So while punters won’t be directly taxed on winnings, the overall experience of betting on British racing could decline sharply.

A Question of Fairness

The comparison of casino gambling with horse racing really calls into question the perspectives of those who are positioning this change. Let's be clear, horse racing is not an online slot machine. It is a centuries-old sport, Britain’s second-biggest spectator draw after football, generating £4 billion a year for the economy and sustaining 85,000+ jobs — many in rural communities where other industries are scarce.

It also funds itself responsibly through the Levy. Racing is unique in recycling betting profits back into the sport. To treat it in the same way as a game of online roulette is, in the words of some industry leaders, “ignorant” and “destructive”.

Alternative Options

The racing industry's leaders are not simply saying “no” to this proposition. They are offering alternatives. One idea is to leave racing bets at 15% but raise the rate on casino games, which are far more lucrative for bookmakers and do not require an industry Levy.

This would meet the Government’s revenue goals without hammering a sport that already operates on tight margins.

Why It Matters

If you care about racing — whether as an owner, trainer, member of stable staff, or weekend follower — this isn’t just an abstract tax row. It’s about the survival of a sport that has shaped Britain’s culture and heritage for centuries.

Flat or jumps, Cheltenham or Brighton, the Derby day or a local evening meeting— they all rely on the same fragile funding ecosystem. Breaking that chain could cause long-lasting, and maybe irreversible damage.

Conclusion: Axe the Racing Tax

British racing has remained steadfast through recessions, wars, and pandemics. It has always found a way of keeping the show on the road. But this proposed tax reform is different. It is unnecessary, and — if implemented — potentially devastating.

That’s why the industry has launched its “Axe the Racing Tax” campaign, urging the government to think again.

On 10th September, the silence at Carlisle, Uttoxeter, Lingfield, and Kempton will speak louder than words. Let’s hope that those in Westminster are listening.