Racing celebrates victory in ‘Axe the Tax’ budget campaign after Reeves spared the sport

Charles Allen, the chairman of the British Horseracing Authority, paid tribute on Wednesday to “everyone who has played their part in the sport” following the Budget announcement by Chancellor Rachel Reeves that the horse racing betting rate will remain unchanged at 15%.

The confirmation that racing would be exempt from tax increases on online casino games and betting on football and other sports follows a seven-month campaign under the slogan “Axe The Racing Tax”. It was initially launched in response to a proposal from the Ministry of Finance to ‘harmonise’ taxation on gambling and gambling at a single rate.

Instead, the Chancellor has opted for a new gambling obligation regime, focusing on online gambling, which is associated with significantly higher gambling-related harm than bets on one-off events. Remote gambling tax (RGD), the tax paid on winnings from online slots and casino games, will almost double, from 21% to 40%. While the tax rate for online betting on sports other than racing will rise from 15% to 25%, there will be no change to the rate for machine gaming or sports betting in high street shops.

“I would like to commend the Chancellor and the Government for listening to the concerns of British racing and offering their clear support for our sport,” Lord Allen said.[and] thank everyone who contributed to the sport and delivered our message as one man.

“The Government has rightly recognized that not only are we an essential part of the British way of life, but we are also a global leader and one of the country’s most important soft power instruments. We want to maintain the British place on the world stage.”

Martin Cruddace, the CEO of Arena Racing Company (Arc) and a key figure in the ‘Axe The Racing Tax’ campaign, said the sport had “always been clear that harmonizing tax rates on UK racing and other betting and gaming products would have a serious impact on our industry”.

He added: “As a sport and industry we continue to make a real contribution to this country, supporting communities and culture. I am so pleased that the Government has recognized that fact and helped put our sport on a path to growth.”

The new compulsory gambling regime is closely aligned with the proposals submitted in July by the think tank Social Market Foundation (SMF). It also follows an intervention in the debate in August by former Prime Minister Gordon Brown, who called for a significant increase in tax on online gambling.

“This decision reflects the proposals made in our recent SMF report on gambling taxation,” said Dr James Noyes, one of the report’s authors. “We are pleased that the government has decided to differentiate between different types of gambling products – increasing duties on more harmful third-party casino content while protecting horse racing from the planned gambling tax increase.

“The online gambling industry has been undertaxed for too long. This decision by the Chancellor will ensure operators pay their fair share and bring Britain in line with international best practice.”

Gambling operators’ winnings on racing bets are subject to an additional 10% deduction to fund the levy. The decision to increase the excise rate on non-racing betting, effectively bringing it into line with racing betting with a total deduction of 25%, is expected to increase the attractiveness of the sport as a product for online operators.

The budget statement allocated an additional £26 million to the Gambling Commission to combat a possible increase in unlicensed gambling. This increase has been repeatedly raised by the Betting and Gaming Council, the industry’s main lobby group, as a possible result of tax increases.

“We want to work together with our betting companies to grow the sport,” said Brant Dunshea, acting CEO of the BHA, “and I absolutely believe that betting companies and racing have a shared interest in that and are committed to that.

“Our sport is often criticized for being fragmented and disconnected, I think [the success of the campaign] is a really good example of how when sport comes together with a shared purpose and purpose, we are an incredibly powerful voice for government.