Racing Industry Challenges Proposed Gambling Tax
British racing representatives have urged the UK Government to reconsider plans to merge betting and gaming taxes under a harmonised Remote Betting & Gaming Duty (RBGD). A letter sent to the Chancellor of the Exchequer argues that the policy could place thousands of jobs at risk, reduce national tax revenue, and weaken the economic foundations of Britain’s second-largest spectator sport.
Concerns Raised by the Racing Community
An open letter signed by 363 professionals from across the racing sector outlines widespread concern about the Treasury’s tax plan. Those behind the letter express worry that aligning the duty on racing wagers with other types of gambling could threaten the sport’s financial health.
As stated in the letter:
“We are writing to express our deep concern over Treasury proposals to merge betting and gaming taxes into a single Remote Betting & Gaming Duty (RBGD) and to urge you to rethink these plans. These changes would have devastating and irreversible consequences for the horseracing industry, with a severe impact on the tens of thousands of livelihoods and businesses it supports across the country.”
Impact on Local Economies
Racing advocates emphasise that the sport plays a critical role in the UK’s economic and cultural landscape. It supports tens of thousands of jobs and contributes billions of pounds in value each year.
The letter stresses this national importance:
“Horseracing is part of Britain’s national identity and a cornerstone of regional economies nationwide. It contributes £4.1 billion to the UK economy each year, supports 85,000 jobs, and generates £300 million in annual tax revenue.”
It also underlines that racing influences multiple industries — from hospitality and transport to media and fashion — while supporting rural and regional communities.
Financial Risk Linked to Tax Harmonisation
British racing leaders argue that the restructuring of gambling duties could discourage betting operators from promoting horse racing and reduce key revenue streams such as the Horserace Betting Levy.
According to the letter’s analysis:
“Analysis shows that a RBGD harmonised at 21% would cost British racing £66m annually, jeopardising thousands of jobs, investment, and the wider economic ecosystem that depends on the sport. A 40% RBGD [would hit] racing to the tune of over £160m annually and result in more than 2,000 direct racing jobs lost in the first year alone.”
Call for Government Re-Evaluation
The signatories argue that the Treasury’s proposal could lead to long-term structural damage in areas where racing is a significant economic driver.
The concluding message reinforces this warning:
“The government’s proposals would do lasting damage to a major British industry, harm rural communities, and carry serious unintended consequences. It is not too late to rethink the approach and we strongly urge you to do so.”