The British horse racing industry, a cornerstone of the nation’s cultural and economic fabric, is facing an unprecedented crisis. The government’s proposed tax hikes on online betting, set to align the tax rate on horse racing bets with that of online casino games, have sparked widespread alarm. The British Horseracing Authority (BHA) has warned that these changes could devastate the sport, projecting a staggering £330 million revenue loss over five years and putting 2,752 jobs at risk in the first year alone. This financial blow threatens not only the horses that grace the tracks but also the livelihoods of jockeys, trainers, stable staff, and countless others tied to the industry’s ecosystem.
Horse racing is the UK’s second-largest spectator sport, drawing over five million attendees annually and contributing £4.1 billion to the economy. Its cultural significance is undeniable, with royal patronage from figures like King Charles III and historic events like the Grand National and Royal Ascot woven into the nation’s identity. Yet, the proposed tax increase, which would raise the duty on online horse racing bets from 15% to 21% or potentially higher, is seen as a direct threat to this cherished tradition. The BHA’s economic analysis suggests that bookmakers, facing higher costs, will likely respond by offering less competitive odds, cutting bonuses, and reducing marketing budgets. This could drive punters to unregulated black markets, further eroding the sport’s revenue streams.
The industry’s response has been swift and bold. On September 10, 2025, British racing will stage a historic one-day strike, canceling fixtures at Lingfield Park, Carlisle, Uttoxeter, and Kempton Park. This unprecedented action, the first of its kind in the sport’s modern history, underscores the gravity of the situation. The BHA, alongside the Jockey Club and Arena Racing Company, has rallied behind the #AxeTheRacingTax campaign, urging the government to reconsider its plans. The strike, expected to cost £200,000 in lost revenue for the day, will be accompanied by a lobbying event at Westminster, where industry leaders, jockeys, and trainers will press MPs to recognize the sport’s economic and cultural value.
The ripple effects of the tax hike extend far beyond the racecourses. Rural communities, particularly in regions like Yorkshire, home to nine racecourses, face significant economic fallout. The BHA estimates a £37 million loss in Yorkshire alone over five years, with 342 jobs at immediate risk. Stable staff, farriers, feed suppliers, and hospitality workers are among those who could face unemployment. Sarah Guest, a yard manager at John O’Shea Racing, voiced the concerns of many: “A tax rise on betting is only going to stifle the sport. I love what I do, but if the industry starts shrinking, it will be stable staff like me who will feel it first.” Her words highlight the human toll of the proposed changes, which threaten the livelihoods of the 85,000 people employed by the industry.
The government’s rationale for the tax harmonization is to streamline an “outdated and inconsistent” gambling tax system. A Treasury spokesperson emphasized that the proposal aims to level the playing field for all online gambling, with no changes planned for bets placed at racecourses, which remain tax-exempt. However, the industry argues that horse racing is fundamentally different from online casino games, which carry higher rates of gambling-related harm and lack the cultural and economic contributions of racing. Martin Cruddace, CEO of Arena Racing Company, stressed this distinction: “Unlike online casino games, British horseracing makes an enormous contribution to society and employment, and is not available every ten seconds, twenty-four hours a day.”
Critics of the tax hike also point to existing financial pressures on the sport. Betting turnover has already dropped by 25% in two years, a £1.6 billion loss, largely due to stricter affordability checks that have pushed punters toward unregulated markets. The BHA warns that further tax increases could exacerbate this trend, reducing the sport’s visibility and appeal. Trainers like David Menuisier have expressed fears that the industry’s ecosystem, from owners to stable staff, is at risk of collapse without government intervention.
The #AxeTheRacingTax campaign has garnered nearly 8,500 signatures on its petition, reflecting public and industry support. As the autumn budget approaches, the government faces a critical decision: back a sport that defines British heritage or risk its irreversible decline. For jockeys, trainers, and the millions of fans who flock to racecourses each year, the stakes could not be higher. The future of British horse racing hangs in the balance, and the nation waits to see if its leaders will heed the call to preserve this vital industry.
