The UK government’s recent proposal to consolidate its online gambling tax structure has sparked a backlash from key stakeholders within the betting and racing sectors. The Betting and Gaming Council (BGC) and the British Horseracing Authority (BHA) have expressed concerns that the new tax regime could place significant financial strain on the UK’s racing industry and broader gambling sector.
Proposed Tax Reform Could Harm Racing Finances
On April 28, 2025, the UK Treasury launched a consultation titled The Tax Treatment of Remote Gambling. This consultation suggests replacing the existing structure of General Betting Duty (GBD), Pool Betting Duty, and Remote Gaming Duty (RGD) with a single, unified tax rate under the proposed Remote Betting and Gaming Duty (RBGD). The intention is to simplify the tax system, reduce administrative burdens, and modernize the framework to reflect changes in the gambling sector driven by technological advancements.
Currently, the UK’s gambling tax system applies different rates to various gambling activities. Fixed-odds betting and pool betting are taxed at 15%, while remote gaming, including slots and roulette, is taxed at a higher rate of 21%. The proposed reform aims to harmonize these rates under a single tax, which the government believes will streamline operations for both businesses and the tax authorities.
However, stakeholders like the BGC have raised alarms over the potential consequences for the racing industry. Grainne Hurst, CEO of the BGC, strongly criticized the proposal, calling it “utterly self-defeating for the government.” She warned that aligning the General Betting Duty rate with that of Remote Gaming Duty could severely harm the already fragile finances of British racing. Hurst argued that such an increase in taxes would likely lead to businesses cutting back on their UK investments or moving operations offshore, a scenario that would have far-reaching effects on employment and revenue within the sector.
Concerns Over Impact on Jobs and Market Shifts
The BGC further emphasized that the proposed tax reform could make UK betting products more expensive for consumers, driving them towards unregulated online gambling markets. These markets, which are not subject to UK taxes, often lack the safer gambling protections that the regulated sector provides. As a result, the BGC contends that the new tax could inadvertently fuel the growth of the illegal gambling market, ultimately reducing revenue for the government.
Adding to these concerns, the BGC pointed out that the sector is still reeling from the financial impact of the government’s recent gambling white paper, which is estimated to have cost the industry over £1 billion in lost revenue. Hurst made it clear that any additional tax burden would not generate additional funds for the Treasury. Instead, it would drive growth and investment out of one of the UK’s few global business success stories.
Greg Swift, director of communications at the BHA, echoed similar concerns, emphasizing that the proposed tax changes could result in unintended consequences for both the racing industry’s financial stability and its workforce. While the BHA is engaged in the consultation process, it remains wary of the potential fallout from tax harmonization.
Government Consultation and Next Steps
The consultation period, which began on April 28, 2025, is set to run until July 21, 2025. During this time, stakeholders are encouraged to submit their feedback on the proposed reforms. The consultation focuses on the technical aspects of aligning the existing gambling duties and does not address the specific tax rate that will be applied under the new system. The final rate is expected to be determined during the upcoming budget process.
The government’s stated goal is to bring clarity and simplicity to the tax structure, aligning it with the modern dynamics of the gambling industry. However, with the proposed changes, many in the sector fear that the increased tax burden will have adverse effects on both the betting industry and the UK’s racing sector.
IWhile the UK government seeks to modernize its gambling tax system, the consultation process will be pivotal in determining whether the proposed changes can strike a balance between simplification and the financial well-being of the regulated gambling sector.
Source:
Industry warns UK’s new gambling tax could harm racing and jobs, World Casino Directory, April 29, 2025.
