The future of British horse racing is under serious threat unless the government urgently reconsiders proposed tax changes and new gambling regulations, a cross-party group of MPs and peers has warned.
In a new report published Sunday night, the All-Party Parliamentary Group (APPG) for Racing and Bloodstock said the combined impact of proposed tax reforms, stricter affordability checks, and an outdated funding model could deal lasting damage to one of the UK’s most prominent sporting industries.
The warning comes as the Treasury continues its consultation on replacing the UK’s complex three-tier betting tax system with a single Remote Betting and Gaming Duty. The consultation, launched in April, closes on 21 July.
At stake, the APPG argues, is the health of an industry that contributes over £4 billion annually to the UK economy, sustains more than 85,000 jobs, and is second only to football in terms of spectator popularity.
The report, produced with input from racing stakeholders and led by the British Horseracing Authority (BHA) as secretariat, raises alarm over the potential consequences of consolidating the current betting tax system.
Under the proposed reform, these could be replaced by a single unified tax, raising concerns that racing-specific betting could become less commercially viable for bookmakers, leading them to promote more profitable—yet riskier—forms of gambling, such as online slots and casino games.
The APPG argues that such a shift would reduce investment in horse racing, as betting companies may be disincentivised from offering or advertising racing products.
The report also criticises the Horserace Betting Levy, a longstanding mechanism designed to ensure that a portion of betting profits is reinvested in the racing industry. The levy, last updated in 2017, is increasingly seen as inadequate compared to international standards, with countries like France and Ireland offering far greater support to their domestic racing sectors.
The APPG further cautioned that increased affordability checks—intended to protect consumers from problem gambling—may have unintended consequences for racing. The group contends that racing punters are largely low-risk, and could be discouraged by intrusive checks, with little impact on more harmful forms of gambling.
Dan Carden, Labour MP for Liverpool Walton and co-chair of the APPG, urged the government to take the sport’s concerns seriously.
“The message from this report is clear: British racing needs this Labour government to be on its side. Racing is part of our national story, and its enjoyment and support extends all the way from rural to urban working-class communities.”
Brant Dunshea, chief executive of the British Horseracing Authority, echoed the sentiment, warning of wider socio-economic consequences.
“The cultural, social and economic value of racing is huge for towns and rural areas across Britain. It is those communities that will suffer the job losses, the decline in community pride and the loss of identity that will come if racing is allowed to fail.”
The concern is particularly timely as the Royal Ascot festival—one of the sport’s flagship events—gets underway this week, drawing attention to the role horse racing continues to play in British cultural life.
In response, a government spokesperson acknowledged the importance of the industry but offered no assurances beyond its current engagement process.
“We recognise the huge importance of horse racing to the British sporting calendar and the significant contribution it makes to the economy every year. We have recently launched a consultation on the tax treatment of remote gambling and are actively engaging with the sector, so are grateful to the APPG for their contributions and will consider the report fully.”
While the government continues its consultation process, stakeholders in racing remain wary. With many small racecourses and training operations already struggling under rising costs and declining betting revenue, there are fears that without swift intervention, structural damage could become irreversible.
The APPG’s report stops short of prescribing precise legislative fixes, but calls for a pause and reassessment of current tax and regulatory proposals. It also urges ministers to commit to a reform of the betting levy to reflect modern betting behaviour and secure the long-term viability of Britain’s racing industry.
As gambling regulation and taxation evolve in a digital era, policymakers now face the challenge of balancing public protection with preserving the country’s sporting heritage. For the racing industry, the next few months could prove critical.
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Tax changes ‘threaten future of horse racing’, warns parliamentary group