Racing Relieved as Betting Tax Shake-Up Spares the Sport
So, let me walk you through what’s been happening around the latest Budget and why it has the entire gambling and racing world buzzing—especially places like Mecca Bingo, bookmakers, and the broader gaming sector.
In a move that many in British racing had been anxiously awaiting, the Chancellor Rachel Reeves decided not to raise the tax on bets placed on horse racing. This was a massive sigh-of-relief moment for an industry that had warned of potential job losses in the thousands if those taxes went up. In fact, the pressure had been so intense earlier this year that racing staged its first-ever voluntary one-day strike—fixtures were rearranged, jockeys and trainers marched into Westminster, and the message was loud and clear: a tax hike on racing bets could hit the sport hard.
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But while racing dodged a direct hit, other parts of the gambling industry weren’t so lucky. Remote gaming duty—basically the tax on online casino-style gambling—is being bumped up from 21% to a hefty 40% starting April 2026. That’s nearly double. And general betting duty for online sports bets will climb from 15% to 25% from 2027, though in-shop betting remains at 15%. All of this is expected to raise billions for the Treasury over the coming years, but naturally, it sent shockwaves through the gambling sector.
Share prices of major companies like Entain, Rank, and Evoke dipped immediately following the announcement. Some of those losses were recovered later in the day, but the warnings from industry bosses came in fast. Entain said it could take a £150 million hit to profit by 2027. Evoke projected £135 million in extra duty costs. Meanwhile, the Betting and Gaming Council called the overall tax increases a “devastating hammer blow,” arguing they could drive customers toward the black market—which, of course, pays no tax at all.
At the same time, the government did abolish bingo duty entirely, which is good news for bingo halls, including familiar names like Mecca Bingo. That move alone is expected to give high-street gaming venues a bit of breathing room at a time when online gambling is shouldering the bulk of the new taxation.
Racing’s leadership was quick to welcome the exemption. Brant Dunshea of the British Horseracing Authority said the government had recognised racing as a “unique national asset”—not just economically but also culturally. Still, even he acknowledged that the wider tax hikes on gambling could ripple back into racing through things like reduced sponsorships, lower media rights income, or fewer customer incentives.
And to top it off, the government also announced £26 million in new funding for the Gambling Commission to tackle illegal gambling operations—something that becomes even more important when regulated markets face higher taxes.
So overall, it’s a mixed picture: racing got what it wanted, bingo halls got a boost, but the online betting world is preparing for some turbulent years ahead.
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