UK Gambling Tax Reform Will Not Affect Horse Racing Bets

^{Pictured: Earlier this year, British jockeys staged a protest against a potential tax increase on the horse racing industry.}

The UK Treasury does not plan to raise taxes related to horse racing bets, The Telegraph reported, citing government sources.

According to the newspaper, the upcoming tax reform will mainly target betting terminals in retail betting shops and online casinos.

Bets placed directly at racecourses will remain exempt from taxation, while horse racing wagers placed through bookmakers will continue to be taxed at 15%.

The Treasury intends to focus on two key areas — the Machine Games Duty (currently 20%) applied to betting terminals and the Remote Gaming Duty (currently 21%) applied to online gambling. Both rates are expected to increase.

The government’s lenient approach toward horse racing appears to stem from its status as part of the UK’s national cultural heritage.

The reform is expected to generate an additional £1 billion ($1.3 billion) in annual revenue for the state budget, although the final details have not yet been approved.

Officials view the proposed tax hike as economically justified and politically acceptable. Treasury data shows that online betting volume in the UK has grown by 60% over the past decade. The updated budget, which will set the new tax rates, is scheduled to be presented on November 26.