Horse Racing Goes on Strike in the UK Amid Gambling Tax Uncertainty

Race horses have gone on strike for the first time in the UK. Racecourses across the country shut their gates in an organised strike to protest the government tax hike proposals. Four racecourses in the UK cancelled day programmes on September 10, in what was a one day strike against the proposed tax hike. The British Horse Racing Authority (BHA) stated the hike would see thousands of layoffs in the industry.

The Government proposed the tax hike back in August, intending to raise the current duty of 15% up to a 21% levy. That would put horse race bookmakers on par with what online casino game operators have to pay in remote betting tax. The sponsorship deals with bookmakers represent a large portion of the industry’s revenue. The impact of the hike is estimated to cost the sport up to £330 million over the next five years. And put over 2,700 jobs at risk, from stable staff and farriers, to the trainers and jockeys.

How the Strike Unfolded

Carlisle, Uttoxeter, Lingfield and Kempton racecourse, all postponed races as the tracks went quiet in the UK. All horse racing bets for the day were called off, and the stables were empty. The one-day strike was organized by the BHA in a united effort to protest the tax proposals. The chief executive of the BHA, Brant Dunshea, stated:

“This latest tax bombshell from the Government, if followed through, poses one of the gravest risks to horse racing the sport has ever seen.”

It is no secret that the UK horse racing industry is struggling. Recent data shows that the online betting turnover for horse racing fell 8% in the 2024-25 fiscal year. The industry, which supports around 85,000 jobs in the UK, is already in decline. So it is no wonder they went ahead with the strike. Though only in moderation.

The BHA purposely arranged the strike to fall before the St. Ledger Festival at Doncaster (September 11), one of the Five British Classics. Cancelling such an event would definitely cause more of a stir, but at the expense of the revenue that is very much needed. The 1 day strike is estimated to cost the sport up to £200,000 in lost revenue.

The Proposed Remote Betting Tax Hike

In August, a call was made in Parliament to lift the remote betting duty from 15% of gross gambling revenue up to 21%. The ministers argued this would bring in an additional £500 million annually to the Treasury coffers and UKGC. This money could then be directed to public services, and to responsible gambling programmes. Right now, the Treasury has three online betting duties ministries. These are the General Betting Duty, Pool Betting Duty and Remote Gaming Duty agencies. The ministers proposed to have these harmonised into one single Remote Betting & Gaming Duty, with equal tax rates.

The racing community still gathered together on Wednesday, but not to head to the stables. The “Cut the Racing Tax” campaign lobbyists headed to Westminster to protest and draw attention to the potentially devastating proposal. Brant Dunshea said:

“Such is the significance of the impact of the proposals, we say £200,000 for a blank day to raise awareness is a small price to pay.”

Will the Hike Be Confirmed, And When

The government will include the proposal in the Autumn Budget on November 26, 2025. If MPs back it, the plan could become law by the end of the year. Officials aim to roll out the plan by April 2026, the implementation deadline. However, it will not be as simple as approving or outright rejecting the proposal. Industry leaders, unions, and government officials are expected to negotiate a plan of action by November 26.

Knock On Effects for A Struggling Industry

While speculative, the consequences of the tax hike have been voiced by the BHA and members of the sport.

• Employment Risks in the Industry: As the head of the BHA mentioned, the horse racing industry provides over 85,000 jobs in the UK. These include everyone from the on course workers to stable hands and equestrian welfare workers.
• Diminished Purse and Race Quality: The deals and sponsorships endorsed by bookmakers are used to build the purse and contribute to key race meetings. A tax hike could see those funds slashed, and thus reduce the marketing, purse, and money invested into events.
• Trainers and Owners May Look Abroad: The reduction in race quality and purse prizes could also lead to owners and trainers seeking races outside the UK, and fewer entries in the home market.
• Betting Shift to Black Market: Outside the concerns for the sport, the overtaxation may lead punters to seek opportunities at offshore and international operators. This means they would circumvent the UK tax revenue entirely, and thus all parties (BHA and the government) would lose revenue

The last concern is perhaps the most poignant, as the UK has long battled its underground black market. The black market for betting is growing, despite efforts from the UKGC. By hiking the tax on horse race bookies, they are effectively pushing those bookmakers to crank up the juice (and reduce betting value), slash the bonuses, and make up for the lost revenue by taking it out on the player. Not all UK bookmakers will cut big corners at the British punters’ expense. But with a tax hike, they will have to make up for the extra 6% that will head to HRMC.

Big Brands Push Back on the Move

The BHA has not stood alone in its plight against the HM Treasury. Flutter Entertainment, a company that owns Paddy Power, Sky Bet, Betfair, and the US betting company, FanDuel, voiced its support of the BHA. Flutter’s Strategic Racing Director, Sebastian Butterworth, warned that aligning betting and gaming taxes would do more harm than good. By his estimate, it could harm the racing’s funding system up to £1 billion.

Entain, which owns Ladbrokes and Coral, warned that the proceedings could backfire and drive bettors to the black market. Finance Chief Rob Wood cited the Netherlands as a cautionary tale. In the Netherlands, it is believed that the tax increases directly pushed users to the illicit market. The diminished bonuses and higher juice on the odds effectively reduce the overall quality of the licensed sites. And so users turn to betting operators that don’t have those financial restrictions imposed by the additional taxation.

Importance of Horse Racing in the UK

One of the biggest frustrations for industry insiders is that horse racing simply cannot be compared to casino gaming or betting. Besides the historical significance, there is a cultural and social element that is not being considered. Racecourses are the source of local pride and bring together communities across the country. British racing is somewhat an inherent part of the national culture. Just think about races like Royal Ascot, Cheltenham Festival, Grand National and the Epsom Derby. They have always garnered media and public attention and punters from all over the world bet on these races.

The Royal Family is always present at big events and is famously keen on horse racing. While it may be an industry in decline, no one can deny the cultural legacy and significance horse racing has in the UK.

These tax proposals would not spell out the end of the sport, nor the business. But it could put heavy pressure on the clubs, partners and the industry insiders. Whether a compromise can be reached or not will determine the prosperity of the racing sector. It will also shape Britain’s wider gambling industry for years to come. So the next decisions must be made carefully, and with an eye on the future.