A new tax on horse racing would be a short-sighted mistake
4 min read
Plans to impose a flat tax on all online gambling come from a noble impulse. But betting on horse racing is very different from other forms of gambling, and must be protected.
Horseracing occupies a unique place in British culture, linking tradition, community, and entertainment. From celebrated national events like the Grand National and Royal Ascot to smaller, community-centred gatherings, the sport provides a source of identity and rootedness across the country.
It is also a great British success story. Our races are globally renowned, our horses and riders the best in the world. Other countries invest huge sums of money in British communities via their racing interests.
And when – like today – times are tough, horse racing offers friends, families and colleagues the chance to come together to enjoy the shared experience of a day at the races. Around five million people go racing each year. It is the nation’s second most-watched sport. Britain’s 59 racecourses provide work, pleasure and community cohesion in rural and urban areas, including Aintree in my constituency of Liverpool Walton.
Each year, Racing boosts the economy by more than £4bn and hands the Exchequer more than £300m. It provides up to 100,000 people with gainful, dignified work.
Nevertheless, British racing faces a triple whammy of threats. First, the Treasury is consulting on the introduction of a flat tax rate for all online gambling, which risks putting British racing on a path to terminal decline. This measure would scrap the special treatment for betting on British racing. While it stems from an understandable and noble impulse, it fails to recognise that betting on racing is categorically different from other forms of gambling. Wagering on horse races rewards patience, knowledge, and careful judgment. It is a pastime a million miles away from the impulsive, trance-like behaviour encouraged by online slot machines.
Alongside the impact of poorly implemented affordability checks on gamblers, and the failure to reform the Horserace Betting Levy, the government needs to carefully consider the unintended consequences of a third hit to racing. It is no exaggeration to say that the future of Britain’s second biggest sport is on the line.
Tax and spend decisions are always a challenge and a balancing act for governments, and tax revenue from betting should raise significant sums while also discouraging harmful behaviours. But the right thing to do is to tax and regulate the most harmful forms of gambling the most. It cannot afford to undermine a vibrant and economically beneficial people-driven industry like horse racing in the process. Not to mention, this would also be entirely out of step with the government's broader ambitions for economic growth.
Perhaps most importantly, horse racing offers much more than just financial returns — it strengthens communities, fosters local pride and provides a sense of belonging that economic calculations alone cannot capture. Allowing these intangible benefits to be diminished through short-sighted policy adjustments would be a costly mistake.
As Co-Chair of the Parliament's All-party Group (APPG) on Racing and Bloodstock, I can say that there are many of my colleagues frustrated by consecutive governments failing to properly support horse racing’s success story. I want my Labour government to be the first to show it's listening and willing to respond.
Today (16 June), our APPG launches its first report into the state of the sport, with a clear call to the government to back British racing. We do so in the knowledge that the British public is right behind us.
According to our polling, a majority (53 per cent) of Brits agree that horseracing is an important part of British culture, a figure that rises to 61 per cent of Labour voters and 63 per cent of Reform voters.
Racing acts as a focal point for social engagement and is a key component of the fabric of urban and rural communities. This is why 2 in 3 people see racing as an important part of the identity of places like Doncaster, Newmarket and Cheltenham. Place matters.
If British horse racing declines because of tweaks to tax policies, it will mean less investment, fewer job opportunities, less revenue for the Exchequer and a hit to economic growth. At worst, it could mean job losses and the irretrievable loss of a proud historic sport and its institutions that help to define our towns and communities.
Dan Carden is the Labour MP for Liverpool Walton.
