The UK government’s newly approved 2025 Budget, announced by Chancellor Rachel Reeves on November 26, 2025, introduces significant tax reforms across the gambling industry, sparking discussions and raising eyebrows, especially with horseracing being a notable exception. While a variety of online gambling activities will experience a sharp rise in taxes, betting on British horse races will continue under the existing tax framework.
Under the new Budget, changes are set to reshape the online gambling landscape. Specifically, the Remote Gaming Duty, which applies to online casino games and other forms of chance-based games, will see an increase from 21% to 40%, effective April 2026. Additionally, remote sports betting, excluding horse racing, will have its General Betting Duty increased from 15% to 25%, starting April 2027.
In stark contrast, taxes on horserace betting, both online and physical, will remain unchanged at 15%. Furthermore, the Budget abolishes bingo duty entirely, signaling a targeted approach in the redistribution of tax burdens within the gambling sector.
The exemption of horseracing from these tax hikes is not just a mere administrative decision but a deliberate acknowledgment of the sport’s cultural, economic, and political significance. Horseracing, deeply embedded in British culture and tradition, has successfully garnered substantial support to resist potentially crippling tax increases. Previous proposals that suggested taxing remote horseracing bets at higher rates akin to online casino games were met with resistance, with industry stakeholders arguing it could endanger the sport’s viability.
The British Horseracing Authority (BHA) hailed the exemption as a crucial victory, underlining the sport’s socio-economic importance in supporting over tens of thousands of jobs and contributing approximately £4 billion annually to the UK economy. For many involved in racing, this decision safeguards not only their immediate economic interests but also preserves the larger ecosystem that includes racecourses, trainers, breeding farms, and the associated hospitality and tourism sectors.
As the broader gambling industry absorbs these fiscal changes, especially online operators and remote bettors, the Budget ushers in a transformative era. The nearly doubled Remote Gaming Duty signals a significant financial burden for online casinos, slots, and related gaming services. The increase in duty for remote betting (excluding horseracing) to 25% reflects growing governmental efforts to mitigate the social and health risks associated with pervasive online gambling. The government justifies these tax hikes as a necessary measure to boost revenue and address public health concerns linked to gambling.
Projections indicate that, fully implemented, these changes could generate over £1.1 billion annually by the fiscal year 2029-2030. For gambling operators, the financial impact is expected to be considerable, likely resulting in shifts in consumer experiences—such as fewer bonuses, less favorable odds, or more stringent risk management measures. While land-based betting shops and venues may initially escape the brunt of these changes, the ripple effects across the gambling landscape are anticipated.
For the horseracing industry, the exemption offers a temporary reprieve and a significant achievement. Industry insiders had cautioned that higher taxes could lead to job losses, diminished prize funds, and an overall contraction of the sport. The decision to maintain the current tax rate provides a breathing space to the industry.
However, this relief may be short-lived. Despite the stable tax rate on horseracing, the financial pressure on the broader gambling and entertainment sectors could indirectly affect horseracing. With online casinos and sportsbooks adapting to increased costs, there might be a reduction in promotional spending or sponsorships, potentially impacting the ancillary funding that supports the sport.
Analysts warn that increased participation in unregulated offshore gambling markets could siphon away customers, presenting additional challenges. Furthermore, horseracing remains susceptible to broader regulatory and economic trends. The possibility of future Budgets reconsidering the duty levels or implementing new taxing mechanisms looms over the industry, prompting stakeholders to remain vigilant.
Looking forward, with these Budgetary changes set to become law, the UK gambling sector is poised for significant shifts. Online gaming and remote betting, excluding horseracing, will become more expensive, prompting operators to reevaluate strategies and potentially alter consumer behavior, which could dampen the growth trajectory of gambling-related services.
Meanwhile, horseracing emerges as a safeguarded segment within this evolving industry, with its tax exemption providing a semblance of stability. The BHA and its stakeholders hope this stability will help maintain the sport’s economic and cultural significance.
Nonetheless, this outcome is not without potential downsides. As remote gambling becomes costlier for both operators and punters, the financial ecosystem that supports race tracks, sponsorships, hospitality, and rural employment may experience indirect strains.
Ultimately, the 2025 Budget has redrawn the industry’s landscape, creating distinct winners and losers. For horseracing, the current scenario represents a much-needed reprieve. However, for many other areas within the gambling industry, the forthcoming years are likely to bring about escalated costs, more challenging decisions, and potentially slower growth rates.
Sarah Thompson is a seasoned writer specializing in casino gaming and online gambling. With over a decade of experience in the industry, Sarah brings in-depth knowledge and a keen eye for detail to her work at CasinoNoDeposits.com. Her expertise lies in uncovering the latest no deposit bonuses and providing comprehensive reviews of online casinos. Passionate about helping players maximize their gaming experience, Sarah combines her analytical skills with a flair for engaging storytelling.
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