UK Treasury to Raise Tax on Online Sports Betting; Horseracing Exempt
The Treasury’s imminent Budget will unveil a shake-up of the UK’s gambling tax regime, hiking duties on online sports betting but keeping existing rates for high-street bookmakers. Read full article.
UK Government Proposes Two-Tier Betting Tax Structure
The UK government plans to establish a two-tier tax system on gambling, in which rates are raised on online sports betting but horseracing is spared from higher levies. The new system will see online bets on major sports, such as football and boxing, taxed more, while betting shops retain their 15% rate for sports wagers.
Horseracing will be fully exempt, although there were earlier proposals to bring its tax treatment in line with casino-style gaming, including modern formats such as casino 18+. The move represents a compromise following intense industry lobbying and concerns about the impact on employment and racing revenues. Treasury officials view the measure as a way to boost tax receipts after abandoning plans to raise income taxes.
Divided Uk Industry over Proposals
A rise in taxes could reduce funding for horseracing and threaten jobs across the sector, warn gambling operators. The industry insists that excessive taxation will only force bettors to turn to unregulated black market platforms.
However, critics dismiss these concerns as exaggerated, saying modest increases in the taxes would not affect customer loyalty to legitimate operators.Particular scrutiny has fallen on the differential treatment of horseracing, with some regarding the exemption as an example of favorable treatment accorded to a traditional industry with close political ties.
The Treasury is set to finalize the tax structure in the upcoming Budget; Chancellor officials will lay out specific rates and implementation timelines. The changes form part of broader government efforts to boost revenues without increasing taxes on working households. Industry stakeholders now await further details on how this new framework will be implemented across the different betting platforms.
