A new cross-party report warns that tax changes, betting regulation and a delayed funding review could destabilise British horseracing, as Royal Ascot begins.
As Royal Ascot opens today (June 17), drawing global attention to one of Britain’s most iconic sporting events, a new parliamentary report has raised urgent concerns over the future of British horseracing.
Published by the All-Party Parliamentary Group (APPG) for Racing and Bloodstock, the report warns that government policy decisions could significantly weaken the sport’s economic base and long-term sustainability.
It identifies three main risks: a proposed overhaul of gambling tax rules, the introduction of financial risk checks for bettors, and the lack of promised reform to the Horserace Betting Levy.
British horseracing supports over 85,000 jobs and contributes £4.1 billion annually to the UK economy. Yet the APPG says this success is under threat unless policy changes are reconsidered.
Tax, regulation and funding model raise concerns
The APPG outlines what it describes as a “triple threat” to British horseracing. These include planned tax reforms, gambling regulation, and a failure to update the sport’s core funding mechanism.
The first concern is the government’s proposal to merge three existing gambling taxes into a single Remote Gambling Duty. The report warns this would make horseracing more expensive for betting operators to support, compared to online casino products, which have lower operational costs.
It states this change could reduce betting turnover on racing and encourage operators to promote less regulated gambling activities. According to APPG estimates, the impact could cost the sport more than £40 million a year.
The second issue is the planned introduction of financial risk checks for bettors. These checks, which some operators have already begun using, are designed to address gambling harms. However, the APPG reports that they have led to a £1.6 billion drop in online betting turnover on racing over two years, with little evidence they are catching problem gamblers.
The third concern is the status of the Horserace Betting Levy, which collects a percentage of bookmaker profits to fund the sport. The report criticises the government for missing its own April 2024 deadline to review the system. The APPG argues that British racing receives less than 3% of the £13 billion bet on the sport each year, placing it behind countries such as France and Ireland in terms of reinvestment.
Racing’s economic role reaches beyond racecourses
The APPG report positions British horseracing as a key part of the national economy, particularly in rural communities. It is the UK’s second most attended sport and plays a central role in the economies of towns such as Newmarket, Cheltenham and Doncaster.
According to the report, the industry supports more than 85,000 jobs, with over 10,000 roles directly involved in the care and training of horses. There are more than 500 training yards and 660 stud farms across the UK, many of which rely on racing-related income.
British horseracing generates £4.1 billion annually and contributes £300 million in taxation. International investment is also significant, with over 1,150 foreign owners keeping horses in training in Britain. The APPG describes racing as a “soft power asset” that helps attract capital and tourism from regions such as the Gulf, the United States and South East Asia.
Public and political sentiment supports action
The APPG report highlights strong cross-party and public support for measures which would secure the future of British horseracing.
Polling carried out by Strand Partners found that 70% of respondents agree gambling companies should reinvest some of their profits into the sports they benefit from. A majority – 56% – support new legislation requiring greater reinvestment into British horseracing.
This view is consistent across political lines, with backing from 67% of Conservative voters, 66% of Labour voters and 64% of Reform UK and Liberal Democrat voters.
The polling also indicates that 61% of the public believe the government has a responsibility to protect the UK’s international sporting reputation. Almost one in three voters said a decline in this reputation would influence how they vote at a general election.
Next steps and political choices ahead
The group is calling for three key actions from the government: an exemption for horseracing from the proposed Remote Gambling Duty, reform of the Horserace Betting Levy, and the introduction of financial risk checks that are proportionate and better targeted.
Without these changes, the report warns of further declines in betting turnover, reduced investment, and job losses across the racing industry and wider rural economy.
It also suggests that harmonising horserace betting with higher-risk online games would undermine the government’s broader objectives on gambling harm, while creating unintended incentives for operators to move away from supporting the sport.
The APPG notes that the government had previously committed to reviewing the Levy system by April 2024, but no substantive action has been taken since. It raises concern that continued delays and a lack of clarity over next steps are contributing to uncertainty across the industry.
