Racing and Betting Groups Warn of Deep Financial Risks as Government Floats Unified Remote Gambling Tax
The UK government’s plan to streamline online gambling taxes into a single rate has triggered sharp warnings from the betting sector. Industry leaders warn that it could do more harm than good.
Launched by the Treasury on April 28, the consultation proposes merging three separate duties — Remote Gaming Duty (21%), General Betting Duty (15%), and Pool Betting Duty (15%) — into a single Remote Betting and Gaming Duty (RBGD). The government says the move aims to simplify the tax structure and better reflect the digital shift in gambling habits.
But the Betting and Gaming Council (BGC) and British Horseracing Authority (BHA) argue the proposal could carry heavy financial consequences, especially if the unified rate aligns with the current 21% Remote Gaming Duty — a scenario they say would put racing and regulated sports betting at risk.
BGC: ‘Utterly Self-Defeating’
BGC chief executive Grainne Hurst has been one of the most vocal critics, calling the plan “utterly self-defeating” and warning it could cripple racing’s already fragile finances.
“If General Betting Duty is raised to the same level as Remote Gaming Duty under one new tax, it would be catastrophic,” Hurst said. “It will push firms to shift jobs and investment overseas, make products more expensive for UK punters, and boost the illegal online market, which pays no tax and offers no consumer protection.”
The BGC also stressed that the industry is still adjusting to major regulatory changes from the government’s recent white paper, which it says has already slashed sector revenues by more than £1 billion. Any new tax hike, it argues, would likely shrink — not grow — the Treasury’s returns.
BHA Echoes Industry Alarm
The British Horseracing Authority also voiced its concerns, with director of communications Greg Swift warning of “unintended consequences” for the sport’s finances and workforce. Still, Swift said the BHA welcomed the opportunity to engage in the consultation process and hopes to ensure racing’s interests are heard.
Consultation Runs Through July
The consultation, first outlined in the government’s March budget statement, will remain open until July 21. While the idea of merging taxes is on the table, the government has yet to propose a specific rate. That detail will be handled separately during the budget process.
The new RBGD would apply exclusively to remote gambling. Brick-and-mortar betting shops would continue under the current tax structure.
Exchequer Secretary James Murray, in his foreword to the consultation, said a unified system would bring “tax certainty” and “simplification” to the fast-evolving online sector. The remote gambling industry now accounts for £6.9 billion in gross annual yield.
Despite that growth, stakeholders remain wary. The industry’s fear is that tax reform meant to simplify could instead drive business offshore, reduce funding for sports like horse racing, and steer more players toward unregulated sites.
Whether the government listens will depend in part on the submissions it receives over the next few months. A final decision is expected by 2027.