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Report: Reeves Eyes £1bn Gambling Tax on Machines and Online Casinos as Racing Warns of 'Stealth' Hit

Bookmakers warn higher duties on gaming products would still drain racing’s funding through closures, cost cuts, weaker odds.

Overview

  • Media reports say the chancellor is considering raising about £1 billion by increasing rates on Fixed Odds Betting Terminals and online casino-style games, with sports-betting duty reportedly unchanged ahead of the 26 November Budget.
  • Bookmakers caution that shops are vulnerable, with Betfred owner Fred Done saying all 1,272 outlets could shut if rates rise and other major operators warning of further closures and job losses.
  • Racing stakeholders argue indirect effects would be severe, citing analyst estimates that betting shops contribute roughly £100 million in media rights and £40 million in levy each year, making each closure costly for the sport.
  • Operators and funders have already paused promotion, including Flutter shelving a £1 million racing docuseries and the Horserace Betting Levy Board halting support pending clarity on tax changes.
  • Political pressure for higher gambling taxes continues, with Labour figures seeking new revenue and industry groups warning that steeper duties risk pushing customers to the black market and hurting broader sports such as greyhound racing.