Top punter Patrick Veitch warns of the 'disastrous' consequences racing tax would have on the industry

Patrick Veitch, one of the game's most successful punters, has laid bare the potential damage of the ‘racing tax’, saying it would be “disastrous” for the sport.

Greater promotion of casino-style games, increased movement from punters to the unregulated black market and significant loss of employment within racing were all put forward by Veitch as likely results of online tax rates being harmonised.

The BHA has launched the ‘Axe the Racing Tax’ campaign in a bid to spread awareness of the potential ramifications of a Treasury consultation on aligning the tax rates paid by bookmakers on sports, including racing, and casino-style games such as roulette.

Modelling commissioned by the BHA found that increasing the tax paid on racing from its current rate of 15 per cent to match the 21 per cent levied on casino games could cost the sport at least £66 million a year in lost income. This is forecast to rise to £160m a year if it reached 40 per cent.

Veitch, who authored the memoir Enemy Number One about winning more than £10m from punting, has also been a longstanding owner in British racing, campaigning the likes of Sendintank, Pevensey and Manuela De Vega, and is a co-founder of the RaceShare syndicates.

He said: “The effect of harmonisation of taxation with online slots and casinos would undoubtedly be disastrous for the racing industry. Those other types of betting are much more addictive and offer much faster intervals between betting opportunities. Bookmakers would be incentivised to promote them even more than they already do, and the overall loss of revenue to the sport, and resulting loss of employment, would be huge. 

“From my experience as an owner, the majority of racing stables barely make ends meet at the moment. A huge number won’t survive if they have to cope with the loss of business that would follow a major reduction in prize-money.”

Patrick Veitch (right): "The majority of racing stables barely make ends meet at the moment"Credit: Edward Whitaker

The BHA has warned that an increase in the tax paid on racing is likely to make the product offered by bookmakers less attractive, with worse prices for punters and the further withdrawal of concessions like best odds guaranteed.

The less appealing the regulated betting market is, the more likely people wanting to bet on racing would be drawn into punting on the black market, Veitch said. 

In May the BHA reported that betting on core fixtures had dropped by 14.4 per cent in the first quarter of 2025 compared to the same period in 2024. They stated that this was in part due to “some of the larger higher-staking customers either betting less or moving to unlicensed operators where they can avoid the checks that are routinely required within the regulated markets”.

This chart shows the gulf between actual and expected online turnover on racing - the situation has since worsened

Veitch said: “The government needs to be very careful not to push even more people to betting on the black market, given that harmonisation would force bookmakers to increase margins on racing, at a time when the pain of affordability checks are already seeing them lose so many customers to unlicensed operators."

Racing TV has set up an online portal which will enable racing fans to locate their local MP and email a template letter outlining their concerns about what higher taxation would mean for British horseracing. 

Racecourse Media Group chief executive Nick Mills said: "I urge everyone who cares about the sport to take the time to email your MP please. The whole process is very simple and takes only a couple of minutes but can make a lasting difference to the sport and safeguard its future."

The Treasury's consultation on plans to harmonise different online gambling taxes into a single Remote Betting and Gaming Duty closes a week on Monday.

Read more here:

Treasury working with racing to identify 'unintended consequences' of gambling tax proposals

‘We must not let this industry die’ - Kemi Badenoch hears racing's grave concerns about Treasury tax proposals

'Give them pain and discomfort' - British racing told to make life tough for government as battle lines are drawn over tax consultation

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