British Racing Chief Warns Budget Tax Hike on Gaming Machines Poses 'Devastating' Risk

British Horseracing Authority Responds to Budget Changes

Brant Dunshea, the chief executive of the British Horseracing Authority (BHA), has warned that a newly announced increase in the duty on fixed-odds gaming machines could have a severe impact on the sport. Speaking following the budget delivered by Chancellor John Healey, Dunshea called for urgent discussions with the government to address the potential consequences of the policy shift.

The budget introduced an increase in machine games duty (MGD), raising the rate on profits from fixed-odds gaming machines in betting shops from 20% to 25%. While the adjustment was anticipated, it fell short of the more aggressive 40% increase recommended earlier in the year by the Social Market Foundation (SMF) thinktank.

Despite avoiding the doubled rate, the BHA maintains that the 25% levy presents a tangible threat to the industry's financial stability. According to Dunshea, independent modeling shared with the Treasury prior to the budget indicates that British racing could potentially lose up to £57 million annually.

Potential Impact on High Street Shops and Industry Revenue

The UK currently hosts approximately 5,500 betting shops. Industry figures show that the average shop contributes roughly £25,000 annually to horse racing through media rights, data payments, and the statutory levy.

British racing derives nearly one-third of its total £350 million annual income from high street betting operations. Dunshea cautioned that the tax change creates a clear risk that hundreds, or potentially thousands, of betting shops nationwide could face closure. Beyond the direct financial shortfall, closures could negatively affect prize money levels, the overall viability of racecourses, employment figures, and funding designated for horse welfare projects and research.

Furthermore, industry representatives noted that local bookmakers serve as the primary method of engagement with the sport for a significant portion of its fanbase.

Divergent Perspectives and Market Reaction

Reactions to the budget measure varied across sectors. Gideon Salutin, co-author of the SMF report that previously advocated for a higher MGD rate to address gambling-related harm, expressed satisfaction that the duty was raised but remained skeptical that a 5-percentage-point increase would significantly alter industry behavior.

Meanwhile, financial markets showed a different immediate response. Following the chancellor's announcement, shares in major high-street gambling companies experienced gains. Shares for Entain—the parent company of Ladbrokes and Coral—rose by 8%, while Evoke, which owns William Hill, saw a 3.5% increase.

Practical Implications and Verification

Readers and industry stakeholders seeking to verify the details of the government's tax announcements and industry responses can review the original reporting and official documents via [The Guardian](https://www.theguardian.com/sport/2026/oct/28/horse-racing-chief-warning-budget-fixed-odds-gaming-tax).

• Confirmed Facts: Machine games duty on fixed-odds gaming machines in betting shops was raised from 20% to 25% in the budget delivered by Chancellor John Healey. BHA chief executive Brant Dunshea announced plans for urgent engagement with the government, citing independent modeling that suggests potential losses of up to £57 million per year for the sport. Major gambling stock shares rose following the announcement.
• Unknowns: The exact number of betting shops that may close as a direct result of the 5% tax increase remains unconfirmed, as does the long-term impact on overall racing revenues and employment levels.