European Horse Racing Bodies Oppose EU-Wide Gambling Tax Proposal
Leading European horse racing organisations are lobbying against a proposed EU-wide tax on online gambling, warning it could damage the sport, reduce government revenues, and strengthen the black market.
- The EMHF and UET have approached Irish ministers to argue for horse racing's exclusion from a potential EU online betting tax.
- The proposal, intended to raise €2bn-€4bn for the EU budget, has been criticised for potentially driving consumers to unlicensed operators.
- Opponents point to the UK, where a remote gambling tax increase led to operators scaling back sponsorships, as a cautionary example.
European horse racing stakeholders are mounting a campaign to safeguard the sport from a potential new EU-wide tax on online gambling and betting. The European and Mediterranean Horseracing Federation (EMHF) and the European Trotting Union (UET) are arguing that horse racing betting should be exempt from any such levy.
The proposal for a harmonised gambling tax was first highlighted in February by Victor Negrescu, Vice President of the European Parliament. He identified it as a potential new funding source for the Union’s 2028-2034 budget, estimating it could generate between €2bn and €4bn annually. A spokesperson from Negrescu’s office has since confirmed that all financing options remain under consideration.
In response, the EMHF and UET have engaged with senior Irish politicians, including Minister for Finance Simon Harris TD and Minister of State for European Affairs Thomas Byrne TD. The racing bodies have voiced concerns that the tax would pose a direct risk to horse racing, negatively affect government revenues, and threaten the sustainability of the licensed betting industry.
The proposal has drawn criticism from across the industry. Marteen Haijer, the former Secretary General of the European Betting and Gaming Association (EGBA), warned that imposing an EU tax on top of existing national duties would likely expand the black market. He suggested this would undermine European consumer protection efforts and ultimately result in lower tax receipts for Member States.
Similar concerns were raised by the Polish gambling sector, which scrutinised the proposal and noted it would create additional financial pressures and impinge on principles of fair competition.
As evidence of potential negative consequences, opponents have pointed to the UK market. A recent tax increase for remote gambling providers prompted several brands to scale back their UK operations, a move that included a reduction in horse racing sponsorships. This contrasts with the outcome of the British Horseracing Authority’s ‘#AxeTheRacingTax’ campaign a year ago, which successfully secured an exemption for horse racing from tax rises, keeping its general betting duty at 15%.
Industry Funding at Risk
Dr Peter Truzla, President of the UET, emphasised the financial structure of the sport, which relies on contributions from legal betting operators.
Legal betting funds horseracing, including breeders, trainers, racecourses, and rural jobs.
He argued that the introduction of an additional tax would have a damaging effect on the entire ecosystem, pushing customers away from regulated channels.
An additional tax would push more business towards illegal operators, reducing revenue for governments and racing, and leaving consumers with less protection.
