UK Gambling Review Puts Racing Funding in Focus

The launch of the Gambling Policy Commission (GPC) gives British horseracing an opportunity to influence UK betting regulation, including arrangements that help fund the sport. The independent body began its review on 9 November, inviting evidence on whether the Gambling Act 2005 can meet the demands of a market changed by online services and new technologies.

Chaired by Cambridge University economics professor Jagjit Chadha OBE, the commission includes specialists in economics, law, public policy, health and sport. Professor James Reade of the University of Reading will serve as chief economist. Its call for evidence closes on 12 February 2027, with a final report expected in 2028.

Racing’s Place In The Regulatory Debate

The review will examine British horseracing’s position in the relationship between gambling and sport. This includes the statutory betting levy and media rights linked to betting turnover, both important to racing’s funding.

The commission will also consider whether sports should hold economic rights over betting on their events and whether some General Betting Duty revenue should be replaced by a statutory Sports Betting Levy.

Racing has representation through members familiar with its finances. Reade co-authored a 2026 report on Ascot Racecourse’s economic and cultural importance, while Plumpton Racecourse director Tom Savill helped produce the 2025 report “Securing Racing’s Future”.

The inquiry will assess how taxation changes affect gambling businesses and consumers. It will also examine the statutory levy for research, prevention and treatment. Government figures put gambling’s contribution to UK gross value added at £5 billion in 2024, with the industry supporting around 75,000 jobs in 2025. Betting and gaming duties generated £3.9 billion in the 2025/26 financial year.

Updating Rules For A Changing Market

The GPC will consider whether the 2005 Act needs reform or replacement. Its work covers prediction markets, artificial intelligence and cryptocurrencies, alongside the boundary between gambling and financial activity.

Chadha said: “The last comprehensive independent review of gambling legislation was undertaken a quarter of a century ago,” adding: “Since then, both the gambling market and the wider technological environment have changed considerably.”

He said the commission would assess the existing framework and recent reforms before considering what rules would be appropriate in the coming years.

The inquiry follows the 2023 Gambling White Paper and will examine the results of measures introduced under that programme. It will also investigate illegal offshore gambling, enforcement methods and why consumers use unlicensed operators.

A recent Gambling Commission survey found that 2.5% of adults who had gambled online in the previous year had used an illegal website in the four weeks before the survey. Gambling Compliance International president Ismail Vali cautioned: “The percentage of people reporting illegal gambling is not the percentage of gambling revenue captured by crime.”

Harm, Enforcement And Future Policy

It will also consider whether future legislation should allow civil liability for harm linked to gambling.

Will Hutton, president of the Academy of Social Sciences, said prediction markets demonstrated the need to reconsider existing protections. “Everything from consumer protection to appropriate tax policies need urgent review,” he said.