Newbury Racecourse posts first-half loss and warns betting tax rise could hit revenues
Higher labour costs and increased prize money push Berkshire track into a £277,000 operating loss as industry braces for proposed rise in betting tax
Newbury Racecourse reported a loss before interest and tax of £277,000 for the first six months of 2025, blaming rising labour costs and a higher prize-money bill, and warned that proposed increases to betting-related taxes could further pressure its core racing business.
The Berkshire venue said statutory turnover rose 4% to just under £9.7 million in the period and race-day attendance climbed 22% to 53,569, but inflationary cost pressures, an increase in the National Living Wage and higher employer national insurance contributions limited its ability to return to profit. Prize money is expected to exceed £7 million this year, up from under £6.9 million in 2024, the company said.
Dominic Burke, Newbury's chairman, said the group is "mindful of the potential impact that any changes to betting related tax rates could have on our racing business revenues." He added that non-racing operations — including The Lodge Hotel, The Rocking Horse Nursery and conference and events services — are being expanded to broaden revenue streams in case of tax changes.
The warning comes as the Treasury has proposed raising the tax on sports betting operators from the current 15% rate to 22%, a move described by ministers as aligning betting taxation more closely with levies on casinos and slots. The proposal has prompted strong opposition across the racing industry and wider betting sector.
Campaigners and industry bodies staged protests this week and British horseracing organised strikes — the first in the sport's modern history — with fixtures rearranged by the British Horseracing Authority under the Axe The Racing Tax campaign. The Racehorse Owners Association said a tax increase could endanger up to 85,000 jobs in the rural economy and jeopardise the roughly £300 million in tax revenues it says the industry currently contributes.
Industry groups also warned that operators might respond by squeezing existing sports-betting margins, which they said could redirect customers toward unregulated black-market operators, potentially harming both revenues and consumer safety. The association's claims remain projections dependent on how operators and customers actually react to any legislative changes.
Newbury's interim results showed an improved performance compared with a loss recorded in the prior first half-year, but a deterioration from an operating profit of £860,000 for the full year 2024. The racecourse described trading in the first half of 2025 as "marginally ahead of our expectations," while cautioning that high inflationary costs and wage increases constrained margins.
The racecourse's diversification efforts form part of a broader trend among rural and leisure businesses that are seeking alternative revenue sources amid rising operational costs and regulatory uncertainty. Newbury told shareholders its non-racing businesses were "generating revenue, to the half year, ahead of the comparable period last year," and said it remained "confident in the delivery of a positive financial outturn for 2025."
Ministers argue the proposed betting-tax changes would rebalance taxation across gambling sectors, but they have not set a timetable for legislation. Any formal change would require parliamentary approval and would follow consultations and assessments of potential economic and social impacts.
Analysts said the immediate effect on individual racecourses will vary according to their reliance on betting-related income, prize commitments and the success of diversification efforts. For racecourses that have expanded hospitality and events businesses, ancillary income can help offset volatility in core racing revenues, but fixed costs and prize-money commitments are likely to remain significant budgetary items.
As the debate unfolds in Westminster, Newbury and other racecourse operators are managing rising costs while pressing for clarity on tax policy that industry leaders say will shape investment and employment decisions across British horseracing.