Brussels, Belgium – October 11, 2026 – The European and Mediterranean Horseracing Federation (EMHF) and the European Trotting Union (UET) have expressed their strong approval of the Irish Presidency’s decision to exclude online gambling from the current round of European Union budget negotiations. This pivotal development, confirmed on Sunday, October 11, 2026, averts the immediate threat of a potential new tax or levy on the sector, which both organizations contend would have significantly undermined the financial stability of horseracing and trotting across the continent.

The organizations, representing a vast network of racing stakeholders, including breeders, owners, trainers, jockeys, and racecourses, have been actively lobbying against proposals that would increase taxation on legal online betting platforms. Their primary concern has been the potential for such measures to inadvertently bolster the illegal gambling market, thereby diminishing revenues for both national governments and the horseracing industry, while simultaneously reducing consumer protections.

"We welcome the Irish Presidency’s decision," stated Dr. Paull Khan, CEO of the EMHF. "Horse racing is financed by legal betting, and an additional tax would have pushed customers towards illegal operators, reducing revenue for governments and racing alike and leaving consumers with less protection." Dr. Khan elaborated that the industry’s reliance on a well-regulated betting market is fundamental to its sustainability. A significant portion of the funding for prize money, infrastructure development, and the welfare of equine athletes is derived from the proceeds of legal wagering. Introducing punitive taxes on this revenue stream, he argued, would be counterproductive to the stated goals of many EU policymakers, which often include supporting rural economies and preserving cultural heritage, both of which are significantly intertwined with horseracing.

The exclusion from the EU budget negotiating box means it is now highly improbable that online gambling will be reinstated into the 2028-2034 Multiannual Financial Framework (MFF) negotiations. The MFF, often referred to as the EU’s long-term budget, sets the spending priorities and limits for the Union over a seven-year period. Discussions surrounding its allocation are complex and involve extensive negotiations among Member States, the European Commission, and the European Parliament. The Irish Presidency, holding the rotating presidency of the Council of the EU, plays a crucial role in steering these discussions.

While the immediate threat has receded, Dr. Khan cautioned that the underlying issue remains a concern. "But this threat has not gone away completely. We will continue to urge policymakers to carry out a product-specific assessment of the effects of any extra taxation on legitimate horserace betting on Member State tax receipts, racing funding, consumer protection and financial crime." This call for a detailed, evidence-based approach underscores the federations’ commitment to engaging constructively with lawmakers. They advocate for a nuanced understanding of the gambling market, recognizing that different product types and regulatory environments have varying impacts on revenue generation and consumer behavior.

Background to the EU Budget Negotiations and Online Gambling

The discussions around the EU’s Multiannual Financial Framework (MFF) are always intricate, involving substantial political and economic considerations. The inclusion or exclusion of specific policy areas from the MFF negotiations can have far-reaching consequences. In this instance, proposals to potentially levy additional taxes on online gambling emerged as part of broader discussions on how to generate new revenue streams for the EU or to reallocate existing funds to address new priorities, such as digital innovation, security, or climate change initiatives.

The European Parliament, while not having the final say on the MFF’s budgetary allocations, wields significant influence. Its committees, particularly those focused on economic and monetary affairs, and internal market and consumer protection, often shape the legislative agenda and public discourse surrounding financial regulations. Reports and opinions from the Parliament can heavily influence the Council’s deliberations and the Commission’s proposals. The "principle" of further taxation or regulation of online gambling, as mentioned by Dr. Khan, likely refers to ongoing discussions and a general sentiment within some parliamentary groups that the digital economy, including online gambling, should contribute more to public finances.

The Economic Significance of Legal Betting for Horseracing

The financial architecture of the European horseracing industry is intrinsically linked to the regulated betting market. While precise figures vary by country, it is widely acknowledged that a substantial percentage of the revenue generated from horseracing operations—including prize money, stud fees, and operational costs—is directly or indirectly sourced from betting turnover.

For instance, in many Member States, a portion of the betting tax is earmarked for the development of the racing industry. Furthermore, the profitability of bookmakers, who operate within a regulated framework, often translates into sponsorship deals, media rights agreements, and direct contributions to racing bodies. The EMHF and UET estimate that illegal betting operations, which do not contribute to these funds and often lack robust consumer protection measures, could capture a significant share of the market if legal channels become less attractive due to increased taxation.

Data from the European Gaming and Betting Association (EGBA) indicates that the legal online gambling market in the EU is a multi-billion euro industry. However, a significant portion of online gambling activity still occurs through unlicensed or unregulated operators. Introducing additional taxes on licensed operators could exacerbate this imbalance, potentially pushing more consumers into the arms of illegal providers. This not only deprives legitimate businesses and governments of revenue but also exposes consumers to increased risks of fraud, addiction, and a lack of recourse in case of disputes.

A Unified Front: EMHF and UET’s Advocacy

The collaboration between the EMHF and the UET highlights a united front from both the flat racing and trotting disciplines of European horseracing. Their joint advocacy efforts aim to educate policymakers about the unique economic model of their sport and the delicate balance required to maintain its viability.

Dr. Peter Truzla, president of the UET, emphasized this interdependence: "Trotting and gallop racing depend on regulated betting. It is important our organisations keep raising awareness of the long-term implications of such a policy and the disastrous effect it could have on horserace funding." Dr. Truzla’s statement underscores the shared vulnerability of both racing codes to any policy that disrupts the regulated betting ecosystem. The UET, representing trotting federations across Europe, has seen firsthand how robust betting markets have fueled the growth of its sport, enabling greater investment in breeding, training, and international competitions.

The federations have employed various strategies to convey their message to EU institutions. These have included direct lobbying efforts, participation in public consultations, the dissemination of research papers outlining the economic impact of betting on racing, and the formation of alliances with other stakeholders in the sports and entertainment sectors that rely on similar funding models. Their consistent message has been that any new fiscal measures targeting online gambling must be carefully considered, with a clear understanding of the potential unintended consequences for legitimate industries and consumer welfare.

The Path Forward: Product-Specific Assessments and Consumer Protection

The EMHF and UET are advocating for a more granular approach to taxation and regulation within the online gambling sphere. Instead of broad-brush policies, they are calling for product-specific assessments that would analyze the distinct characteristics and market dynamics of different gambling products, including horserace betting. This approach, they argue, would allow policymakers to make informed decisions that are tailored to the specific risks and benefits associated with each product.

A product-specific assessment for horserace betting would likely consider:

• Revenue Contribution: The extent to which legal horserace betting contributes to national tax revenues and directly funds the racing industry.
• Consumer Behavior: The specific patterns of betting on horseracing, including the demographics of bettors and their preferences for regulated channels.
• Illegal Market Penetration: The current prevalence of illegal betting on horseracing and how proposed tax measures might affect this.
• Consumer Protection Measures: The existing safeguards in place for legal horserace betting and how they might be strengthened or weakened by new policies.
• Financial Crime Risks: The potential for increased illegal betting to facilitate money laundering and other financial crimes.

This detailed analysis, the federations contend, would reveal that horserace betting, when conducted through regulated channels, offers a valuable economic and social contribution. It supports rural economies, provides employment, and contributes to animal welfare through dedicated funding streams. Moreover, regulated betting platforms are subject to stringent anti-money laundering regulations and offer robust consumer protection mechanisms, including self-exclusion tools and responsible gambling information.

Broader Implications for the European Sports Landscape

The outcome of these EU budget negotiations has implications that extend beyond the immediate financial concerns of horseracing. Many other sports and entertainment sectors rely on revenue streams generated from legal betting and sponsorships linked to these activities. A precedent of imposing additional taxes on online gambling could set a challenging tone for other industries that operate within similar economic frameworks.

The principle of a well-regulated market is crucial for ensuring fair competition, consumer safety, and the long-term sustainability of various economic activities. The EMHF and UET’s successful advocacy in this instance reinforces the importance of evidence-based policymaking and a balanced approach that considers the interconnectedness of different economic sectors.

The federations remain vigilant, understanding that the political landscape is constantly evolving. They are committed to continuing their dialogue with EU institutions and national governments to ensure that the long-term interests of horseracing, its participants, and the wider public are protected. The exclusion from the current MFF negotiations is a significant victory, but the ongoing conversation about the future of online gambling regulation and taxation in Europe requires sustained engagement and a clear articulation of the industry’s value proposition.

The inclusion of their spokespeople, Dr. Paull Khan and Dr. Peter Truzla, in the original report highlights the leadership within these organizations and their dedication to safeguarding the future of their respective sports. Their continued efforts will be instrumental in shaping future policies that impact the vitality and integrity of European horseracing.