British Horseracing feel the tax pinch

Image: Doncaster Racecourse, www.badobadop.co.uk, CC BY-SA 3.0

The British Horseracing Authority (BHA – the regulatory authority for horse racing in Great Britain) has recently announced that no race meetings will take place in Britain on September 10^th as the sport takes the extraordinary step of refusing to race in protest at the Government’s proposed tax rise on horserace betting.

‘BRITISH HORSERACING AUTHORITY’ stated that this will be the first time that the sport has voluntarily refused to race in its modern history.

The above announcement comes as British Racing’s ‘Axe the Racing Tax’ campaign gears up in advance of the Autumn Budget. The campaign is urging the Government to axe the Treasury’s proposal to bring existing online betting duties into one single rate which would have devastating consequences for the United Kingdom’s second-largest spectator sport that supports 85,000 jobs and which is attended by almost five million people each year.

Four scheduled race meetings on September – the day before the start of the historic four-day St Leger Festival one of the must-attend United Kingdom horse racing fixtures of the year at the Doncaster Racecourse – at the Lingfield Park (Surrey), Carlisle, Uttoxeter (market town in Staffordshire, England), and Kempton Park (racecourse in England) will no longer take place that day and will be rescheduled.

On the same day, the sport will host a major campaign event in Westminster where the senior leaders will be joined by the owners, trainers and the jockeys to highlight the threat of the Treasury’s proposal on an industry which is worth £4.1 billion to the economy of the United Kingdom.

‘BRITISH HORSERACING AUTHORITY’ further stated that economic analysis commissioned by the British Horseracing Authority has shown that aligning the current 15 percent tax rate paid by the bookmakers on racing with that of the online games of chance – currently taxed at 21 percent – by harmonizing all the remote gambling duties could have a destructive impact on the sport with a £330 million revenue hit to the industry in the first five years and putting 2,752 jobs at risk in the first year alone.

This is because the betting operators are likely to seek to offset any tax rises through increasing prices, cutting bonuses, reducing advertising, and marketing budgets.

Racing’s decision not to race on September 10^th is unprecedented. The race meetings in Britain take place 363 days a year with the exception of certain seasonal holidays. With the exception of the meetings being called off due to adverse weather, equine virus outbreak and national crises such as the COVID-19 pandemic this will be the first time in history that the sport has taken a collective decision not to race in protest at a Government proposal.

Said Brant Dunshea, Chief Executive, British Horseracing Authority, “We have decided to take the unprecedented decision to cancel our planned racing fixtures on September 10^th to highlight to the Government the serious consequences of the Treasury’s tax proposals which threaten the very future of our sport. British Racing is already in a precarious financial position and research has shown that a tax rise on racing could be catastrophic for the sport and the thousands of jobs that rely on it in the towns and the communities across the United Kingdom. This is the first time that British Racing has chosen not to race due to the Government proposals. We haven’t taken this decision lightly but in doing so we are urging the Government to rethink this tax proposal to protect the future of our sport which is a cherished part of Britain’s heritage and culture. Our message to the Government is clear: Axe the racing tax and back British Racing.”

Added Jim Mullen, head honcho, The Jockey Club, “Our sport has come together today and by canceling the racing fixtures we hope the Government will take a moment to reflect on the harm this tax will cause to a sport in which our country leads in so many ways. We hope this pause for reflection will enable the Government to truly understand the economic impact of horseracing and its cultural significance to the communities across the United Kingdom as well as the world-class racing festivals we host. After this period of reflection we hope the full implications will be understood and we can prevent the irreparable damage that threatens a sport the nation is, and should be, proud of.”

Maintained Martin Cruddace, Chief Executive Officer (CEO), Arena Racing Company, “This is such an important day for our sport which faces an existential threat from this Government with its plan to harmonize tax on British horserace betting with online slots and casino games. Unlike the online casino games the British horseracing makes an enormous contribution to the society and employment has vastly different rates of gambling related harm and is not available every 10 seconds, 24 hours a day. We have always been taxed and regulated differently and it is imperative for our future that we continue to be so. If the Government wants Britain to be a world leader in online casino and a world pauper in a sport at the heart of its culture then tax harmonisation will achieve that aim.”

Pointed out Paul Johnson, Chief Executive, National Trainers Federation, “Canceling the fixtures is a huge sacrifice by racing and should serve as a stark reminder to the Government of the impact its tax raid will have on our sport. Thousands of jobs are at stake alongside the loss of millions of pounds to the British economy. And it’s not just the sport that will suffer. Almost five million people go racing every year and across Britain communities will be robbed of a vital social, cultural and economic asset if the Treasury and No10 proceed with this tax grab. British Racing cannot survive on reputation alone and we call on the Government to set an enlightened tax regime that will allow the sport to thrive before we reach the point of no return.”

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