THE UK Treasury has proposed to raise the taxes paid by bookies on racing profits from 15 to 21 per cent.
This would bring the level of tax paid in line with online casinos — here’s everything we know.
AFPHorse racing is facing a new tax from the Treasury[/caption]
GettyFour events are set to be scrapped in September[/caption]
This is part of a broader Treasury proposal to replace the existing three-tax structure on remote gambling with a single unified tax rate.
The British Horseracing Authority (BHA) and the horse racing industry view this change as potentially devastating.
The BHA has responded by launching the Axe the Racing Tax campaign in opposition to the proposals.
Their primary concern is that increasing the bookmaker’s tax rate on horse racing betting by six percentage points could cause severe financial harm to British horse racing.
Economic analysis commissioned by the BHA forecasts that this tax change could result in a £330 million revenue loss over five years and put approximately 2,752 jobs at risk within the first year.
The tax increase might prompt betting operators to offset higher costs by raising prices, cutting bonuses and reducing advertising and marketing budgets, further straining the industry’s financial health.
Industrial action
According to The Times, in opposition to the proposal the BHA has organised a strike, which could cost the industry around £700,000,
The BHA claims that the proposed change would put up to 2,752 people out of a job and cost the sector £66million every year.
While they also warned that it would send the sport spiralling into “irreversible decline”.
The proposed strike is set to take place on September 10, 2025 — just one day before the start of the St Leger Festival at Doncaster, which prime minister Keir Starmer attended alongside his wife last year.
Four scheduled race meetings — at Carlisle, Uttoxeter, Lingfield and Kempton Park — have been cancelled.
Chief executive of the BHA Brant Dunshea said: “This latest tax bombshell from the Government, if followed through, poses one of the gravest risks to horse racing the sport has ever seen.
It is believed that bookies would most likely look to raise their prices if the proposal comes into effect.
It’s also claimed that bookies may cut their advertising and market budgets and turn their attention towards online gaming.
David Menuisier, a trainer at Coombelands Racing Stables, told The Sun: “Racing is much more than just a sport in this country.
“It brings fun and excitement to millions and is a major local employer, particularly here in West Sussex as we prepare for another fantastic year at Goodwood.”
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