The British Horseracing Authority (BHA) has urged the sport to collectively lobby the Government to back British racing and axe the Treasury’s proposal to hike tax on horserace betting by bringing existing online betting duties into one single rate.
The call comes ahead of the launch of “Axe the Racing Tax”, a BHA-led public campaign against the proposal which will be rolled out over the summer.
A tax hike for bookmakers in the Autumn Budget would be the third leg of a triple whammy of financial threats caused by Government policies which jeopardise the future of the sport in Britain.
Economic analysis commissioned by the BHA shows that aligning the current 15% tax rate paid by bookmakers on racing with that of online games of chance – currently taxed at 21% – by harmonising all remote gambling duties, could hit racing’s finances to the tune of £66m in lost income via the Levy, media rights and sponsorship. This is because operators are likely to seek to mitigate significant tax rises through cutting bonuses, reducing advertising and marketing budgets and increasing prices.
Should the Treasury seek to raise the proposed single duty rate further to help balance the books, the impact on racing’s finances would be devastating, with a projected £97m loss at a tax rate of 25%, a £126m loss at 30% and a £160m loss at 40%.
Brant Dunshea, Acting Chief Executive of the British Horseracing Authority, said: “It is vital that everyone working in racing, the media and bettors fully support and promote this campaign.
“The Government’s consultation on harmonising online betting duties, if followed through, poses one of the gravest risks to racing the sport has ever seen.
“It will punch a huge hole in racing’s finances, risk thousands of jobs across Britain and threaten the future of the country’s second most-popular sport and a cherished national institution.
“From now until the Budget we will be hammering home a very simple message to MPs, Peers and the Government on behalf of millions of racing fans. It’s time for the Government to back British racing and axe the racing tax.”
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