The British Horseracing Authority (BHA) has raised alarms about a potential new tax regime that could significantly affect the financial landscape of horse racing in the UK, estimating that it could result in a staggering £160 million loss in revenue.
In its official feedback to the Treasury’s ongoing consultation regarding remote gambling taxes, the BHA urged the government to establish a specific, more favorable tax rate for bets placed on horse racing. This formal response comes as authorities explore consolidating three existing online gambling tax rates into a single structure.
Currently, the industry grapples with three separate tax categories: the Remote Gaming Duty (RGD), General Betting Duty (GBD), and Pool Betting Duty (PBD). Under the current system, RGD imposes a tax of 21% on operator profits, while both GBD and PBD levy a 15% tax based on profits and net stake receipts, respectively.
As the government remains silent on the specifics of the upcoming Betting & Gaming Duty (BGD) rate, there are growing worries within the sector that the proposed rates may mirror the higher RGD, further threatening the stability of horse racing finances.
The BHA has positioned itself firmly against these proposals, stating that adopting a new, elevated tax rate would compound existing financial difficulties facing the industry. Alongside the looming threat of stricter affordability checks for bettors and inadequate levy reforms, the BHA warns that such changes could put the very future of racing in the UK at risk.
### Financial Risks for Horse Racing
The BHA’s analysis indicates that aligning horse racing’s taxation with that of online gambling could cost the industry a minimum of £66 million annually, potentially escalating to as much as £160 million in a worst-case scenario. The implications of this financial strain could ripple outwards, endangering thousands of jobs and affecting local economies across the nation. Moreover, the future of equine welfare in Britain could also suffer as funding sources dwindle.
In response, the BHA advocates for a distinct tax bracket for racing—a measure supported by existing tax structures like the Horserace Betting Levy, which recognizes the unique financial relationship between horse racing and betting. This acknowledgment is critical in understanding why a lower tax rate for racing is warranted compared to other forms of gambling.
### A Coordinated Front
As the Treasury gears up to finalize its tax rate ahead of the upcoming budget in October, the BHA is mobilizing support through its “Axe The Racing Tax” campaign. This initiative aims to galvanize support from various stakeholders within the racing industry, including organizations such as the Jockey Club and the Racecourse Association, who all echo the BHA’s concerns.
Brant Dunshea, acting CEO of the BHA, emphasized the urgent need for government officials to recognize the unique relationship that exists between betting and horse racing. “The collective wisdom of British racing’s stakeholders stands firmly against these proposals,” he said. Dunshea highlighted that the sport, representing Britain’s second-largest spectator engagement, could face dire consequences if the current tax trajectory continues unchecked.
In conclusion, the BHA’s call for a targeted tax reform underscoring the importance of horse racing’s economic and social footprint is an essential step toward safeguarding the sport’s future amidst a rapidly changing betting landscape.