BGC Raises Concerns Over BHA’s Fixture Rescheduling Amid Tax Protests
In a strong response to the British Horseracing Authority’s (BHA) recent decision to reschedule race fixtures as a protest against proposed tax changes, the Betting and Gaming Council (BGC) has voiced its apprehension. The BGC argues that such actions, perceived as mere political posturing, may only serve to irritate government officials rather than foster constructive dialogue.
On September 10, no race meetings will occur throughout Great Britain, marking a significant strike action against a potential increase in gambling taxes that could adversely affect the sport. The BHA announced this unprecedented move after weeks of advocating against the proposed revisions to gambling tax rates in the UK.
Four events originally scheduled at Carlisle, Kempton Park, Lingfield Park, and Uttoxeter will be postponed, with alternative dates forthcoming. Concurrently, a coalition of owners, trainers, and jockeys will convene in Westminster for a prominent campaign event, underscoring the gravity of the situation.
This strike aligns with the BHA’s “Axe The Racing Tax” initiative, challenging the government’s plan to overhaul online betting tax rates. Currently, these rates consist of the Remote Gaming Duty (RGD) at 21%, General Betting Duty (GBD) at 15%, and Pool Betting Duty (PBD) also at 15%. The specifics of what the unified tax rate will be remain unclear, but further insights are anticipated during the autumn budget consultations.
Several stakeholders have raised alarms that consolidating these rates could lead to higher taxes, particularly aligning all three rates with the higher RGD. Many have urged the government to reconsider its stance before finalizing any changes.
Potential Impacts of Tax Revisions on Racing
The BHA has been vocal in its criticism of the proposed tax structure, suggesting that increased expenses for betting operators might push them to raise prices, reduce bonuses, or cut back on marketing efforts. They estimate that such policy shifts could devastate the racing sector, costing around £330 million ($447 million) within the first five years and resulting in the loss of nearly 2,800 jobs in the first year alone.
In response, the BHA advocates for a distinct tax rate for the racing industry, emphasizing its unique status with the Horserace Betting Levy. They argue that racing already contributes to the economy in a manner distinct from other forms of online gaming.
BHA CEO Brant Dunshea articulated the urgency during this turbulent period: “We are taking the historic step to cancel racing fixtures on September 10 to draw the government’s attention to the severe consequences that their proposed tax adjustments could have on our sport.” He stressed the importance of protecting the cherished cultural heritage that British racing represents.
BGC’s Position
Contrasting with the BHA’s approach, the Betting and Gaming Council expressed serious reservations about the fixture cancellations, which they claim occurred without sufficient consultation with crucial industry stakeholders. The BGC emphasized that collaboration is vital for addressing shared challenges faced by both racing and betting sectors.
“Futile political gestures will likely irritate the government and frustrate punters, rather than leading to a viable solution,” the BGC stated.
Industry Solidarity
Despite diverging views, the BHA finds itself supported by various key industry players, including The Jockey Club and Arena Racing Company. Jim Mullen, CEO of The Jockey Club, expressed hope that this suspension would compel the government to recognize the economic importance and cultural relevance of horse racing within the UK.
Martin Cruddace, CEO of Arena Racing Company, stressed the need for regulatory differentiation, asserting that if the government unifies tax structures, it risks undermining a sport deeply embedded in British culture.
Paul Johnson, from the National Trainers Federation, echoed these sentiments, urging the need for a progressive tax framework to ensure the sport’s survival amid challenges.
By uniting the voices of various stakeholders, the BHA aims to send a clear message to the government: a balanced tax approach is essential to safeguard the future of British racing.