British horse racing took a stand on Wednesday by halting all scheduled race meetings to protest against a government proposal to increase betting tax. The race meetings at Carlisle, Uttoxeter, Lingfield, and Kempton were rescheduled to different days as part of the ‘Axe the Racing Tax’ campaign to present a unified front.
The government is mulling over a plan to align online betting taxes, raising the duty on horse racing and sports betting from 15% to 21%. This adjustment would bring the tax rate in line with games of chance like casinos and slots, a move that the racing industry views as a significant threat to its existence.
Today, there is no horse racing in Britain as the industry aims to dissuade the government from implementing the tax hike. The ‘Axe The Racing Tax’ initiative seeks to demonstrate solidarity within the sport and ensure the government hears and comprehends their concerns.
The British Horseracing Authority is advocating for the Treasury to abandon the proposed tax increase and explore a lower tax rate specific to horse racing due to its substantial economic and cultural importance to the nation.
Studies commissioned by the BHA forecast a potential £330 million revenue loss in racing over five years if the tax is raised, with an estimated 2,700 job losses in the first year alone. There are concerns that betting operators might offset the tax hike by offering less favorable odds, potentially driving punters to seek alternatives, including illicit bookmakers.
Horse racing holds the position of the second most popular spectator sport in the UK, attracting nearly 5 million attendees annually. It directly employs 85,000 individuals and contributes £4.1 billion to the economy each year, generating £300 million in tax revenues.
The four race meetings initially set for September 10 at Lingfield, Carlisle, Uttoxeter, and Kempton have been rescheduled, creating a blank day in the racing calendar. A lobbying event is planned in Westminster, with industry representatives such as trainers, jockeys, and MPs in attendance. The protest is expected to result in a revenue loss of around £200,000.
While there is no racing in Britain today, Ireland is hosting an evening fixture at Cork, starting at 4:10 PM. Additionally, international races from Happy Valley in Hong Kong and Compiegne in France are taking place during the day.