British horse racing took a stand on Wednesday by suspending all scheduled races to protest against a government proposal to increase betting tax. The decision led to the postponement of race meetings at Carlisle, Uttoxeter, Lingfield, and Kempton as part of the unified ‘Axe the Racing Tax’ campaign.
The proposed government action aims to align online betting taxes, potentially raising the duty on racing and sports betting from 15% to 21%. This adjustment would bring the tax rate in line with other games of chance like casinos and slots, a move that the racing industry argues poses a significant risk to the sport’s existence.
The British Horseracing Authority is advocating for the Treasury to abandon the planned tax hike and explore implementing a separate, lower tax rate for horse racing, highlighting its substantial economic and cultural significance to the nation.
Studies commissioned by the BHA forecast a potential loss of £330 million in racing revenue over five years if the tax increase is implemented. Additionally, it is estimated that over 2,700 jobs could be at risk in the first year alone. Concerns also exist that betting operators might offset the tax hike by offering less favorable odds to bettors, potentially driving them towards alternative betting options or illicit bookmakers.
Horse racing stands as the second most popular spectator sport in the UK, attracting nearly 5 million attendees annually. The industry provides direct employment to 85,000 individuals and contributes significantly to the economy, with an annual economic impact of £4.1 billion and £300 million in tax revenues.
As a result of the racing ‘strike,’ the four race meetings initially scheduled for September 10 at Lingfield, Carlisle, Uttoxeter, and Kempton have been rescheduled to different dates, leaving a vacant day in the racing calendar. A lobbying event is planned in Westminster, with the participation of key figures from the racing community, including trainers, jockeys, and Members of Parliament. The financial impact of the protest is estimated at £200,000 in lost revenue.
While British racing remains suspended, betting shops will still feature racing events from Ireland’s Cork, which starts at 4:10 pm, along with international races from Happy Valley in Hong Kong and Compiegne in France during the day.
