British horse racing came to a halt on Wednesday as a form of protest against a government plan to increase betting taxes. All four race meetings scheduled for the day were rescheduled to different dates to demonstrate unity in the ‘Axe the Racing Tax’ movement.
The government is contemplating a proposal to standardize online betting taxes, which would elevate the duty on horse racing and sports betting from 15% to 21%. This adjustment aligns the tax rate with that of games of chance like casinos and slots, a move the racing industry views as a significant threat to its existence.
To urge the government to reconsider the tax hike, the British Horseracing Authority initiated the ‘Axe The Racing Tax’ campaign, aiming to exhibit a collective voice and stance within the sport.
The potential consequences of the tax increase are concerning, with forecasts indicating a projected £330 million revenue loss in racing over five years. Additionally, reports suggest over 2,700 job losses within the first year. There are fears that betting companies might compensate for the tax hike by offering less favorable odds to bettors, potentially driving them towards alternative gambling options or illegal bookmakers.
Horse racing plays a vital role in the UK, being the second most popular spectator sport with nearly 5 million attendees annually. It directly employs 85,000 individuals and contributes significantly to the economy, with an annual impact of £4.1 billion, generating £300 million in tax revenues.
In response to the tax dispute, the four race meetings originally scheduled for September 10 at Lingfield, Carlisle, Uttoxeter, and Kempton were rescheduled to different dates, leaving a void in the day’s racing calendar. A lobbying event is set to take place in Westminster, drawing participation from prominent figures in the racing industry, including trainers, jockeys, and MPs. The estimated financial impact of this action is around £200,000 in lost revenue.
While British racing took a pause, horse racing enthusiasts still have the opportunity to engage in betting activities on international races. Ireland is hosting an evening fixture in Cork, starting at 4:10, and races are also happening at venues like Happy Valley in Hong Kong and Compiegne in France during the day.