British horse racing took a stand on Wednesday by staging a ‘strike’ to oppose a government plan to increase betting tax. All four horse race meetings scheduled at Carlisle, Uttoxeter, Lingfield, and Kempton were rescheduled to demonstrate unity in the ‘Axe the Racing Tax’ movement.
The government is contemplating a proposal to align online betting taxes, which would escalate the duty on horse racing and sports betting from 15 percent to 21 percent, bringing it in line with games of chance like casinos and slots. The racing sector asserts that this adjustment poses a significant threat to the sport’s existence.
The British Horseracing Authority is urging the Treasury to abandon the proposed tax hike and consider implementing a separate, reduced tax rate for horse racing due to its substantial economic and cultural significance to the nation.
Forecasts conducted by the BHA suggest a potential £330 million revenue loss for horse racing over five years if the tax increase is enforced. Additionally, a study indicated that there could be over 2,700 job cuts in the initial year. It is feared that betting operators might counterbalance the tax rise by offering less favorable odds, potentially driving customers towards other betting options or illicit bookmakers.
Horse racing stands as the second most popular spectator sport in the UK, attracting nearly 5 million attendees annually. It directly employs 85,000 individuals and generates an annual economic impact of £4.1 billion, contributing £300 million in tax revenues each year.
The four race meetings originally slated for September 10 at Lingfield, Carlisle, Uttoxeter, and Kempton were rescheduled, creating a gap in the racing calendar as a form of protest. A lobbying event is planned in Westminster, attended by prominent figures in the racing industry such as trainers, jockeys, and MPs. The financial impact of this action is estimated to be around £200,000 in lost revenue.
While no racing events took place in Britain on the protested day, Ireland hosted a single evening fixture at Cork starting at 4:10 PM. Additionally, international races were held at Happy Valley in Hong Kong and Compiegne in France on the same day.