British horse racing has announced the cancellation of all races on Sept. 10, as the sport goes on an unprecedented strike over a proposed tax hike.
Key Takeaways
- The UK Government plans to introduce a single tax for UK remote gambling.
- The proposal would see horse racing taxes raised to the 21% rate paid by online gaming operators.
- The British Horseracing Authority is campaigning against the rise. The sport’s first-ever strike has been announced for Sept. 10.
The news comes following the escalation over the restructuring of UK betting and gaming taxes. The Treasury plans to increase taxes on sports, including horse racing, bringing duties up to the same rate as online slot machines and other games of chance.
Currently, UK horse racing is taxed at 15%. The industry is also taxed via an additional 10% levy on its gross profits, to ensure some of the proceeds of off-course betting return to racing.
If the proposed changes go ahead, horse racing taxes will be raised to the 21% rate paid by online gaming operators.
"This is the first time that British Racing has chosen not to race due to Government proposals," said Brant Dunshea, Chief Executive of the British Horseracing Authority. "We haven't taken this decision lightly, but in doing so, we are urging the Government to rethink this tax proposal to protect the future of our sport, which is a cherished part of Britain's heritage and culture.
“Our message to Government is clear: axe the racing tax and back British Racing."
BHA launches ‘Axe the Racing Tax’ campaign
The British Horseracing Authority is vehemently against the plans, as the ruling body has introduced its ‘Axe the Racing Tax’ campaign in response last month.
The BHA states that a tax increase of this kind would have a "destructive impact" on the sport. It has estimated a £330m loss in revenue as a result of the proposed tax rises, a sum it states would put 2,752 jobs at risk within the first year.
Jockey Club Racecourses and the Arena Racing Company have now joined forces to add weight to the campaign, announcing action that will see meetings abandoned at Uttoxeter, Lingfield, Kempton and Carlisle. The strike will result in an estimated loss of £700,000.
All meetings that were due to go ahead on Sept. 10 have been rearranged as follows:
- Lingfield Park (afternoon) - Sept. 8 (afternoon)
- Carlisle (afternoon) - Sept. 9 (evening)
- Uttoxeter (afternoon) - Sept. 11 (evening)
- Kempton Park (evening) - Sept. 15 (evening)
The British Horseracing Authority argues that such drastic action is needed to protect an industry worth £4.1 billion to the UK economy. It claims the proposals “threaten the very future” of the sport.
As part of the campaign, senior leaders, owners, trainers and jockeys will head to Westminster on the day of the cancelled meetings, for an event designed to pile more pressure on politicians.
“British Racing is already in a precarious financial position and research has shown that a tax rise on racing could be catastrophic for the sport and the thousands of jobs that rely on it in towns and communities across the country," Dunshea explained.
Government argues its three-tax system must adapt to digital age
The idea of restructuring betting and gaming taxes was first talked of under the previous Conservative Government, but continued on following Labour’s win last July.
Following a consultation process earlier this year, the Government stated that “the time has come to consider moving to a single tax for UK-facing remote gambling.” It says its proposed Remote Betting and Gaming Duty (RBGD) tax would mean that “all remote gambling would receive consistent treatment regardless of whether it is betting or gaming.”
A Treasury spokesperson stated: “We are consulting on bringing the treatment of online betting in line with other forms of online gambling to cut down bureaucracy - it is not about increasing or decreasing rates, and we welcome views from all stakeholders, including businesses, trade bodies, the third sector, and individuals."
