BHA Issues Rallying Cry Against ‘Devastating’ Tax Hike Proposals

[Wandering Eyes]

The British Horseracing Authority (BHA) has urged the sport to collectively lobby the Government to back British racing and axe a proposal from the Treasury which could hit racing's finances to the tune of £66m in lost income.

Those figures were published by the BHA for the first time on Wednesday, highlighting the potentially catastrophic consequences of the proposal to hike tax on horserace betting by bringing existing online betting duties into one single rate.

At a time when affordability checks and the lack of a sustainable central funding model are already posing a significant threat to racing's finances, it is feared by the BHA that a tax hike for bookmakers in the Autumn Budget would further jeopardise the future of the sport in Britain.

“Economic analysis commissioned by the BHA shows that aligning the current 15% tax rate paid by bookmakers on racing with that of online games of chance – currently taxed at 21% – by harmonising all remote gambling duties, could hit racing's finances to the tune of £66m in lost income via the Levy, media rights and sponsorship,” read a press release issued by the BHA.

“This is because operators are likely to seek to mitigate significant tax rises through cutting bonuses, reducing advertising and marketing budgets and increasing prices.

“Should the Treasury seek to raise the proposed single duty rate further to help balance the books, the impact on racing's finances would be devastating, with a projected £97m loss at a tax rate of 25%, a £126m loss at 30% and a £160m loss at 40%.”

The release added, “This would put thousands of jobs at risk and severely impact towns and rural communities across the country. It would also hamper British racing's world-leading work on equine welfare.”

This rallying cry comes ahead of the launch of 'Axe the Racing Tax', a BHA-led public campaign against the proposal which will be rolled out over the summer.

In the meantime, the BHA is encouraging everyone involved in the sport to write to their local MP to call on Ministers to urgently rethink proposals. The Treasury's consultation closes on July 21, before it considers its options ahead of the Budget this autumn.

Brant Dunshea, acting CEO of the BHA, said, “It is vital that everyone working in racing, the media and bettors fully support and promote this campaign. The Government's consultation on harmonising online betting duties, if followed through, poses one of the gravest risks to racing the sport has ever seen.

“It will punch a huge hole in racing's finances, risk thousands of jobs across Britain and threaten the future of the country's second most-popular sport and a cherished national institution.

“From now until the Budget we will be hammering home a very simple message to MPs, Peers and the Government on behalf of millions of racing fans. It's time for the Government to back British racing and axe the racing tax.”

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