UK Horse Racing Faces Historic Nationwide Halt Amid Tax Hike Plans

Key Moments:

  • British horse racing will suspend all events for one day as stakeholders lobby Parliament in response to a planned increase in remote betting tax rates.
  • The proposed tax change would elevate the rate from 15 percent to 21 percent, with industry leaders warning of the potential loss of thousands of jobs and an annual income drop of at least £66 million.
  • The nationwide stoppage and accompanying campaign, called ‘Axe the racing tax,’ is expected to cost the industry approximately £200,000 in just one day.

Industry Mobilizes to Oppose Tax Legislation

On September 10, all British horse racing activities will be paused as jockeys, trainers, and owners join forces at Westminster. This collective effort intends to persuade members of Parliament to reconsider the government’s plan to increase the remote betting tax rate. The move represents a landmark moment, marking the first complete halt of the sport in modern British racing history.

The British Horseracing Authority (BHA) has expressed deep concerns about the ramifications of the proposed tax hike, asserting that it will endanger thousands of jobs and jeopardize an essential part of the nation’s cultural fabric. The “Axe the racing tax” initiative aims to raise awareness within government corridors, focusing attention on the broader impacts the new tax policy might trigger.

Financial Impact and Industry Response

The government’s proposal would raise the remote betting tax rate from 15 percent to 21 percent. According to the BHA, this adjustment would result in an annual decline in industry income of at least £66 million, with an estimated 2,752 jobs at risk in the first year following implementation. A full-day industry shutdown is projected to cost £200,000 due to lost activity.

Currently, three separate tax bands exist for betting – Remote Gaming Duty (RGD), General Betting Duty (GBD), and Pool Betting Duty (PBD). Presently, RGD is taxed at 21 percent, while GBD and PBD hold a 15 percent rate. The planned changes would merge these rates under a single Remote Betting & Gaming Duty (RBGD), aligning online horse racing betting taxation with other gambling formats such as casinos.

Industry Leaders Argue for Sector Distinction

Industry advocates, including BHA CEO Brant Dunshea, have emphasized horse racing’s unique position within British society. Dunshea stated: “Unlike any other sport, we bring together all facets of society.

“Here we’re so fortunate to have the support of the Royal Family but you can equally go to a race course where you bring together the locals out of the local pubs and everybody comes together and everybody enjoys it.

“It’s so important for us to recognise that difference that we are part of rural communities, that we are part of the social fabric of this country and that governments need to recognise that to protect it and preserve it because we are a very special British institution.”

Dunshea clarified the nature of the September 10 event, saying: “It’s not a protest in the context of being a placard type event, it’s really creating an opportunity for the industry and the leaders to come together and make representations to ministers that will be there.”

Government Perspective and Projected Revenue

The proposed tax enhancement comes alongside analysis from the Institute for Public Policy Research (IPPR), estimating the measure would generate about £3 billion for the government. This increase could be used to remove the two-child benefit limit and, according to the IPPR, potentially “lift around half a million children out of poverty overnight.”

James Murray, exchequer secretary to the treasury, commented: “The tax system needs to keep pace with the developments and innovation that have seen the UK-facing remote gambling sector change significantly in recent years.

“Since remote gambling was first developed it has grown exponentially; the three-tax system needs to adapt to reflect the dynamic and expanding nature of the sector.

“Gambling has increasingly shifted online, with gross gambling yield for remote gambling now at £6.9 billion per year, having seen over 200 per cent growth in the last ten years and 20 per cent growth in the last five years.”

Industry Reaction and Concern

While the proposal directly affects online racing betting, trainer Marcus Tregoning underlined the sector’s differences from other gambling forms. “To align it with online casinos and online poker games that go through the middle of the night, racing’s not like that,” he told talkSPORT.

“It’s a game that has to be studied and a lot of people put an awful lot of work into finding winners and it’s not a game of chance.

“A lot of people are employed in our industry, something like 85,000 people and I can promise that this will have serious consequences on our labour force, trainers being able to keep going and the rest of it.

“Personally I don’t believe that this will happen, I think we will get a very small hike but not 21 per cent.

“I’d be very disappointed if it did happen because it would affect all of us. People have got to have a bit of fun in life and racing is a great day out.”

Rescheduled Fixtures

Original FixtureOriginal Date & TimeNew Date & Time
Lingfield Park (afternoon)8 September (afternoon)
Carlisle (afternoon)9 September (evening)
Uttoxeter (afternoon)11 September (evening)
Kempton Park (evening)15 September (evening)
  • Author

Daniel Williams

Daniel Williams has started his writing career as a freelance author at a local paper media. After working there for a couple of years and writing on various topics, he found his interest for the gambling industry.
Daniel Williams
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