The Betting and Gaming Council (BGC) has reiterated that the creation of a single tax for online betting would be detrimental to the British horseracing industry.
The trade body’s latest assertion followed an announcement from the Horseracing Betting Levy Board (HBLB), that levy payments are expected to increase for the fourth consecutive year.
BGC members are expected to pay £108m in levy payments, a £3m increase from the figure paid in 2023/24, while members paid £100m in 2022/23 and £97m in 2021/22.
The BGC noted that the expected increase comes despite a continued decline in turnover. The HBLB reported that turnover per race in 2023/24 had decreased 8%, following on from a 15% fall in 2022/23 and a 19% slump in 2021/22.
Amid falling turnover and increased levy payments, the UK Treasury and HM Revenue and Customs (HMRC) announced last month that it had opened a joint consultation period surrounding a single tax rate for online operators.
The single tax rate would replace the current three-tier system in place and would come into effect from October 2027, depending on feedback from the industry’s stakeholders.
The UK Treasury and HMRC claimed that as the online betting market has “matured”, the contrasting tax rates are “less reflective of real-life distinctions in customer experience of the products”.
At the time of the announcement, CEO of the BGC, Grainne Hurst, said it would be “catastrophic” for the horseracing industry.
Returning to the news of the expected increased levy, Hurst stated it was “concerning” to see horseracing continue to struggle and noted that raising taxes further would only lead to further harm and less investment.
She said: “For the fourth year running, levy contributions have increased to record levels, demonstrating the growing, long-term investment regulated betting provides British horseracing.
“But it is concerning to see once more that despite record levy contributions, racing continues to struggle, both as a sport and as a betting product, with betting turnover down again year on year.
“BGC members remain committed fans of racing and recognise better than most the huge economic impact it makes in communities across the country.
Hurst went on to stress the importance of BGC members’ contributions not being overshadowed by a new tax rate.
She continued: “It’s now more important than ever this vital contribution is not undermined by further new tax rises through the creation of a single tax for online betting, which risks driving punters away from the sport, or into the arms of the growing, unsafe gambling black market.
“These parasite operators don’t pay tax, don’t care about safer gambling, and do not contribute a penny to the levy. The BGC wants sustainable growth, for our members and for racing, but any new taxes would halt investment, hurt punters and harm racing.”
The post BGC insists proposed single tax rate could damage horseracing industry first appeared on EGR Intel.
CEO Grainne Hurst’s says the change could push punters to black market, with trade body members set to pay £108m in levy payments to the Horseracing Betting Levy Board
The post BGC insists proposed single tax rate could damage horseracing industry first appeared on EGR Intel.