The British Horseracing Authority (BHA) has outlined its opposition to the notion of a single tax rate for online betting ahead of the Treasury’s consultation deadline.
The consultation period, which concludes on Monday 21 July, has invited views from industry stakeholders regarding the prospect of scrapping the current system that taxes general and pool betting and online casino at different rates.
Instead, the three-tiered system, which taxes pools and general betting (online sports betting) at 15% and igaming operators at 21%, could be axed in favour of a single remote tax rate.
That proposed tax has been dubbed the ‘Remote Betting & Gaming Duty’, although the consultation period will not result in a new tax rate for the combined levy. That will be decided by the government at a later date.
However, it is assumed that general and pool betting will move up from 15% to at least the 21% online casino is taxed at, or upping the new rate above 21% entirely across the board.
The government has outlined that there are enough similarities between all forms of online gambling to reach the conclusion that there is “no longer a strong rationale” to justify not having a single tax rate.
The consultation document includes 19 questions, with responses collated over the past 12 weeks.
The BHA submitted a formal response in which it insisted such a development would be the “third leg of a triple whammy” of policies that present a significant financial threat to the sport, alongside racing bettors being subject to affordability checks and “a lack of levy reform”.
The authority’s consultation submission cited economic analysis that claims horseracing could lose £66m in income each year if bets on the sport were forced to adhere to the same tax rate as online casino operators.
It added that a worst-case scenario would see the sport suffer losses of £160m per year, as well as thousands of job cuts, impacting both towns and rural communities nationwide and sparking a decline in the quality of Britain’s equine welfare.
In turn, the BHA has urged the government to set a precedent and allow horseracing to receive “individual treatment in the tax system”, given operators are already paying a “unique tax” via the horseracing betting levy.
The levy is charged at a rate of 10% on operators’ annual gross profits on British horseracing over £500,000.
The BHA’s response has received backing from several prominent industry stakeholders, including the Jockey Club, Arena Racing Company, the Racecourse Association, the Racehorse Owners Association and the National Trainers Federation.
The authority has also launched an ‘Axe The Racing Tax’ campaign, calling on all key figures from within the sport to collectively lobby against the prospect of a single remote gambling tax.
Later this month, racing fans and members of the public will be invited to join the campaign.
Brant Dunshea, acting CEO of the BHA, declared that if the proposal goes ahead, horseracing will be in “jeopardy”.
“British racing’s stakeholders are united in their opposition to the Treasury’s proposals to harmonise remote gambling duties,” he said.
“Horseracing has a uniquely symbiotic relationship with betting and the government must recognise this. It is why we are calling for betting on racing to be taxed at a different and lower rate to all other forms of betting.
“Thousands of jobs and livelihoods in towns and rural areas across the country are supported by the financial contributions of the betting industry through levy, media rights and sponsorship.
“If the chancellor delivers this tax bombshell at the Autumn Budget, not only will jobs be lost but the future of Britain’s second-largest spectator sport will be in jeopardy.”
Dunshea reminded those in government to take into consideration points made by those within the industry, adding: “This is why it is vital that the government carefully considers the argument made by all British racing’s stakeholders and works alongside us to protect a cherished national institution.
“We are also urging fans of the sport to write to their MP to ask them to put pressure on the chancellor to ‘Axe the Racing Tax’ and our campaign will be reaching wider audiences in the months leading up to the budget.”
The post BHA: Single remote gambling tax will leave horseracing in “jeopardy” first appeared on EGR Intel.
Sport’s governing body also outlines concerns the proposal would spark significant job losses and impact multiple communities across the country, as it calls for lower tax rate compared to other forms of betting
The post BHA: Single remote gambling tax will leave horseracing in “jeopardy” first appeared on EGR Intel.