Betting and Gaming Council (BGC) CEO Grainne Hurst has said the black market has “hit the jackpot” in a damning statement on Chancellor Rachel Reeves’ Autumn Budget.
Released today, 8 December, Hurst added that horseracing’s reprieve from a tax hike was “cosmetic” and that the Budget had delivered a “devastating blow to the very ecosystem that racing relies on”.
Remote gaming duty is due to rise from 21% to 40% next April, with remote general betting duty also upped from 15% to 25% in April 2027.
The duty on horseracing and retail sports bets will remain at 15%, while the 10% bingo duty has been scrapped.
Reeves and the Treasury said they expect the tax increases to lead to £1.1bn in additional revenue by 2030.
The horseracing industry had campaigned strongly for a carve out in Reeves’ tax reshuffle, although the industry warned that any increase on the gambling sector would nevertheless indirectly impact racing.
On the knock on effect for horseracing, Hurst said: “Racing has seemingly been protected from higher betting duties. It sounds like a win, but anyone who understands how the sector operates knows that isn’t true.
“This exemption is cosmetic. Beneath the surface, this Budget delivers a devastating blow to the very ecosystem that racing relies on.
“The idea that racing has won anything is dangerously misleading. Racing may have avoided a direct betting duty rise, but it will still feel the consequences.
“Betting operators fund sponsorships, media rights and the levy; when the regulated sector contracts, that funding contracts with it.
“An estimated 500 betting shop closures could cost racing around £20m. Racing cannot thrive if betting is pushed into decline.”
Operators, including Flutter, Entain and evoke, have warned of reducing marketing spend and changing customer propositions in light of the incoming tax changes.
Flutter, which runs Paddy Power, Sky Betting & Gaming, Betfair and tombola, said that following post-mitigation efforts it would be facing a $339m impact in 2027.
Hurst went on to state that the black market, which industry figures fear will be emboldened and grow following the Budget’s tax hikes, was the “only winner”.
She continued: “The only winner from this Budget is the black market – they’ve hit the jackpot.
“The losers are customers who will now be exposed to greater risk, communities that rely on jobs and investment and sectors like racing that depend on a strong regulated industry.
“We stand ready to work with government to deliver the safest, most sustainable gambling environment in the world.
“But that requires policies that strengthen the regulated market, not undermine it. If racing is to have a secure future, the system it relies on must remain strong – and this Budget takes us in the opposite direction.”
The post BGC boss: Horseracing’s tax hike carve out is “cosmetic” first appeared on EGR Intel.
Grainne Hurst says black market is the only winner in last month’s Autumn Budget, as she warns operators will reduce spend on sport due to duty hikes on other verticals
The post BGC boss: Horseracing’s tax hike carve out is “cosmetic” first appeared on EGR Intel.