No race meetings will take place in Great Britain on 10 September as part of strike action in protest against a potential gambling tax increase and its impact on the sport.
The British Horseracing Authority (BHA) announced the action on Sunday following weeks of pushback on proposed changes to gambling tax rates in the UK.
Four scheduled race meetings – at Carlisle, Kempton Park, Lingfield Park and Uttoxeter – will not take place on the day. The BHA said they will be moved to an alternate date, with details to be announced in due course.
On the same day, owners, trainers and jockeys will join senior racing leaders for a major campaign event at Westminster. It will be the first time the industry will refuse to race in modern history.
The strike action forms part of the BHA’s “Axe The Racing Tax” campaign against potential changes in racing tax. The government has proposed replacing three online betting tax rates with a single rate.
Current rates consist of the Remote Gaming Duty (RGD) tax at 21% of operator profit, General Betting Duty (GBD) tax at 15% of profit, and Pool Betting Duty (PBD) at 15% of net stake receipts.
The government has not yet said what the fixed rate will be across all verticals, but an update to its consultation on consolidating the rates is expected during its autumn budget.
Many stakeholders have expressed concerns that the rate could be increased in line with remote gaming duty as all three rates are consolidated. They have urged the government to rethink the update.
Tax changes could hit horse racing for £330 million
The BHA has been open in its criticism of the proposals. It said betting operators are likely to seek to offset any tax rises through increasing prices, cutting bonuses and reducing advertising and marketing budgets.
The organisation said such a change in policy could cost the racing industry £330 million ($447 million) in the first five years after implementation. In addition, the BHA said up to 2,752 jobs could be lost in the first year alone.
The BHA has already put forward an alternate proposal that it said would help protect the racing industry, calling for a separate tax rate for racing.
The organisation noted that the sector already has a unique tax in the Horserace Betting Levy. Racing’s dependence on revenue from betting is also already recognised in the tax system. The BHA also flagged how the sport is taxed at a lower rate than online games.
“We have decided to take the unprecedented decision to cancel our planned racing fixtures on 10 September to highlight to government the serious consequences of the treasury’s tax proposals which threaten the very future of our sport,” BHA CEO Brant Dunshea said.
“British Racing is already in a precarious financial position. Research has shown that a tax rise on racing could be catastrophic for the sport and the thousands of jobs that rely on it in towns and communities across the country.
“We haven’t taken this decision lightly. In doing, so we are urging the government to rethink this tax proposal to protect the future of our sport which is a cherished part of Britain’s heritage and culture.
“Our message to government is clear: axe the racing tax and back British racing.”
BGC concerned over planned action
However, the Betting and Gaming Council (BGC) has expressed concerns over plans to move fixtures. In a statement, the BGC said this decision was taken without consulting operators, whose support for the funding of the sport is “mission critical”.
“We are concerned that futile political gestures will only antagonise the government and frustrate punters instead of delivering a solution to a shared challenge facing both racing and betting,” the BGC said.
Racing puts on a united front
The BHA is not alone in hitting back against the proposed changes. It has garnered support from other major industry bodies including The Jockey Club, Arena Racing Company and the National Trainers Federation.
Jim Mullen, CEO at The Jockey Club, said: “We hope this pause for reflection will enable the government to truly understand the economic impact of horse racing and its cultural significance to communities across the UK, as well as the world-class racing festivals we host.”
Arena Racing Company CEO Martin Cruddace added: “We have always been taxed and regulated differently. It is imperative for our future that we continue to be so. If the government wants Britain to be a world leader in online casino and a world pauper in a sport at the heart of its culture, then tax harmonisation will achieve that aim.”
And Paul Johnson, CEO of the National Trainers Federation, said: “British Racing cannot survive on reputation alone and we call on the government to set an enlightened tax regime that will allow the sport to thrive before we reach the point of no return.”
BGC has pushed back against the BHA’s decision to reschedule fixtures to protest tax changes. “We are concerned futile political gestures will only antagonise the government,” it said.