The British Horseracing Authority (BHA) has proceeded with its planned strikes, scrapping all race meetings scheduled for today, 10 September.
The decision to strike is the BHA’s response to the government’s recent tax hike proposals.
In July, the Treasury closed its initial consultation period into the Remote Betting & Gaming Duty, which would look to tax pools and general betting (online sports betting) at the same rate as online casino.
Currently, both online sports betting and horseracing are taxed at a rate of 15%, notably lower than igaming, which is subject to a 21% tax rate.
Should the rate horseracing is taxed at increase, BHA-commissioned research suggests it could cost the industry as much as £330m over a five-year period, plus more than 2,000 jobs.
The study, carried out by Development Economics, estimated that the tax rise would cost the horseracing industry £66m a year for the first five years.
Therefore, in an attempt to force a government U-turn, the BHA cancelled the four meetings scheduled to take place at Lingfield Park, Carlisle, Uttoxeter and Kempton today.
The development marks the first time British horseracing has voluntarily refused to race.
This decision comes as the BHA continues to promote its ‘Axe the Tax’ campaign, designed to raise awareness of the risks the sport faces from tax hikes.
However, the strikes have been met with disappointment from the Betting and Gaming Council (BGC), with the UK trade body frustrated by the lack of consultation with operators.
UK bookmakers are significant contributors to the country’s horseracing sector via sponsorships, media rights and the 10% levy collected on their gross profits.
The BGC, which represents the likes of Entain, Flutter and evoke, noted that carve-outs exclusive to horseracing to protect the sport are ill-advised.
A BGC statement read: “We are disappointed that racing has chosen to proceed with its decision to reschedule racing fixtures today. While we understand the concerns within the sport, the decision was taken without consultation with betting operators, who make a significant financial contribution to British racing, and it will ultimately disrupt customers who expected to enjoy fixtures today.
“The Betting and Gaming Council and our members want to work constructively with racing to address the shared challenges we face. Carve-outs for one sport are misguided. Any further tax hikes on the regulated betting and gaming industry would not only hit horseracing, but also other sports that depend on operator funding.
“Racing and betting have a long-standing, symbiotic relationship, one cannot thrive without the other. Further disruption risks frustrating millions of racing fans and undermining the revenues that sustain jobs, communities and the long-term future of the sport.”
The BGC added that its operator members generate more than £350m per year for horseracing, as well as £4bn in tax revenues and 109,000 jobs nationwide.
When the strikes were first announced in August, BHA CEO Brant Dunshea claimed: “British racing is already in a precarious financial position and 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.
“This is the first time British racing has chosen not to race due to government proposals. We haven’t taken this decision lightly, but 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.”
The strikes have received support from the Jockey Club, Arena Racing Company and the National Trainers Federation.
EGR has contacted the BHA for a response to the BGC’s statement.
The post British racing takes strike action in response to government tax plans first appeared on EGR Intel.
Sport’s British governing body refuses to hold fixtures in a bid to force single tax proposal U-turn, amid fears the Remote Betting & Gaming Duty could cost the industry £330m in first five years
The post British racing takes strike action in response to government tax plans first appeared on EGR Intel.