British Horseracing Authority calls on HM Treasury to ‘axe the tax’
The horseracing regulatory body has claimed that potential tax hikes on betting could severely damage the industry and has requested special treatment.
Key points:
– The British Horseracing Authority (BHA) has officially lodged opposition to potential Autumn Budget tax hikes on betting revenue
– It suggests that rises could cost the industry up to £160m ($215m) per year in a worst-case-scenario
– Cites precedents for horseracing to be treated differently from other forms of betting
The BHA has presented a formal united front in opposition to tax hikes that are being considered for the Autumn Budget, calling to ‘axe the tax.’
Spearheading a bloc with signatories including The Jockey Club, Arena Racing Company, the Racecourse Association, the Racehorse Owners Association and the National Trainers Federation, the BHA has now officially submitted its opposition to HM Treasury’s open consultation on the proposed policy change.
The body has asked for British horseracing to be taxed at a different and lower rate from all other forms of betting.
Analysis from within the sector has suggested that if this doesn’t happen, the loss of income could range from at least £66m ($89m) up to £160m a year.
The trade authority complains that the potential hike would endanger thousands of jobs, severely impact towns and rural communities and hamper British racing’s work on equine welfare.
In its public response, it cited precedents for racing betting being given special treatment when it comes to taxing betting revenue. Brant Dunshea, Acting Chief Executive of the BHA, 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.”
Good to know: The International Federation of Horseracing Authorities conducted a study from 2021-2024 and found that across this period, the total number of visits to illegal sites offering horseracing wagers grew by 131%, while the growth in legal sites measured only 25%
The Treasury consultation closes on 21 July at which point the responses will be considered, but in the meantime, the BHA has urged people to contact their local MP to register their concern and join the ‘axe the tax’ campaign.
The letter template provided by the BHA argues that, as well as the threat posed to the industry by the tax, the policy will also drive bettors to the black market, having the unintended effect of increasing problem gambling.
It claims that: “The policy totally fails to recognise the difference between skills-based betting on horseracing and fast-paced, high-spend games of chance.”
The threat posed by the tax rise is heightened, says the BHA, considering the tandem effects of other Government policies like affordability checks on racing bettors and a lack of levy reform.
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