Ministers were warned increasing online betting taxes would devastate British racing.
Increasing online betting taxes would devastate British racing, ministers were warned June 16.
A hard-hitting report by a cross-party group of politicians will demand that action is taken to secure the future of the sport as it faces a ‘triple whammy’ of financial threats caused by government policies.
They are headed by Treasury plans to replace the current three-tax structure of online gambling duties with a single Remote Betting and Gaming Duty that would tax bets on horseracing at the same rate as online casino and slot games.
It is feared this will increase costs for online bookmakers, disincentivizing them from promoting the sport and leading to fewer people betting on racing, which would in turn impact the sport’s funding, put jobs at risk, and hamper the work on equine welfare.
The proposals come as British racing is already dealing with the financial impact of affordability checks on bettors, which have wiped millions of pounds from the sport’s finances, and with talks to reform the levy system and provide much-needed extra income having stalled.
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The report, “Securing Racing’s Future: The Threat to British Horseracing”, has been produced by the All-Party Parliamentary Group for Racing and Bloodstock and will be launched in Westminster on Monday.
It quotes polling which found that 53% of British people said horseracing is an important part of British culture, more than 60% believe the government has a responsibility to protect the United Kingdom’s international sporting standing, and that 56% support a law requiring greater reinvestment into British horseracing.
It adds that those views were held by people from across the political spectrum, with support for horseracing and action to protect it found among supporters of the Labor government and backers of Reform UK, the Conservatives, and Liberal Democrats.
The report claims British racing is at a “tipping point” and that, unless steps are taken to secure sustainable funding, the sport and the wider economic and social ecosystem it supports would decline, leading to job losses, diminished rural economies, and denting Britain’s global reputation.
It calls on the government to rethink its plans to harmonize online gambling taxes or, if it proceeds with the plans, grant an exemption to horseracing that recognizes its economic, social, and cultural value.
APPG co-chair and Conservative MP Nick Timothy described horseracing as one of the “crown jewels of British sport and culture.”
Newmarket is in his West Suffolk constituency and Timothy said that some of the most important racing operations in the world invested “huge” sums of money into the local economy.
He said: “This is a story we could tell across the country, from rural villages to towns like Cheltenham and Doncaster, where horseracing is part of the social fabric and has been for centuries.
“The public recognizes this. Nobody will forgive ministers if their decisions lead to the decline of the nation’s second-biggest spectator sport. The time for warm words has ended — we now demand action. The government must listen to the public and take immediate measures to secure the future of horseracing in Britain.”
Timothy’s fellow co-chair, Labor MP Dan Carden, whose Liverpool Walton constituency includes Aintree racecourse, said: “The message from this report is clear: British racing needs this Labor government to be on its side.
“Racing is part of our national story, and its enjoyment and support extends all the way from rural to urban working-class communities.
“I’m calling on the government to listen and to act in order to secure a fair funding model, protect jobs, and allow horseracing to thrive for future generations.”
Acting BHA chief executive Brant Dunshea said the report’s findings made clear the public’s affection for horseracing.
He said: “The sport is a cherished national institution, loved by people across every part of society, across every type of community, across every political party.
“It’s time that the government recognized that passion across the country for our sport and developed policies that supported it, allowed it to survive and thrive instead of risking its future.”
Two-thirds of those polled see racing as an important part of the identity of towns like Newmarket, Doncaster, and Cheltenham.
Dunshea said racing provided huge cultural, social, and economic value to towns and rural areas across Britain, and that those communities would suffer should racing be hit.
He added: “British racing cannot — and must not — be allowed to fail. All of us who love and depend on this iconic sport call on the government to recognize the depth of feeling and act now to back British racing.”
The government’s consultation on gambling taxes is set to close at midnight July 21. Should it proceed with the proposals, the rate for the new duty will be set as part of the budget process.
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