British Horseracing Protests Tax Hike, Cancels Sep. 10 Meetings

The British Horseracing Authority (BHA) has continued its fight against Britain’s proposed tax hike by cancelling all meetings on September 10. All races will be rescheduled for another date, the authority confirmed.

BHA Reasserts Its Opposition to the Tax Harmonization

In its announcement, the BHA reasserted that it is standing firmly behind its Axe the Racing Tax campaign. The initiative comes in response to the Treasury’s recent proposal to align all online betting duties during the Autumn Budget. This would effectively raise the tax on horse bets from 15% to 21%.

The BHA, which has previously expressed firm discontentment with the proposal, warning that it could hurt the industry and lead to job cuts, has now taken things a step further by vowing to cancel all meetings set to take place on September 10.

The BHA emphasized that this is the first time in the sport’s modern history that it has voluntarily refused to race.

September 10 is no random day, as the day precedes the historic four-day St Leger festival at Doncaster Racecourse. With the BHA refusing to race on that date, the meetings at Lingfield Park, Carlisle, Uttoxeter and Kempton Park will be rescheduled.

In addition to that, the BHA said that September 10 will be the day of a major campaign event in Westminster where senior industry leaders, horse owners, trainers and jockeys will join forces to protest the tax hike proposal.

Horseracing Is a Valuable Economic Driver

The BHA emphasized that horseracing is the UK’s second-largest spectator sport. It added that the sport supports 85,000 jobs and is attended by some 5 million people a year, contributing GBP 4.1 billion to the economy.

Should the tax proposal move forward, the industry forecasts a destructive GBP 330 million revenue hit in the first five years. To make matters worse, the measure could lead to the loss of as many as 2,752 jobs in the first year alone.

The BHA noted that this impact would be exacerbated by operators’ response to the tax rises, which could include increased prices, bonus cuts, fewer ads, and lower marketing expenses.

Industry Leaders Ask the Government to Reflect

Industry leaders commented on the sport’s unprecedented decision to voluntarily cancel a race day, saying that it highlights the industry’s opposition to the tax hike.

Brant Dunshea, CEO of the BHA, elaborated:

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.

Brant Dunshea, CEO, BHA

Dunshea added that the industry’s message is clear: “axe the racing tax and back British Racing.”

Jim Mullen, CEO of The Jockey Club, echoed Dunshea’s hope that this unprecedented decision would make the government consider the damage it could cause by raising the tax.

After this period of reflection, we hope the full implications will be understood, and we can prevent the irreparable damage that threatens a sport the nation is, and should be, proud of.

Jim Mullen, CEO, The Jockey Club

Martin Cruddace, CEO of Arena Racing Company, noted that unlike online gambling, British horse racing makes “enormous contributions.” He emphasized the differences in how gambling and horse racing are regulated, suggesting that this tax harmonization doesn’t really make sense.

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 harmonization will achieve that aim.

Martin Cruddace, CEO, Arena Racing Company

Finally, Paul Johnson, CEO of the National Trainers Federation, warned that the tax hike would have a profound effect on the British economy as a whole, hurting not only the industry but its employees and fans too.

He concluded: “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.”