The British Horseracing Authority (BHA) has today submitted the sport’s formal response to HM Treasury’s consultation on remote gambling duties, outlining racing’s opposition to harmonisation and calling for British horseracing to be taxed at a different and lower rate to all other forms of betting.  

A tax hike for bookmakers on racing betting in the Autumn Budget would be the third leg of a triple whammy of financial threats caused by Government policies, including affordability checks on racing bettors and a lack of Levy reform, which jeopardise the future of the sport in Britain.  

Economic analysis shows that racing could lose at least £66m of income a year under the proposals which would see horseracing taxed at the same rate as online games of chance. In a worst-case scenario, the sport could lose £160m of income a year. 

This would put thousands of jobs at risk and severely impact towns and rural communities across the country. It would also hamper British racing’s world-leading work on equine welfare. 

In calling for a tax carve out on racing betting, the sport’s submission outlines the precedent for horseracing receiving individual treatment in the tax system, with operators already paying a unique tax on British racing in the form of the Horserace Betting Levy. Racing’s dependence on revenue from betting is also already recognised in the tax system which sees the sport taxed at a lower rate than online games. 

Today’s submission comes ahead of the Treasury’s public consultation deadline on Monday (21 July). Treasury civil servants will review responses in the coming weeks before making recommendations to ministers. It is expected that Treasury ministers will make a final decision on whether to press ahead with plans to harmonise remote gambling duties ahead of the Budget, expected in October. 

The submission has the backing of British racing’s key stakeholder groups including the Jockey Club, Arena Racing Company, the Racecourse Association, the Racehorse Owners Association and the National Trainers Federation. 

Later this month the BHA will spearhead the sport’s public Axe The Racing Tax campaign, which will invite racing fans and members of the public to get involved with the sport’s opposition to the Government’s proposals. 

Last week the BHA led a call for everyone involved in the sport to play their part by writing to their local MP to call on Ministers to urgently rethink proposals. This followed a commitment by Treasury Minister James Murray MP to work with the horseracing industry to avoid unintended consequences arising from the proposals and to seek mitigations. 

Brant Dunshea, Acting Chief Executive of the British Horseracing Authority, said: 

“British racing’s stakeholders are united in their opposition to the Treasury’s proposals to harmonise remote gambling duties. 

“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. 

“Thousands of jobs and livelihoods in towns and rural areas across the country are supported by the financial contributions of the betting industry through Levy, media rights and sponsorship. 

“If the Chancellor delivers this tax bombshell at the Autumn Budget, not only will jobs be lost but the future of Britain’s second-largest spectator sport will be in jeopardy. 

“This is why it is vital that the Government carefully considers the argument made by all British racing’s stakeholders and works alongside us to protect a cherished national institution.  

 “We are also urging fans of the sport to write to their MP to ask them to put pressure on the Chancellor to Axe The Racing Tax and our campaign will be reaching wider audiences in the months leading up to the Budget.” 

Notes to Editors: 

• HM Treasury’s proposals on remote gambling duties can be accessed here: https://www.gov.uk/government/consultations/tax-treatment-of-remote-gambling  

• Instructions for members of the public to write to their MP asking for their support to Axe The Racing Tax can be found on the BHA’s website: https://www.britishhorseracing.com/play-your-part-in-the-axetheracingtax-campaign/