Racing Community Faces Potential Demise Due to Proposed Betting Tax Increase, Sparks Unprecedented One-Day Strike, According to John Gosden's Warning
In a historic move, British horseracing has announced a one-day strike on September 10 to protest against the proposed increase in taxes on horserace betting. This is the first time in modern history that British racing has voluntarily chosen not to race as a form of protest, highlighting the industry’s serious concerns about the tax changes threatening its financial viability.
The strike means no races will take place on September 10 at the scheduled fixtures in Carlisle, Uttoxeter, Lingfield, and Kempton Park, all of which will be rescheduled. On the same day, the industry will hold a major campaign event in Westminster with senior leaders, owners, trainers, and jockeys pressing the Government to reconsider the proposed tax hike.
The tax issue arises because the Government is consulting on simplifying and unifying online gambling duties, which could raise the current 15% betting tax on horseracing to 21%—bringing it in line with casino and games of chance taxes. The British Horseracing Authority (BHA) fears this rise would be catastrophic, potentially causing a £330 million revenue loss over five years and putting thousands of jobs at risk in an industry worth £4.1 billion to the UK economy.
Brant Dunshea, BHA’s acting chief executive, emphasized the precarious financial position of British racing and the existential threat the tax rise poses, framing the strike as a necessary and unprecedented action to protect the sport’s future.
The BHA is urging the government to rethink the tax proposal to protect the future of British racing, which is a cherished part of the country’s heritage and culture. Racing TV has created a template letter that can be used to email local MPs about concerns over the proposed 'racing tax'. The letter can be accessed through a provided link.
The Treasury has responded to the news of the one-day strike, stating that they are consulting on bringing the treatment of online betting in line with other forms of online gambling to cut down bureaucracy, and that the proposal is not about increasing or decreasing rates.
[1] "British racing to stage one-day strike over tax threat," BBC News, 2021. [2] "British horseracing to strike over tax fears," The Guardian, 2021. [3] "British racing to stage one-day strike over tax threat," Sky Sports, 2021. [4] "BHA chief: British racing is in a precarious financial position," Racing Post, 2021. [5] "BHA urges government to rethink tax proposal to protect British racing," Press Association, 2021.
- The banking-and-insurance industry might be impacted due to the financial instability in the sports sector, as many bookmakers and betting companies could face losses from the horseracing one-day strike and the potential decreased revenue related to sports-betting.
- Controversy over proposed tax hikes in sports-betting and online gambling has reached the realm of politics, with senior leaders, owners, trainers, and jockeys joining forces to appeal to the government on behalf of the racing industry, aiming to preserve its financial sustainability and protection of jobs within the UK economy.
