Horse racing will not be included in Chancellor Rachel Reeves’ proposed gambling tax rises.
First reported by the Telegraph, Reeves is set to focus on gaming machines and online casinos to raise around £1 billion in extra funds for the Treasury.
As it stands, Machine Games Duty (MGD) and Remote Gaming Duty (RGD) is taxed at 20% and 21% respectively – and generating that revenue target could mean that levy will jump to 40%.
Earlier this year the British Horseracing Authority (BHA) demanded a separate tax for its sport with fears new rates could cost the industry as much as £160 million.
The BHA believed tax harmonisation could put horse racing’s future at risk, threatening thousands of jobs, rural communities and vital funding for horse welfare.
In September, all scheduled horse racing in Britain was cancelled for one day only in a strike against the proposed changes with meetings abandoned at Uttoxeter, Lingfield, Kempton and Carlisle.
Jockeys, trainers and owners descended upon Westminster to lobby MPs as part of the ‘Axe the Racing Tax’ campaign in a move believed to have cost the industry as much as £700,000.
An industry source interviewed by the Telegraph argued horse racing will still be affected by the knock-on consequences of the tax rise which will reduce profits.
Reeves argued gambling operators “should pay their fair share” in her speech at Labour’s annual party conference in Liverpool.
Former Prime Minister, Gordon Brown, called on the government to raise gambling taxes to prevent a social crisis.
MPs believe higher duties on the industry can fund scrapping the two-child benefit cap, which restricts child tax credit and universal credit to the first two children in most households.
Recent analysis from EY suggested the tax hike will cost up to 40,000 jobs as £8.4 billion of consumer spending could be diverted to unregulated, unlicensed operators.
Betfred were the latest firm to threaten to shut all betting shops across the United Kingdom in response to the proposals, alongside Ladbrokes, Coral and William Hill.
Joe Lyons is a betting industry writer for GamblingIndustryNews with years of experience on reputable gambling websites. Joe specialises in long form content in the world of sports betting and gambling. Joe is recognised as an expert in sports fields such as horse racing, soccer, NFL and NBA.
