Opposition MPs back horseracing strike over proposed gambling tax reforms
Several conservative MPs have lent support to the proposal.
UK.- It’s not usual to hear Conservative MPs condoning strike action, but the several opposition figures in British politics have come out in support of British horseracing’s protest against proposed gambling tax reforms.
The British Horseracing Authority (BHA) has announced the decision to reschedule four fixtures to hold an unprecedented voluntary day with no racing on Wednesday, September 10 as a protest at plans to create a new unified Remote Betting and Gaming Duty. The date was chosen to coincide with an “Axe the Racing Tax” event behind hosted at Westminster, and it’s been estimated that the decision will cost the sport £200,000,
Nick Timothy, whose West Suffolk constituency is home to Newmarket and who is also vice-chair of the All Party Parliamentary Group for Racing and Bloodstock, said: “I stand firmly behind the racing industry. They have never done this before, and this action should send a powerful message to the government.
“The ‘Racing Tax’ will punish owners, trainers, and jockeys – and not just jeopardise the racing industry itself but breeding too – by robbing them of income when profit margins are tight and global competition is fierce. Rachel Reeves needs to find another way to fix her mistakes instead of putting a great British success story like horseracing at risk.”
Meanwhile, Lord Nicholas Le Quesne Herbert wrote on X that the strike was “a sign of how serious the situation facing racing is.”
Shadow sports minister and MP for Old Bexley and Sidcup Louie French said: “The unprecedented move to cancel racing highlights the urgency for the government to change course and axe the proposed racing tax.
“Rather than backing British racing and positive reforms that will unlock inward investment to our much loved sport, the government’s latest tax proposals will further fuel the black market, hurting jobs, punters and racing in the process.”
Support for the racing strike has also come from the likes of Martin Cruddace, the chief executive of Arena Racing, Baroness Harding, the senior steward of the Jockey Club, Louise Norman, the chief executive of the Racehorse Owners Association and the trainer John Gosden.
British horseracing’s Gambling Strategy Committee is said to have played an important role in the decision to stage the day of protest. The committee comprises members from the BHA, Racecourse Association, Racehorse Owners Association, Jockey Club, Arena Racing Company and the National Trainers Federation.
The gambling industry lobby group, the Betting and Gaming Council, has complained that it was not consulted about the strike decision. It said it was “concerned that futile political gestures will only antagonise the government and frustrate punters”.
However, David Armstrong, CEO of the Racecourse Association, said it was right for racing to take a strong position. “The RCA is fully supportive of the unprecedented strike action,” he said. “Such action is a last resort, but it is imperative the government is clear on what will happen should the proposed harmonisation of online gambling tax come to pass.
“Colleagues from across the sport have been unified by this threat, which would see British horseracing placed into irreversible decline. From a racecourse perspective, the government must understand what they stand to lose; major employers, economic drivers and community hubs spanning rural and urban communities.
“We are aware of the impact the strike will have on the sport’s workforce, the betting and broadcast industries and the paying customers. However, we believe the sacrifice of one day is essential to demonstrating the strength of feeling within the sport.”
The UK Treasury’s proposal is to unify the current three separate tax categories – Remote Gaming Duty, General Betting Duty, and Pool Betting Duty – into a new single Remote Betting and Gaming Duty (RBGD).
The current Remote Gaming Duty, which covers online slots, poker, bingo and similar, is levied at 21 per cent of gross profits based on a place of consumption (POC) model. General Betting Duty varies depending on vertical: fixed-odds betting is taxed at 15 per cent, sports spread betting at 10 per cent, and financial spread betting at 3 per cent. Pool Betting Duty is charged at 15 per cent on gross profits, applicable to sports pools only (excluding horse and greyhound racing).
The BHA argues that research suggests the change could cause a £330m revenue hit to the horseracing industry in the first five years, with 2,752 jobs at risk in the first year if the tax changes go through. It says that Yorkshire alone, home to nine racecourses including Doncaster and York, could suffer a £37m economic hit in the first five years, with 342 jobs immediately at risk, from trainers and stable staff to local pub owners and hospitality workers.
