UK Horseracing Industry Launches Historic Strike Over Proposed Tax Increase
UK Horseracing Industry Initiates Strike in Response to Proposed Gambling Tax Increase
On September 10, the UK horseracing sector is launching a historic strike to oppose the Treasury’s plan to standardize gambling taxes, which could result in the betting tax rate rising to 21% or more. This action follows the British Horseracing Authority’s launch of the #AxeTheRacingTax campaign in July, aimed at challenging the Treasury’s consultation on the matter.
All Horseracing Events Halted Amid Industry-Wide Protest
For the first time ever, all scheduled racing events have been voluntarily suspended, marking a unique collective stand against the proposed tax changes. The industry plans to hold a significant demonstration in Westminster, where key figures from the sport—including owners, trainers, and jockeys—will voice concerns about the potential negative impact of the Treasury’s tax proposal on an industry that contributes approximately GBP 4.1 billion (around $5.1 billion) to the UK economy.
Wider Gambling Industry Chooses Not to Join the Strike
Notably, this industrial action is being carried out without backing from the broader gambling sector. Representatives from the Betting and Gaming Council (BGC) have expressed worries about the strike, mentioning they were not consulted before its announcement. The BGC indicated that such political gestures risk antagonizing the government and disappointing bettors, rather than fostering cooperative efforts to address common industry challenges.
The BGC spokesperson emphasized their desire to collaborate with the horseracing community to prevent further tax burdens. They warned that any tax increase on betting and gaming could reduce racing revenues and discourage investment in the sport, which is already one of the more expensive and less profitable sectors for operators.
Economic Studies Predict Severe Impact from Proposed Tax Changes
Research by Regulus Partners and Development Economics highlights that horseracing would be disproportionately affected by the proposed tax alignment due to its heavy reliance on betting income. The findings suggest potential long-term negative effects such as reduced investment, fewer horse owners, decreased viability for racecourses, and diminished prize funds, all of which could disrupt the broader horseracing ecosystem across Britain.
Currently, betting operators pay a combined tax rate, including an extra 10% Horserace Betting Levy dedicated to supporting the sport, in addition to the general 15% betting tax.
Industry Leaders Stress Importance of Maintaining Tax Distinctions
Martin Cruddace, CEO of Arena Racing Company, underscored Britain’s leading position in thoroughbred breeding and racing and stated that the strike intends to raise awareness of the serious risks posed by tax harmonization. He pointed out that horseracing is subject to distinct tax and regulatory frameworks compared to online casino and slot games for justifiable reasons, and this differentiation should be preserved.
Cruddace also acknowledged widespread Parliamentary support and expressed optimism about ongoing governmental discussions ahead of the forthcoming Budget announcement in November.
