Gambling Tax Hike Faces Backlash as Racing Strike Looms

The proposed increase in gambling taxes in the upcoming UK Budget has sparked significant backlash from industry leaders, who warn that it could drive customers towards unregulated black market operations. The call to raise the existing 15 percent tax on bookmakers to align it with the 21 percent tax on online gaming has raised concerns about the potential impact on the horse racing industry.

Chancellor Rachel Reeves has been urged to reconsider the move, as it could lead to a staggering £66 million annual loss for the horse racing sector. Such financial strain threatens to jeopardize thousands of jobs and disrupt the fragile economy surrounding the sport. The industry plans to protest this decision by staging a strike, with four race meetings scheduled for Wednesday, March 6, 2024, being put on hold.

Industry representatives argue that increasing gambling taxes will ultimately be counterproductive. A spokesperson for the Betting and Gaming Council stated, “Hiking gambling taxes would backfire spectacularly. Far from boosting the Treasury, it will push punters towards the unsafe black market, which pays no tax, backs no sport and has zero standards.” They emphasize that such a move would shrink the legal gambling market and adversely affect sports funding.

The gambling industry already contributes significantly to the UK economy, paying approximately £4 billion in taxes, supporting around 109,000 jobs, and injecting £6.8 billion into the economy. The potential increase in taxes has drawn attention from various stakeholders, including former Prime Minister Gordon Brown, who advocates for higher gambling taxes as a means to help alleviate child poverty.

In response to these concerns, the Treasury has stated, “We are consulting on bringing the treatment of online betting in line with other forms of online gambling to cut down bureaucracy – it is not about increasing or decreasing rates, and we welcome views from all stakeholders including businesses, trade bodies, the third sector, and individuals.”

As the debate intensifies, the horse racing community remains on high alert. With the proposed tax changes looming, the implications for both the sport and the broader gambling landscape could be significant. Stakeholders are keenly aware that decisions made in the coming weeks will have lasting impacts on the industry and its ability to thrive in a competitive environment.