The British Horseracing Authority (BHA) announced that the industry has come together in support of the Axe the Racing Tax initiative. In an open letter to the Chancellor of the Exchequer, the industry expressed its concerns with a proposal to harmonize Britain’s gambling tax.

Horseracing Industry Opposes RBGD

The BHA’s open letter has listed serious concerns with a proposal to align the UK’s gaming taxes and introduce a singular Remote Betting & Gaming Duty (RBGD) for all verticals. Signed by 363 racing professionals, including some of the sport’s biggest names, the letter outlined significant risks for the sector if the measure is introduced.

Industry representatives argued that the singular tax rate would cause irreparable damage to horseracing, which is Britain’s second-largest sport. Described in the letter as leading to “devastating and irreversible consequences,” the changes would allegedly impact the livelihoods of tens of thousands of people working in the sector.

The letter emphasized that horseracing is a key part of the British national identity and a “cornerstone of regional economies” across the nation. It also noted that the sector contributes some GBP 4.1 billion to the economy already, supports 85,000 jobs, and generates GBP 300 million in tax revenue every year.

Higher Taxes Would Hurt the Sport’s Financial Viability

In addition to generating millions of pounds in economic activity and taxes, the industry is also spurring investments in multiple British towns, cities, and rural areas. The sport is furthermore a major driver of tourism and supports a vast network of supply chains and small businesses across the country.

The letter added that another important aspect of horseracing is the sense of identity it gives to multiple communities. More than that, the sport brings people of all backgrounds together and has the potential to transform lives.

However, all of this is now at risk. Treasury proposals to tax racing bets at the same rate as other forms of gambling would seriously undermine the sport’s financial viability. Doing so would discourage bookmakers from promoting racing, reduce revenue from the Horserace Betting Levy and threaten the sport’s future.

The Industry Could Lose Millions

The letter noted that recent analysis forecasts a GBP 66 million hit on the industry if taxes are harmonized at 21%. These costs could lead to significant job cuts, loss of investment and damage to the ecosystem supporting and depending on the sport.

A 40% tax rate, on the other hand, can hit racing “to the tune of over GBP 160 million annually,” the letter said. It added that this higher RBGD rate would also lead to the loss of 2,000 direct jobs in the first year of its introduction alone.  

The government’s proposals would do lasting damage to a major British industry, harm rural communities, and carry serious unintended consequences. It is not too late to rethink the approach and we strongly urge you to do so.

The letter comes as the broader gaming industry continues to try to fight off separate plans to introduce significant tax hikes.