British Horse Racing Faces Uncertain Future Amid Tax Increases

Strategic Insights -

As the second-most attended spectator sport in the UK, British horse racing is more than just a sport; it is a part of the country's culture and heritage, delivering joy and excitement to millions of fans, supporting 85,000 jobs, and contributing over £4 billion to the economy every year. However, the sport now faces a serious threat from possible tax increases, which could jeopardize its future.

Key Takeaways:

  • The Horserace Betting Levy Board has been collecting a levy from bookmakers for over 60 years, redistributing around 10% of their annual gross profits to improve the sport.
  • The levy currently stands at around £100 million, with 37% of it coming from betting shop profits.
  • The industry has expressed concerns that increased taxation could lead to the closure of 6,000 high street betting shops, putting 24,000 jobs at risk.
  • Betfred chief executive Joanne Whittaker warned that gambling tax rises could shut down their retail real estate.
  • The industry is currently facing financial difficulties, with a declining foal population and an increasing trend of good horses being exported to race overseas.
  • Many racing workers are on the minimum wage in the countryside, operating on tight margins.
  • The Betting and Gaming Council reports that every month, 22 million people enjoy a bet, with the majority doing so safely and responsibly.
  • Bookmakers contribute £4 billion in tax every year, supporting over 100,000 jobs.

Statistics:

  • 85,000 jobs are supported by the horse racing industry (every year).
  • £4 billion is contributed to the economy by horse racing every year.
  • 6,000 high street betting shops are at risk of closure due to increased taxation.
  • 24,000 jobs are at risk due to potential closure of high street betting shops.
  • £100 million is presently collected by the Horserace Betting Levy Board in a year.
  • 37% of the levy comes from betting shop profits.
  • 22 million people enjoy a bet every month (according to the Betting and Gaming Council).
  • £4 billion is paid in tax by bookmakers every year.
  • £100,000 jobs are supported by bookmakers' activities.

Sources:

  • Roger Devlin is chair of the Horserace Betting Levy Board and also of Persimmon PLC.
  • The Sunday Times