Treasury to Spare Horse Racing from Gambling Tax Rises

Strategic Insights -

Despite a proposed tax grab of up to £3.2 billion from the betting industry, the Treasury has decided to exempt horse racing from the plan, with plans to raise taxes on slot machines in bookmakers' shops and online gaming, raising about £1 billion, although final decisions have not yet been made.

The decision comes after a fierce campaign from the gambling industry, including a voluntary cancellation of racing in Britain for the first time in history, as jockeys and trainers went to Westminster to lobby against any changes. The Treasury has grown frustrated by the industry's focus on the impact a tax rise could have on horse racing, with a Whitehall source saying that it is not the main target.

Key Takeaways:

  • Horse racing will be spared from the proposed tax rises on the gambling industry.
  • The Treasury plans to raise taxes on slot machines in bookmakers' shops and online gaming, raising about £1 billion.
  • The proposed tax grab on the betting industry was originally intended to raise up to £3.2 billion, with Gordon Brown, the former Labour prime minister, backing the plan.
  • The tax rise on the gambling industry is expected to have a negative impact on horse racing, with industry figures warning that thousands of jobs could be lost.
  • The Treasury has various duties on gambling, with bets placed in-person at the races having no duty, while those placed on horses in betting shops or online are subject to a levy.

Statistics:

  • £1 billion: The estimated amount of tax revenue expected to be raised from the tax grab on slot machines in bookmakers' shops and online gaming.
  • £3.2 billion: The original proposed amount of tax revenue expected to be raised from the betting industry.
  • £1 billion: The actual amount of tax revenue expected to be raised, although final decisions have not yet been made.
  • £3BN: The original figure raised by Gordon Brown's backed plan.
  • About 1,000: Number of jobs potentially lost in the horse racing industry due to the knock-on consequences of the tax rise.

Sources:

  • The Telegraph
  • Whitehall source (anon)