The UK government’s proposed changes to online gambling duties have sparked significant criticism from the industry.
A report by the All-Party Parliamentary Group (APPG) for Racing & Bloodstock likens the plan to the controversial ‘Pasty Tax’ and warns that it threatens British horseracing.
Entitled Securing Racing’s Future: The Threat to British Horseracing, the report urges Ministers to protect the sport from a so-called ‘triple whammy’ of risks posed by government policies.
Of particular concern is the Treasury’s plan to consolidate the current three taxes on online gambling into a single duty. This change would position horse racing bets at the same tax level as online casino and slot games, potentially destabilizing the industry.
Insiders argue that such a tax adjustment would impose unsustainable costs on online bookmakers, thereby hindering the promotion of horseracing and affecting its financial viability.
Nick Timothy, Conservative MP and APPG co-Chair, said: “In the Treasury, they love equalizing things and tidying things up. We probably all remember the Pasty Tax that got George Osborne into so much trouble.”
Brant Dunshea, Acting Chief Executive of the British Horseracing Authority (BHA), announced plans for a coordinated campaign to oppose the proposed duties: “We have examples from all over the world where governments have put in place various forms of interventions, whether they are things like affordability checks or taxation-related increases, that affect people’s engagement with our sport.
“This is an opportunity to demonstrate how those unintended consequences have played out in other jurisdictions and why it is not a good idea to intervene in this way, and we will continue to do that.”
In response, a government spokesperson expressed appreciation for the APPG’s input, saying: “We have recently launched a consultation on the tax treatment of remote gambling and are actively engaging with the sector, so are grateful to the APPG for their contributions and will consider the report fully.”
