BGC warns racing tax strike may be a ‘futile political gesture’

Racing’s planned strike next month could be a “futile political gesture” that risks “antagonising” the Government, the Betting and Gaming Council has warned.

The British Horseracing Authority, in conjunction with racecourse operators the Jockey Club and Arena Racing Company, has announced there will be no racing on September 10 in protest at a proposed change in the existing structure of online gambling duties, with fears the current 15 per cent tax on racing could be increased to the 21 per cent levied on games of chance.

Fixtures at Carlisle, Uttoxeter, Lingfield and Kempton will not take place on their original date, instead being rescheduled, while a campaign event will be held in Westminster on the day of the strike, with senior leaders set to be joined by racing figures in highlighting the issue.

The BGC, which is the industry body, has said bookmakers were not consulted on the strike decision and feel collaboration with racing is key to a satisfactory outcome.

A spokesperson said: “Racing’s decision to reschedule fixtures was taken without consultation with betting operators, whose support for the funding of the sport is mission critical. We are concerned that futile political gestures will only antagonise the Government and frustrate punters, instead of delivering a solution to a shared challenge facing both racing and betting.

“We want to work with racing constructively to prevent further damaging tax rises, as any new tax rise on any part of betting or gaming can only undermine racing’s revenues and threaten investment in the sport – already a more expensive and less profitable product for operators.

“At the same time, higher costs and avoidable disruption risk driving customers to the unsafe, unregulated black market, which pays nothing to racing or the Treasury and offers no protections for consumers.

“The regulated betting and gaming industry contributes £6.8billion to the economy, generates £4bn in tax, and supports 109,000 jobs. Crucially, our members provide £350million a year to racing, alongside vital funding for other sports. Put that at risk, and it is customers and communities across the country that lose out.”

Speaking earlier in the day on Racing TV’s Luck On Sunday programme, the BHA’s acting chief executive Brant Dunshea explained the sport felt compelled to take “its own position”.

He said: “We’ve been trying to sit down with the BGC for months and talk about issues around the levy reform and that has proven to be a challenge.

“So on this occasion, racing is taking its own position. We are taking a clear, strong position on what we believe the impacts of this principle of harmonisation will have on us.

“We have to back ourselves, we are an enormous sport across the country – we are the second biggest spectator sport. Five million people attend racecourses every year, we’ve got to be able to stand up on our own two feet and argue a case for us and that’s what we’re doing.”

A Treasury spokesperson said: “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.”