Tax hike could devastate British racing
A planned increase in the tax rate affecting betting shops might have far-reaching consequences for British horse racing, according to Betfred chief executive Joanne Whittaker. She warned that raising the rate from 15 to 20 percent could cause closures and reduce vital funding for the sport.
Rising tax pressure
Whittaker stated that the proposal would heavily strain the industry.
“This tax rise could be catastrophic not only for independent bookmakers but for racing as a whole,”
she said, adding that many betting shops already operate on tight margins.
According to her, around a quarter of shops could close if the increase takes effect, impacting both local communities and the job market.
Threat to racing revenues
Horse racing receives a significant portion of its funding from betting levy contributions. A sharp reduction in turnover from shop closures would therefore lower these contributions, potentially harming prize money, race schedules, and the livelihoods of those employed in the industry.
The Betting and Gaming Council (BGC) echoed these concerns, urging the government to reconsider the policy. The BGC argued that higher taxes could drive customers toward unregulated online gambling, diminishing consumer protection and tax revenues.
Government stance
The UK Treasury has expressed its intention to review gambling sector taxation as part of broader fiscal reforms. Officials insist that any changes will be made carefully to balance economic interests with public welfare considerations. No final decision has yet been announced.
Industry reaction
Bookmakers across Britain are reportedly preparing financial contingency plans. Some have indicated they might close unprofitable shops or reduce sponsorship spending if the rate increase goes ahead.
“The betting industry and horse racing are deeply connected. Policy decisions in one directly shape the future of the other,”
said Whittaker.
Author’s summary: The Betfred CEO warns that a proposed betting tax rise threatens to close shops, slash racing’s funding, and destabilize the broader UK gambling ecosystem.
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