British horse racing goes ahead with strike action in tax protest

Key Points

• The British horse racing industry staged an unprecedented one-day strike in protest against potential tax increases on race betting, canceling four meetings.
• The British Horseracing Authority (BHA) fears that changes to the tax structure could cost the sport £66 million and jeopardize about 2,750 jobs in the first year.
• BHA chairman Charles Allen emphasized the need for unity across the industry to safeguard jobs and the economic value of horse racing, which contributes over £4 billion annually.
• A government decision on the proposed tax changes is expected in the November 26 budget, but officials have stated there are no current plans to increase the tax on horse race betting.

LONDON (AP) — British horse racing went ahead Wednesday with its unprecedented one-day strike to protest a feared rise in taxes on race betting, with a top official in the sport urging the industry to “stand together” and “make their voices heard.”

Four scheduled meetings — at Carlisle, Uttoxeter, Lingfield and Kempton — have been canceled and rescheduled after agreements between the owners of the courses and the British Horseracing Authority, making it the first time the sport in Britain has voluntarily refused to race in modern history.

The BHA set up the “Axe the Racing Tax” campaign in response to proposals to replace the existing three-tax structure of online gambling duties with a single tax, with fears the current 15% duty on racing could be increased to the 21% levied on games of chance.

Economic analysis commissioned by the BHA says such a rise could cost the sport at least 66 million pounds ($90 million) and put around 2,750 jobs at risk in the first year, in what BHA chairman Charles Allen described as “nothing short of an existential threat for our sport.”

“We need every part of our industry — trainers, jockeys, stable staff, racecourses, and fans — to stand together and make their voices heard," Allen said.

“We are Britain’s second largest spectator sport, supporting 85,000 jobs and delivering over 4 billion pounds ($5.4 billion) of economic value every year. Yet all of this is now being put at risk by a change that would devastate our funding model and the livelihoods that depend on it."

Allen said the protests are about “protecting communities across Britain” and “safeguarding a national institution.”

Previously, the British government said it was 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,” the government said, “and we welcome views from all stakeholders including businesses, trade bodies, the third sector and individuals.”

A decision on any tax change is expected in the British government's budget on Nov. 26. Dan Tomlinson, exchequer secretary to the treasury, said horse racing’s role in the “cultural fabric” of Britain is acknowledged and underlined there has been no announcement yet.

“The Chancellor has been clear that speculation on tax rises, which is what this is, is not only inaccurate, but also irresponsible," Tomlinson said. "We have not announced an increase in the tax on horse-race betting, and racecourse betting currently gets a 100% tax break which we have no plans to change.

“Our wider gambling consultation,” he added, "is only about leveling the playing field and simplifying the system, and we are working closely with the industry to understand any potential impacts.”

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