Horse Racing Faces Financial Turmoil as UK Government Mulls Gambling Tax Hike

In a recent report, the Betting and Gaming Council (BGC) expressed concerns about the proposed tax changes. The UK government's Autumn Statement revealed plans to replace the current three-tax structure with a single tax on remote betting. Presently, online casinos pay a 21% tax on profits, while sports betting operators face a 15% tax. The BGC warns that an increase in betting tax could lead to lower margins, fewer offers for bettors, and reduced funding for horse racing promotion.

Michael Dugher, BGC's chief executive, emphasized the detrimental impact of additional tax burdens on horse racing. He criticized the lack of consultation with the Department for Digital, Culture, Media, and Sport (DCMS) and labeled the proposed tax simplification as a potential "Trojan Horse" for more business taxes. Dugher highlighted the government's failure to consider the financial strain already imposed by the recent White Paper on the Gambling Act, which proposed significant changes, including affordability checks.

The BGC also addressed the escalating costs of broadcast races, citing major members like Betfred, 888/William Hill, bet365, Flutter, and Entain. Record cost increases for live streaming rights were noted, with a 6% rise from £270.1 million ($341.3 million) to £285.3 million ($360.5 million) this year. The Council anticipates a further 10.5% increase in these costs by 2024, posing additional financial challenges for the horse racing industry.