Horse racing facing £57m annual hit from Budget tax rise

Summarised from 3 outlets · Updated 28 Oct, 17:27 · Archive

The Budget's five per cent rise in machine gaming duty will cost horse racing £57 million annually, the British Horseracing Authority warns.

The Budget's five per cent rise in machine gaming duty for betting shops will cost horse racing £57 million annually, according to British Horseracing Authority chief executive Brant Dunshea. Racing derives nearly a third of its £350 million annual income from betting via high street shops, making the tax increase a significant blow to the sector's finances.

Dunshea warned the change will have a 'devastating impact' on the future of the sport. He said the industry should prepare for reduced prize-money, thousands of job losses and questions over the viability of racecourses. The tax rise also risks leading to the closure of hundreds, if not thousands, of betting shops across the country.

Dunshea noted that the government rejected a more severe proposal to increase the duty to 40 per cent, but said even the five per cent rise will cause significant damage to racing's finances. The changes will also impact vital horse welfare projects and research, and affect a large part of the sport's fanbase for whom visiting a local betting shop is their primary way of engaging with horse racing.

How it is being reported

• British racing chief warns budget tax hike may have ‘devastating’ impact on sportCall for urgent talks after gaming machines tax increase Brant Dunshea: ‘thousands’ of betting shops may close Brant Dunshea, the chief executive of the British Horseracing Authority, said on Wednesday that the sport’s ruling body will “urgently engage with the government to establish how we can work together to reduce the impact” after John Healey, the chancellor, raised the duty on the profits from fixed-odds gaming machines in betting shops from 20% to 25% in his first budget. The widely anticipated rise in Machine Games Duty (MGD) was well below the doubling of the rate, from 20% to 40%…The Guardian · 28 Oct, 17:35
• BHA chief predicts 'devastating' impact on racing from Budget tax riseBritish Horseracing Authority chief executive Brant Dunshea has warned the five per cent rise in machine gaming duty for betting shops announced in the Budget will have a “devastating impact” on the future of the sport.Sky Sports · 28 Oct, 16:16
• Horse racing chief says Budget tax rise will have 'devastating impact' on the sportThe Budget increased machine gaming duty for betting shops by five per cent on WednesdayIndependent Sport · 28 Oct, 16:03

In this story: British Horseracing Authority · Brant Dunshea · United Kingdom

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