The British Horse Racing industry has never had a strike. Yet this September, it will hold a rare day with no meeting in protest at proposed tax rises. As of September 10th, all horse racing in the United Kingdom will go on strike. This will result in no races taking place anywhere in the country. This is in response to the United Kingdom’s Treasury proposal to increase the rate of duty for sports betting. This will put its taxation rate on a par with online casino games of chance, such as slot games. Those in opposition believe it will hit revenue and create job losses. What Meetings are Cancelled? This will result in the cancellation of race meetings at Uttoxeter, Lingfield, Kempton, and Carlisle, which were planned on the day. Other courses have voiced their support for the idea, branding the decision “crippling”. The British Horse Racing Association has said it does plan to reschedule these meetings, and the only known fixture taking place on the day will be in the Republic of Ireland, in Cork. It is estimated that this strike will cost the sector around £700,000 overall, with an immediate loss of £200,000 on the day. Currently, race meetings in the United Kingdom take place 363 days of the year. When the strike takes place, leading figures from the sector, a £4.1 billion industry, including jockeys, trainers and owners, will attend an event at Westminster. Here, they will lobby MPs about the importance of keeping the sector healthy. Changes to Gambling Taxation in the United Kingdom Across the globe, online sports betting has grown in popularity. Many providers have built a customer base by offering a range of bonuses upon sign-ups, such as matched deposits and free bets. By combining them with a range of markets, it has made it even easier to place a bet on top sports like football and horse racing. This is not just happening in the United Kingdom, either, but from Africa to South America. The sector is expected to grow to $187.39 billion by 2030. With this comes taxable revenue, but unlike most industries, gambling consumers have a caveat: They can access overseas, offshore bookmakers if licensed ones in their home country do not offer an enticing enough service. Thus, regulators are in a constant battle between balancing taxable revenue levels and competitiveness for the sector. This will be the first time in history that British horse racing goes on strike. This is because the 15% tax rate currently paid by bookmakers would come into line with online casino games. These are currently taxed at 21%. This concept was first discussed during Rishi Sunak’s conservative government and was carried over to Labour. A consultation process was held on this, which closed in July, with even former Prime Minister Gordon Brown being in favor of a tax hike for gambling. Horse racing is the sector that may be hardest hit, being the most-watched spectator sport in the country after football. Research commissioned by the British Horse Racing Association has said this could lead to a loss of £330 million in the first five years. It also said that 2,752 jobs could be at risk. It is believed this will be because the tax rise will be offset in other ways, through a reduction in bonuses for consumers, job cuts, or reductions in sponsorships and advertising. Voices Against the Changes One voice against the rise is Nicky Henderson , champion trainer. He has said that he really does not put himself in favour of using strikes as a tool, but that the message needs to be put across. He added that under the circumstances, they have little choice. Brant Dunshea is an executive at the British Horseracing Association who backed this claim. He said, “Our message to Government is clear: axe the racing tax and back British Racing.” However, not all stakeholders have been so supportive. The Betting and Gaming Council (BGC) said that it had not been consulted on strike action. They’d described funding for the sport as mission-critical, but then went on to describe the strike as a futile gesture that will only antagonise the government. They believe it will not lead to a shared result over a challenge that faces both racing and betting. One alternative given by the thinktank, the Social Market Foundation, has suggested that the gaming duty could be raised to 50%, and the gambling duty raised to 25%. However, a large part of this would ensure the levy system meant that racing would not lose out. Horse racing is much loved in Britain. The sector will be keen to point out what a fragmented law has done to the US horse racing industry, which is currently in a huge period of decline. It seems unlikely that the tax rates will remain as they are, but they could be amended to safeguard the sector in some other way. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. The post Why Is the British Horse Racing Sector Going on Strike? appeared first on Times Tabloid .
