Charlie Parker: Sport unites to face down threat of big tax rise
British racing’s response to His Majesty’s Treasury’s (HMT) proposal to look at simplifying the tax rates levied on gambling operators by applying a harmonised, increased rate across both sports betting and online gaming has been coordinated by a group called the Gambling Strategy Committee (GSC). This group has representatives from the BHA senior executive team and Chair, the two large racecourse groups, plus owners and trainers.
Whilst the initial response looked at the formal submission to the HMT consultation, as well as the letter writing to MPs and lobbying campaign, the group were keen to keep the issue firmly in view. The #AxeTheRacingTax campaign was launched and in addition the cancellation of racing on a single day, September 10, was discussed. With complete agreement, the GSC developed the concept of a blank day to highlight the disastrous consequences that an increase in sports betting tax could have on the racing industry.
There has been extensive coverage of the so called ‘strike’, which has crossed over from the normal industry reporting into the mainstream media, something that very rarely happens. There is no doubt that racing has highlighted its concerns in a coherent and effective way. Our industry is supposed to be highly fragmented and difficult to lead, however this simple idea was conceived by a group representing all sides of the industry and has achieved a major breakthrough.
The GSC is also organising an event in Westminster to be held on the blank day, where we hope to engage with a significant number of MPs from all parties to further make our case as strongly as possible. The real damage to the industry would be felt across all aspects and will inevitably impact prize-money contributions.
The response to the announcement from the Betting and Gaming Counsel (BGC), the body that represents betting operators, has been interesting. The BGC and its members may be in a difficult predicament; on the one hand they had sought to use racing as a shield to cover the addictive online slot and games that produce a high-margin return for them, that has undoubtedly fueled the huge profits that have recently been announced, whilst at the same time attacking the racing industry for taking a proactive approach to the impending threat.
The Chair of the BGC has said that playing an online slot game has the same skill level as picking winners of horse races, a view I and many others would disagree with strongly. I have written often about the need for racing to differentiate itself from online gaming, especially when the problem gambling statistics show where the real harm is caused. The blank day has highlighted that, for once, we are prepared to stand up and state that betting on horses is a completely different pastime to playing online games and therefore it is sensible to have differing tax rates for what is a much more expensive product.
The BHA confirmed at the end of July that Charles Allen will take up his post as the new Chair at the start of this month. There was much speculation prior to this announcement, most of which was incorrect. The ROA supported the appointment, and we have worked through the process to achieve a sensible outcome for all participants.
All four of the BHA’s shareholders have been working on the necessary changes to the Articles of Association to remove the existing right to nominate four directors to the BHA Board. There are several hurdles still to jump, not least finding ‘independent’ replacements, but it is hoped that by the end of the year the transition will have been completed.
The key point is that the industry continues to work together to produce the growth strategy so desperately needed while we continue to face various external challenges. We must grow the sport’s revenues and streamline the processes and activities across British racing. The ROA’s focus must be on prize-money, experience and costs – all issues highlighted by owners daily and areas where there is potential to challenge the status quo and drive positive change.
If you have not already, please sign the #AxeTheRacingTax petition here: AxeTheRacingTax
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