The division surfaced at a meeting organized by the think tank Social Market Foundation (SMF), which was attended by the British Horseracing Authority, Treasury officials, members of parliament, and directors of major racetracks. As far as The Guardian is aware, the primary focus was a government proposal to standardize the duty rates imposed on various forms of gambling. It is believed that representatives of the racing sector have cautioned that there would be disastrous repercussions if racing taxes were raised from 15% to equal the 21% remote gaming duty (RGD) imposed on internet casinos. Some of the most influential people in horse racing, who were listening to Treasury officials, stated that imposing a higher tax on internet casinos rather than lowering their rates may increase profits and encourage more people to play the “sport of kings.” They contended that this would also increase receipts from the separate horse racing betting levy, a 10% duty on bookmakers’ income that funds the sport.
“It is crucial that British horse racing keeps making the clear case that betting on its sport is taxed and regulated differently from online casino and arcade games and even other sports,” stated Martin Cruddace, chief executive of Arena Racing Company, which owns courses including Doncaster and Chepstow, in a statement following the event. Any tax harmonisation between online casinos and horse racing would have the unforeseen result of making Britain the world’s largest online casino and the world’s poorest horse racing nation. Growing worries that racing has been compared to addictive internet casino games have hardened attitudes inside the sport.
“The operational costs of these online casinos are minimal, their direct contribution to the local British economy is virtually nonexistent, and the potential for significant harm is, frankly, staggering,” stated one of the submissions made to the SMF’s event by another large racing firm. The BGC and its members, who have used the threat of harm to conventional horse racing to argue against policies that would affect the entire gambling industry, such as increased taxes or more affordability checks on gamblers, are expected to face difficulties as a result of the schism. A source in the gambling sector retaliated against racing and the event’s organizers, stating: “The SMF wants racing to prosper after previously demanding affordability checks at £100 per month.
What horse are they supporting?
The BGC downplayed rumors of a split, claiming it supported horse racing and opposed unified tax rates. “BGC members support 109,000 jobs, generate £4 billion in tax revenue, and contribute £6.8 billion to the economy, but this flawed approach can only lead to a spiral of decline,” a spokesperson added. A source in the gambling sector retaliated against racing and the event’s organizers, stating: “The SMF wants racing to prosper after previously demanding affordability checks at £100 per month. What horse are they supporting? The BGC downplayed rumors of a split, claiming it supported horse racing and opposed unified tax rates. “BGC members sustain 109,000 employment, create £4 billion in tax revenue, and contribute £6.8 billion to the economy, but this ineffective strategy can only lead to a spiral of decline,” said a spokesperson.