Despite the overall decline in betting amounts for horse racing events, the UK Betting and Gaming Council (BGC) has expressed concerns about the further increase in the tax burden on horse racing.
It is expected that in 2024, BGC members will pay a record £108 million (approximately $143.8 million) in taxes to the Horserace Betting Levy Board (HBLB), an increase from £97 million in the 2021/22 fiscal year, £100 million in the 2022/23 fiscal year, and £105 million in the 2023/24 fiscal year, despite the overall industry revenue not increasing simultaneously.
In fact, HBLB data shows that the betting amount per event has been continuously declining, with an 8% year-on-year decrease, a 15% reduction compared to the 2022/23 fiscal year, and a significant 19% drop from the 2021/22 fiscal year.
Currently, the UK government is considering implementing a uniform tax system for online sports betting, a policy that could lead to increased tax burdens and cause concern within the industry. Industry insiders point out that if the new tax is implemented, it could further impact the already struggling horse racing industry and potentially drive gamblers towards the unregulated grey market.
In response, Grainne Hurst, CEO of the BGC-affiliated UK horse racing betting companies, stated:
"For the fourth consecutive year, we have paid record taxes for horse racing, demonstrating the regulated betting industry's continued economic support for the sport. Unfortunately, despite the rising taxes, the sport of horse racing itself is in decline."
She further emphasized that BGC members are generally passionate about horse racing and are aware of its significant role in the local economy:
"At this critical moment, we must avoid any new taxes that could weaken the sport, especially as a uniform tax could lead to the loss of gamblers, or even their shift to unsafe illegal markets."
Hurst warned that those "parasitic" operators in the grey areas not only do not pay taxes but also do not undertake any gambling responsibilities or social obligations.
The BGC calls on the government to fully weigh the risks during the tax reform process, ensuring both consumer protection and the unimpeded development of the industry or the sustainability of the horse racing ecosystem.
