At a recent think tank conference held by the Social Market Foundation (SMF) in the UK, top leaders in the horse racing industry strongly opposed the government's proposal to raise the betting tax rate for horse racing to align with online casinos. Currently, horse racing betting in the UK is subject to a 15% tax rate, while online casinos face a higher tax burden of 21%.
Martin Cruddace, CEO of Arena Racing Company, emphasized after the meeting: "It must be clearly differentiated between the tax and regulatory systems of horse racing betting and online casinos. Any forced equalization of tax rates will turn the UK into a paradise for online casinos, while weakening our leading position in the global horse racing industry." The company operates well-known racecourses such as Doncaster and Chepstow.
Data shows that these concerns are not unfounded:
The tax contribution of the horse racing industry continues to decline, currently about 100 million pounds, a 15% decrease from the peak
Online casinos are expected to reach a revenue of 4 billion pounds in 2024, accounting for 75% of the UK gambling market share
Physical casinos are subject to increased regulatory restrictions, which may further stimulate the growth of online gambling
A spokesperson for a horse racing company, who wished to remain anonymous, sharply pointed out: "Online casinos operate at low costs and contribute little to the local economy, yet they pose significant social harm risks." These remarks directly address the differences in socio-economic benefits of different gambling forms at a time when the Treasury is considering tax reforms.
Despite clear differences, the Betting and Gaming Council (BGC) still tries to unify the industry's voice. A spokesperson for the agency stated: "BGC members contribute 6.8 billion pounds in economic value and 4 billion pounds in taxes annually, supporting 109,000 jobs. Hasty tax reforms could disrupt this ecosystem."
International Tax Rate Comparison
Global regulatory practices show significant differences:
Pennsylvania in the US implements a tiered tax rate (slot machines 54% vs sports betting 34%)
Michigan and West Virginia also impose heavy taxes on casino games
Spain adopts a uniform tax rate of 20%
As the UK government brews gambling tax reform, the debate over balancing traditional sports and digital gambling will continue to ferment. Treasury officials revealed that the final scheme may consider establishing a "harm-based tax rate" rather than simply unifying the tax burden across all formats.
