The incoming gambling tax hike in the UK has caused concern among those in the industry. The Betting and Gaming Council said last week that it expected the tax increase to cost the UK economy around £3bn ($4bn) and result in around 40,000 job losses.
sources suggest the tax will focus on slot machines, sportsbooks, and online gaming
However, in good news for the horse racing industry at least, it appears this segment of the sector may avoid the hike. The Telegraph has reported that sources suggest the tax will focus on slot machines, sportsbooks, and online gaming.
Horse racing bets are not taxed at the track, but they are subject to a levy when placed in a betting shop or online. While UK Chancellor Rachel Levy has asserted she will increase levies on UK gambling, this won’t apply to horse racing either at the track or online.
Many sportsbook execs have taken to the media to warn about the damaging effects of the gambling tax hike. Execs at Flutter Entertainment, Entain, and Evoke have all urged the Chancellor to rethink, claiming that it will only lead to a spike in traffic to black market sites, where bets are not taxed.
Ex-Paddy Power CEO Stewart Kenny is swimming against the tide though, claiming these fears are exaggerated. Despite admitting to using this argument during his time as the Irish sportsbook’s Chief Executive, he said: “We knew it was way exaggerated, but it is the perfecft way of saying ‘the government will lose money’ – but in fact it won’t.”
Whatever the case, British horse racing can breathe a sigh of relief that any changes seemingly will not impact it.
