Newly released internal UK government documents show that the Department for Culture, Media and Sport (DCMS) warned the Treasury that plans to exempt horse racing from increased betting taxes wouldn’t be sufficient to protect the sport.
This suggestion was made before Chancellor Rachel Reeves announced an increase in remote gaming duty for online casinos from 21% to 40%, and a rise in remote sports betting duty, excluding racing, from 15% to 25%.
The DCMS said that the tax exemption for racing would result in very little benefit unless there was also an increase in the Horseracing Betting Levy. Changing this would require new legislation.
could use the racing tax savings to promote other gambling products
The DCMS argued that sportsbook operators could use the racing tax savings to promote other gambling products instead of supporting racing. Since the budget announcement, both bet365 and Coral have announced cuts to their racing sponsorships, citing the higher taxes as a reason.
The racing industry also reported that both William Hill’s owner, Evoke, and Paddy Power’s owner, Flutter Entertainment, plan to cut their sponsorship and marketing spending.
The DCMS also suggested that a £2bn ($2.7bn) tax revenue projection from the higher rates was likely unrealistic. The possibility also exists that some high-risk gamblers might move to black market sites if regulated betting becomes less competitive.
