Brant Dunshea, chief executive of the British Horseracing Authority, has warned that the five per cent rise in machine gaming duty for betting shops announced in the Budget will have a devastating impact on the future of the sport. Dunshea claimed racing should brace itself for a 57 million pound hit to its finances, with reductions in prize money and the loss of thousands of jobs. There are questions over the viability of racecourses moving forward.
While the government has rejected a worst-case scenario to increase Machine Games Duty to 40 per cent, raising the rate to 25 per cent will nevertheless cause significant damage to racing's finances. British racing, which derives nearly a third of its 350 million pound annual income from betting via high street shops, is now set to potentially lose 57 million pounds a year, based on independent modelling shared with the Treasury. While the MGD rate increase is not as severe as some called for, this change could still prove devastating for the future of the sport, impacting prize-money, the viability of racecourses, thousands of jobs, and vital horse welfare projects and research.
Betting shop closures will also significantly impact a large part of the sport's fanbase for whom a visit to their local bookie is the primary way they engage with horse racing. As the only sport in receipt of a statutory levy from the betting industry, the BHA will seek to urgently engage with the Government to establish how to reduce the impacts of this tax policy.
Source: Sky Sports Champions League · Summarized by HeadlinesBriefing