Racing tax: What is it and why is the sport going on strike British racing is preparing for a historic day of strike action, with no fixtures taking place as the industry protests against proposed betting tax changes. Why Racing is Going on Strike For the first time in the modern history of the sport in Britain, its participants will voluntarily go on strike for a day. A day of protest will be held in Westminster, with key industry figures set to speak at an afternoon event. Put simply, there will be no racing in Britain on Wednesday. The meetings scheduled for Lingfield, Carlisle, Uttoxeter and Kempton have all been rescheduled so racing can put on a united front in London. The strike announcement has come as part of British racing’s ‘Axe the Racing Tax’ campaign, which is urging the Government to rethink the Treasury’s proposal to bring existing online betting duties into one single rate. Impact of Betting Tax Proposal Economic analysis commissioned by the British Horseracing Authority has shown that aligning the current tax rate paid by bookmakers on racing with that of online games of chance could see a £330 million revenue hit to the industry in the first five years, putting 2,752 jobs at risk in the first year alone. Bookmakers currently pay 15 per cent tax on racing bets, but as they also pay into the Levy — at a rate of 10 per cent of all gross profits on racing betting — it is effectively a 25 per cent tax before any proposed rise. It is estimated the strike will cost the sport around £200,000 in lost revenue on the day. Racecourses, owners and trainers are all in agreement. When the strike was initially announced, the National Trainers Federation said cancelling fixtures was “a huge sacrifice” which should serve as a stark reminder to the Government of the impact its tax raid will have on our sport.” No further strikes are currently planned. For punters, betting will still be available in Ireland, where Cork stages a meeting, with other jurisdictions continuing as normal.
