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horse Racing Faces Potential Ruin from Online Gambling Tax Hike, MPs Warn
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The UK’s esteemed horse racing industry is facing a important threat as politicians express concerns that a proposed tax increase on online gambling could devastate the sport. Senior members of both the Labor and Conservative parties have cautioned Chancellor Rachel Reeves against implementing higher betting levies, arguing that such a move could jeopardize “one of the crown jewels of UK sport and culture.”
Proposed Tax Changes Threaten Horse Racing’s Future
The Treasury is currently considering a new flat-rate remote betting and gaming duty. This would mean that bets placed on horse racing would be taxed at the same rate as online gaming and slots, despite the fact that horse racing bets are typically less profitable for bookmakers [1].
Critics of the proposal argue that this change would discourage bookmakers from actively promoting horse racing,leading to a decline in betting activity and,consequently,reduced revenue for the sport. The All Party Parliamentary Group (APPG) for Racing and Bloodstock has issued a report warning of potential job losses and economic hardship for towns that heavily rely on the horse racing industry, including Doncaster, Cheltenham, and Newmarket.
Did You Know? The UK horse racing industry is the second-largest in the world,behind only the United States [2].
Political opposition to the Tax Increase
Labour MP Dan Carden has urged the government to ensure a fair funding model that safeguards jobs and allows horse racing to prosper for generations to come.tory MP Nick Timothy echoed these sentiments, emphasizing that horse racing is a vital part of British sport and culture, and ministers would face criticism if their decisions led to its decline.
Public opinion also appears to support the concerns raised by MPs. Polling data
