British Horseracing Authority chief executive Brant Dunshea has warned 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 £57m hit to its finances with reductions in prize money, the loss of thousands of jobs and 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, in raising the rate to 25 per cent it will nevertheless cause significant damage to racing’s finances,” Branshea said in a statement.
“There is now a clear risk that this decision will lead to the closure of hundreds, if not thousands, of betting shops across the country.
“British racing – which derives nearly a third of its £350m annual income from betting via high street shops – is now set to potentially lose £57m a year, based on the independent modelling that was shared with the Treasury ahead of today’s Budget.
“While the MGD rate increase is not as severe as some called for, this change could still prove devastating for the future of our 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, we will seek to urgently engage with the Government to establish how we can work together to reduce the impacts of this tax policy.”
The statement concluded by saying the BHA would further analyse the Budget documents in greater detail to establish whether there are any other potential issues that may impact racing.