Tag Archive for: Strike

BGC warns racing tax strike may be a ‘futile political gesture’

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Racing’s planned strike next month could be a “futile political gesture” that risks “antagonising” the Government, the Betting and Gaming Council has warned.

The British Horseracing Authority, in conjunction with racecourse operators the Jockey Club and Arena Racing Company, has announced there will be no racing on September 10 in protest at a proposed change in the existing structure of online gambling duties, with fears the current 15 per cent tax on racing could be increased to the 21 per cent levied on games of chance.

Fixtures at Carlisle, Uttoxeter, Lingfield and Kempton will not take place on their original date, instead being rescheduled, while a campaign event will be held in Westminster on the day of the strike, with senior leaders set to be joined by racing figures in highlighting the issue.

The BGC, which is the industry body, has said bookmakers were not consulted on the strike decision and feel collaboration with racing is key to a satisfactory outcome.

A spokesperson said: “Racing’s decision to reschedule fixtures was taken without consultation with betting operators, whose support for the funding of the sport is mission critical. We are concerned that futile political gestures will only antagonise the Government and frustrate punters, instead of delivering a solution to a shared challenge facing both racing and betting.

“We want to work with racing constructively to prevent further damaging tax rises, as any new tax rise on any part of betting or gaming can only undermine racing’s revenues and threaten investment in the sport – already a more expensive and less profitable product for operators.

“At the same time, higher costs and avoidable disruption risk driving customers to the unsafe, unregulated black market, which pays nothing to racing or the Treasury and offers no protections for consumers.

“The regulated betting and gaming industry contributes £6.8billion to the economy, generates £4bn in tax, and supports 109,000 jobs. Crucially, our members provide £350million a year to racing, alongside vital funding for other sports. Put that at risk, and it is customers and communities across the country that lose out.”

Speaking earlier in the day on Racing TV’s Luck On Sunday programme, the BHA’s acting chief executive Brant Dunshea explained the sport felt compelled to take “its own position”.

He said: “We’ve been trying to sit down with the BGC for months and talk about issues around the levy reform and that has proven to be a challenge.

“So on this occasion, racing is taking its own position. We are taking a clear, strong position on what we believe the impacts of this principle of harmonisation will have on us.

“We have to back ourselves, we are an enormous sport across the country – we are the second biggest spectator sport. Five million people attend racecourses every year, we’ve got to be able to stand up on our own two feet and argue a case for us and that’s what we’re doing.”

A Treasury spokesperson said: “We are consulting on bringing the treatment of online betting in line with other forms of online gambling to cut down bureaucracy – it is not about increasing or decreasing rates, and we welcome views from all stakeholders including businesses, trade bodies, the third sector and individuals.”

Bookmaker calls for tax rethink ahead of racing strike action

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Bookmakers have urged the Government to rethink its betting tax proposals as the sport prepares to strike on September 10.

Fixtures at Carlisle, Uttoxeter, Lingfield and Kempton will not take place after the British Horseracing Authority and the track’s owners agreed to strike, making it the first time the sport has voluntarily refused to race in modern history.

The action is in response to proposals to replace the existing three-tax structure of online gambling duties with a single tax, with fears the current 15 per cent duty on racing could be increased to the 21 per cent levied on games of chance.

Sebastian Butterworth, director of racing strategy at Flutter UKI, the parent company of Paddy Power and Sky Bet, believes that any gambling tax rise will impact the future funding of racing.

He said: “Any increase in gambling tax will have a profound effect on funding for racing – be that a rise in betting duty or a tax raid on people who play games like online bingo and poker.

“We are already having to reconsider certain investments in UK racing and we urge the Government to reconsider.”

A Treasury spokesperson said: “We are consulting on bringing the treatment of online betting in line with other forms of online gambling to cut down bureaucracy – it is not about increasing or decreasing rates, and we welcome views from all stakeholders including businesses, trade bodies, the third sector and individuals.”

Nicky Henderson backs strike action in gambling tax protest

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Nicky Henderson feels racing has “little choice” but to press ahead with unprecedented strike action as the sport mobilises against the proposed gambling tax amendments.

The British Horseracing Authority announced a pause in all racing fixtures on September 10, with cards at Lingfield, Carlisle, Uttoxeter and Kempton rescheduled in a statement against the Treasury’s proposed move to unify the current three-tax structure of online gaming duties into one rate.

The industry anticipates the potential tax increase to have a profound negative impact on racing’s finances and Henderson, a leading figure in the sport and the trainer of many great National Hunt horses, sees strike action as a justified step.

Nicky Henderson thinks strike action is justified
Nicky Henderson thinks strike action is justified (Adam Davy/PA)

“I am not necessarily a person who is favour of using strikes as a tool, but the message has got to get across that this tax could be crippling,” he said.

“It is not a weapon I would ordinarily suggest we turn to, but under the circumstance I would say we probably have little choice.”

Fellow trainer Jamie Osborne was in agreement, backing the strike action with the long-term health of the sport in mind.

Trainer Jamie Osborne also supports the strike next month
Trainer Jamie Osborne also supports the strike next month (Simon Cooper/PA)

He told Racing TV: “I’m pleased to see we’re attempting to get on the front foot. Trainers are busy looking after their own micro-situations and we often don’t have time to get involved in the macro scenario, but the impact for all of us within the sport if this occurs is immeasurable.

“It’s just not as one-dimensional as people think it is. I think there is nothing wrong with the sport attempting to separate itself from sports betting – let them paddle their own canoe, let them make their arguments. We already have the 10 per cent levy that they don’t have. We are in effect taxed at a higher rate than sports betting.

“One thing that mustn’t be lost in this argument, and Government should bear this in mind, is the soft power the sport gives us internationally and especially in the Middle East.

“I think if they underestimate they risk damaging the sport and risk taking away that power. I think that would be a mistake.”

Racing tax: What is it and why is the sport going on strike

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What is happening?

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.

What does that mean?

It means there will be no racing in Britain on September 10. The meetings scheduled for Lingfield, Carlisle, Uttoxeter and Kempton that day will not take place. They have been rescheduled to other dates.

And why has all this come about?

The strike announcement has come as part of British racing’s ‘Axe the Racing Tax’ campaign, which is urging the Government to axe the Treasury’s proposal to bring existing online betting duties into one single rate.

Why would tax rises be so bad?

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.

Strike action will surely cost the sport money?

It will, it is estimated it will cost around £200,000 in lost revenue on the day.

So does the racing industry support the strike move?

In a word, yes. Racecourses, owners and trainers are all in agreement. 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”.

Is this is a one-off, or will there be more strikes?

No more strikes are planned, as things stand.

Can I still have a bet anywhere that day?

Yes, there will actually be one meeting in Ireland, at Cork. Irish racing is run completely separately to British racing.

Racing calls one-day strike over proposed betting tax rise

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British racing will stage an unprecedented one-day strike on September 10 in protest at a proposed rise in taxes on horserace betting.

The four scheduled fixtures at Carlisle, Uttoxeter, Lingfield and Kempton will not take place after agreements between the owners of the courses and the British Horseracing Authority, making it the first time the sport has voluntarily refused to race in modern history.

The BHA set up the ‘Axe the Racing Tax’ campaign in response to proposals to replace the existing three-tax structure of online gambling duties with a single tax, with fears the current 15 per cent duty on racing could be increased to the 21 per cent levied on games of chance.

Lingfield will not stage racing on September 10
Lingfield will not stage racing on September 10 (John Walton/PA)

Brant Dunshea, chief executive at the British Horseracing Authority, said: “We have decided to take the unprecedented decision to cancel our planned racing fixtures on September 10 to highlight to Government the serious consequences of the Treasury’s tax proposals which threaten the very future of our sport.

“British racing is already in a precarious financial position and research has shown that a tax rise on racing could be catastrophic for the sport and the thousands of jobs that rely on it in towns and communities across the country.

“This is the first time that British racing has chosen not to race due to Government proposals. We haven’t taken this decision lightly but in doing so we are urging the Government to rethink this tax proposal to protect the future of our sport which is a cherished part of Britain’s heritage and culture.

“Our message to Government is clear: axe the racing tax and back British racing.”

The four tracks involved are operated by the Jockey Club and the Arena Racing Company, with both backing the move.

Carlisle racecourse is also involved in the strike
Carlisle racecourse is also involved in the strike (Tim Goode/PA)

Jim Mullen, CEO at the Jockey Club, said: “We hope this pause for reflection will enable the Government to truly understand the economic impact of horseracing and its cultural significance to communities across the UK, as well as the world-class racing festivals we host.

“After this period of reflection, we hope the full implications will be understood, and we can prevent the irreparable damage that threatens a sport the nation is, and should be, proud of.”

Martin Cruddace, CEO at ARC, added: “We have always been taxed and regulated differently, and it is imperative for our future that we continue to be so.

“If the Government wants Britain to be a world leader in online casino and a world pauper in a sport at the heart of its culture, then tax harmonisation will achieve that aim.”

While the four meetings will be rescheduled, Paul Johnson, chief executive of the National Trainers Federation, underlined the “sacrifice” in calling a halt to the sport for a day.

He said: “Cancelling fixtures is a huge sacrifice by racing and should serve as a stark reminder to the Government of the impact its tax raid will have on our sport.

“Thousands of jobs are at stake alongside the loss of millions of pounds to the British economy.”

A Treasury spokesperson said: “We are consulting on bringing the treatment of online betting in line with other forms of online gambling to cut down bureaucracy – it is not about increasing or decreasing rates, and we welcome views from all stakeholders including businesses, trade bodies, the third sector and individuals.”