Dear Constituent,
Thank you for contacting me about the Government's proposed changes to taxation of gambling and the impact of these on the sport of horse racing.
As you know, the Government is proposing to bring existing online betting duties into one single rate. If this goes ahead, it will mean increasing the current 15 per cent rate paid by bookmakers on horse racing to match the 21 per cent rate currently applied to online games of chance. But as the Leader of the Opposition has said, horse racing is a sport as well as entertainment and a way of life, and is much more than just playing cards or playing the National Lottery.
Like you, I have concerns about how the Government's changes will impact the horse racing sector. Economic analysis commissioned by the British Horseracing Authority has found that the changes could cost approximately £66 million in lost income via the Levy, media rights and sponsorship. This is because operators are likely to seek to mitigate significant tax rises through cutting bonuses, reducing advertising and marketing budgets and increasing prices.
Should the Chancellor decide to increase the rate to above 21 per cent, this could mean the horse racing sector faces an even more detrimental tax hit.
The Government's proposals threaten jobs, livelihoods and the sport of horse racing. I echo the calls made by the Leader of the Opposition, the Shadow Secretary of State for Culture, Media and Sport and the Shadow Sports Minister for the Government to listen to the concerns of the sector and rethink this ill thought-out proposal.
Thank you again for taking the time to contact me.
Sincerely,
