MArdin Grudges, chief executive of racecourse operator Arena Racing Company, has called for “a reduction in the racing tax rate and an increase in the statutory levy to reflect its international standing to make our industry an incredible growth story again”. , and prevent the game from falling into decline due to potential changes to taxation around gambling primarily aimed at high-risk online slot and gaming products.
The £11bn gambling sector is reportedly seen as a significant source of additional tax revenue by the Treasury ahead of the Budget on October 30. Backed by betting's key stakeholder groups, Crutace believes this is an opportunity to reaffirm the distinction between betting, betting and sports and fixed-margin casino-style gaming that guarantees a profit for the operator.
General betting duty on betting and other sports betting is set at 15% of gross profit, while remote gaming duty on online slot machines and casino products is 21% of gross profit. Gambling companies pay a statutory levy of 10% of gross profits on British betting bets, which is returned to the sport by the Levy Board as prize money and other funds.
Crudace told the Guardian that changes to taxation around gambling should reflect, but amplify, the clear differences between mere betting and games of chance.
“Speaking on behalf of all British racing's stakeholders, it is right that the new government urgently examines how betting on horse racing is regulated and taxed, as opposed to online slot machines and casino games,” Crudace said.
“The prediction of gambling-related harm is vastly different between horse racing betting and online gambling, with British horse racing being the world's leading industry making a huge economic contribution to the country.”
Quick guide
Greg Wood's Notes for Tuesday
show
Market ration 2.05 Roadless Traveled 2.35 Prince Imperial 3.05 Court 3.35 Queen's Venture 4.05 Hidden Depths (nb) 4.35 Into the Sunset 5.08 Bohemond Antioch
Yarmouth 2.15 Almerac 2.45 Wave Rider 3.15 Al Wasila 3.45 Dubai Time 4.15 Float 4.45 Realized 5.15 Starshot
Leicester 2.28 Questionable 2.58 Freak Encounter 3.28 Maids Head 3.58 Swift Storm 4.30 Alsahir 5.03 Spirit Genie (Sleep) 5.35 Swatch
Newcastle 4.25 Appreciate 4.58 Up The Jazz 5.30 Hawaii Five O 6.00 Yuvraj 6.30 Miss Mimi 7.00 Walton's Law 7.30 Commander Of Life 8.00 Master Painter 8.30 No Saint
Crudace could redistribute the 5% difference between the rates charged to the GBD and the levy, a direct rate-shift, reducing the GBD to 10% and raising the levy to 15%, or moving both to 12.5%. The overall levy on companies' gross profits in betting would remain unchanged, but the reduced rate of GBD would encourage operators to focus on betting while the additional levy revenue would support betting and related industries.
His intervention in the debate on gambling taxation came after the Social Markets Trust thinktank released a report at midnight on Monday, which argues for doubling the RGD from 21% to 42%, raising an estimated extra £900m in tax. revenue The focus of the SMF report is on the online gaming sector, the huge explosion in RGD and particularly online slot machine revenue.
However, James Noyce, senior fellow at SMF and lead author of the report, said, “ [racing] The industry generates £300 million in taxation annually and attracts inward investment from overseas”, and “in terms of jobs, there is an ecosystem of employment in and around racecourses, training grounds and stud farms. [including] Jockeys, stable staff, vets, feed dealers, grounds staff and racecourse staff, as well as related jobs in the wider hospitality sector during events.”
Noyes also notes that “pre-event horse racing is qualitatively different in terms of harm from other high-frequency remote gaming activities such as online slots.”
Quick guide
Greg Wood's Notes for Monday
show
Hereford 1.30 Leloopa 2.00 Lock Out 2.30 Aotano 3.00 Baskerville 3.30 Invictus Allen 4.00 Honey I'm Good 4.30 Apples Moon 5.05 Hedera Park
Windsor 1.42 The Maid in Chelsea 2.12 Bama Llama 2.42 Rickisa 3.12 Thanksgiving 3.42 Galactic Glow 4.15 Zambezi Magic 4.50 Albus Anne 5.25 Crocus Time
Musselburgh 1.50 Dogged 2.20 Deauville 2.50 South Parade 3.20 Reel Her In 3.50 Eminent Jewel (nap) 4.20 Space Ninja 4.55 Royal Duke
Kempton 4.05 Mogadile 4.40 Loyalty 5.15 A Feelin 5.45 Naval Command 6.15 Your Lordship 6.45 El Jude 7.15 Starshipa 7.45 East Bank 8.15 Dynamist
Wolverhampton 4.25 Phoenix Beach 5.00 Veblen Good 5.30 Mesaphy 6.00 Wanted 6.30 Atosh 7.00 Port Noir 7.30 Dasever 8.00 Bobassius (NB) 8.30 Blue Hero
Reports that gambling duties could rise sharply later this month prompted warnings from chief executive Greinne Hurst, including a proposal by the Institute for Public Policy Research that the GBD should rise by 30% and the RGD by 50%. The industry body, the Racing and Gaming Council, told Racing Post on Monday that “any further tax increases now would not only hinder the growth of our industry, but threaten jobs and derail horse racing entirely”.
However, Noyes believes that such comments follow a familiar pattern in which the physical gambling industry's gaming interests are harmed by betting.
“For too long, BGC has linked the regulation of online slots with the fortunes of horse racing,” said Noyce. “This is a deliberate and cynical ploy. Industry lobbyists have resisted calls to reform online casino gaming, hiding behind horse racing.
“But people understand that there is a difference between games of skill and games of chance, and online slots have much higher rates of harm than other gambling sectors. Minister [for gambling, Fiona Twycross] He admitted this at the Labor Party conference recently [during an SMF panel] It is important to distinguish between types of gambling activities.”
Predictions from the gambling industry that moves to regulate gaming products will result in imminent doom for betting are certainly not new. Throughout the ultimately successful 15-year campaign to restrict £100-a-spin roulette machines to high street betting shops, it was often said that if they were reduced to £2-a-spin, wholesale would shut down across the retail sector. A big hole in the racing balance sheet. It didn't happen.
Cruddace's intervention in the debate shows support for racing – and hostility to gaming – would have been welcomed by racing's senior executives as the machines reap huge, guaranteed profits. from Britain's most disadvantaged communities, and in the process causing untold harm. If this signals the sport's renewed willingness to engage in racing, it's certainly welcome and not premature.
A Betting and Gaming Council spokesman said: “Speculation about a tax increase is the result of hypothetical economics and is not credible. Recent regulatory changes have contributed to the closure of 2,485 bookmakers since 2019, a loss of around 10,000 jobs. Any further tax hikes will not only hinder the growth of our industry, it will threaten jobs and income for horse racing. We welcome many of the measures in the Gambling White Paper, including the new stake limits for online games, while the recommendations opposing BGC reform are flawed.
