Plumpton Director Makes Online Casino Case to Solve Gambling Taxes

The proposed increase in gambling taxes has caused rancour in the horse racing community, and another prominent figure has weighed in with their thoughts. A director of a racecourse in East Sussex has now become the latest person to criticise the suggested hike from 15% to 21%.

Raising the levy on online horse racing bets would bring the rate in line with casino games and internet gambling, but Plumpton Racecourses’s Thomas Savill is adamant that horse racing would be left reeling by the changes. Indeed, Savill is under no pretence that the horse racing industry is already struggling.

Online casinos should bear the brunt

Savill has come up with a creative suggestion to solve the gambling tax row. He believes the government should be targeting what he calls “pretty much pure profit” online casinos to bear the brunt in an effort to raise revenues.

Discussing the worrying trend in horse racing betting, Savill said: “Any tax increase on horse racing would be absolutely detrimental to an industry that’s really struggling at the moment.

“With less investment, there’ll be less owners and, as a result, less horses, thereby making the sport less competitive.”

Horse racing presenting a united front

Earlier this month, the British Horse Racing Authority (BHA) staged a two-day strike. Low-key meetings at Kempton, Lingfield, Carlisle, and Uttoxeter were cancelled over plans to harmonise duty rates for online betting and casino play.

Many of the horse racing community took to the streets of Westminster to protest against the proposed tax rates, brandishing banners that read “Axe the Racing Tax”. Jockeys and owners alike implored politicians not to make cuts that could potentially decimate the industry.

According to research carried out by the BHA, an increase in the online horse racing betting tax rate would see the sport lose up to £160million in the first year in the worst-case scenario. Over five years, it is thought that the sport could haemorrhage as much as £330m in income. Moreover, it has been claimed that up to 2,700 racing jobs would be at risk of being cut in the first year.

Racing row continues unabated

It has been claimed that a rise in gambling taxes would impinge more upon bookmakers than punters. There is a concern that with less desirable odds, fewer bets would be placed, which in turn could mean the winners’ prize money ends up being reduced.

The government has already been at pains to point out that nothing is set in stone, and they have denounced the ongoing rumours. Exchequer Secretary to the Treasury, Dan Tomlinson, said: “The chancellor has been clear that speculation on tax rises is not only inaccurate but also irresponsible.

“We have not announced an increase in the tax on horse racing betting, and racecourse betting currently gets a 100% tax break, which we have plans to change.

“Our wider gambling consultation is only about levelling the playing field and simplifying the system, and we are working closely with the industry to understand any potential impacts.”

All eyes will be on the Budget on November 26, and Savill has been very direct on what course of action the government should take. The debate has continued to rage on, but it remains to be seen whether his calls will fall upon deaf ears or if a compromise will be reached.