Increase in racing betting tax leads to communities facing severe distress, according to Gosden

The racing industry in the UK finds itself in a precarious position, with concerns mounting over a proposed increase in online betting taxes. According to trainer John Gosden, an estimated five billion pounds is wagered on racing globally via unregulated black market sites, suggesting that such a tax increase could drive betting to these unregulated markets, resulting in lower tax revenue for the government.

The British Horseracing Authority (BHA) has voiced its concerns, claiming that a single tax rate could have devastating consequences on an industry worth £4.1 billion ($5.5 billion) to the UK economy. Breeder David Redvers, who also expresses uncertainty about the future of the racing industry in three years, shares these concerns, viewing the betting tax as another detrimental factor for British racing, particularly as it is already struggling with declining prize money and the export of top horses.

Bookmaker Geoff Banks is equally critical, stating that the proposed tax increase will be catastrophic for racing and regulated betting in the UK. Banks, who contributes £380 million a year to the sport through taxes, media rights, and sponsorship, predicts that the rise in online tax will lead to an exodus of big betting firms abroad.

The racing authorities have not been consulted over the day of action, a move that Banks finds troubling. He believes Charles Allen, the new chairman of the BHA, will play a crucial role in navigating the industry through troubled waters. Redvers shares this hope, believing that Allen, with his strong ties with Labour and an impressive CV, including overseeing London's successful bid to host the 2012 Olympics, could help restore the industry's confidence.

The current government, seeking to raise revenues to strengthen Britain's finances, will announce its budget on November 26. The effectiveness of the BHA's lobbying efforts will become clear then. However, Redvers believes the current government's decisions are damaging the racing industry's confidence, with the cancellation of four race meetings scheduled for September 10 due to the proposed tax increase.

Trainer John Gosden argues that the tax increase could disproportionately affect rural areas, leading to unemployment and economic waste. These concerns are shared by Redvers, who believes British racing is in a downward spiral due to consistent hits. He believes the industry is moving in the opposite direction to growth and is in decline.

As the budget approaches, the racing industry awaits the government's decision with bated breath, hoping for a reprieve from the proposed tax increase and a brighter future for the sport.

Increase in racing betting tax leads to communities facing severe distress, according to Gosden