In an unprecedented move, perhaps the biggest move in racing during my year time as a gambler, British horse racing will go on strike for one day next month.
If the stakes on the proposed move to increase tax on horse racing gambling weren’t big enough, they certainly are now.
The Racing Tax issue was first spoken about in detail earlier this summer, when I called upon racing to come together and defeat the racing tax. I think the last few days have shown that racing can, and will, come together if needed.
What is happening?
I’ve watched British horse racing’s announcement with a mix of pride and concern. For the first time in modern history, the British Horseracing Authority has organised a one-day strike on Wednesday, 10th September.
Four race meetings scheduled at Carlisle, Uttoxeter, Lingfield, and Kempton Park have been cancelled, though all have been rescheduled for another date.
It’s a deliberate, symbolic blackout, with the sport coming together as a whole to halt and make one loud statement.
Why is it happening?
The strike is a response to a proposed overhaul of the UK’s gambling tax system.
The Treasury is consulting on replacing the existing three-tier tax structure with a single Remote Betting and Gaming Duty, which would see the current 15 per cent duty on horse racing bets increased to 21 per cent.
This is the same level imposed on online games of chance such as slot machines and roulette, and racing doesn’t want to be part of that mix.
Industry modelling commissioned by the BHA estimates that such a change could cost the sport between £66 million and potentially up to £160 million per year. One projection notes a £330 million revenue loss over five years and up to 2,752 job losses within the first year.
The bigger numbers in that model are unlikely, but the lower estimate of £66 million lost per year is definitely plausible.
BHA chief executive Brant Dunshea says this is a calculated move, racing is under threat, and drastic times call for drastic measures. He said, “This is the first time that British Racing has chosen not to race due to Government proposals, we are urging the Government to rethink this tax proposal to protect the future of our sport.”
What does racing hope to gain from this?
Honestly, I see this as a cry for relevance. The BHA, Jockey Club, and Arena Racing Company are staging a protest that’s part practical and serious, but also part theatrical.
Their aim is to shock the government into recognising the threat, and to protect a sport that contributes £4.1 billion annually to the UK economy and supports 85,000 jobs.
The planned Westminster event on strike day, featuring owners, trainers, and jockeys, is a personal message to say that horse racing isn’t a fringe hobby. It’s a huge part of life for many people, and the main part of life for some communities.
Critics, which include the Betting and Gaming Council are calling it a political stunt that risks alienating punters and heightening tensions with the government. From their perspective, the strike could backfire, with betting operators passing on the costs to punters via worse odds and reduced promotions.
However, supporters like NTF president Nick Alexander argue that it’s precisely the kind of attention needed —a sacrifice for the greater good. Even people involved, but on the outside, such as bookmakers and racegoers, acknowledge the size of this move.
It’s also worth pointing out the solidarity from the Jockey Club, ARC, and trainers. Racing loves to have internal bickering and arguments, but on this particular subject, everyone is together. We don’t see that anywhere near enough.
I understand why this strike is happening. It’s not just about money. It’s about preserving racing in the long term and trying to steer clear of online gaming and other forms of gambling. Once you’re put together, it’s almost impossible to be separate again.
Halting racing for a day comes at a cost, which is an estimated £700,000 hit to media rights and associated revenue.
Come September 10th, we’ll see what happens, who is listening, and, more importantly, what comes next.
