Latest news with #gamblingtax
BBC News
2 hours ago
- Business
- BBC News
Fears horse racing betting tax proposal could hit Newmarket
There are fears a proposed betting tax hike could damage the historic home of horse government is proposing to increase the 15% tax rate paid on horse racing bets, aligning it with online gambling and casinos, which are currently taxed at 21%.People in Newmarket, Suffolk, which has a long association with the sport, feared this could negatively impact the town and result in fewer people working in the industry.A spokesperson for the Treasury said the UK's gambling tax system was "outdated and inconsistent". Research from the British Horseracing Authority warned the tax hike could cost the sport £330m over five years and threaten 2,752 jobs in the first year. Horse racing is the second-biggest spectator sport in Britain behind football, and it was feared the hike would lead to less promotion and sponsorship of the sport, worse odds and reduced bonuses for customers, ultimately making it less attractive. Stuart Williams is a Newmarket horse trainer and felt the tax increase was a "real threat".He argued that since casino slot machines were often made in other countries, there was no large industry behind its operation."The horseracing industry is a huge industry, a world-leading industry that creates inward investment for this country, millions and millions of pounds worth of investment and creates a huge amount of work for the rural economy," he added. Steve Elsom, chair of Love Newmarket Business Improvement District (BID), said the wider Newmarket business economy could similarly feel the effects of the tax increase on bookmakers."If bookmakers decide they are going to spend less of their revenue in racing, that will have an obvious effect on towns like Newmarket," he said."There are half a dozen bookmaker premises in town, but more broadly they spend a lot of money in and around the horse racing sport."Horse racing is the second most-watched sport in the UK, but gets very little column inches."So any diminution of money going into racing will have an adverse impact." 'Make it harder' Vicky Snell, who owns Victor Victoria Coffee in Newmarket, said she saw an increase in business during race meets."I think it will change the landscape," she said. "Stables will probably have to cut their work staff, which means less people coming in on a daily basis, so it's not all about the racing."I think it will make it harder within Newmarket." The government is looking to bring existing online betting duties into one single rate.A Treasury spokesperson said: "The UK's gambling tax system is outdated and inconsistent, which is why we are consulting on how to level the playing field so all online gambling pays the same rate, working closely with the horse racing sector."The Treasury added there were no plans to change the ways bets are made at racecourses, which are exempt from any tax. Follow Suffolk news on BBC Sounds, Facebook, Instagram and X.
The Independent
07-08-2025
- Business
- The Independent
Gordon Brown: Raise gambling taxes to fund abolition of benefit cap
Gordon Brown has warned that Britain is experiencing its worst poverty in over half a century, urging Sir Keir Starmer to abolish the two-child benefit cap. The former prime minister proposed funding the abolition of the cap, which would cost £3.2 billion, through reforms to gambling taxes. Mr Brown supported a report by The Institute For Public Policy Research (IPPR) suggesting that increased gambling taxes could lift around half a million children out of poverty. The two-child benefit cap, introduced by George Osborne, restricts benefit claims for third or subsequent children born after April 2017. The Betting and Gaming Council has criticised the proposed tax increases, arguing they are 'economically reckless' and could push consumers towards unregulated black markets.
The Independent
06-08-2025
- Business
- The Independent
Gordon Brown backs gambling tax reform to tackle child poverty
Online casinos and slot machines should be taxed more to raise some of the money needed to cover the cost of lifting children out of poverty, according to a new report backed by a former prime minister. Reforms to gambling taxes could generate the £3.2 billion needed to scrap the two-child limit and benefit cap, the Institute for Public Policy Research (IPPR) said. The think tank said axing the policies could lift half a million children out of poverty and 'reverse years of rising hardship for low-income families'. The two-child limit restricts child tax credit and universal credit (UC) to the first two children in most households, while the benefit cap sees the amount of benefits a household receives reduced to ensure claimants do not get more than the limit. The Government is expected to publish a child poverty strategy in autumn, and a multitude of campaign groups have said it must contain a commitment to do away with the two-child limit. The IPPR argued that, in the face of covering the costs of scrapping the policy, it feels 'fair' to ask the 'highly profitable' gambling industry to contribute more. Echoing this, former prime minister Gordon Brown said: 'Thanks to IPPR's report, we now know that taxing gambling more fairly would fully fund the first crucial step in the war we must wage against child poverty: ending the two-child limit and lifting the benefit cap. 'There are many reasons why the highly profitable betting and gaming industry should pay a fairer share towards the cost of UK's unmet needs. Most important is that it would enable half a million children to be lifted out of poverty in this autumn's budget, and so help to build our country for the next generation.' The IPPR suggested increasing taxes on online casinos from 21% to 50% and raising those on slots and gaming machines from 20% to 50%. The organisation also proposed raising general betting duty on non-racing bets from 15% to 25% which it said would bring other sports in line with the rates paid by horseracing. The IPPR said raising gambling taxes in the way they suggested would be unlikely to reduce overall government revenue. Henry Parkes, principal economist and head of quantitative research at IPPR, said: 'The gambling industry is highly profitable, yet is exempt from paying VAT and often pays no corporation tax, with many online firms based offshore. It is also inescapable that gambling causes serious harm, especially in its most high-stakes forms. 'Set against a context of stark and rising levels of child poverty, it only feels fair to ask this industry to contribute a little more.' But a spokesperson for the Betting and Gaming Council said they rejected the 'economically reckless, factually misleading' proposals which they insisted 'risk driving huge numbers to the growing, unsafe, unregulated gambling black market, which doesn't protect consumers and contributes zero tax'. They added: 'Further tax rises, fresh off the back of Government reforms which cost the sector over a billion in lost revenue, would do more harm than good – for punters, jobs, growth and public finances.'
The Sun
01-08-2025
- Business
- The Sun
Nigel Farage urges Chancellor not to hike gambling taxes for horse racing
NIGEL Farage enjoys Glorious Goodwood yesterday — as he called on Chancellor Rachel Reeves to not hike gambling taxes. The Reform UK leader warned of enormous damage if the 15 per cent duty is aligned to the 21 per cent for online casino-style games. 2 He said: 'I do think horse racing is different. "You're making an individual decision each time to have a bet. "There are checks and safeguards in place already.' The racing industry says finances will be badly hurt if the current rate is increased for online games. A Treasury consultation on the issue has now closed. He was speaking out as he attended the West Sussex racecourse as a guest of Scottish Dubai-based businessman Dr James Hay, who has previously donated to the Tory party. His wife Fitriani has also given £50,000 to Reform UK last year. Horse trainer John Gosden has warned British horse racing will be harmed by the punishing new betting tax. "I don't want to see our industry destroyed. It would be tragic. We are world leaders." Nigel Farage on leading the polls, being 'ready' to be PM & why he 'hopes people hate him' 2
The Sun
21-07-2025
- Business
- The Sun
Fears of jobs being axed and racecourses closing if levies hit the industry
THOUSANDS of jobs will be axed and racecourses face closure if Rachel Reeves hikes gambling taxes, campaigners warn. The industry fears being stung for £66 million with communities ripped apart if horse racing doesn't receive an exemption from increased levies. 1 Racing's finances will be brutally damaged if the current 15 per cent duty rate is harmonised with online casino-style games, which currently stands at 21 per cent. Tory MP Nick Timothy, who represents Newmarket, said: 'Racing is part of who we are. "It is an essential part of our national sporting story. It is vital that the Government recognises that. 'Without an exemption for horseracing from the harmonisation plans, Britain's second-largest spectator sport and a cherished part of the social fabric of our communities will suffer great harm.' A consultation closed yesterday on how to consolidate a three-tier system into a single tax for online gambling called the Remote Betting and Gaming Duty. The warning shot to Chancellor Rachel Reeves from the industry is fired ahead of Glorious Goodwood meeting which kicks off a week today. The sector supports more than 85,000 jobs and contributes more than £4 billion to the economy, research shows. Meanwhile, a new survey has found that almost a third of punters would switch to the gambling black market if the tax hike forced legal operators to withdraw offers and promotions. The illegal operators can offer better odds as they don't have to pay the tax or support the sport. Betting and Gaming Council boss Grainne Hurst said: 'Punters are clear, get the balance on tax and regulation wrong and you hand a competitive advantage to the black market where operators pay no tax, contribute nothing to British sport, and offer no safer gambling protections. 'The gambling black market is growing and actively targeting UK customers. "Any tax rise, whether on betting or gaming, makes that offer more attractive and puts more players at risk. Any tax hike would be catastrophic. 'This would put thousands of jobs and millions in investment at risk, while threatening the future of all sports that rely on regulated betting for funding – from racing and football to rugby league, darts and snooker.' Meanwhile, Brant Dunshea, chief executive of the British Horseracing Authority, said: 'If the Government goes ahead with this smash-and-grab tax raid it will have a disastrous impact on the cherished national institution that is British horseracing. 'As we gear up for one of the biggest weeks in our calendar the Government simply must understand that its proposed tax bombshell will hammer the country's second most watched sport. 'In a worst-case scenario thousands of jobs will be lost, racecourses may have to close and the future of some of our most iconic races will hang in the balance. 'MPs with any kind of racing activity in their constituency should also understand that it is their voters' livelihoods that are at risk if there is any increase in taxes on horserace betting. 'They need to all be getting behind the campaign to axe the racing tax. Or face the consequences at the ballot box. ' A Treasury spokesperson said: 'We are consulting on bringing the treatment of online betting in line with other forms of online gambling to cut down bureaucracy - it is not about increasing or decreasing rates, and we welcome views from all stakeholders including businesses, trade bodies, the third sector and individuals.'
