Martin Cruddace, Arena Racing Company’s chief executive officer, has appealed for lower betting duty rates and an increase in the statutory levy. His appeal follows a rumored proposal to increase Britain’s gambling tax.
Lower Betting Duties, Higher Levy
As the October 30 budget approaches, lawmakers are reportedly mulling over a gambling tax hike, much to the industry’s dismay. Cruddace, on the other hand, believes the budget to be an opportunity to differentiate between betting on horse racing and casino gaming.
Speaking to The Guardian, the CEO suggested that changes to the tax regime should reflect and amplify the differences between wagering and games of chance. Britain, for context, sports a 15% GGR tax on racing and sports betting and a 21% GGR tax on iGaming and casino games. Operators are also required to pay a statutory levy of 10% on GGR on British racing bets, which goes to the Levy Board and is reinvested in the sector.
Cruddace noted that the UK racing industry shareholders believe that the government should “urgently examine” how it taxes and regulates horse racing bets as opposed to iGaming and casino games. He argued that betting on racing tends to cause less gambling harm than online casino games and contributes a lot to the local economy.
Cruddace proposed redistributing the 5% difference between the rates charged for GBD and levy. He believes that the former should be reduced to 10% and the levy should be upped to 15%. Alternatively, he suggested making both 12.5%.
This move would keep the overall charge unchanged but will provide more support to the racing sector and its associated industries.
SMF Member Accused BGC of “Cynical Ploy”
In the meantime, James Noyes, a senior fellow of the Social Market Foundation, acknowledged the racing industry’s contributions. While the foundation recently proposed doubling the online gaming tax to 42%, Noyes agreed that the racing sector is already attracting investment and creating hundreds of jobs.
Noyes also agreed that single pre-event bets on horse races are vastly different than the more harmful high-frequency online gaming activities, such as virtual slots.
The fellow furthermore made the point that the BGC would often defend the industry’s interests to the detriment of betting.
For too long, the BGC has conflated the regulation of online slots with the fortunes of horse racing. This has been a deliberate and cynical ploy. By hiding behind horse racing, industry lobbyists have resisted calls to reform online casino gaming.
James Noyes
As mentioned, these discussions follow recent reports for potential tax hikes. The BGC firmly opposed any such measure, saying that they would add additional pressure to an industry that is already dealing with many changes.
