The British racetrack is on pause: why horse races go on strike and what the "flat tax" will change

On September 10, not a single race will take place in the UK: the strike will be the central action of Axe's The Racing Tax campaign, which the industry is responding to the Treasury's idea to combine three online taxes into a single rate. Pool Betting Duty (15% of net bets) - it is these three that the government proposed to "bring into one bar" for the transparency of the system. At what percentage has not yet been named, but the market fears that the benchmark will be the upper level of RGD.

The BHA (British Horseracing Authority) warns that if the "flat tax" rate is higher than the current one for betting, operators will begin to pass on the costs to the player through margin increases, bonus cuts, marketing and sponsorships. For horse racing, this is a direct loss of money: according to the regulator's calculations, the industry may lose up to £330 million in the first five years, and in the first year the risk will be minus 2,752 jobs. In total, this hits the prize money, the tournament grid, the quality of horses and even the local economies of cities, where the hippodrome is often one of the centers of life.

To make the voice of the industry heard, BHA is rescheduling four meetings – in Carlisle, Kempton Park, Lingfield and Uttoxter – to other dates (to be announced separately). On the same day, owners, coaches and jockeys will travel to Westminster along with industry executives to show that for horse racing, this is not a dispute "about percentages", but a matter of the survival of tradition step, but otherwise it is impossible to achieve attention to the problem.

As a "plan B", the relevant regulator proposes to maintain a separate tax regime for horse racing. The logic is simple: the sector is already living with Horserace Betting Levy, a unique mechanism in sports that recognizes the industry's dependence on betting and returns part of the income back to horse racing.

Not everyone in the industry agrees with the way the government is pressured. The Betting and Gaming Council (BGC) sharply criticized the postponement of the races as a "useless political gesture" that would "anger the government and upset players" and was "adopted without consulting operators, whose support is critical to the financing of horse racing." The Jockey Club, Arena Racing Company and the National Trainers Federation publicly supported the pause and called for an "enlightened" tax policy, maintaining the special status of the races.

Which is important to players and fans. On September 10, there will be no betting on British horse racing, simply because there will be nothing to bet on: the program of the day is empty. But then, if the government really pulls the "flat tax" rate up, the cost of the game will increase for bettors (worse odds, less promotions), and the sport will have a shortage of sponsorship money and a reduction in prize money, less competitive races and a decrease in interest. In the opposite scenario - if horse racing retains preferential treatment - the industry will avoid a sharp blow to finances and get time for reforms.

In the meantime, the central question remains the same: what level the Ministry of Finance will choose in the autumn budget, and whether an exception will be made for horse racing. The answer to it will determine whether September 10 will be a one-time demonstration or a starting point for a long confrontation between sports and the fisk.