British Racing Could Face 'Substantial Damage' Due to Proposed Increase in Hong Kong Jockey Club's Taxes, Warns CEO
In the world of horse racing and betting, a potential tax increase by the UK government has sparked concerns among industry leaders. Winfried Engelbrecht-Bresges, CEO of the Hong Kong Jockey Club and chair of the International Federation of Horseracing Authorities, has expressed his apprehensions about the proposed change.
Engelbrecht-Bresges warns that over-regulation and tax increases could lead to significant economic damage, not only for wagering companies but also for the racing and breeding industries. He argues that if regulations and taxes are too high, betting will move back to the illegal market, reducing liquidity in the pools.
Newbury racecourse, mindful of the potential impact from a gambling tax rise, has narrowed losses in the first half of the year. If enacted, this tax increase could cause significant harm to Britain's racing and breeding industries, according to independent modelling.
The British Horseracing Authority (BHA) estimates annual betting turnover on British racing at approximately £13bn. The UK government is considering a tax increase from 15% to 21% on horserace betting, which is similar to the current duty on online casino games and slots.
Engelbrecht-Bresges also chairs the International Federation of Horseracing Authorities, an organization that advises national racing bodies and has expertise in analyzing black market gambling operations. He believes that the huge volume of the pools offers greater value to betting customers and is concerned that any future leakage to the black market could have a negative effect globally as well as locally.
The World Pool, a commingled betting pool system pioneered by the Hong Kong Jockey Club since 2019, has been generating millions in revenue for host operators. The World Pool schedule includes 17 British meetings and 4 Irish dates, making Britain an important part of the World Pool. The Hong Kong Jockey Club's betting turnover for the 2024-25 season was HK$139 billion (approximately £13bn or €15bn).
Notably, John Gosden, a prominent figure in British racing, has also voiced his concerns. He warns of challenges facing British racing, stating that over-regulation could leave the industry with 'not much of an industry' left. The British racing season in 2026 consists of 1,458 race meetings, while Hong Kong's season comprises just 88 cards.
British racing administrators, trainers, racecourse executives, and jockeys have all urged the Treasury to carefully consider the implications of such a tax increase. The Treasury, in response, has issued a tetchy statement suggesting that racing might have to tread carefully with its tax campaign.
However, the exact timeline for the proposed tax increase remains unclear, as the search results do not contain information about when the UK government proposed increasing taxes on horse racing and betting. The debate continues, with industry leaders and stakeholders closely watching developments to safeguard the future of horse racing and betting in the UK.
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