A radical alternative to Treasury plans to “harmonise” the rate of tax paid on online sports betting and high-risk casino gaming products received support from one of racing’s key stakeholder groups on Monday when Paul Johnson, the chief executive of the National Trainers’ Federation, said proposals from the Social Market Foundation thinktank, which will be published on Tuesday, “have the full backing of the NTF”.
The Social Market Foundation report – titled The Duty to Differentiate: How gambling tax reform can raise revenue for the government, reduce harm to the public and save British horse racing – was written by Dr James Noyes, a senior fellow at the SMF, with a foreword by Alex Ballinger MP, a member of the all-party parliamentary group for Gambling Reform.
In a sharp contrast to the Treasury’s proposal for a unified rate of duty, Noyes argues that online gaming, on slots and other fixed-margin casino products such as roulette, is “under-taxed” at its current rate of 21% of gross profits, pointing out that “in some European jurisdictions, tax on remote casino is closer to 40%, and in some US states it is over 50%”.
The report suggests that the tax rate on gaming products should be raised to as high as 50%, while in one chapter Noyes also proposes changes to the regime around betting tax and the Levy system, which returns money to racing from off-course betting.
Online operators at present pay an additional 10% of their gross profits on racing turnover in Levy, which represents, as Noyes points out, “a de facto horse-racing betting duty of 25%” when combined with the current 15% charge for betting duty. He suggests a change to the ratio of duty to Levy, combined with an extension of the Levy to bets on overseas racing, would improve significantly the proportion of overall betting turnover that is returned to the sport.
The SMF report notes that Martin Cruddace, the chief executive of the major racecourse group Arena Racing Company, recently proposed an inversion of the rates charged for Levy and betting duty, but suggests that this “does not go far enough” to address “systemic underfunding”. It proposes that a reduction to 5% of gross profits for racing bets alone, alongside an increase to 20% for the Levy, “would ensure fiscal neutrality for the betting industry, while fundamentally reorienting the distribution of revenue in favour of the sport”.
Johnson was among several representatives of racing’s key stakeholder groups who met Noyes last week to discuss the SMF proposals, and said on Monday that the report is “a sensible and informed piece of work that could be a route for the government to resolve the issues that have beset the sport in recent years and which are affecting our ability to compete with other jurisdictions”.
He added: “Whilst our immediate priority has been to ensure that the Treasury does not inflict a significant blow on racing via tax harmonisation, we are aware that success here does not resolve the challenges faced by the sport at present, or undo some of the damage inflicted in recent years.
The British Horseracing Authority said on Monday that Lord Allen of Kensington will take up his new role as chair of the organisation on 1 September, after the Labour peer won his first major battle in the world of racing politics and persuaded the BHA board to back his plans for a fully independent board of directors.
Allen was announced as BHA chair in November 2024 with a start date of 2 June, but his arrival as the head of racing’s ruling body was postponed in May to allow him to “continue meeting stakeholders to better inform his vision for the sport”.
The board comprises an independent chair, four independent directors and four member-nominated directors, two from racecourses and two to represent the sport’s participants, including owners, trainers, jockeys and stable staff.
Allen is believed to have insisted on an end to the member-nominated directors before agreeing to take up his new role, having concluded that the presence of sectional interests at the top of the organisation was a potential barrier to progress and innovation.
Following a meeting of the board on Monday, there was agreement that the BHA would start working towards an independent board of directors, allowing Allen to take up his new role in a few weeks’ time.
“I am delighted we have agreed to a process towards a new independent BHA board,” Allen said in a statement on Monday, “and I look forward to formally starting in September. Horse racing has a strong future. There is work to do, but I am in no doubt as to the passion and commitment of the many thousands of people who make up our industry.”
Greg Wood
“The SMF proposes a tax solution that is mindful of the very different social and economic aspects of different types of gambling, and which seeks to support a sport that means a great deal to the British public.”
In his foreword to the SMF report, Ballinger, the Labour member for Halesowen, said that “as the Treasury considers changes [to the tax regime around gambling], it is vital that they reflect the real impact of gambling on people’s lives”, and describes its “practical” proposals as “smart, fair ideas that deserve serious attention”.
Ballinger said: “The evidence is clear: some gambling products – like online slots – cause far more harm than others”, adding: “These harms carry huge costs, from personal debt and family breakdown to rising pressure on public services. Our tax system should reflect this.”
The British Horseracing Authority released research on Monday which suggests that tax harmonisation at a rate of 21% could lead to an industry-wide revenue loss of “at least £330m in the first five years” and put “2,752 jobs at risk in the first year alone”. The BHA has also launched an online petition which calls on the government to “rethink” its plans on gambling taxation.
The Betting and Gaming Council (BGC), the main body representing the gambling industry in the UK, said on Monday that arguments for a hike in gaming taxes were “naive”.
“Some naively argue that tax increases should target gaming while sparing sports betting or carving out horse racing,” a BGC spokesperson said.
“But the reality is our members don’t ringfence products in that way, these are integrated businesses. Any tax rise, whether on betting or gaming, affects the whole operation. That means less money available for sponsorship, media rights and support for sports like racing, which is especially vulnerable to changes in the customer offer.”
Sun can shine for Menuisier
The Goodwood Cup is the feature event on the opening afternoon of Glorious Goodwood on Tuesday, when the locally trained Sunway (3.05) could prove to be a decent each-way alternative to Aidan O’Brien’s Illinois, the runner-up in last year’s St Leger, in the two-mile Group One contest.
Illinois has progressed steadily since his near-miss in the Doncaster Classic and put up a career-best to finish a seven-length runner-up behind Trawlerman in the Gold Cup at Ascot last time.
He is also Ryan Moore’s pick for Tuesday’s race ahead of his three-year-old stable companion, Scandinavia, but he looked a little ill-at-ease on the undulations at Chester in May and does not have as much to spare on ratings as an early price of around 6-4 might suggest.
Scandinavia, meanwhile, will be making his third start at a staying trip in the space of six weeks, and at around 14-1, Sunway makes plenty of appeal to spring a surprise.
Goodwood 1.20 Tony Montana (nap) 1.55 Zavateri 2.30 Kinross 3.05 Sunway 3.45 Dream Composer (nb) 4.20 Naval Light 4.55 Dash Of Azure 5.30 Cinque Verde
Beverley 2.10 Blue Yonder 2.45 Rosso Levanto 3.20 Jeddaal 4.00 Haberdash 4.35 Believe In Glory 5.10 Catch Cunningham 5.47 Mayberry Moon
Ffos Las 5.42 Neptune Legend 6.15 Shetakesthegold 6.50 Sundiata Keita 7.25 Zilfee 8.00 Fifty Sent 8.30 Zooks
Ripon 6.00 Al Shaham 6.30 A’Ali G 7.05 Silver Chamber 7.40 Canaria Queen 8.10 Ferrari Gold 8.40 Homeland
David Menuisier’s colt has not raced beyond 12 furlongs since finishing just a length and a half behind Illinois in the St Leger, and remains unexposed at staying trips.
He was also less than a length behind Los Angeles in last year’s Irish Derby during a run of five straight starts at Group One level, and a sharp two miles around Goodwood could be the ideal track and trip for Sunway to register a first success at the highest level since his juvenile campaign.
Goodwood 1.20 Sing Us A Song (nap) 1.55 Tabiti 2.30 Ameeq (nb) 3.05 Field Of Gold 3.45 Bintjeddah 4.20 Zelaina 4.55 Diamondonthehill
Redcar 2.10 Tactical Formation 2.45 Circios 3.20 Triple Force 4.00 Callisto Dream 4.35 Brian The Snail 5.10 Good Karma
Sandown 5.45 Tempus 6.15 Novelette 6.50 Look To The Stars 7.25 Blue Train 8.00 Manila Thriller 8.30 Valiancy
Leicester 5.55 You Are Everything 6.28 Awaken 7.03 Dinamo 7.38 Suhub 8.13 Spectacular Style 8.43 Versailles Prince
Goodwood 1.20: Tony Montana did not appreciate the drop back to a mile for the Royal Hunt Cup last month and is better judged on his two-length second behind an unexposed rival over track and trip in May. That was his first start for eight months and he is just 4lb higher now, while a draw in stall six is also in his favour.
Goodwood 1.55: Eve Johnson Houghton’s unbeaten Zavateri was an 18-1 shot for the July Stakes last time but his one-length win was backed up by a decent time. The market may be underestimating him again at around 7-1 to defy a 3lb penalty.
Goodwood 2.30: The veteran Kinross has form figures of 1-2-1-3 in the last four renewals of this race and looked as good as ever when finishing a close second in a Group Three at Haydock last time.
Goodwood 3.45: The eye-catcher at the likely prices is Dream Composer at around 20-1. Last year’s Dash winner at Epsom rarely runs a bad race over this course and distance and is back down to his last winning mark.
