While racing went to Westminster this week to build bridges with politicians and policy makers, the sport may have damaged their relationship with big bookmakers.
There are many valid reasons why the sport went on strike on Wednesday over ‘Axe The Racing Tax’, a Treasury proposal that would align an online betting tax on racing (currently 15 per cent) with casino and slots (21 per cent).
Jockeys, trainers and officials descended on parliament to state their case. There was a who’s who of racing.
Jockeys such as Hollie Doyle and Oisin Murphy were there. Top trainers John Gosden and Ralph Beckett attended, as well as new British Horseracing Authority chairman Lord Charles Allen and chief executive officer Brant Dunshea. Arena Racing Company chief Martin Cruddace was also a loud and prominent voice.
In a sport with plenty of warring factions, this was a positive show of unity in seeing these figures talk to leading policy-makers and MPs.
A hike in betting taxes will hurt racing. It’s estimated any proposed hike will hit the industry to the tune of £66million per year and put up to 2,572 jobs at risk.
The sport sent out a clear message outside the Houses of Parliament on Wednesday
John Gosden speaks at a conference on the tax issue at the QEII Centre in London
Some jockeys join in the debate and urge politicians to scrap any potential tax raid
The community and social benefits of racing were also accentuated. Gosden probably sounded the biggest alarm bell.
The Clarehaven trainer has a remarkable ability of holding everyone’s attention.
He said in Thursday’s Daily Mail Sport: ‘When I first came to Newmarket in the 1970s, it was a grim time.
‘We were having strikes, the country was crippled by debt and it led to a three-day week. When I returned in the late 80s, the place had changed completely. We had international wealth and Middle Eastern investment.
‘It would be risky and presumptuous to think that children of the owners who brought that change will carry on with the level of investment. But there can certainty and stability in our industry if it is given the chance. I hope that the Government does not take us back to the 1970s.’
The strike seemed to catch the ear of those who will draw up the budget at the end of November but probably had less resonance outside parliament.
A tube strike ensured a quieter than usual centre of London. The political narrative had just switched from Angela Rayner’s exit to the Peter Mandelson scandal. All of this happening amid a cabinet reshuffle.
You could forgive the general public for not batting much of an eyelid on the racing world on Wednesday.
New BHA chairman Lord Allen, a Labour peer, will be expected to wield his political influence
Only time will tell if the strike had the desired impact with the Treasury. With all the movers and shakers trying to grab the ear of the government, one party that has strong and vital links with racing were conspicuous by their absence – bookmakers.
There seems to be a huge reluctance to acknowledge the importance of bookies and racing; it’s a co-existing relationship and some firms have been miffed in how they’ve been sidelined in these tax discussions.
Their main gripe has been how racing has been in lockstep with anti-gambling organisations to seal a better deal. It’s one that could see casino products be taxed up to 50 per cent instead, with racing unaffected and other sports only seeing a small rise.
Sympathy for bookmakers is always at short supply at the best of times but there is no running away from the fact that the funding of the sport flows through them.
The levy is reliant on losing punters through bets taken by licenced and legitimate bookmakers. Whacking them further with tax rises may see damage to media payment rights and a decline in levy income in 2026 and beyond – these are the principle investment streams that keep racecourses open and prop up prize-money.
Racing still may face a different kind of cashflow problem. Avoid the tax hit but bookies may pull the rug from under their feet. Welcome to the wonderful world of politics; in aligning with one party, the danger is alienating another.
As one unlikely alliance forms, a different relationship can falter. You can’t please everyone but it’s highly likely racing will have to repair some of the damage with bookies after any potential tax deal in the corridors of power is done.
The sport had to stand up on its own two feet on this. It’s made it’s voice heard but there will be grumblings from the rails.
But bookmakers have issued a warning to racing that tax raids elsewhere will hit the industry
Macbet have pulled their business from Arena Racing Company racecourses citing the cost of pitches. Flutter, who own Paddy Power, Betfair and Sky Bet, have withdrawn £1million funding for the third season of TV series Champions: Full Gallop. Bookies keep bemoaning the cost of pricing up and streaming moderate racing in Britain.
And let’s not forget that they practically sponsor every big meeting on the calendar; we had the Betfred St Leger this weekend, the Betfair Sprint Cup last weekend and we’ve got the Ladbrokes Ayr Gold Cup next weekend.
Like it or not, these are big firms putting in important money and it’s hard to see racing’s alternative funding streams come from. Big firms have the fallback of other sports, advertise in other ways through podcasts and publications, switch their businesses Stateside and into other jurisdictions. Offset most of the costs to the punter.
They have options where racing may not. The sport will have to consider its next move very carefully.
PERFORMANCE OF THE WEEK… A shared honour between two Aidan O’Brien inmates as SCANDINAVIA was a brave winner of an old-school St Leger at Doncaster, while DELACROIX quickened smartly to claim the Irish Champion Stakes at Leopardstown.
There was no hiding place on Town Moor in soft conditions under a solid pace and Scandinavia outlasted them all to give O’Brien a ninth win in the world’s oldest Classic. The roar from the stands in a thrilling finale was everything the damp squib at Epsom on Derby day wasn’t.
This looked red-hot form and with a Goodwood Cup success also in the bag, this three-year-old looks capable of being a leading light in the staying division.
Scandinavia (near side) grinds out a thrilling St Leger success at Doncaster yesterday
Delacroix (near side) showed a neat turn of foot to beat his rivals in the Irish Champions Stakes
Delacroix won the Eclipse at Sandown but Ombudsman got his revenge in the Juddmonte International. A notable morning line drifter, Delacroix defied any doubters and confirmed himself a high-class operator at a mile and a quarter when showing superior tactical speed to beat a good yardstick in Anmaat by half a length.
The Champion Stakes could be on the agenda next and maybe a tantalising round three with Ombudsman awaits as well.
SELECTION OF THE DAY…
Being a gelding, AMILOC (3-1, bet365) has to go for the Irish St Leger today instead of yesterday’s race at Doncaster but the trip across the Irish Sea can be a worthwhile one for Ralph Beckett’s three-year-old.
He didn’t enjoy the fast ground at Royal Ascot but still won the King Edward VII Stakes from another improving youngster in Zahrann.
The weight allowance helps him in taking on two established older performers in Illinois and Al Riffa. A step up in trip and slower ground should see further improvement from the unbeaten Amiloc and he can hang onto that record and make it six wins from six today (Curragh, 4.25).
