Grave threat to racing's finances as Gordon Brown calls for massive gambling tax hike in move that would devastate sport
Former prime minister Gordon Brown has called for a £500 million hike in gambling taxes on gaming machines, warning it would devastate British racing's finances.Summary
Former prime minister Gordon Brown has called for a major increase in the machine games duty (MGD) levied on gaming machines in betting shops, claiming it could raise up to £500 million to help mitigate rising household energy bills. Speaking on BBC Radio 4's Today programme, Brown predicted that prime minister Andy Burnham would want to implement such a measure. The proposal poses a significant financial threat to British horseracing, which is already facing declining revenues. Racing leaders warned that any further contraction of the betting-shop estate could result in lost levy and media-rights income.
The British Horseracing Authority (BHA) responded by pledging to engage constructively with Burnham's Labour government to highlight the value of high street betting shops and the sport they support. BHA chief executive Brant Dunshea said he wanted a less "combative" relationship with new gambling minister Vicky Foxcroft and emphasized the need to address complex interrelated issues, including the potential growth of the black market. The Betting and Gaming Council (BGC) estimated that doubling the MGD rate, as proposed by the Social Market Foundation think tank in June, could lead to the closure of more than 2,900 betting shops, the loss of over 21,000 jobs, and a reduction of £70 million in contributions to racing through levy and media rights.
Brown has previously influenced gambling tax policy, having recommended significant increases in remote gaming duty, MGD, and general betting duty last year, although then-chancellor Rachel Reeves ultimately raised RGD to 40 per cent and GBD online to 25 per cent from April 1, with an exception for racing betting. Industry analyst Dan Waugh of Regulus Partners described the latest proposals as a predictable rerun of last year's strategy, warning that the same playbook could prove effective again unless the industry mounts a stronger response. Meanwhile, Burnham has separately announced plans to make it easier for local councils to block new betting shops, citing the decline of Britain's high streets.
(Source：Racingpost)