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Racing faces a potential £57 million annual hit to its finances after the Budget raised machine gaming duty for betting shops by five per cent, according to British Horseracing Authority chief executive Brant Dunshea.
Dunshea warned the increase would have “devastating impact” on the future of sport.
He said the sport should prepare for reduced prize-money, thousands of job losses and doubts about whether racecourses can remain viable.
“While the government has rejected a worst-case scenario to increase Machine Games Duty to 40 per cent, in raising the rate to 25 per cent it will nevertheless cause significant damage to racing’s finances,” Dunshea said in a statement.
“There is now a clear risk that this decision will lead to the closure of hundreds, if not thousands, of betting shops across the country.
“British racing – which derives nearly a third of its £350 million annual income from betting via high street shops – is now set to potentially lose £57m a year, based on the independent modelling that was shared with the Treasury ahead of today’s Budget.
“While the MGD rate increase is not as severe as some called for, this change could still prove devastating for the future of our sport – impacting prize-money, the viability of racecourses, thousands of jobs; and vital horse welfare projects and research.
“Betting shop closures will also significantly impact a large part of the sport’s fanbase for whom a visit to their local bookie is the primary way they engage with horseracing.
“As the only sport in receipt of a statutory levy from the betting industry, we will seek to urgently engage with the Government to establish how we can work together to reduce the impacts of this tax policy.”
The BHA said it would examine the Budget documents in greater detail to establish whether any other potential issues may affect racing.
Entain, the UK’s biggest bookmaking presence on the high street, also hit out at the government’s decision to raise taxes.
Stella David, chief executive for the group, said: “This is another disappointing decision by the government. The previous gambling tax increases announced in November last year have already had detrimental consequences across the industry, with the effects being felt by employees, communities as well as customers.
“These additional tax changes will further compound that damage and push more people into the growing illegal market.
“We will continue to work hard to limit the impact of these changes on our business, our people, and the communities in which we operate. Our priority is to protect jobs wherever possible whilst supporting a sustainable retail presence on UK high streets.”
