Faced with the possibility that the U.K. would lose its status as a global racing hub, the government has agreed to move up the timetable to review the levy in an effort to fix the financial state of the industry.
Chris Philp, recently named the minister responsible for racing and gambling, spoke during a debate in the House of Commons after Matt Hancock, MP, talked about the contribution of horseracing to the economy, according to the Racing Post.
It was a “crucial time for the British horseracing industry” which, aside from a contribution of around £4 billion (US$5.4 billion) a year to the economy, also acted as “a bridgehead for significant trade and investment into the U.K.,” Hancock said.
He also warned that post-pandemic the industry faced a fall in prize money and activity in the bloodstock sector.
“We’ve seen other countries around the world such as Ireland, France and Australia stepping up to back their racing industries more and if we don’t follow suit, we’ll be overtaken as the home of racing, and we must not let this happen.”
Under the current requirements, U.K. bookmakers support horse racing with 10 percent of their profits, according to SBC News. He called on ministers to fix “loopholes” in the levy. First, change the levy from gross profits to turnover. Second, apply the levy to all racing globally bet on by British customers, a move that could generate around £20 million a year for British racing.
Philp said a levy review was set for 2024 but he would consider moving the timetable up. The minister told MPs that 2017 reforms of the levy, “exceeded expectations” in how much extra income it had brought in.
