British horse racing will grind to a halt in protest against the racing tax. What you need to know

British horse racing is set to grind to a halt on Wednesday in an unprecedented protest against proposed changes to betting taxes. This marks the first time in modern history that racecourses, owners, trainers, and jockeys have voluntarily refused to compete, leading to the cancellation of scheduled fixtures at Carlisle, Uttoxeter, Lingfield, and Kempton.

The industry is demonstrating its opposition to suggestions that the current three-tax structure on online gambling duties could be consolidated into a single levy. A significant concern is that the existing 15 per cent duty on racing could be raised to 21 per cent, mirroring the rate applied to games of chance, which would severely impact the sport's financial stability.

Brant Dunshea, acting chief executive of the British Horseracing Authority (BHA), emphasised the importance of this collective action, stating he "feels it is important for the sport to make a united stand."

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Speaking to Sky Sports Racing at Windsor on Monday evening, he said: “We’re trying to create a space when leaders from across the sport, stakeholders and participants can come together at the heart of government, in Westminster, and sound out our clear message to government around the proposal to harmonise the betting duties.

“And that is that we don’t support that and we believe British racing should be treated differently to other betting products because of all the wonderful things we bring to Britain’s social fabric – 85,000 jobs across the country, we support communities right across the nation and we are global leaders and an important soft power lever for government.”

What is happening?

For the first time in the modern history of the sport in Britain, its participants will voluntarily go on strike for a day. A day of protest will be held in Westminster, with key industry figures set to speak at an afternoon event.

What does that mean?

Put simply, there will be no racing in Britain on Wednesday. The meetings scheduled for Lingfield, Carlisle, Uttoxeter and Kempton have all been rescheduled so racing can put on a united front in London.

And why has all this come about?

The strike announcement has come as part of British racing’s ‘Axe the Racing Tax’ campaign, which is urging the Government to rethink the Treasury’s proposal to bring existing online betting duties into one single rate.

Why would tax rises be so bad?

Economic analysis commissioned by the British Horseracing Authority has shown that aligning the current tax rate paid by bookmakers on racing with that of online games of chance could see a £330 million revenue hit to the industry in the first five years, putting 2,752 jobs at risk in the first year alone. Bookmakers currently pay 15 per cent tax on racing bets, but as they also pay into the Levy – at a rate of 10 per cent of all gross profits on racing betting – it is effectively a 25 per cent tax before any proposed rise.

Strike action will surely cost the sport money?

It will, it is estimated it will cost around £200,000 in lost revenue on the day.

So does the racing industry support the strike move?

In a word, yes. Racecourses, owners and trainers are all in agreement. When the strike was initially announced, the National Trainers Federation said cancelling fixtures was “a huge sacrifice” which should serve as a stark reminder to the Government of the impact its tax raid will have on our sport”.

Is this is a one-off, or will there be more strikes?

No more strikes are planned, as things stand.

Can I still have a bet anywhere on Wednesday?

You can have a bet in Ireland, where there is racing at Cork, as the action is just taking place in Britain with all other jurisdictions continuing as normal.