British racing chief warns Budget increase to fixed‑odds gaming tax could be 'devastating'

Brant Dunshea, chief executive of the British Horseracing Authority, warned on Wednesday that the sport could suffer “devastating” consequences after Chancellor John Healey, in his first Budget, raised the duty on profits from fixed‑odds gaming machines in betting shops from 20% to 25%.

The Machine Games Duty increase to 25% fell short of the 40% rate recommended earlier this year by the Social Market Foundation, but Dunshea said the ruling body will now need to assess the consequences for racing. He described the change as presenting a “clear risk” that “hundreds, if not thousands” of betting shops nationwide face closure and urged engagement with government to mitigate the effect.

Dunshea quantified the sport’s exposure to high‑street betting, noting there are currently around 5,500 betting shops in the UK and that the average shop contributes approximately £25k to racing annually via the Levy and rights payments for live coverage and data. “British racing derives nearly a third of its £350m annual income from betting via high street shops,” Dunshea said, “[and] is now set to potentially lose £57m a year, based on independent modelling that was shared with the Treasury ahead of today’s Budget.”

Warning of broader consequences, Dunshea said: “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.” He added that “[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 horse racing.”

Gideon Salutin, the co‑author of the Social Market Foundation report that had advocated a larger rise in MGD, said the think‑tank was “pleased” that MGD had been raised, “reflecting the higher harm associated with this form of gambling”, but described the increase as “relatively limited”. He added that the SMF remains “sceptical that such a small rise will have a significant impact on industry behaviour.”

Financial markets reacted to the Budget announcement: shares in Entain, owner of Ladbrokes and Coral, were up 8% shortly after Healey’s statement while share in Evoke, which owns William Hill, rose by 3.5%.

The British Horseracing Authority has said it will “urgently engage with the government to establish how we can work together to reduce the impact”, an approach the BHA says follows independent modelling it shared with the Treasury ahead of the Budget.