Arena Racing CEO Urges Reforms to Betting Duty and Levy to Boost UK Racing Industry

Martin Cruddace, CEO of Arena Racing Company, has called for a reduction in betting duty rates and an increase in the statutory Levy to help revitalize the UK racing industry. Cruddace believes these changes would "make our industry, once again, an incredible growth story reflecting its international status" and protect the sport from potential fallout due to forthcoming changes to gambling tax laws, which are primarily targeting high-risk online slots and gaming products.

The UK’s £11bn gambling sector is reportedly being eyed by the Treasury as a potential source of increased tax revenue ahead of the upcoming budget on October 30. Cruddace, backed by key stakeholders in racing, sees this as an opportunity to highlight the distinction between sports betting, such as horse racing, and fixed-margin casino gaming, which ensures operator profits.

General Betting Duty on racing and other sports betting is currently set at 15% of gross profits, while Remote Gaming Duty, applied to online slots and casino games, is higher at 21%. Additionally, gambling companies pay a 10% Levy on gross profits from British racing bets, which is reinvested into the sport via prize money and other funding through the Levy Board.

Cruddace stressed that any upcoming tax reforms should take into account the significant differences between betting on horse racing and games of chance. He told the Guardian, “Speaking on behalf of all British Racing’s stakeholders, I can say it is only right that the new government urgently examines how it taxes and regulates betting on horse racing as opposed to online slot machines and casino games.”

He further emphasized, “The predilection for gambling-related harm is wildly different between horse-race betting and online casino games, with British horse racing a world-leading industry that makes a major economic contribution to the country.”