Brant Dunshea Urges Government Halt to Affordability Checks Amid Levy Reform Setback
British Horseracing Authority (BHA) Chief Executive Brant Dunshea has called on the UK government to halt the planned introduction of affordability checks for betting, following a decision not to reform the horserace betting levy. The move comes as a significant blow to the racing industry, which relies heavily on levy funding.
Government Rejects Levy Reform
In a written statement released on Wednesday, Ian Murray, Minister for Creative Industries, Media and Arts, confirmed the government would not pursue legislative changes to the rate of the horserace betting levy. The government also rejected proposals to extend the levy to cover overseas racing. This decision follows a nearly three-year review initiated by the previous government.
BHA Response and Concerns
Dunshea expressed his disappointment with the government’s decision, stating it had taken an extended period to reach a conclusion. He indicated that ministers would be “genuinely congratulated” if they were to now halt the implementation of affordability checks, which are expected to place further financial strain on the racing sector. Racing Post
Background: The Horserace Betting Levy
The horserace betting levy is a statutory levy paid by betting operators in the UK to support British racing. Funds collected through the levy are distributed to racecourses and the BHA, contributing to prize money, racecourse improvements, and the regulation of the sport. The current levy system has been a subject of debate, with industry stakeholders arguing for reform to ensure a fairer distribution of funds and address the growing challenges facing the sport.
Impact of Affordability Checks
Affordability checks are measures designed to assess a customer’s ability to afford their betting activity. While intended to protect vulnerable individuals, the industry has voiced concerns that the implementation of these checks will be overly intrusive, drive customers to the unregulated black market, and significantly reduce revenue for racing. Daily Mail
Budget Reflections and Gambling Tax Harmonization
Recent discussions surrounding gambling tax harmonization also contributed to the industry’s concerns. Independent modeling commissioned by the BHA demonstrated that a harmonized tax rate of 21% could cost the horseracing industry around £66 million per year and potentially lead to job losses. The BHA successfully campaigned against these proposals, highlighting the sport’s comparatively weak tax position relative to other gambling products. British Horseracing Authority
Illegal Gambling Market Growth
The potential impact of affordability checks and tax changes is further compounded by the growth of the illegal gambling market, which generated an estimated £270 million in the UK last year. This unregulated sector poses a threat to both the financial stability of the racing industry and the safety of consumers.
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