Budget: Growing concern gambling tax could impact hospitality
There is growing concern that the potential gambling tax levied by Rachel Reeves and the Treasury could have a knock on effect into the hospitality industry.
A levy that would see bookies forced to pay a hiked tax sum, to bring them in line with online casinos and gaming sites, could be catastrophic for sports such as horse racing. It would see a rise from 15 per cent to 21 per cent.
But a top hospitality provider has warned changes to betting rules could deter punters from attending a day at the races, which could in turn hit industries such as hospitality and food and beverage.
“There’s less money around and punters are already being more conservative with their cash,” Neil Bailey of Pitch Experiences tells CityAM.
He adds that a gambling tax could hit hospitality indirectly, stating that it “will weaken confidence in the economy from our industry”.
Gambling tax a stinger for hospitality
Pitch Experiences cover events including the Darts World Championship at Ally Pally and a number of cricket events. They offer experiences at the Cheltenham Festival and Royal Ascot, and it is hoped these larger events will remain popular on the calendar.
But smaller courses have been forced to reschedule fixtures, and some have described that move as a strike against any incoming gambling tax at this autumn’s Budget.
Reeves is likely to need to find tax rises from somewhere and it is thought the Treasury are eyeing bookies, who operate across horse racing.
Added Bailey: “This summer, some events we would describe as bankers were slightly down in uptake. Some firms saw sales agents returning hospitality for events like the England Test at the Oval, which is almost unheard of – so we need all the help we can get, and this isn’t it.
“This feels like a tax on a tax on a tax, and eventually sport could become completely unaffordable for punters.”
The BHA says the horseracing industry is worth £4.1 billion to the UK economy and supports 85,000 jobs, while thousands rely on the wider sporting industry.