William Hill CEO Ralph Topping has accused government minister John Penrose of reneging on promises over gaming machine taxes in last week’s Budget, declaring that funding for UK horse racing could be affected.
Land-based gambling was the big loser among UK industries in last Thursday’s Budget, hit by close to £50m in additional annual taxes in the form of a 20% tax on gaming machine takings, with Topping writing in his blog on Friday Treasury’s pre-Budget promise to introduce a “fiscally neutral and sustainable” level of tax “wasn’t worth the paper it was written on.”
The outspoken Hill’s CEO added that not only did the rate benefit no-one in the gambling industry, it could also potentially affect 60,000 people reliant on funding through the Horse Race levy, on which the gambling industry was working with the UK horse racing authorities on inking a long-term deal, rather than negotiating right up to the deadline every year.
Topping said: “John Penrose [minister for tourism & heritage] was meant to be having a word with his Treasury colleagues to ensure that there was enough left in the pot for racing. Well, now it looks as if [economic secretary to the Treasury] Chloe Smith has run off with the cash and that there is no pot to fish in.”
Bookmakers agreed last year under the terms of the 51st annual levy scheme to pay £72.4m to UK horse racing in the financial year starting 1st April 2012, with William Hill, Ladbrokes and Coral committed to £45m between them and Betfair, whose exchange-based business model falls outside the current remit of the levy, volunteering to provide £6.5m.
The British Horse Racing Authority (BHA) however expressed their disappointment that the figure fell outside of the £73.7m to £80.8m range agreed for the previous scheme. Chairman Paul Roy has argued that the re-location of most of the industry offshore to Gibraltar in recent years and horse racing giant Betfair not being liable for the levy was costing the industry vital revenues necessary for its survival.
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