British Racing Potentially Facing Major Damage due to Hong Kong Jockey Club CEO's Warnings on Proposed Tax Increase
Headline: Concerns Raised Over Potential Impact of Tax Increase on British Racing Industry
The racing industry in Britain could face a significant financial blow if the tax rate on horserace betting is increased, according to independent modelling. The potential £330 million hit over the next five years has raised concerns among industry leaders, including the CEO of the Hong Kong Jockey Club, Winfried Engelbrecht-Bresges.
Engelbrecht-Bresges has expressed his concerns about a potential increase in taxation by the UK government, stating that it could harm Britain's racing and breeding industries. He believes that racing should be treated differently due to its unique economic impact and mental game aspects, unlike games of chance.
Annual betting turnover on British racing is estimated to be approximately £13bn, with 1,458 race meetings scheduled for 2026. This is significantly higher than Hong Kong's 88 race cards. However, Engelbrecht-Bresges warns that higher tax rates on horserace betting, combined with affordability checks, could lead to an increase in money flowing into the black market.
John Gosden, a racing official, has also warned of challenges facing British racing. He joins other industry officials, including administrators, trainers, racecourse executives, and jockeys, who have urged the Treasury to carefully consider the potential financial impact of increased taxation.
Engelbrecht-Bresges, who chairs the International Federation of Horseracing Authorities, has expertise in analyzing black market gambling operations. He leads an organization that is currently studying the impact of regulations and taxes on the illegal gambling market worldwide. The organization, the International Association of Gaming Regulators (IAGR), estimates that the illegal gambling market could be worth $1.7 trillion worldwide in 2024 and growing faster than the regulated sector.
The Hong Kong Jockey Club has pioneered the World Pool, hosting commingled betting pools across international racing's biggest meetings. The World Pool ploughs millions in revenue into host operators' coffers. In 2025, 17 of the 37 designated World Pool racedays featured a total of 19 British meetings, and another four Irish dates.
Engelbrecht-Bresges believes that deep value in the pool can combat the illegal market. This was evident in the turnover in the global pools, which was up by 11% at Glorious Goodwood and 10% at Royal Ascot. Australia is of comparable importance to the World Pool schedule.
However, Engelbrecht-Bresges is concerned about the potential negative effect on the global racing industry if the British market becomes over-regulated. He warns that if restrictions or high tax rates are introduced in certain jurisdictions, money may flow back into the black market. This could have detrimental effects on the racing industry as a whole.
In conclusion, the potential increase in taxation on horserace betting in Britain could have significant financial implications for the racing industry. Industry leaders are urging the Treasury to consider these potential impacts carefully to ensure the sustainability and growth of the industry.
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