Chancellor’s plans to double machine betting tax threatens Ludlow Racecourse, warns MP

Proposals by the Chancellor to double the tax on gaming and slot machines will have a knock on effect on the county’s horseracing industry, an MP has said.

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Chancellor John Healey is understood to be reviewing options to double Machine Games Duty (MGD) from 20 per cent to 40 per cent when he delivers his Autumn Budget on October 28.

The indirect tax charged on net profits from gaming and slot machines that pay out cash prizes, but South Shropshire MP, Stuart Anderson. has warned that it could cause high-street betting shops to close, and because retail bookmakers cross-subsidise racing through media rights and a statutory levy, closing these shops could cost the sport up to £92 million a year.

He says it could have "devastating consequences" for Ludlow Racecourse and Shropshire’s horse-racing point-to-point courses like Bitterley.

He said: "Ludlow Racecourse and point-to-point courses like Bitterley play a vital role in South Shropshire, supporting local jobs, attracting visitors, and boosting hospitality and tourism.

“Racing contributes £4.1 billion to the UK economy, supports over 85,000 jobs, and is the nation's second most popular sport. British racing and betting have a longstanding, mutually dependent relationship.

“Racing accounts for 29% of online betting yield, while racecourses rely on £300 million in media rights payments for a quarter of their income.

“Increasing Machine Games Duty (MGD) would lead to cuts in marketing, sponsorship, and promotion. This would have devastating consequences for British racing and Ludlow Racecourse at a time when increasing restrictions on betting and new financial vulnerability checks are already creating real uncertainty for the industry and rural communities it supports. I have urged the Chancellor to rule out any hikes when he delivers his Budget."

In June, the MP also raised serious concerns about the unintended consequences of the roll-out of ‘affordability checks’ for bets placed on horse-racing in Great Britain.

The MP said this not only risks the future of racecourses and horse-racing, but also jeopardises the livelihoods of those that depend on them. Ludlow Racecourse supports over 100 local jobs and is a key part of the visitor economy in South Shropshire.