The risks to motorsport in the UK due to the government gambling review, rising cost of living and concerns about the sport’s competitiveness were highlighted in the annual report of Levy Board announced on February 2.
While tax returns for the year to the end of March 2022 have returned to pre-COVID levels, there’s a caveat that that number presents more of an immediate threat than an upside potential. The council, along with other racing stakeholders, is waiting for the government to publish its long-delayed gambling review white paper, which is expected to contain proposals to examine the affordability of those bet.
Bookmakers pay 10% of their gross profit on the UK race to collect the money, the UK race’s central funding system, which will be affected if punters stop betting or switch to the market. black market due to intrusive affordability testing. The pre-tax output for 2021-22 is £97.6 million, up significantly from the previous year’s £82 million when no races took place for 10 weeks due to COVID.
The 2019-20 earnings are £98 million and Levy Board chief executive Alan Delmonte said in his statement that it can be assumed a figure of around £95 million to £100 million can now be realized. as the standard for this tax.
However, he added: “While this seems like a reasonable assumption, there could be more direct threats to this number than an opportunity for it to rise. Among them is the picture. The macroeconomics are deteriorating and another factor is the overall competitiveness of the races. competition in the first quarter of 2022, continues into the second, and the challenges of addressing these are paramount in the minds of the main racers.”
Delmonte says the current tax year has received an early boost with a 50-1 success of Nobility Yeats in the Grand National but warned: “This has masked weaker results elsewhere, leaving potential concerns about competitiveness.”
Levy Board Chairman Paul Darling said in his statement that the impact of gambling reviews is another key factor for it to consider. He said: “At the time of writing the article has not been published. When it is published, we will assess what it means for the income available to invest in racing and will pass on the government’s perspective. about the potential impact of the proposals.”
Darling added: “Cost of living challenges, assessment of gambling and ongoing concerns about UK racing’s competitiveness, including racetrack size are risks to organization and to the wider field.”
Total income for the year was £100.6 million, including a £3 million contribution from the Racing Foundation, while total spending was £113.9 million, a figure that includes additional grants. for bounties, regulation and integrity made possible upon receipt of £21.52 million in government Sport Survival package. Repayments on that loan begin this year.
Delmonte said: “HBLB needs to return to its breakeven budget in the near future, having incurred a deficit of £14.2m in 2020-21 and £13.6m in 2021-22. . HBLB’s underlying financial position at the end of 2021-22, with reserves of £29 million, remains stable.”
Britain’s racing leaders are in the process of formulating a long-term strategy for the sport and Darling said that will likely affect how future tax dollars are distributed.
He added: “We look forward to seeing the results and really getting into the process where appropriate, respecting the need to strike a balance between being at a level removed from racing activities. and betting on a daily basis but on the other encourages a strong and cohesive relationship between the parties.”
