CALUM McCLURKIN: In forging new relationships in the corridors of power, racing may now have to repair its long-standing one with bookmakers
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While representatives from the racing industry went to Westminster this week to foster relationships with politicians and lawmakers, they might have put a strain on their ties with major bookmakers.

The decision to strike on Wednesday over the ‘Axe The Racing Tax’ initiative is backed by numerous reasons. This Treasury proposal aims to align the existing 15 percent online betting tax on racing with the 21 percent rate applied to casinos and slot machines.

Jockeys, trainers and officials descended on parliament to state their case. There was a who’s who of racing. 

In a sport with plenty of warring factions, this was a positive show of unity in seeing these figures talk to leading policy-makers and MPs. 

An increase in betting taxes is likely to harm the racing industry. Projections suggest that any proposed increase could cost the industry £66 million annually and jeopardize up to 2,572 jobs.

The sport sent out a clear message outside the Houses of Parliament on Wednesday

The sport sent out a clear message outside the Houses of Parliament on Wednesday

John Gosden speaks at a conference on the tax issue at the QEII Centre in London

John Gosden speaks at a conference on the tax issue at the QEII Centre in London

Some jockeys join in the debate and urge politicians to scrap any potential tax raid

Some jockeys join in the debate and urge politicians to scrap any potential tax raid

The community and social benefits of racing were also accentuated. Gosden probably sounded the biggest alarm bell. 

The Clarehaven trainer has a remarkable ability of holding everyone’s attention.

He said in Thursday’s Daily Mail Sport: ‘When I first came to Newmarket in the 1970s, it was a grim time.

‘Back then, strikes were rampant, the country was burdened by debt, and we dealt with a three-day workweek. When I came back in the late 80s, things had transformed radically. We witnessed the influx of international wealth and investments from the Middle East.

‘Assuming that the descendants of the owners who prompted this shift will continue the same scale of investment would be risky and presumptuous. Our industry can have certainty and stability if given the opportunity. I sincerely hope that the Government will not revert us to the 1970s.’

The strike seemed to catch the ear of those who will draw up the budget at the end of November but probably had less resonance outside parliament.

A tube strike led to a notably quieter London than usual. The political discourse had just shifted from Angela Rayner’s exit to the controversy surrounding Peter Mandelson amidst an ongoing cabinet reshuffle.

You could forgive the general public for not batting much of an eyelid on the racing world on Wednesday.

New BHA chairman Lord Allen, a Labour peer, will be expected to wield his political influence

New BHA chairman Lord Allen, a Labour peer, will be expected to wield his political influence

Only time will tell if the strike had the desired impact with the Treasury. With all the movers and shakers trying to grab the ear of the government, one party that has strong and vital links with racing were conspicuous by their absence – bookmakers.

There seems to be a huge reluctance to acknowledge the importance of bookies and racing; it’s a co-existing relationship and some firms have been miffed in how they’ve been sidelined in these tax discussions.

Their main gripe has been how racing has been in lockstep with anti-gambling organisations to seal a better deal. It’s one that could see casino products be taxed up to 50 per cent instead, with racing unaffected and other sports only seeing a small rise.

Sympathy for bookmakers is always at short supply at the best of times but there is no running away from the fact that the funding of the sport flows through them.

The levy is reliant on losing punters through bets taken by licenced and legitimate bookmakers. Whacking them further with tax rises may see damage to media payment rights and a decline in levy income in 2026 and beyond – these are the principle investment streams that keep racecourses open and prop up prize-money.

Racing still may face a different kind of cashflow problem. Avoid the tax hit but bookies may pull the rug from under their feet. Welcome to the wonderful world of politics; in aligning with one party, the danger is alienating another.

As one unlikely alliance forms, a different relationship can falter. You can’t please everyone but it’s highly likely racing will have to repair some of the damage with bookies after any potential tax deal in the corridors of power is done.

The sport had to stand up on its own two feet on this. It’s made it’s voice heard but there will be grumblings from the rails.

But bookmakers have issued a warning to racing that tax raids elsewhere will hit the industry

But bookmakers have issued a warning to racing that tax raids elsewhere will hit the industry

Macbet have pulled their business from Arena Racing Company racecourses citing the cost of pitches. Flutter, who own Paddy Power, Betfair and Sky Bet, have withdrawn £1million funding for the third season of TV series Champions: Full Gallop. Bookies keep bemoaning the cost of pricing up and streaming moderate racing in Britain.

And let’s not forget that they practically sponsor every big meeting on the calendar; we had the Betfred St Leger this weekend, the Betfair Sprint Cup last weekend and we’ve got the Ladbrokes Ayr Gold Cup next weekend.

Like it or not, these are big firms putting in important money and it’s hard to see racing’s alternative funding streams come from. Big firms have the fallback of other sports, advertise in other ways through podcasts and publications, switch their businesses Stateside and into other jurisdictions. Offset most of the costs to the punter.

They have options where racing may not. The sport will have to consider its next move very carefully. 

PERFORMANCE OF THE WEEK… A shared honour between two Aidan O’Brien inmates as SCANDINAVIA was a brave winner of an old-school St Leger at Doncaster, while DELACROIX quickened smartly to claim the Irish Champion Stakes at Leopardstown.

There was no hiding place on Town Moor in soft conditions under a solid pace and Scandinavia outlasted them all to give O’Brien a ninth win in the world’s oldest Classic. The roar from the stands in a thrilling finale was everything the damp squib at Epsom on Derby day wasn’t.

This looked red-hot form and with a Goodwood Cup success also in the bag, this three-year-old looks capable of being a leading light in the staying division. 

Scandinavia (near side) grinds out a thrilling St Leger success at Doncaster yesterday

Scandinavia (near side) grinds out a thrilling St Leger success at Doncaster yesterday

Delacroix (near side) showed a neat turn of foot to beat his rivals in the Irish Champions Stakes

Delacroix (near side) showed a neat turn of foot to beat his rivals in the Irish Champions Stakes

Delacroix won the Eclipse at Sandown but Ombudsman got his revenge in the Juddmonte International. A notable morning line drifter, Delacroix defied any doubters and confirmed himself a high-class operator at a mile and a quarter when showing superior tactical speed to beat a good yardstick in Anmaat by half a length.

The Champion Stakes could be on the agenda next and maybe a tantalising round three with Ombudsman  awaits as well. 

SELECTION OF THE DAY…

Being a gelding, AMILOC (3-1, bet365) has to go for the Irish St Leger today instead of yesterday’s race at Doncaster but the trip across the Irish Sea can be a worthwhile one for Ralph Beckett’s three-year-old.

He didn’t enjoy the fast ground at Royal Ascot but still won the King Edward VII Stakes from another improving youngster in Zahrann.

The weight allowance helps him in taking on two established older performers in Illinois and Al Riffa. A step up in trip and slower ground should see further improvement from the unbeaten Amiloc and he can hang onto that record and make it six wins from six today (Curragh, 4.25).

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