Brant Dunshea, the chief executive of the British Horseracing Authority, has issued a stark warning regarding the recent five percent rise in machine gaming duty for betting shops, stating it will have a "devastating impact" on the future of horse racing.

Dunshea highlighted that the sport could face a £57 million hit to its finances, leading to:

• Significant reductions in prize money
• The potential loss of thousands of jobs
• Serious questions about the viability of racecourses moving forward

In his statement, Dunshea noted that while the government avoided a worst-case scenario of increasing the Machine Games Duty to 40 percent, the new rate of 25 percent will still inflict considerable damage on racing's financial stability. He remarked, "There is now a clear risk that this decision will lead to the closure of hundreds, if not thousands, of betting shops across the country."

British racing, which relies on nearly a third of its £350 million annual income from betting through high street shops, is now at risk of losing £57 million a year based on independent modeling provided to the Treasury prior to the Budget announcement.

Dunshea emphasized the broader implications of this tax increase, stating it could undermine vital horse welfare projects and research, as well as significantly impact a large portion of the sport's fanbase, who primarily engage with horse racing through visits to local bookmakers.

The BHA plans to urgently engage with the Government to explore ways to mitigate the adverse effects of this tax policy and will conduct a thorough analysis of the Budget documents for any additional issues that may affect racing.