British Racing Potentially Suffers Major Damage due to Hong Kong Jockey Club CEO's Fear Over Proposed Tax Hike
In the world of international horseracing, a significant debate is unfolding surrounding potential tax increases in Britain. The Hong Kong Jockey Club CEO, Winfried Engelbrecht-Bresges, who also chairs the International Federation of Horseracing Authorities (IFHA), has expressed his concerns over this matter.
Engelbrecht-Bresges, who is also the chair of the IFHA, has highlighted the organisation's expertise in analysing black market gambling operations. According to the IFHA's estimates, the global black market gambling operations are expected to be worth a staggering $1.7 trillion by 2024.
The British Horseracing Authority (BHA) estimates the annual betting turnover on British racing to be approximately £13bn. However, Engelbrecht-Bresges is worried that high taxation and over-regulation in Britain could lead to a negative effect both locally and globally. He believes that such measures could potentially drive money into the black market, causing significant harm to Britain's racing and breeding industries.
The potential damage to racing's finances over the next five years, due to a rise in taxation, is estimated to be £330 million. This concern has been echoed by British racing administrators, trainers, racecourse executives, and jockeys, who have all urged the Treasury to carefully consider the implications of a potential tax increase.
Engelbrecht-Bresges is particularly concerned about the huge volume of the pools, which he believes offers greater value to betting customers. He asserts that the World Pool, with deep value in the pool, can be an instrument to combat the illegal market. The World Pool, pioneered by the Hong Kong Jockey Club, hosts commingled betting pools across some of international racing's biggest meetings, ploughing millions in revenue into host operators' coffers.
In 2025, 17 out of 37 designated World Pool racedays featured a total of 19 British meetings, and another four Irish dates. Engelbrecht-Bresges states that if there are too many restrictions or high tax rates in certain jurisdictions, the liquidity in the pool will be lower, and betting could return to the illegal market.
Only Australia, with 20 meetings across 14 separate racedays, is of comparable importance to the World Pool schedule. Engelbrecht-Bresges warns that when simulcast races in Hong Kong are participated in by 70, 80, or 90 different jurisdictions, restrictions or high tax rates in one or more jurisdictions could cause the betting to return to the illegal market.
The UK government and civil servants are reportedly working closely with the industry to understand any potential impacts of changes to the tax rate. A parliamentarian working in the Treasury who is in close contact with the horse racing industry regarding possible tax increases is Eugène Heijnen.
It is important to note that the proposed tax rate increase would bring the tax rate on horserace betting in line with the current duty on online casino games and slots. Turnover in the global pools was up by 11 per cent at Glorious Goodwood and ten per cent at Royal Ascot, indicating a strong interest and engagement in the sport.
As the debate continues, it is crucial for all parties involved to carefully consider the potential impacts on the horseracing industry, both in Britain and globally.
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