EU Gambling Tax Proposal Sparks Fierce Opposition from Horse Racing Industry
EU Gambling Tax Proposal Sparks Fierce Opposition from Horse Racing Industry
The Push for an EU-Wide Gambling Tax
European institutions are currently evaluating multiple options to increase the Union’s budget between 2028 and 2034. Among these proposals, a pan-European gambling tax has emerged as a controversial possibility. First proposed in February by Victor Negrescu, Vice President of the European Parliament, this levy could generate between €2bn-€4bn annually for EU coffers.
The proposal comes at a sensitive time for Ireland, which currently holds the Presidency of the Council of the EU. This position gives Irish officials significant influence over the EU agenda until June 2023.
Horse Racing Industry Circles the Wagons
Industry Groups Mobilize
Two major horse racing organizations have launched coordinated lobbying efforts:
- European and Mediterranean Horseracing Federation (EMHF)
- European Trotting Union (UET)
These groups have directly approached:
- Thomas Byrne TD (Minister of State for European Affairs)
- Simon Harris TD (Minister for Finance)
Their core argument: horse racing betting must be excluded from any EU-wide gambling tax scheme.
Why the Special Treatment?
The horse racing industry presents several unique considerations:
- Financial ecosystem: Legal betting directly funds breeders, trainers, and racecourses
- Employment impact: Supports numerous rural jobs across Europe
- Existing taxation: Many national governments already levy substantial taxes on gambling
Wider Industry Backlash Against the Proposal
Gambling Sector Concerns
The broader gambling industry has voiced strong objections through Maarten Haijer, former Secretary General of the European Betting and Gaming Association (EGBA). Key concerns include:
- Black market growth: Additional taxation could drive more players to unregulated operators
- Consumer protection: Licensed operators provide safer gambling environments
- Revenue paradox: Higher taxes might ultimately decrease government revenues through market contraction
Polish Industry’s Warning
The Polish gambling sector has raised additional flags, arguing the tax would:
- Impose unsustainable financial burdens
- Violate principles of fair competition between EU members
Precedent Across European Markets
The UK Case Study
The UK’s recent experience provides a cautionary tale:
- 2019 remote gambling tax increase led to:
- Operational scaling back by multiple brands
- Reduction in horse racing sponsorships
- Successful lobbying: The #AxeTheRacingTax campaign secured:
- Continued 15% general betting duty rate for horse racing
- Exemption from broader tax increases
The High Stakes for European Horse Racing
Dr. Peter Truzla, President of the UET, summarizes the industry’s existential threat: “Legal betting funds the entire horseracing ecosystem. An additional EU tax would divert business to illegal operators, reducing revenues for both governments and racing while weakening consumer protections.”
Current Status
Despite the backlash, Negrescu’s office confirms all financing options remain under consideration. The coming months will prove crucial as Ireland’s EU Council Presidency could shape the proposal’s final form. Horse racing stakeholders hope their special status and economic arguments will win them an exemption similar to the UK model.
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