The World Tote Association has published a report to demonstrate the key role pool betting plays in ensuring a sustainable and successful future for horseracing around the globe.
The report, entitled Tote Betting and Horse Racing: Tax, Responsible Gambling, and Contributions to Society makes a clear case for tote betting to be differentiated from other forms of gambling. The report’s author, Martin Purbrick, has completed extensive research from 77 jurisdictions.
The report found that Tote betting on horse racing is very different from other forms of gambling. It makes a significant contribution to society, poses a lower risk to consumers, and should be treated differently from other gambling types.
The report stated: “Tote betting is inherently different from fixed odds betting. Profits for a tote operator are not based on customers losing but on a pool of betting from which customers share the winnings, and the tote operator takes only a commission. Tote betting is fundamental to the economic structure of horse racing around the world. As a sport and leisure activity, horse racing has a major positive economic impact that generates several hundred billion dollars in gross domestic product (GDP) and involves the employment of over two million people around the world.”
It added: “Tote betting suffers from a structural tax problem in most countries, being taxed at the same level as other forms of gambling that pose a higher risk to consumers and make a smaller contribution to horse racing and society as a whole. Increasing the taxation rate on betting, especially tote betting, does not inversely reduce problem gambling, as consumers are driven to illegal betting markets, where there are no responsible gambling measures in place.”
Due to relatively high levels of tax in some countries, tote betting is prevented from competing effectively against online illegal betting operators as well as offshore bookmakers who pay no tax to governments and make no financial contribution to horse racing.
The report concludes: “If horse racing is to survive as a sport, it is essential that tote betting be differentiated from other forms of gambling in national policies. The main recommendation from this report is that different forms of gambling should be taxed at different rates. In the case of tote betting, the tax rate should be lower to reflect lower harm levels and the sector’s contribution to horse racing and society as a whole.”
Co-Chairs of the World Tote Association, Hasse Lord Skarplöth, Chief Executive of ATG and Alex Frost, Chief Executive of UK Tote, said: “We hope this report will be a useful update to policy makers on the significant role Tote betting plays in supporting horse racing around the world. Members of the World Tote Association want to work with governments, gambling regulators and racing authorities to ensure Tote betting can continue to play a constructive, and growing role, in supporting the sport and wider society through safe, responsible and engaging betting activity.”
