ARC Chief Warns Against Gambling Tax Hike Impact

Arena Racing Company CEO Martin Cruddace has warned Treasury officials that a proposed increase in machine games duty could severely damage British horse and greyhound racing finances. This warning comes as the Autumn Budget 2026 announcement approaches on October 28.

What Happened

Martin Cruddace, Chief Executive of Arena Racing Company (Arc), sent a letter to Exchequer Secretary to the Treasury Dan Tomlinson MP, cautioning against a potential doubling of machine games duty (MGD) (Racing Post). Cruddace expressed “grave concerns” regarding the funding of racing should this tax increase be implemented (Racing Post). The letter was sent in anticipation of the Autumn Budget, scheduled for October 28 (Racing Post).

Cruddace’s concerns center on the reliance of both horse and greyhound racing on retail betting as a revenue source (Racing Post). He highlighted that a previous remote gaming duty increase after last year’s budget resulted in over 600 betting shop closures, leading to a £17 million loss in revenue for British racing through media rights and levy income (Racing Post).

Key Details

• Arc CEO Martin Cruddace sent a letter to Exchequer Secretary Dan Tomlinson MP warning about a proposed machine games duty increase (Racing Post).
• The proposed tax increase involves doubling the machine games duty to 40 percent (Racing Post).
• Cruddace stated that British horse and greyhound racing “still rely heavily” on retail betting for revenue (Racing Post).
• Analysis by EY, commissioned by the Betting and Gaming Council, suggests a 40 percent MGD rate could lead to 690 to 1,470 betting shop closures and a financial impact of up to £40 million on British racing (Racing Post).
• Industry analyst Regulus Partners reportedly predicts an even greater loss of betting shops, resulting in a £92 million hit to racing’s finances (Racing Post).
• Regulus Partners’ analysis, cited by Cruddace, indicates that a 40 percent MGD rate could render up to three-quarters of betting shops unprofitable (Racing Post).
• The government is reportedly considering proposals from the Social Market Foundation, which estimated a doubled MGD rate could generate between £275 million and £458 million in additional revenue (Racing Post).
• Cruddace argued that Regulus’s analysis shows the proposed MGD increase would instead lead to a 32 percent reduction in tax yield (Racing Post).

Why It Matters

The potential increase in machine games duty could have significant financial implications for British horse and greyhound racing, industries that depend on retail betting revenue (Racing Post). Widespread betting shop closures would lead to reduced business rates, lower corporation tax receipts, and job losses, impacting local economies (Racing Post). The concerns raised by Cruddace and other betting chiefs underscore the potential for “considerable and irreversible damage” to British racing’s financial stability (Racing Post).

Originally reported by Racing Post·Published 15 Oct 2026, 16:38