Barry Hearn would save horse racing by reinstating the 2.5% tax on winning bet payouts.
The legendary sports promoter made these claims while appearing in Star Sports’ #BettingPeople interview series.
“I could save horse racing – it’s very simple. I would instate the return of the betting tax immediately,” he said.
“In my mind, there isn’t a normal punter that would begrudge a 2.5% tax to their winnings, the sport employs so many people in this country and racing is a great spectacle. The people it would affect are the big punters that work on small margins, where losing that 2.5% would put them out of business, to them I’d say good riddance because they aren’t contributing to the sport, they are only taking from it.”
Hearn conceded that big punters “give something for someone ordinary to aspire to when betting”. However, he explained that he believes that it should be the jockeys, trainers and owners that provide inspiration rather than bettors who are “looking to get something for nothing”.
He added: “Betting should be fun, and I wouldn’t want to encourage the bad side of gambling and addiction. I, like many others, love walking away with some of the bookmaker’s money in my pocket, but it should be a fun activity.
“This industry needs help and fast, the government could change it very quickly if they brought in that tax and added it to the prize money pot. Bookmakers pay out billions a year to punters, 2.5% of that would save horse racing.”
During the three-part interview, Hearn outlined his rise from a working-class chartered accountant to the biggest sports promoter in the UK. His company, Matchroom Sports, is responsible for promoting a range of sports globally, including darts, snooker and boxing.
Despite his years of success, it hasn’t always been easy for Hearn and he recalled how he almost lost his business during the 1988 recession.
He said: “In 1988 when we hit a big recession, I went from being very wealthy to poor again. I owed the banks millions, and I couldn’t make a profit, but it didn’t stop my desire to become a sports promoter. That recession period was a bad three years and even I wasn’t a pleasant person then, despite being the most optimistic and happy person normally.”
“I remember a pitch for a sponsorship deal for £300,000 which I really needed and I made them the worst pitch ever and this was the last roll of the dice. The man turned around and said I don’t have any money, that was the moment when I said to myself that’s it, I’ve had enough.
“I was just out the door when he said that he had hotel rooms all over the world. He said I’ll give you £300k worth of hotel rooms, but no cash. I shook his hand and left, by the time I got back to Slough Station I’d sold all the rooms to friends in the travel industry at a 40% discount, meaning the £300,000 became £180,000, but that £180,000 was so important. It was the £180,000 that saved my business.”
Other topics discussed during the interview included Hearn’s mindset and ability to deal with pressure, as well as his belief that sport “is a soap opera” that relies on personalities to entertain.
