RACING: British punters may be forced to accept the reintroduction of a betting tax only months after the withdrawal of General Betting Duty by Gordon Brown in last year's British Budget.

That was the stark message delivered by bookmakers' representatives at a meeting of the British Betting Offices' Association held in London yesterday. Keith Brown, the chairman of the Racecourse Association and a member of the British Horseracing Board, gave a presentation to bookmakers over the future of racing.

When questioned at the end as to the financial implications of the BHB's new commercial pricing mechanism, he was forced to admit that bookmakers might be forced to re-introduce a tax on punters if the proposed new charges - due to be introduced from May 1st for any bookmaker who accepts bets on British racing - are to be met.

John Brown, the chairman of William Hill, asked the RCA boss whether he accepted that bookmakers would be forced into the creation of a new tax for punters to pay for the increased charges, which are due to replace the old Levy system.

Keith Brown replied: "Everything has got to be paid for at the end of the day. Betting is immensely important as a source of income for both of us (the racing and betting industries). This is a charge on business which has got to be met.

"This is a challenge that you have to meet and the way to do that is by increasing your margins - it is a question of how much you charge." William Hill's chairman countered: "The word you are looking for is yes."