Howard Hamilton

I have read with interest recent commentary on the plight of the local punter. The suggestion has even been made that we should form a punters' association.

While I appreciate the dilemma which they face I doubt if a combined voice will have much effect. I have been writing about the inequities of placing a bet on Jamaican races and nothing has changed. In fact, there is now an even greater attempt to extract more tax from the poor idiot who places a bet on a horse running in Jamaica. Let me refresh your memories on the poor return that the punter faces.

He faces a handicap, and it's not long-shot odds in horseracing or any of the forms of gambling available to him here. Every time he places a bet, the Jamaican punter is facing a higher level of taxation than his counterpart in most other racing jurisdictions.

This is hardly surprising, considering the generally high level of taxation that every Jamaican faces.

Indeed, Jamaica's taxes on betting represent one of the highest in the world. These come directly from the racing promoter (derived from the betting dollar) and the bookmaker.

Currently, the punter receives:

1) Seventy per cent of his investment on win, place, Quinella, Exacta, and Trifecta bets;

2) Sixty-five per cent on double event, superfecta, triple and hi-five bets;

3) Sixty per cent on super trifecta, pick 9, and super six.

When I last checked, the takeout from Win and Place pools was divided:

Seven per cent Government tax;

Five per cent off-track station commissions;

Eight per cent contribution to purses;

Ten per cent contribution to promoters' costs.

This was recently reduced to 2 per cent to assist in paying increased purses. My understanding is that the new tax structure imposed is even more onerous.

The bottom line is that the current return to the punter on his investment, will over time, make betting at the racetrack less attractive than other forms of gambling and may serve to lure the punter away from horse racing. It interesting to see what the takeout is in some of the tracks in North America:

TRACK and TAKEOUT %

Win and Place Exacta, Quinella, Trifecta, Other Exotics, Pick four, etc.

SUFFOLK DOWNS

19 26 26

MOUNTAINEER PARK

17.25 19 25

LAUREL PARK

18 21 14 - 25.75

SARATOGA (NYRA)

15 17. 5 25

CALDER 18 20 24

DEL MAR 15.43 20.68 20.68

TIMONIUM 18 14 21

ARLINGTON 17 20.5 25

JAMAICA 30 30 35

I have tried to give a mix of tracks, some of which don't boast the level of Jamaica's turnover with some 90 race days per year. Neither the promoters nor the Government seem to understand the churn effect that eminates from a lower takeout.

Wherever lower takeouts have been implemented, the result has been an increase in overall business and customer satisfaction, not to mention increased revenue for government and horse racing promoters. The time has come for this initiative to get out of the starting blocks in local racing.

It's no secret in the local industry that the takeout is higher than most jurisdictions in the region.

What horse racing promoters also know is that horse racing is at a critical juncture, where decisions need to be made concerning its reinvention, for further growth and sustainability.

The objective reality is that over the past 10 years, there has been increased competition from other legal forms of gambling - lotteries, betting machines, video and games of chance of all types.

A reinvention of the horse racing industry must consider factors, such as:

Increasing the value per dollar wagered by the punter.

Improving the quality of service to the punter.

Increasing the entertainment value of the racing product.

Providing and maintaining a decent and attractive environment for betting.

Improving the quality of the horse as a key ingredient of the sport.

Underlying all of this of course is the need for increased revenue for all concerned. Government, through Caymanas Track Limited, is the promoter of horse racing in Jamaica, and therefore has a clear onus to lead the charge in modernising the industry.

It can begin by considering a lowering of the current tax structures.

As has been demonstrated, far from reducing revenue, Govern-ment stands to gain far more, and rather than declining, the sport can be revived.

It's a win-win situation for all.

Howard L. Hamilton is a former chairman of Caymanas Track and is the current president of The Thoroughbred Owners & Breeders Association. He can be contacted at howham@cwjamaica.com.