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Horse racing`s lavish market masks a bleak reality

  November 20 , 2024
   

Indian horse racing – once the sport of royalty, now seemingly one long gallop toward financial ruin, with a side of bureaucratic torment. The latest hurdles? A little something called GST and an amended Income Tax policy, making race clubs` survival look like an audition for “Mission Impossible.” You`d think someone had bet the government was trying to bleed the industry dry – and by the looks of it, they might win that one.

Race clubs across the country are clutching their purses tighter than ever, rationing pennies while desperately relying on the goodwill of a few generous industrialists. RWITC, for instance, survives almost solely on the mercy of the big-hearted aficionados. Bangalore Turf Club (BTC) isn`t faring much better. With outstanding government dues, legal tangles, and lease rental overheads piling up, the club teeters on financial freefall, pending a possible truce with the authorities. Meanwhile, the government`s tax demands are so steep, even trying to run betting operations is about as profitable as selling ice in Siberia. Case in point: the Hyderabad Race Club, now down to only one off-course betting location – the sole venue they actually own. And let`s talk ticket sales; they`re more disappointing than a wet racetrack on Derby Day, as clubs like BTC drain their tote pools to levels where even the die-hards are asking, “Why bother?”

And there`s a new 30 percent tax lurking like a storm cloud for bettors without KYC documentation. BTC, in particular, has held off on enforcing it so far, but for everyone else, it`s double-taxation doom: 30 percent tax on winnings, then another 28 percent GST on betting amounts. It`s a miracle anyone`s left at the ticket counters.

As if that weren`t enough, Madras Race Club has a mere six months to pack up and relocate. The promise of fresh land is dangling enticingly, but even if they take the deal, it spells at least two years without racing. Crisis? That`s putting it politely.

Yet, here`s the kicker: two-year-old horses are selling for prices that would make even oil tycoons blush. At the recent auctions at Kunigal and Usha Stud Farm, buyers shelled out jaw-dropping sums. The Poonawalla Auction is next up, and there`s little doubt it`ll be another festival of excess. With prize money so low, one has to ask: what`s behind this gold rush? The horse population is shrinking faster than the interest in a tax-plagued tote pool. Most clubs have reduced races to a single day per week – with Hyderabad being the notable exception, lounging in its comfortable financial bubble.

And yet, the madness continues: buyers keep snapping up horses, stud farms are splurging on stallions, and one wonders if the industry has slipped into some feverish trance. Is this a rallying cry, a last-ditch stand of the devoted? Or just the racing world`s version of ‘fiddling while Rome burns`? Whatever the answer, it`s quite a spectacle – and if nothing else, it might just be the most expensive crisis of passion we`ll ever see.

In a twist that seems straight out of a satire, overseas betting apps – conducting a shadowy, illegal betting operation on Indian racing – are now the proud sponsors of some of our biggest race events. Talk about irony at the finish line! This wild jump in racehorse prices might be credited to this underground market, which, despite not contributing a dime to the industry or government, is skyrocketing without restraint. With this offshore betting cash fuelling the frenzy, prices that would have been laughed at a year ago are now the new norm.

New players are pouring in, and they`re making it rain, snatching up horses at sums that would make the old-school owners faint. Just a year back, the same owners wouldn`t blink at trimming their budgets – and now they`re shelling out with an ease that suggests either a miracle or a bit of magic dust. Has there been a revelation or just an unprecedented willingness to burn through cash? One can only scratch their head and wonder if this sudden “investment” will impact the integrity of the sport or if it`s all a bubble set to pop – only time will tell.

Meanwhile, breeders are revelling in the profits of this buying spree, while race clubs fight for survival, hanging by the barest financial threads. It`s a tragicomedy: buyers are throwing cash around like there`s no tomorrow, even as stakes remain low and racing barely staggers along. They`re pouring in millions, but the chance of recouping costs is about as slim as a photo finish. The contradictions of the racing world have never been sharper: on one hand, there`s extravagant spending, and on the other, an industry struggling just to stay in the race.

 
 
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Total Comments : 6
Posted by C. R. Dass on ( November 20 , 2024 )
You are 100 percentage correct. Indian government killing racing industry. No punter dare to bet at tote. More than 2000 folds increased illegal betting. Clubs and Government loosing 1000 crores of rupees.
 
Posted by SINNDAAR on ( November 20 , 2024 )
Sharanji , your are absolutely right , the tax burden of 28% GST and 30% TDS on winning payout will ultimately kill the racing industry soon . The Goverment policy of extracting the maximum taxes , income tax , Corporate tax , GST ,IGST, Excise duty , Stamp duty , Custom duty,Capital gains ( Long term -Stort term ),Entertainment tax, property tax , inheritance tax , Road tax , Toll tax , Cess and what not , is not only killing the Industries , Institutions but the general public also . The Govt policy is simple , you invest and if your earn, pay it to us. whether you survive or die is your look out.
 
Posted by Sam on ( November 21 , 2024 )
Who said BTC is in financial crisis? The BTC is charging exorbitant entry fees of 300 for on course and 200 for of course. They charge an additional 500 for clumsy first floor. Each book and corner is rented out for vendors. The stake money is meager but they are getting huge sponsorships. They also get huge sums of money from book makers. If the BTC is in trouble how can they pay daily operators . In fact on of course betting days there would be more operators than bettors. For each member present there would be one runner to punt for them. If thy are overdue on legal payments it is deliberate or they might have squandered money.
 
Posted by Moorthybets on ( November 21 , 2024 )
Obviously the owners won`t be buying horses to make a loss. This only reflects how much the sport runs on black money betting.
 
Posted by R.v.Ramachandrarao on ( November 21 , 2024 )
Very unfortunately racing industry in India sinking day by day, government should reduce the gst, no one is interested to initiate the same with our Indian government...hope for better tomorrow
 
Posted by T.Venkata Ramana on ( November 25 , 2024 )
The Government laws can not be changed. They will frame the laws taking into account of all factors and in the interest of majority of public. The race clubs must seriously ponder to make the race attractive. All in india tote shall be introduced immediately to make the dividends more attractive. The punter will not think the taxes If gets more on his investment. Jackpot will also be attractive and there will be no problem If he gets more dividend than the existing meagre dividends. Secondly the clubs shall conduct luck dips commensurate his entrance fees to 8 times without asking selecting the horses.
 
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