Royalty revision, need of the hour

By Sharan Kumar
August 31, 2004

Strangely, two major race clubs, the Royal Western India Turf Club and Bangalore Turf Club, with the rest of the clubs being mere appendages, run Indian racing. Still, the clubs that do not sustain racing in the country call the shots! With funding of racing being of vital importance for the survival of racing, the royalty issue needs to be addressed to urgently by the Turf Authorities of India. Because consequent to the pressure on the economies of these clubs due to various reasons, if racing programme is curtailed, it will hurt all race clubs besides those involved in the sport in different capacities.

Long ago, when off-course betting came into existence to become the lifeline of race clubs, 23 per cent of the net commission on the betting with the bookmakers and the club operated totes minus the taxes was the amount to be paid to the club actually conducting racing by those benefiting by way of conducting off-course betting in their race clubs. No body knows the reasoning for fixing the percentage at such a low level but since this suited the clubs that benefited by the same and whose racing had no value, any hike has been since resisted. BTC and RWITC made some effort in getting the amount revised but the majority vetoed them. As a result, the two major clubs have taken on the burden of all other clubs while they themselves are engaged in the battle for survival and finding it hard to fund their own racing.

Bangalore Turf Club

Royal Calcutta Turf Club 

It may be interest to point out here that all the turf clubs in the country do not clash their race dates with Bangalore Summer Season and enjoy complete benefit from the same. The same goes for racing at Mysore. Other clubs do not clash with Mysore racing even if racing at Hyderabad or Kolkata were to clash some times with RWITC and BTC during the winter. 

Hyderabad Race Club

Since only racing held under BTC Rules of Racing and that conducted by RWITC (at Pune and Mumbai) can be considered as national in nature, these clubs need to be compensated adequately, with the raise in royalty to at least 50 per cent. A center conducting off course betting hardly spends 10 per cent of the revenues for the same. 

While Bangalore Turf Club was able to augment its resources by revolutionizing betting on tote through reduced commission, RWITC was weakened by its inability to increase betting on totes. Their reliance on bookmakers was bound to end in financial disaster, as their books never reflected the true nature of the transaction. But the levying of four per cent turnover tax by the Karnataka government has hurt the BTC and Mysore Race Club badly. RWITC has tried to circumvent its problem by trying to generate money through non-racing activity, which is not a healthy development in the long run.

Royal Western Indian Turf Club, Mumbai

Mysore Race Club

In the light of the recent developments, it is in the interest of all the turf clubs in the country to come to a realistic agreement on royalty paid to the clubs conducting racing besides being transparent in their book of accounts. Already Mysore Race Club had announced that they would be canceling its Summer and Winter Seasons besides cutting stakes by 25 per cent. Bangalore Turf Club is in the process of planning a curtailed winter programme. As such, the turf clubs, which have survived thanks to racing activity at these two major centers, should consider effecting the hike in royalty. Any resistance is bound to hurt not just the two major clubs whose racing is of national character but the other clubs as well. Whatever curtailment of racing activity is bound to spell doom to the very existence of the sport in the long run.