It’s just slow poison for RWITC & Horse Racing
By Usman Rangeela
MUMBAI MIRROR
4-8-2010
With the start of horse-racing in Pune one thought that the management of the RWITC would be breathing easy till the next round of the club’s elections happen. But that was not to be.
Not content with taxing the bets of the common man, the state government set its eyesight on the bookies. It seems that
Maharashtra’s revenue minister or those advising him on this issue felt that windfall gains await the state’s exchequer if the betting tax is increased.
On the contrary, this move appears quite naïve given the fact that only a fraction of the actual amount of betting on horseracing is officially recorded. And, in the longer run, the tax hike will have achieved nothing except forcing more punters to take the illegal betting route.
It’s the only practical solution available to them in the wake of the monstrous tax liability. Who would enjoy paying 36 per cent tax when the option for betting without any taxes is easily available?
SLOW POISONING
Interestingly, it is the turf club which ends up being the worst loser in this tax hike episode!
The betting turnover of the totes, crucial for the club’s survival, has dropped drastically since April and the Fixed-Odd-Betting charm too has disappeared.
Furthermore, the revenue from the official bookies is at risk as their collections are bound to take a hit.
Looking at the present scenario, no matter how hard I try, the thought of somebody having evil designs on the racecourse refuses to leave me.
Isn’t it possible that the tax hike is just the first step towards forcing the closure of the Mahalaxmi Race Course?
What if the state’s home department follows the revenue ministry’s steps and decides to double the license fee for racing?
It would be interesting to see whether the turf club would be willing to bleed financially once the various state agencies have rendered the horse-racing business unviable.
Whether the turf club administration likes it or not, it is becoming clearly evident that the institution and the sport are being slowly poisoned to death.
WHO GAINS?
Despite it being early days to identify precisely who is likely to benefit if the club closes down, there is no question that it has to be somebody who is interested in the RWITC’s land bank.
Despite the NGO’s protesting and resisting every move to seize the last green space available for citizens, I doubt whether it would be difficult for any builder who has the right people in the state and municipal agencies backing his move to acquire the race course land.
COMPLEX SITUATION
The names of two or three entities, who have the wherewithal to exploit the race course land whenever an opportunity arises, are already being discussed among club members.
It’s a complex situation for the RWITC no doubt but the big time involvement of these entities in horse-racing today has further fuelled the curiosity of several active club members.
