This article was submitted by Howard Hamilton, former president of the Thoroughbred Owners’ and Breeders’ Assoication

The recent announcement that Supreme Ventures Ltd (SVL) has made an offer to the Government to purchase the 198 acres of the Caymanas Racing Plant, has inspired much discussion.

It is worth reflecting on the history of racing at Caymanas Park. This came into existence in 1959 when racing at The Little Ascot at Marlie in Old Harbour operated by Jamaica Turf Club and Knutsford Park Ltd, which operated in New Kingston, came together to operate a single race track at Caymanas Estate on land donated by the Hamilton family, the owners of the sugar estate in St Catherine.

A state-of-the-art racing facility was developed with a movement to racing on a dirt racetrack as opposed to the grass tracks in Old Harbour and New Kingston. The operation of the new company, Caymanas Park Ltd, suffered reduce revenue from the illegal bookmaking operators who controlled some 80 per cent of racing revenue due to their islandwide distribution and exciting betting opportunities — accumulators and other attractions not offered by the pari-mutuel system at the racetrack. Caymanas Park Ltd eventually sold out the operation to EALai Corporation who sold off most of the area to housing interest and eventually ceased operations forcing the Government to try and resuscitate this vital industry and its impact on the economic and social contribution to the economy of the country.

It was recognised that the industry contributed significantly to employment and the agricultural sector.

In their wisdom they established a new company — Racing Promotions Ltd — with ownership vested with the stakeholders in keeping with their policy at the time.

Shares of ownership were distributed to the Jockey Club, The Thoroughbred Owners and Breeders Association, The Jockey Association, the Grooms’ Association, The Jamaica Trainers’ Association, and The Jamaica Owners’ Association.

It was felt that this group of stakeholders did not have the management skills needed for an efficient promotion of racing and a management company, Track Services Ltd, was formed to provide this function.

The industry continued to be plagued by inadequate income because of the illegal bookmaking operation and legislation was put in place to control these operations.

The Betting, Gaming and Lotteries Commission, an independent statutory body established in 1975 to license, regulate and monitor the local gaming industry, was established and a levy on the now legalised bookmaking was introduced to supplement the financing of the new promoting company, Racing Promotions Ltd.

The levy proved difficult to collect since the newly formed Bookmaking Association was responsible for paying this levy to the promoters. Eventually the collection was vested with the collector of taxes and controlled by them.

Regulation of racing also went through restructuring and responsibilities for this was transferred from the Jockey Club to a newly formed Jamaica Racing Commission who had the added responsibility of getting funds for the additional financing of the promoting company.

Since then, there have been a number of changes.

Racing Promotion Ltd was determined to be bankrupt, a receiver was put in place and the Government of the day insisted that shareholders handed over their shares. Not all of them did this but in spite of it, this Government took responsibility for administering the industry.

The Government were forced to divest in keeping with programmes implemented by multilateral financial institutions who were restructuring the economic model of Jamaica.

So here we are today with the racing product being divested to Supreme Ventures Limited (SVL) following competitive bidding. The management is now handled by their subsidiary company Supreme Ventures Racing and Entertainment Limited. They have been in operation since March 2017 after SVL went through ownership changes.

Since then, there are conditions in the deed which have not been satisfied while others need to be re-examined.

Hence the proposal to buy the property and expand the earning capabilities to complement racing revenue. The sale of the property will be problematic since the stakeholders still feel that ownership was vested to them when Racing Promotion Ltd was formed back in the 70s.

A leasehold arrangement would save the capital cost of purchase and the agreement could determine any compensation for any improvement in added value.

What needs to be done immediately is to fix the wrongs currently associated with racing. Some recommendations include but not limited to the following:

1) Reduce the takeout rate as prevails internationally and give punters increased value for the betting dollar being spent. This is the promotor’s main source of income and needs to be expanded.

2 ) Modify the current iniquitous claiming system and introduce a rating system and handicapping of horses to provide an even chance to all runners and by extension, increase tote sales. Races with a preponderance of odds-on favourites are not attractive to the general public.

3) Increase distribution as was promised in the agreement utilising the many lottery outlets. There is a synergy between people who buy lotteries and the racing public. They both complement each other with the attraction of choices for betting in a single outlet.

4) Honour the main promises which predicated the Government’s choice at the time of negotiating the lease.

a) Fixing the exercise pool to international standards.

b) Fixing the stalls to provide better security and safety of animals and workers.

c) Paving the roads to reduce injury to horses.

d) Putting in proper boxes, dining facilities, and seating to attract corporate sponsors and create another entertainment center for tourist.

e) Recognised the purse structure in place at the time of acquisition. This calls for a payment of 23 per cent of all sales and an annual adjustment of five per cent or the inflation rate whichever is higher.

SVL has stated that they have spent over $3 billion in improving the facilities at Caymanas Park although they are yet to invest the $500 million agreed for capital expenditure (CAPEX).

This is commendable but it is not how much has been spent, it is how smartly this money has been spent.

Let us leave the egos and the arrogance at the door and we, the stakeholders, promoters and the Government, must work together to achieve a viable and sustainable racing industry.

This industry has too much unfulfilled potential as a major contribution to the economic and social fabric of this country to be left floundering in the quagmire of unfulfilled potential.