The ever-present threat that will lead eventually to the extinction of horseracing as a sport/business on this side of the Atlantic has no chance of being mitigated as the current operatives and investors continue to labour under the misconception the racing product delivered in a claiming system can generate adequate profits for the promoters to achieve economic viability.

Further, there is seemingly an outright acceptance of the notion that the economic viability of the promoting company is guaranteed whether or not, the gaming product meets the criteria for viability in a competitive market environment. Also, there is a legitimate question of whether or not the promotion of horseracing has had the benefit of the requisite management expertise to ensure the development of the racing industry. It was prior to the introduction of claiming in 1993.

Looking overseas, with respect to horseracing in the Unites States, there is another scenario that bears watching. The use of Lasix (Furosemide) is now hanging in the balance as there is a debate over the wisdom or otherwise of the use of this drug. There is incontrovertible evidence this substance has demonstrated its efficacy in the treatment of exercise induced pulmonary haemorrhage (bleeding), but there are concerns in certain states as there is talk of it as a likely performance enhancer.

The last three decades have seen nothing short of a disastrous decline of the racing industry in the USA and Canada. In 1992, there were 70,393 races in the USA, which declined to 30,852 by 2024. Foals of 1992 amounted to 35,051, but the breeding sheds delivered only 16,675 in 2024. Canadian farms bred 1,701 foals in 2019 which plummeted to 850 in 2024. Incidentally, the Canadian peak of 7,614 races in 1991 stood at 2,697 at the end of 2024.

Whilst Jamaica’s 1,021 races in 1992 declined to 755 by 2024, with under 200 foals registered each year, since a peak of over 350 a decade and a half ago. Against the background of data-based analysis proving it is, otherwise, there is still a misguided and stubborn refusal to accept the negative impact and havoc the complicated claiming system product has visited on the industry. The breeding industry lacks investment and importantly the customer base is stagnant with this gaming product.

To underscore this greatly concerning decline, the US pari-mutuel handle of US$9.6 billion in 1992 with 255 million inhabitants was only US$11.6 billion in 2024, although the US population has reached 345.5 million. Annual sales on horse racing in Euro billions in much smaller countries, operating with horse populations classified for handicapping, is as follows, Japan 22.90, Hong Kong 6.80, United Kingdom 5.16, Australia 3.78, France 3.69, South Korea 22.22 and growing year over year.

A financial statement dated December 31, 2024, of local promoting company Supreme Ventures Racing & Entertainment Limited (SVREL) shows $385 million described as net loss for the year under cash flows from operating activities. This has been greeted in certain quarters with scepticism. SVREL’s gross revenue of $11.53 billion, including simulcast, has a 65 per cent distribution of dividends component and purses and agents’ commissions are at fixed percentages of this amount.

This financial statement, as well as the 2016 divestment agreement, is available for stakeholders to analyse the expenditures as it relates to the revenue streams if they are so inclined. The investors, owners, trainers, and the professional and occupational groups are finding that it is becoming almost excruciating to enjoy or make a living from their involvement.

By the way, the business model under the divestment agreement was not well-thought-out, as there was a lack of due diligence to determine the viability of the claiming racing product. The decision was also predicated on an erroneous perception that the promoting company Caymanas Track Limited did not have the requisite management skills and this racing product was the right one. Truth be told, it was impossible, and still is, to achieve satisfactory profitability with a money-losing product.

All the figures demonstrating the unlikelihood of the growth in the industry with a flawed and non-productive racing product has been exposed in this column since 2014 and elsewhere since 1993. The disregard for the data is astonishing, but not surprising, as there is a collective short-term view of future of the industry. The insistence by stakeholders the Caymanas horse racing facility is not for sale has no basis in reality as time will tell if there is no immediate change.