Does the 40% GST really spell doom for the racing industry?

Well, opinions would definitely differ, with many of us being under the impression that the end of the racing industry is just round the corner, but is that really true? I don’t think so. Earlier, when 28% GST came into effect, we all heard things on similar lines, but other than we punters getting lesser returns nothing much happened, the industry survived, right? So, an additional 12% tax, is that really that big an impediment that it forces an industry as huge as this to shut shop? Once again, I doubt it very much.

So, what is it that the racing industry can do to salvage the situation? Obviously, it needs to be drilled into the minds of some senseless people, that an increase in taxes ain’t bringing in  additional revenue for the government, which they already are aware of, considering the revenue generated pre 28%, and post it, in fact, there would hardly be any punter opting to place a bet on the tote, illegal bets is obviously the better option.

It's people like Poonawalas who can try make the government understand things much better than the TAI, because they just do not do things rationally, and I say this because of their rash and hasty decision to stop accepting bets online, because the ban was on gaming apps, and racing is not considered as gaming or gambling, and if they had not stopped the online betting they could have easily debated on this point, but now that they have stopped it chances are that online betting in India is a thing of the past. If the law was applicable to all online activities where money is involved, even the share market falls in that same bracket, but has trading stopped after the law has been passed,? A big NO. In fact, apps and sites dealing with stocks but are more of gaming apps, and do not involve actual trade of shares, for example, Olymptrade are still doing business, in fact, once the law was passed it was all such apps that were advertising the maximum all over, so if these companies had the guts to continue why did TAI too not follow suit, that’s the question here.

Today, the 22^nd September, when 40% GST became applicable, RWITC announced that the tax, even though at 40%, only 28% would be taxed, so I assume that the club is absorbing the additional 12%, but saw a screen during Hyderabad races, wherein HRC mentioned that tax charges would be 40%, so different tactics adopted by different race courses, anyways, HRC is not part of combined JP pool, so that does not make a difference to the combined JP pool collection, but a question mark over there too, because if RWITC continues at 28% and the other clubs included in the combined JP pool don’t do so, once again the combined JP goes out of picture, and if that happens, then, I’m afraid, it’s dooms day, because for small time punters that’s the only lure left now, not everyone can play ?1000 and more to play with bookies, and avoid tax.

So how do our racing clubs move ahead? Being from Bombay, I can mention a few things that RWITC can do. Even if they are forced to implement the 40% taxes, here are a few things they can implement. They could probably absorb half of the additional 12% tax, by reducing their commissions by 6%, and let the punter pay 34% instead of 28%. In fact, even if they absorb the cost of the entire 12% they would still be able to manage, considering the crores they earn by leasing the premises for functions/events throughout the year.

Things that can be considered to make up for the loss in revenue would be, to get off their high horse and reduce viewing charges and mobile charges, ?1500 to view the races is such a pathetic move, especially when there are numerous Telegram channels who telecast live free or for charges ranging from?50-?80. Try keeping the live viewing charges at ?100 and see the difference, I’m sure it would tremendously increase their revenue from that avenue. Also, keep mobile charges at ?100, and I’m sure that almost 80% punters would carry their mobiles in. Try implementing these changes for a few weeks and check the difference, I’m sure there would be a huge difference.

What’s most important is for the TAI to have proper intelligent discussions as regards online betting, and also, all the clubs should work as one, HRC should be convinced to be a part of the combined JP pool, and I’m sure things wouldn’t look so gloomy as it seems now.