Howard Hamilton

He faces a handicap, and it's not long shot odds in horse racing or any of the forms of gambling available to him here.

Every time he places a bet, the Jamaican punter is facing a higher level of takeout than his counterpart in most other racing jurisdictions.

This is hardly surprising, considering the generally high level of taxation that every Jamaican faces.

Indeed, Jamaica's taxes on betting represent one of the highest in the world.

These come directly from the racing promoter (derived from the betting dollar) and the book-maker.

Currently, the punter receives:

70 per cent of his investment on win, place, quiniela, exacta, and trifecta bets;

65 per cent on double event, superfecta, triple and hi-five bets; and,

60 per cent on rolling triples, pick 9,and super 6 bets.

In the first category, Caymanas Track Limited's takeout is 10 per cent on local racing and 10.5 per cent on simulcast races.

In the second category, the rates are 15 and 15.5 per cent, respectively and 20 and 20.5 per cent in the third category.

Other deductions are applicable for commission payments to CTL's local OTB agents and overseas agents on simulcast races and contributions to purses.

The current return to the punter on his investment will, over time, make betting at the racetrack less attractive than other forms of gambling and may serve to lure the punter away from horse racing.

Takeout rate

In many other places, governments and racing promoters have appreciated that a reduction in takeout and increased return to the punter is an imperative if the racing industry is to compete effectively with with other gaming opportunities

This is not generosity on their part. The rationale behind this seeming paradox is this: that customers will bet more when they receive more, because they will have extra dollars in their pockets to spend.

Enough evidence has been gathered over the years in the American racing industry that shows a direct relationship between declining consumer interest in horse racing and the trend towards higher takeouts over the years.

The empirical evidence also shows a negative relationship between the takeout rate and the amount wagered, i.e. that decreases in the takeout rate increase the handle and vice versa. The research also indicates that whereas horse racing had steadily been increasing the take over the years, many other forms of gambling, including sports betting and most casino games has kept lower rates (in single digits), which keep people in action longer and makes winning far more attainable.

In recent times, there has been a welcome reversal of the higher takeout trend and it has been galloping across racetracks from coast to coast in the United States. It's about time, horse racing officials and fans are saying.

The takeout rate in the U.S. varies between 15 per cent to 14 per cent on win, place and show wagers, 20 to 17 per cent on daily doubles andexactas and from 25 to 20 per cent on non-carryover pick sixes.

Takeout reductions are finally beginning to catch up with the shift in handle from straight to multiple bets, where takeouts are the highest, and thus the most likely to discourage or lose today's players.

Wherever it has been imple-mented, the result has been an increase in overall business and customer satisfaction, not to mention increased revenue for government and horse racing promoters.

The time has come for this initiative to get out of the starting blocks in local racing.

It's no secret in the local industry, that the takeout is higher than most jurisdictions in the region. What horse racing promoters also know is that horse racing is at a critical juncture, where decisions need to be made concerning its reinvention, for further growth and sustainability.

The objective reality is that over the past 10 years, there has been increased competition from other legal forms of gambling - lotteries, betting machines, video and games of chance of all types.

A reinvention of the horse racing industry must consider factors, such as:

Increasing the value per dollar wagered by the punter

Improving the quality of service to the punter

Increasing the entertainment value of the racing product

It can begin by considering a lowering of the current tax structures. As has been demonstrated, far from reducing revenue, Government stands to gain far more, and rather than declining, the sport can be revived. It's a win-win situation for all.