The Long Term Problem Of The Racing Industry
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The Long Term Problem Of The Racing Industry Over the years several arguments have been posed to explain the decline in racing and how to revive the industry. Some called for the removal of the track from its current location, others have called for the privatization of Caymanas Park Limited. However as can be seen from the tables below, the problem facing the racing industry has nothing to do with the race program of Caymanas Track Limited. Number of Races and Starters Calendar Year 1977 1978 1979 1980 1987 1988 1989 1990 1997 1998 1999 2000 2007 2008
Race Days
Races
83 83 91 89 81 70 87 65 89 83 90 93 80 82
846 827 886 835 776 641 809 643 925 876 942 998 841 865
Starters Average Average per per Day Race 8752 105.4 10.3 9260 111.5 11.2 9341 103.6 10.5 9122 102.4 10.9 8975 110.8 11.6 6779 96.8 10.6 8271 95.1 10.2 6330 97.4 9.8 8860 101.9 9.6 8460 99.5 9.6 9744 108.2 10.3 10051 108.1 10.1 7519 93.98 8.9 8166 99.58 9.4
Source: The Jamaica Racing Commission
As can be seen there is no significant difference in the offering of Caymanas Track Limited in the late 1970s as compared with the offering in recent years. Equally it could not be said, that the decline in the fortunes of racing has any direct relationship with the distribution of purse money. As can be seen from the table and the graph below, owners and breeders have been doing relatively well given the state of the industry.
1
Calendar Year Purse Paid Out To Owners In US $
Total Purse In Us$
1977 1978 1979 1980 1987 1988 1989 1990 1997 1998 1999 2000 2007 2008
Amount Paid To Breeders In US $
2907863
2861313
46549.45
2133610
2066947
66688.65
2282832
2212220
70611.93
2783781
2653228
130553.4
1643634
1524491
119143
1368816
1332657
36159.17
1993309
1838697
154611.9
1852978
1709249
143729.6
4965356
4520770
444586
5509692
5017387
492305.6
5718489
5172433
546056.1
5747346
5236411
510935.5
5402580
4919109
483470.2
5873082 5347988 Source:-The Jamaica Racing Commission
525094.8
% Change in Purses Paid out, year 1977=100 1400 Percentage Change
1200 1000
% Change in Total Purse1977=100
800 600
% Change in Puse Paid To Owners 1977=100
400 200 0 1
3
5
7
9 11 13
Period,1977- to-2008
% Change in Amount Paid To Breeders 1977=100
2
If the problem is not caused by a failure to pay out a competitive purse and it did not come about as a result of radical changes in the offering of Caymanas Track Ltd. how then the decline in the fortunes of racing come about? There are two aspects to this problem –(1) Over the years there has been a reduction in both the number of betting shops in operation coupled with a decline in the number of betting companies; secondly there has been a decline in total betting sales. See table below:Calendar Year
Book Makers Total in US $
Total Betting in US $
28252.75
47417.58
75670.33
19090.78
43543.97
62634.75
14255.68
36857.39
51113.07
13113.48
36074.72
49188.2
11198.55
25257.53
36456.08
8870.417
22349.91
31220.33
13898.96
34851.99
48750.95
12671.27
22073.62
34744.89
37267.5
22719.35
59986.85
35532.47
23180.14
58712.61
40651.68
29796.28
70447.96
41400.35
31953.2
73353.55
34925.92
22136.13
5715.392
33823.11
21843.92
55667.03
Promoter’ s Total in US$
1977 1978 1979 1980 1987 1988 1989 1990 1997 1998 1999 2000 2007 2008
Source:-The Jamaica Racing Commission
The table and graph below express the above in percentage terms thus enabling a closer examination in the change in betting sales between 1977 and 2008.
3
Calendar % Year Change in Total Betting 1977=100
% change in Promoters Total 1977=100
% Change in Bookmakers Total 1977=100
100
100
100
82.7732
67.57141
91.83086
67.54704
50.45768
77.72937
65.00329
46.4149
76.07878
48.17751
39.63702
53.26617
41.25835
31.39665
47.13422
64.42545
49.19507
73.50015
45.91613
44.84969
46.55155
79.27394
131.9075
47.91334
77.59
125.7664
48.88511
93.09852
143.8858
62.83803
96.93833
146.5357
67.38683
7.553016
123.6196
46.68338
73.5652 119.7162 Source: The Jamaica Racing Commission
46.06714
1977 1978 1979 1980 1987 1988 1989 1990 1997 1998 1999 2000 2007 2008
% in Total Sales, 1977=100
% change over 1977 sales
160 140
% Chandge in Total Betting 1977=100
120 100
% change in Promoters Total 1977=100
80 60
% Change in Bookmakers Total 1977=100
40 20 0 1
3
5
7
9 11 13
periods, 1977-2008
4
What can be seen from the tables and graph above is that not only is there a question of declining total sales , but from the mid 1980s private bookmakers have been reducing their participation in the sales of bets on local races. While there has been a consistent increase in the promoter’s share in total betting sales its impact remains less than it would have been if the private bookmakers were operating at their pri-1980s level. Coupled with the above, the promoter has been called on to match changes in betting sales to that of the payment of purses. See table and graph below:Calendar Year 1977 1978 1979 1980 1987 1988 1989 1990 1997 1998 1999 2000 2007 2008
% change in Total Betting Year to Year !00
% change in Total Purse Year to Year 100
82.7732
73.37382
81.60497
106.9939
96.2341
121.9442
74.1155
59.04322
85.63819
83.27987
156.1513
145.6228
71.27017
92.95993
172.6494
267.9663
97.8758
110.9627
119.9878
103.7896
104.1245
100.5046
7.791569
94.00129
973.9844
108.7089
5
% Change in Total Purse and Total Betting Year to Year 1200 1000 % change in Total Betting Year to Year
% Change
800 600
% change in Total Purse Year to Year
400 200 0 1
3
5
7
9
11 13
Period 1977 to 2008
Marginal Change in Totat Betting & Marginal Change in Total Purse 1977 to 2008 10 8 6
Marginal Change in Total Betting
4
Marginal Change in Total Purse
2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 -2
6
The Implications For The Racing Industry 1. The declining sale coupled with the declining participation of the private sector in the sales of bets on local racing in addition to the increasing responsibilities of the promoting company means greater difficulty in the funding of recurrent activities and little or no attention to developmental activities. 2. Greater demands on the state to give various types of “incentives” and or grants. 3. Continued difficulty in funding the activities of the Jamaica Racing Commission whose revenue is in theory linked to betting sales. 4. The potential risk of accelerated decapitalization of the industry in the short to medium term as a result of the increasing attractiveness and lower operating of other forms of gambling. 5. The risk of trainers, grooms, jockeys and etc becoming de facto state employees.
7
Race Days
Races
83 83 91 89 81 70 87 65 89 83 90 93 80 82
846 827 886 835 776 641 809 643 925 876 942 998 841 865
Starters Average Average per per Day Race 8752 105.4 10.3 9260 111.5 11.2 9341 103.6 10.5 9122 102.4 10.9 8975 110.8 11.6 6779 96.8 10.6 8271 95.1 10.2 6330 97.4 9.8 8860 101.9 9.6 8460 99.5 9.6 9744 108.2 10.3 10051 108.1 10.1 7519 93.98 8.9 8166 99.58 9.4
Source: The Jamaica Racing Commission
As can be seen there is no significant difference in the offering of Caymanas Track Limited in the late 1970s as compared with the offering in recent years. Equally it could not be said, that the decline in the fortunes of racing has any direct relationship with the distribution of purse money. As can be seen from the table and the graph below, owners and breeders have been doing relatively well given the state of the industry.
1
Calendar Year Purse Paid Out To Owners In US $
Total Purse In Us$
1977 1978 1979 1980 1987 1988 1989 1990 1997 1998 1999 2000 2007 2008
Amount Paid To Breeders In US $
2907863
2861313
46549.45
2133610
2066947
66688.65
2282832
2212220
70611.93
2783781
2653228
130553.4
1643634
1524491
119143
1368816
1332657
36159.17
1993309
1838697
154611.9
1852978
1709249
143729.6
4965356
4520770
444586
5509692
5017387
492305.6
5718489
5172433
546056.1
5747346
5236411
510935.5
5402580
4919109
483470.2
5873082 5347988 Source:-The Jamaica Racing Commission
525094.8
% Change in Purses Paid out, year 1977=100 1400 Percentage Change
1200 1000
% Change in Total Purse1977=100
800 600
% Change in Puse Paid To Owners 1977=100
400 200 0 1
3
5
7
9 11 13
Period,1977- to-2008
% Change in Amount Paid To Breeders 1977=100
2
If the problem is not caused by a failure to pay out a competitive purse and it did not come about as a result of radical changes in the offering of Caymanas Track Ltd. how then the decline in the fortunes of racing come about? There are two aspects to this problem –(1) Over the years there has been a reduction in both the number of betting shops in operation coupled with a decline in the number of betting companies; secondly there has been a decline in total betting sales. See table below:Calendar Year
Book Makers Total in US $
Total Betting in US $
28252.75
47417.58
75670.33
19090.78
43543.97
62634.75
14255.68
36857.39
51113.07
13113.48
36074.72
49188.2
11198.55
25257.53
36456.08
8870.417
22349.91
31220.33
13898.96
34851.99
48750.95
12671.27
22073.62
34744.89
37267.5
22719.35
59986.85
35532.47
23180.14
58712.61
40651.68
29796.28
70447.96
41400.35
31953.2
73353.55
34925.92
22136.13
5715.392
33823.11
21843.92
55667.03
Promoter’ s Total in US$
1977 1978 1979 1980 1987 1988 1989 1990 1997 1998 1999 2000 2007 2008
Source:-The Jamaica Racing Commission
The table and graph below express the above in percentage terms thus enabling a closer examination in the change in betting sales between 1977 and 2008.
3
Calendar % Year Change in Total Betting 1977=100
% change in Promoters Total 1977=100
% Change in Bookmakers Total 1977=100
100
100
100
82.7732
67.57141
91.83086
67.54704
50.45768
77.72937
65.00329
46.4149
76.07878
48.17751
39.63702
53.26617
41.25835
31.39665
47.13422
64.42545
49.19507
73.50015
45.91613
44.84969
46.55155
79.27394
131.9075
47.91334
77.59
125.7664
48.88511
93.09852
143.8858
62.83803
96.93833
146.5357
67.38683
7.553016
123.6196
46.68338
73.5652 119.7162 Source: The Jamaica Racing Commission
46.06714
1977 1978 1979 1980 1987 1988 1989 1990 1997 1998 1999 2000 2007 2008
% in Total Sales, 1977=100
% change over 1977 sales
160 140
% Chandge in Total Betting 1977=100
120 100
% change in Promoters Total 1977=100
80 60
% Change in Bookmakers Total 1977=100
40 20 0 1
3
5
7
9 11 13
periods, 1977-2008
4
What can be seen from the tables and graph above is that not only is there a question of declining total sales , but from the mid 1980s private bookmakers have been reducing their participation in the sales of bets on local races. While there has been a consistent increase in the promoter’s share in total betting sales its impact remains less than it would have been if the private bookmakers were operating at their pri-1980s level. Coupled with the above, the promoter has been called on to match changes in betting sales to that of the payment of purses. See table and graph below:Calendar Year 1977 1978 1979 1980 1987 1988 1989 1990 1997 1998 1999 2000 2007 2008
% change in Total Betting Year to Year !00
% change in Total Purse Year to Year 100
82.7732
73.37382
81.60497
106.9939
96.2341
121.9442
74.1155
59.04322
85.63819
83.27987
156.1513
145.6228
71.27017
92.95993
172.6494
267.9663
97.8758
110.9627
119.9878
103.7896
104.1245
100.5046
7.791569
94.00129
973.9844
108.7089
5
% Change in Total Purse and Total Betting Year to Year 1200 1000 % change in Total Betting Year to Year
% Change
800 600
% change in Total Purse Year to Year
400 200 0 1
3
5
7
9
11 13
Period 1977 to 2008
Marginal Change in Totat Betting & Marginal Change in Total Purse 1977 to 2008 10 8 6
Marginal Change in Total Betting
4
Marginal Change in Total Purse
2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 -2
6
The Implications For The Racing Industry 1. The declining sale coupled with the declining participation of the private sector in the sales of bets on local racing in addition to the increasing responsibilities of the promoting company means greater difficulty in the funding of recurrent activities and little or no attention to developmental activities. 2. Greater demands on the state to give various types of “incentives” and or grants. 3. Continued difficulty in funding the activities of the Jamaica Racing Commission whose revenue is in theory linked to betting sales. 4. The potential risk of accelerated decapitalization of the industry in the short to medium term as a result of the increasing attractiveness and lower operating of other forms of gambling. 5. The risk of trainers, grooms, jockeys and etc becoming de facto state employees.
7
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