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The future of horse racing hinges on going digital and government support

With horse racing events across clubs in India halted because of a pandemic, the sport is facing an existential question

horse racing
In the clubs there is chatter about the pros and cons of opening up, of having “closed-door racing”
Pavan Lall
5 min read Last Updated : Jul 20 2020 | 8:11 AM IST
In late March, nearly a thousand thoroughbreds from the stables of Mumbai’s Mahalaxmi Racecourse made their way back to the training farms in and around Pune, as they do every year after the racing season. This time, however, there was no telling when they would return to Mumbai and once again thunder down the turf, watched by hordes of excited first-time attendees, seasoned punters and proud owners.

With horse racing events across clubs in India halted because of a pandemic, the sport is facing an existential question: Should it wait for things to normalise or should it gallop into a digital arena, which may catapult its popularity and revenues?

In the clubs there is chatter about the pros and cons of opening up, of having “closed-door racing”, which would put the action back on the track but keep spectators out. When this can happen is, however, uncertain since the sport depends on state regulations and permissions which are not uniform. 

“This is a big industry that can get bigger with government support,” says Zavaray Poonawalla, chairman, Royal Western India Turf Club (RWITC). “Racing adds to the government’s revenue, brings jobs to people, creates green lungs in our cities as well as offers recreation.”

RWITC is in discussion with Paytm for a digital collaboration that involves their skin in the game as well as cross-marketing arrangements. 



However, mere permissions may not be enough to seize the day. “Turf clubs haven’t modernised in the last two decades and have completely missed the boat with poker and rummy websites taking the lead,” says Tegbir Brar, race-horse owner, breeder and partner with Dashmesh Stud Farm in Muktsar, Punjab. “The retail punter has few digital options. Clubs too are lagging and have little time to get their digital infrastructure up and ready.” Compare that to offshore racing centres such as England and Japan, where online platforms can be accessed across geographies. 

Brar’s point is that now more than ever clubs need to be run as professional businesses and less like restricted-access fraternities. 

‘GST has hit racing hard. And if something isn’t done, it will soon kill the industry,’ says Zavaray Poonawalla,  Chairman, Royal Western India Turf Club


There are other challenges too. The car parking area of Mahalaxmi Racecourse, for instance, has been taken over to offer quarantine facilities and it will be a while before it opens up, further highlighting the necessity of going online with the sport.  

Race horse owner and RWITC Steward Geoffrey Nagpal agrees that the sport requires a corporate approach and modernisation. He points to international clubs that have been success stories. In 2018, for example, Hong Kong generated a record turnover of $30 billion from horse racing alone. Ireland, too, has a sizeable racing-based economy.

Action from a race at the Bangalore Turf Club


The industry is dependent primarily on earnings from betting and gate money, in the absence of which clubs have practically no revenue, says Zeyn Mirza, managing director of United Racing & Bloodstock Breeders, Bengaluru.

When the Goods and Services Tax (GST) kicked in and impacted the club in Bengaluru, Mirza says they moved to obtain permission for online betting on horse racing in 2017. The permission was granted only recently. In Bengaluru, meanwhile, the turnover declined from Rs 1,900 crore in 2016-2017 to Rs 600 crore in 2019-20. It’s a similar story for most clubs. Mirza is of the opinion that clubs should be taxed on commissions earned rather than on turnover. “Beyond that, this is a great opportunity for the six clubs (Hyderabad Race Club, RWITC, Madras Race Club, Royal Calcutta Turf Club, Mysore Race Club, Bangalore Turf Club) to come together and create a unified online platform for racing,” he says.



It won’t be simple though. Something like this requires a platform that offers video replays of races in high definition and multi-angle recordings so that enthusiasts can see a regular view, a leading horse view and a patrol view (head-on view), in addition to being able to place bets in real time, with the assurance that their financial data is secure while they do so.

Even so, only online betting won’t be a silver bullet cure in the present. “GST at 28 per cent plus a 7 per cent club commission means the winning pool payout is around 62 per cent right off the bat,” says Sunil Jhangiani, horse owner and club member at the RWITC who structured the yet-to-be-finalised digital collaboration with Paytm last year.  

Poonawalla agrees: “GST has hit racing hard. And if something isn’t done about it, it will soon kill the industry.”

There is also the matter of feeding and maintaining a thoroughbred. Each horse’s upkeep can cost between Rs 20,000 and Rs 30,000 a month. With no income coming in from potential stakes and winnings, horse owners’ monthly expenses are up drastically, says Satyaki Roy, an avid racegoer at the Royal Calcutta Turf Club, Kolkata.

“Horse racing is not just a sport,” Poonawalla says. “It gives employment to hundreds on the race courses.” And it needs help.  

Topics :CoronavirusLockdownHorse ridingCoronavirus VaccineOutbreak of COVID-19

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