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There has been an increase of 61 per cent in the number of live horses acquired for the racing industry in the first year since the general consumption tax was lifted on the importation of the animals in November 2023.
However, the operators of Caymanas Park, the country’s only racetrack, and industry veteran Howard Hamilton, who owns and breeds horses, both say it will take more than increased imports to make horse racing a viable industry in Jamaica.
Figures provided by the Jamaica Racing Commission show that 84 horses were imported in 2024, compared to 52 in 2023 and 47 in 2022.
The numbers translate to a 61.5 per cent increase in importation in 2024, compared 10.6 per cent in 2023.
When the Jamaican government eliminated the 15 per cent tax, it did so with the expectation that the funds saved would be utilised for the procurement of better quality breeding stock and stimulate growth in the horse racing industry.
Hamilton, who was president of the Thoroughbred Owners and Breeders Association, TOBA, for more than 30 years, says the racing industry as presently structured is unsustainable. For instance, the purse for winning races at Caymanas Park is less than one-third of what it costs to keep and tend to the total stock of horses, he said.
The solution, Hamilton said, is to levy a further tax on the gaming sector, such as lotteries and slot machines, which would be used to subsidise the owners of horses, saying the benefit would redound to the entire racing industry, which includes trainers, jockeys, grooms, farriers and other professionals.
“All over the world, the purses in racing are subsidised by the government from a tax on casinos, lotteries, slot machines, and things like that. I recommend the government institute something similar; but of course, Supreme Ventures don’t want that because they’re the largest lottery operators and they don’t want any new tax on them,” Hamilton told the Financial Gleaner.
Lottery and gaming company Supreme Ventures Limited operates Jamaica’s sole horse racing track through Supreme Ventures Racing and Entertainment Limited, SVREL, and has done so since 2017 when it acquitted Caymanas Park from the Jamaican government.
Hamilton said it costs close to $3 billion per year to care and prepare the horses for racing, whereas the purses for the year amounts to $800 million.
“All I’m asking is that we get 60 per cent of what it is costing us,” he said. “Under the current structure we are only going to attract people who can afford to buy horses, and who really can’t carry racing forward.”
The Jamaican government gives TOBA a stimulus of $20 million each year, which it is currently using to purchase about 10 horses at a racing sale in Maryland, United States. But Hamilton said more incentives are needed, for example, special races with larger purses to encourage the local breeding industry.
SVREL Chairman Solomon Sharpe said the size of the purse for winnings was just one piece of a fulsome conversation needed about the viability of horse racing in Jamaica in general.
“The reality is that, to make this sport viable and profitable for all stakeholders, real reform is needed at the regulatory level. The Jamaican horse racing industry needs urgent help from government, policymakers and industry leaders so our industry can survive and grow,” Sharpe said.
He added that any increase in the purse should be supported by an increase in racing activity at Caymanas Park.
“Our current reality is that we’ve had to cut race days from 90 per year to just 80 due to insufficient horse numbers. That is not conducive to the growth needed to increase purses,” said the SVREL chairman.
“With only 950 horses in training, we need at least 1,200 horses to return to 90 race days – or even 95 – which would create more earning opportunities for everyone in the industry,” he said.
Sharpe said SVREL itself was doing its part to increase the horse population, having bought 14 race horses, six of which are currently in training.
“Our investment in our racing horses has brought a break-even position, showing the financial pressures facing all industry participants,” he said.
Sharpe also noted that SVREL had made significant investments in Caymanas Park, including a US$4-million solar plant, demonstrating the company’s commitment to reducing operational costs and energy sustainability.
Noting that support was needed at the regulatory level, he suggested that a portion of the taxes already being collected should be reinvested into the sport.
Last year, SVL Group reported inflows of $32.6 billion for the ‘non-fixed odds wagering, horse racing and pin codes’ category, compared to just under $30 billion in 2023. Within the category, sports betting, the segment under which horse racing falls, generated nearly $14.8 billion and contributed $1 billion to SVL Group’s $2.77 billion of operating profit last year.
Net profit for the group totalled $1.77 billion in 2024, down from $2.44 billion the prior year.
English (US) ·