For the sport of horse racing, which has long prided itself on being a cerebral pursuit rather than a roll of the dice, this legislation could well be the final nail in the coffin
Action from a race at Mahalaxmi in April. Pic/Satej Shinde
In a move that has sent shockwaves through the corridors of India's turf clubs, the Central Government on Wednesday passed the Online Gaming Promotion & Regulation Bill, effectively blurring the lines between games of skill and games of luck. For the sport of horse racing, which has long prided itself on being a cerebral pursuit rather than a roll of the dice, this legislation could well be the final nail in the coffin.
Game of skill
The wheel has turned a full circle since 1996 when the Supreme Court, in a landmark judgment penned by Justice Kuldeep Singh, unequivocally declared horse racing a "game of skill" (Dr KR Lakshmanan vs the State of Tamil Nadu). The court drew a clear distinction: unlike lotteries or card games reliant on chance, racing demands knowledge of form, pedigree, track conditions, horse trainer skill and jockey prowess. This verdict became the bedrock on which turf administrators across the country fought tooth and nail against regulatory overreach, as this "skill" plank was regularly invoked in courts to safeguard the sport's uniqueness, integrity and legality.
Livelihoods at stake
Horse racing isn't some fringe pastime; it's a full-fledged industry employing lakhs of skilled workers--from breeders to their skilled staff at the farm to trainers and jockeys to farriers to stable hands and veterinarians--even the ancillary sectors like fodder suppliers and transport--all now hang by a thread. Will horses and racing survive? Unlikely, because with this bill even recourse to judiciary is rendered futile. With attendance already dwindling due to insanely high taxation and digital distractions, this bill may trigger mass layoffs and farm closures.
Interestingly, the bill, quite rightly, has been projected as "promotion and regulation" for online gaming, but for traditional turf, it's pure regression. The bill pulls the rug from under the feet of turf club administrators who hoped to one day win the judicial nod. By clubbing all forms of wagering—be it skill-based horse racing or luck-driven online rummy—under the blanket umbrella of "gambling," the bill has stripped away horse racing's unique status.
No longer can clubs argue exemption or different treatment on grounds of merit; everything is now painted with the same brush of vice. Race clubs now fear this "clubbing" will invite stricter controls, potentially choking off the lifeblood of on-course and off-course betting.
Killer GST
Adding insult to injury, the GST Council, which had imposed a 28% tax on the full turnover of bets rather than just the clubs' commission, now stands emboldened. Knowledgeable sources indicate this could escalate to a crippling 40%, making operations unsustainable. For the sport of horse racing which is uniquely subsidized by the betting money alone—it's death sentence, nothing less.
"They are shooting a dead man," Shiven Surendranath, member, RWITC committee, told mid-day over the phone, "yes, it's a retrograde step, but it's not really going to be a big pain point in any case due to the high level of GST at 28% that virtually killed all revenue from legal betting." He added, "It's my understanding that the license granted to us by the state government to conduct online betting will still remain valid in Maharashtra, but we will need to verify that after getting to study the bill."
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