STAKEHOLDERS IN the horse-racing industry yesterday warned the Government against proposed legislative amendments they claim could lead to the demise of the sector and the loss of more than 20,000 jobs.

Making a presentation yesterday to a select committee of Parliament examining the Betting, Gaming and Lotteries Act and the Casino Gaming Act, attorney-at-law for Caymanas Track Limited (CTL), William Chin See, said the organisation had concerns with the amendment.

"This is clearly a recipe for social upheaval. Jamaica cannot afford this, I respectfully submit," Chin See declared.

A new player

The amendment will, among other things, allow a new player to offer overseas bets to local punters thereby competing with CTL.

The CTL attorney told the committee that a company called Fortune Gaming had applied for a licence to conduct pool betting on horse racing.

The Betting, Gaming and Lotteries Commission (BGLC), the regulatory body for gaming in Jamaica, had sought and obtained the opinion of the Attorney General's Chambers as to whether the licence should be granted.

According to Chin See, the attorney general's advice was that the activity to be performed by Fortune Gaming was not illegal.

However, Chin See warned that amending the law to admit this new entity would result in significant gains only for the new player and foreign racetracks at the expense of CTL.

Level playing field

The CTL legal counsel argued that the government-owned company pulled in most of its earnings from bets placed on overseas racing. Last year, CTL earned $119 million from overseas simulcast racing. This compares with an operating loss of $118 million from its local horse-racing business.

"Those who wish to compete with CTL should put their money where their mouths are. They should prepare their own racetrack, apply for a licence and let us have a level playing field," Chin See said.

"You can't come in by the side door where you are going to cream off everything at the expense of the government-owned company," he said.

Committee member Phillip Paulwell raised questions about CTL's objection to a new player, noting that, in the context of the Fair Trading Act, competition should be encouraged.

However, Paulwell said he was sympathetic to CTL's position as jobs in the sector could be at risk.

Committee members urged Audley Shaw, minister of finance and the public service, to hold discussions with both CTL and BGLC to address the concerns.