Racing Industry Faces Major Financial Crisis
The State government of Karnataka has decided of not renewing the Bangalore Turf Club’s racing permit. The license expired yesterday, on August 31st.
The move will bring all the betting activities come to a stop, starting today. The decision was the outcome of the summer meeting. The first blow would be on the Friday’s Mysuru races, with the introduction of a ban on the betting in Bengaluru.
A priority meeting on Thursday between a club representative and Chief Minister Siddaramaiah failed to produce an instant solution to the matter. According to BTC, CM has told that any decision can be taken only after consulting other key stakeholders.
Another critical hit to further drown the racing industry into the financial crisis after the Goods and Services Tax (GST) Council told the Turf Authorities of India last week that the 28 percent tax is not on the club’s commission; instead, it’s on the value of the ticket. The turf officials, with no clarity on the GST issue, decided to keep it safe by implementing taxes on both, betting and gate money.