H2 NEWS

H2 Speaks at Turkish Jockey Club’s Seminar on the Prevention of Illegal Betting in Ankara

26-Jan-2009

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As previously announced on this website H2 Gambling Capital shared a platform with representations of organisations including, the International Association of Horseracing Federations the British Horseracing Authority, the Tote Ireland, the Hong Kong Jockey Club, the Japan Racing Association and the PMU as well as the Turkish Jockey Club themselves, members of the academic community, the media and the Turkish government.

Although it was reduced from 45.5% to 50% during April 2007 the Turkish Jockey Club’s takeout rate is still by far the highest in the world. Much of the takeout is accounted for by 18% VAT so a model was presented which demonstrated the potential impact on yield should the rate be reduced.

During the day in addition to identifying that illegal gambling will occur wherever there is an opportunity, the results of various prevention strategies were shared, as was the impact of tax changes in the likes of the UK, Ireland and Hong Kong.

It was acknowledged that maximising tax revenues is not always a complementary strategy for addressing illegal betting. The Japanese Racing Association’s representative highlighted that it should be remembered that horseracing racing is for the benefit of all of the stakeholders. He stressed that the punter should not be forgotten as it they who generally contribute the most to the sport.

It was also agreed that given the Turkish Jockey Club is starting from such a high takeout rate and does not have as much illegal betting to deal with as some nations it is actually in a fairly favorable situation.

As a result of the very informative day, some of which was attended by the Minister of Agriculture, H2 expect there to be further debate regarding the issue and a reduction in the takeout rate to be achieved in the coming years.

Download Simon Holliday’s presentation and PowerPoint slides

Turkish Jockey Club click here

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