HIGH FINANCE

Evening Post, Volume CXIII, Issue 128, 3 June 1927, Page 5

HIGH FINANCE

REVENUE DERIVED PROM

RACING

An article on the totalisator appearing in the New Zealand supplement of "The Times", is the.basis of some illuminating comparisons; by the racing correspondent of: "The Times." It is stated in the article that before the introduction •': of the totalisator to New Zealand racecourses, bookmakers provided the only means of speculation and contributed nothing, to the revenues of the race clubs. Attempts; to control them and tax them liu'.cd almost-v without exception. The totalisatofcf,*. quickly lessened the club's anxiety concerning finance, and finally removed it altogether. The amount' invested on the machine last year was £8,445,859. Of this, some £7,183,136 was paid in dividends, £622,479 was absorbed by State taxation, and £67^483 was retained by the.clubs. "The rules of racing in New Zealand," says "The Times" correspondent, "require" that the amount received by the club shall be paid in stakes during the succeeding year. Special permission may be given to expend part of the money on improvements to the club property or to compensate the club if it has suffered' from adverse conditions. It will be seen that the money deducted from the total investments made;with the. totalisator is just over 14 per cent., of which amount roughly half goes back to racing and half goes to the Government. The total population of New Zealand is less than 1,500,----000, and this pays over £1,000,----000 to assist their racing and the Government out of their, betting. The population of England and Wales is about 40,000,000, and from these figures it is reasonable to assume that they should be able to assist racing and the Government's .finances' to.the extent of £26,000,000. Yet, at the present time, 1 the betting duty is not producing ;■ any-appreciable sum • of money at all in this country. As the article in question points out, attempts to make any money out of taxing bookmakers failed-almost without exception. I cannot imagine a better, argument in favour of the totalisator,.'l admit at once that it would not produce ■ £26,000,000, which, on the New Zealand figures, it should do, but even, if iff produced only one-third of that amount the advantage to owners and breeders would be enormous. Incidentally, the .New-Zealand:; figures are very interestingf; Before the betting, duty came into operation some bookmakers of standing presented.tb;, the] Chancellor of the^Exchequer certain"figures, which showed that if the tax on'.betting:was 2 per cent, on the racecourse, arid 3% per cent, away from the racecourse, the total received would be £6,000,000. That amount indicates that^ it was estimated that the betting turnover in the year in this country was £200,000,000, or somewhere near £6 a head, which; from the figures in the article which I have quoted, is almost exactly the same as the amount per head in New Zealand. It is obvious, therefore, that if the totalisator were introduced into this country a very large sum of money would at: once become available for the Government,, f OK. stakes, for owners,,. and, if necessary^touiubsidije breeders." ■'.