THE GAMING ACT

Manawatu Standard, Volume LIII, Issue 244, 12 September 1933, Page 2

THE GAMING ACT

CLAIMS FOR AMENDMENT. STATEMENT OF POSITION. The claims of racing clubs throughout the Dominion for amendments to the Gaming Act of 1908 were advanced at the annual meeting of the AVellington Racing Club, yesterday, by the president (Mr E. L. Ridditord), who has prepared a statement of the position for the information of Wellington members of Parliament. Briefly, he said, the racing and trotting conferences and clubs throughout New Zealand desired the restoration of the law governing the use of the totalisator to what is was before the passing of the Gaining and Lotteries Amendment Act, 1907—that is to say: (a) The re-legalisation of telegraphing in- . vestments to the totalisator; (b) the re-instatement of the double totalisator; and (c) the removal of the pre--1 sent prohibition on the publication of dividends.

j Gaming legislation from the year 1 1907 onward was traced by Mr Riddi- | ford, who said that in that year the date Sir Joseph Ward made it a matter of Government policy to attempt to confine betting to racecourses. Two | years’ experience of licensed bookmakjers resulted in the Gaming Amendment Act, 1910, which repealed the j 1907 provisions for licensing them, but again their calling was not in it- | self declared illegal and the omission , to remove the restrictions on the totalisator imposed by the Act of 1907 simply gave them a monopoly of offcourse betting (in the course of which they flatly ignored the law against laying “tote odds”), and a complete monopoly of all double betting. In 1920 an attempt was made to abolish the bookmaker by declaring liis calling illegal, but the one effective means of abolishing him was not adopted—the giving to the totalisator, as the only r lawful means of betting on horse races, facilities for receiving moneys which, in the absence of those facilities, went as freely’ as ever to the bookmaker. It was assumed with confidence that any idea of completely abolishing all lawful moans of betting on horse races was not seriously contemplated as being within the realm of practical politics, and equally’ that no Government of to-day would, on moral grounds, give Up the revenue that accrued to the State from racing, Air ltiddiford continued. The policy of the law being broadly to confine all lawful betting to the totalisator, the logical development of that policy was a course of action that would divert to the totalisator all, or at least a reasonable, percentage, of the huge sum that annually flowed through illegal channels —namely 7 , the bookmakers. To the reply’ that the legalisation of telegraphing investments and the double totalisator would encourage the growth of betting the answer was that the mere fact of the bookmakers still flourishing, despite' the heavy penalties imposed by law on both them and their clients, showed that the betting instinct was one that no law could eradicate or effectively discourage. Should not the aim of the Jaw be, therefore; to give a reasonably full lawful outlet for that instinct? At the best of times the State revenue from racing was a very considerable item in the national Budget, and really the most profitable of all, for the cost of collection to the State was nil.

Any means whereby racing revenue could be increased would be a boon to the State and would relieve, to the extent of that increase, the people generally from new and direct taxes on the necessaries of life. Not only could no increase in racing revenue be obtained, but also the present decline could not be arrested by any increase in the present rates of totalisator duty and dividend, stakes and amusement taxes.

The present totalisator taxation resulted in 3s 4d being deducted from every £1 invested, said Air Riddiford. This rate was the highest of any country in the world, the figures being: Tasmania 12J per cent.. New South Wales 12 \ per cent., Victoria 10 per cent., South Australia 12J per cent., West Australia 13£ per cent., Queensland 13J per cent., England 10 per cent., France 1\ per cent., New Zealand 17i per cent. The stakes tax of 5 per cent, was more than ever burdensome to owners and less productive to the State because of the present low level of stakes. Any increase in the rate of amusements tax would have to be met by clubs, 90 per cent, of which had for the past three years at least been operating at a loss. Racing for many years past had been grossly overtaxed. Higher rates on existing taxes and new taxes imposed during the war and again during the depression of 1921 were not subsequently reduced, and the latest increase in 1930 had been very, nearly the last straw, even though clubs were temporarily being allowed to retain nearly hall that increase. For all that, not only the Racing and Trotting Conferences, but clubs generally were prepared to struggle on as long as humanly possible without seeking a reduction of the present rates of taxation, if Parliament would j>ass the legislation they desired.

From the revenue point of view the telegraphing of investments and the double totalisator would divert sufficient of the money now going through the bookmakers to make for an increase of £50,000 per annum in Post and Telegraph revenue, and another £200,000 in racing revenue proper. An increase in totalisator turnover would benefit far more that the State. Under the Rules of Racing it would mean increases in stakes (bringing, incidentally, more revenue in stakes tax to the State). Increase in stakes would mean increased remuneration for jockeys (whose riding fees are on a percentage basis), for trainers (who also for the most part work on the basis of a percentage of stakes won), for stablemen and other employees, and mean, too, a revival in those trades which were to varying extents dependent on the racing owner.

If racing ceased the amount of distress from consequent unemployment would be calamitous. It was estimated that no fewer than 10,000 people (racing club servants, trainers, jockeys, stablehands, employees on stud farms, etc., and their families) had no other means of livelihood than racing, while thousands of others had small incomes considerably augmented by seasonal work in connection with racing. It would be superfluous to elaborate the impossibility of providing for all these people were they, suddenly thrown into the ranks of the unemployed.