H.—2B

5

clubs by statute) upon which the totalizator may be used in the racing-year is thus 316, divided as follows: Racing clubs, 223 (formerly 214) ; hunt clubs, 15 (formerly 16) ; and trotting clubs, 78 (formerly 59). Prior to the appointment of the Commission of 1910, racing clubs held licenses covering 242 days, and trotting clubs licenses covering! 62 days, a total of 304 days for the year. Hunt clubs at this time held no licenses, but now hold licenses for 15 days. It will be seen that the number of totalizator days for racing clubs and hunt clubs recommended by this Commission is still 4 days|short of the total held in 1910 by racing clubs alone, and the days recommended for trotting clubs only 16 in excess of the days held by that branch of the sport in 1910. With regard to trotting, in the report of the Commission of 1910 it was pointed out that the peculiar concentration of trotting had been caused by the exceptional growth of the sport in a few centres, and that this unequal distribution could not be immediately remedied. The evidence is abundant that since 1910 the sport of trotting has vastly increased in popularity, and facilities for its enjoyment are being clamoured for from one end of the Dominion to the other. 12. In view of the provisions of section 3 of the Gaming Amendment Act, 1920 (No. 2), it has been assumed that, beyond satisfying ourselves that the hunt clubs applying for the days mentioned in that section are genuine hunt clubs reasonably equipped, and fulfilling their functions as such clubs, we have no responsibility as to the grant of licenses to this class. 13. Although the allotment of twenty-eight days in excess of one number previously authorized may, at first sight, appear to be a violent departure from the first of the principles laid down in paragraph 3 (a), when the position is closely examined it is not really so. The days of racing and trotting in Auckland, Christchurch, and Napier are reduced by twelve days. Estimates made by competent authority indicate that the totalizator turnover which may be expected from the like number of days plus the additional days granted- —all of which, with the exception of one day to Wellington racing and three days to Wellington trotting, are distributed among country clubs, including some in remote districts — will not materially, if at all, exceed the turnover that might reasonably have been expected from the days withdrawn from the city and town clubs. ' General Recommendations. We venture to think the terms of the order of reference are sufficiently wide to enable us, with propriety, to make the following comments and recommendations : — A. We desire to place upon record A our complete acceptance ot the principle laid down by the Report of the Gaming Commission of 1910 —namely, that any proprietary element in racing clubs or the courses controlled by them is entirely objectionable, and should be rigorously eliminated, in so far as clubs enjoying totalizator privileges are concerned. We hold the view that racing clubs are, in a sense, trustees, as regards the proceeds of their race meetings, for that large section of the public commonly called the racing public, and while no club should be interfered with, as to the manner in which such proceeds are applied, so long as it is reasonably clear such application is for the furtherance of the legitimate purposes of such club, it should be vigilantly seen to by the governing authorities of the sport that no profitsharing by individuals be allowed to creep in. No better recognition of this quasi-trusteeship can be quoted than what has been done and is being done at Ellerslie by the Auckland Racing Club for the public of Auckland —indeed, for the public of New Zealand. In this connection we recommend that no club shall be entitled to maintain its totalizator privileges unless it has acquired the freehold, or a substantial leasehold, of the course upon which it races, or unless such course is part of a public domain or reserve for recreation purposes. Further, it is desired to direct attention to a matter which appears to have hitherto received no consideration, but which seems to be of importance. We refer to the application of the funds and properties of a club upon the happening of its dissolution. As matters stand, some clubs have no rules on the subject;