The dispute over Royalty issue between Royal Western India Turf Club and Bangalore Turf Club has taken a turn for the worse. RWITC has informed BTC in their communication that unless the latter allows the audit of its balance sheet pertaining to the collections on the Tote on the inter-venue betting held on Pune and Mumbai races and the quantum of Royalty is as per the percentage agreed upon, they will be constrained to cut off signals of its races from August 27 which effectively means that there will be no inter-venue betting on these races. The Managing Committee of RWITC took this decision at their meeting held on Monday, August 15.

The decision is sure to impact racing in a big way because it can lead to other turf clubs either siding with Bangalore or RWITC thus making the existence of Turf Authorities of India itself redundant. Already the Turf Authorities of India is a toothless tiger and the only purpose it has served is the conduct of Indian Turf Invitation Cup weekend races at different centres and have meetings which rarely serve any useful purpose. Each turf club follows its own rating system and rules are framed to suit the local environment. There is a restriction by most turf clubs about the participation of outstation horses barring the classics and graded races unlike Bangalore Turf Club which allows participation of outstation horses during the summer season for all category of races barring the one meant for the lowest class.

There is tremendous following for racing conducted by RWITC in Bangalore and the same holds true for racing conducted by BTC and Mysore Race Club. Punters have greater confidence on racing held at these centres. It was because of the understanding between RWITC and BTC which paved the way for inter-venue betting in the year 1972 which served as a lifeline for all turf clubs in India struggling financially. As such, the decision by RWITC is sure to impact racing all over because there will be a chain reaction. Though there is no demand placed on Mysore Race Club about the Royalty, the latter is forced to go with BTC because their tote system is totally dependent on the latter. The collections that accrue is because both the totes are combined. Mysore Race Club which conducts about 50 days of racing will also be forced to cut off signals for RWITC along with Bangalore Turf Club which has about 60 days of racing.

The RWITC is facing a serious financial crunch and the loss of income by cutting off signals to Bangalore will hit the club harder. The losses can be made good by other means because RWITC is run by the very rich and they can pool in the shortfall. One is not sure what contingency plan has been drawn by RWITC and whether they have realised their decision could have a larger impact on its own finances. However, BTC is bound to be affected significantly. Though Hyderabad racing is popular and attracts a fairly good amount of betting on the tote, it will no way compensate for the loss of betting on Pune and Mumbai races. Quite a few people from Mumbai travel to Bangalore for live racing because it is cheaper to visit the City than pay mobile phone charges there which is in excess of Rs 6000. The volume of betting is much higher on these two centres which can never be matched by the racing conducted at Hyderabad or other centres.

Another serious impact if there is no compromise will be felt by BTC during the months of March and April. Racing in Hyderabad ends in the last week of February. Inter-venue betting operations were helping BTC during the lean months. Hyderabad racing closes for five months and thus BTC will have to depend on off-course betting held on minor centres. Since Delhi races under RWITC Rules of Racing there could be a problem on this front as well. One is not sure what stand RCTC will take. Thus there will be all-round damage to the sport if wiser counsel does not prevail.

The crux of the problem is that RWITC believes that BTC is paying less money than what is due to it if one were to go by the profit share agreement. RWITC does not have a good tote system and the club pays BTC about Rs 65 lakhs. BTC on the other hand has exploited the tote system and the collections are much higher. BTC has maintained that it cannot pay RWITC as per the agreement. Instead, the club has offered to pay Rs 2.85 crores including the service tax component.

The Bangalore Turf Club Managing Committee has already decided that it would not offer any further increase and they are prepared with a contingency plan.

Whatever the intransigent stand that these clubs may take, it is racing which is going to suffer. Racing patrons will be deprived of following racing which they have been enjoying for so many decades. Illegal betting is bound to flourish more under the circumstances. For the record, Bangalore Turf Club and RWITC have always arranged their racing dates in such a manner that race days don`t clash and they get full benefit of each other`s racing.