By Orville Clarke, Freelance WriterAN AGREEMENT has been reached between Caymanas Track Limited (CTL) and the bookmakers on the vexed issue of rights fee.
It was decided that the proposed increase to 2.5 per cent, which was at the centre of the impasse between CTL and the bookies, be reduced to 0.75 per cent.
The decision was made at a high level meeting held recently involving State Minister for Finance Fitz Jackson, the chairman of the Betting, Gaming and Lotteries Commission Walter Scott, CTL's chairman William Chin-See, and representatives of the bookmaking industry including President of the United Bookmakers Association, Xavier Chin, and head of the Jamaica Bookmakers Association, Cecil Charlton.
Previously, the bookmakers were paying CTL 0.5 per cent of local racing sales for rights fees in order to use the Caymanas Park programme and dividends.
However, CTL felt that this was inadequate in the current scheme of things and imposed a five-fold increase to 2.5 per cent, effective April 1 this year.
The bookmakers protested the steep increase, saying it would impact negatively on their businesses as they were already paying 11 per cent of their gross sales to Government, four per cent of which was allocated to CTL purses.
The bookies not only withheld the increased payments but sought the intervention of the Finance Minister.
The increase will be in effect until new legislation comes on stream by the beginning of next year. The Minister has promised to take the legislation to Parliament in October.
Meanwhile, Chin has proposed a gross profit tax to promote better business and increase sales as obtains in Great Britain.
AWAITING CHANGES
"We are anxiously awaiting the legislative changes and the implementation of the gross profit tax, which would enable the bookmaking industry to realise its full potentia," he said.
Both Chin and Chin-See say they are "comfortable" with the new agreement.
