Bill Will Have Devastating Impact
Thousands of visitors came to the Hollywoodbets Durban July, the premier horseracing event on the continent. The event is a reliable revenue generator for KwaZulu-Natal. However, a bill is under discussion in the provincial parliament that will determine the fate of the horsing industry in KWAZULA-NAATAL.
Bill will have devastating impact on the horseracing industry in KwaZulu-Natal. Bill proposes reducing the betting proceeds that are paid to racecourse operators from 3% to 1,6%. 1.4% of the proceeds taken from racecourses operations are to be diverted to a so-called ‘Transformation Fund’ for initiatives funded by Gold Circle. The fund provides financial and operational support to rural racing in the province and various corporate social investment programmes. Gold circle is forecasting a loss of R106 million for the 2021/2022 financial year even after receiving the R66 million betting tax contribution.
Gold Circle already invests all profits directly back into the industry. This investment is aimed at accelerating transformation in the KwaZulu Natal industry and supports hundreds of needed jobs.
The province will lose an estimated R100 million a year in taxes if the proposed reduction is effected.
