Jimmie Says …We must plan for the equal and opposite reaction

Back in May of 2023, when then finance minister, Nigel Clarke, addressed the Thoroughbred Owners and Breeders Association of Jamaica’s (TOBA) Evening of Excellence as its guest speaker, he made it absolutely clear that he was “very, very interested in the sustainable development of the horse-racing industry in Jamaica”.

Speaking against the backdrop of the removal of General Consumption Tax (GCT) on the importation of live horses, Clarke described the move as an “investment” in thoroughbred racing, which, for 2022-2023, accounted for 4.68 per cent of government revenue, $542 million, earned by the betting, gaming and lotteries sector, which topped out at $11.585 billion.

Clarke obviously understood the effect removing GCT from horses would have had on the horse-racing industry.

“I am not in this business for charity,” Clarke told the audience of eager horsemen, some not seen gathered in a room for decades.

“I am in this business as an investment. By taking the GCT off the importation of horses to replenish the broodmare stock, I am doing it with expectation the coffers of government will multiply over time from the activity that I expect this policy to generate,” he added.

Fast-forward to September of 2026, Hajal’s Thoroughbreds, the United States Department of Agriculture-approved pre-export quarantine and training facility located in Anthony, Florida, is reporting a ballpark 250 horses flown to Jamaica since 2023, starting with TOBA’s importation of 10 Canada-bred fillies.

“I don’t think I have ever seen Jamaica grow as fast as the last three years,” Phillip Hajal said yesterday. “So far, this year, we have sent roughly 60 horses to Jamaica. I wish there was more space at the Kingston quarantine, which can only hold 10 horses at a time, taking another two to three weeks before 10 more can be sent.”

The policy fulfilled its first goal, replenishing the racing stock, especially the top classes, which were laid bare with only a handful of runners in previous years.

Most importantly, Clarke also spoke of the socioeconomic trigger of horse racing, acknowledging how one horse impacts a wide cross-section of persons and businesses.

“A lot of people don’t know how deep the horse-racing industry is in terms of the type of jobs it supports and the diversity of jobs it supports, and people don’t know the potential it has in Jamaica,” he pointed out.

The importation of 250 horses in three years, mainly for racing purposes, exemplifies how the sector reacts to investment. The resulting effect of GCT removal from racehorses should be seen by government as the carrot offered to an industry, which, in turn, budged, in a big way, from its slumber.

However, that first step needs further nudging, more “investment”. Every horse that lands in Jamaica starts generating revenue from quarantine to its career on the racetrack, some lasting for up to six years, repaying that “investment” a million times over through revenue earned from betting, until it either passes or makes its way to the breeding shed, be it mare or stallion.

Therefore, it stands to reason that the betting sector’s $542 million would have grown since, except last year’s Hurricane Melissa, and would have done a number on all-round revenue.

Owners purchase horses to chase prize money and the glory of winning major races. Should government act again, reinvesting some of the $750 million taken in annually by the BGLC and Jamaica Racing Commission, directing a portion to prize money, the quarantine facility at Plumb Point would have to be upgraded to hold 40 horses at a time.

Local-bred horses, especially, need to be incentivised. The influx of foreigners has put a stranglehold of imported runners on the top three levels, creating very little opportunity for the best native runners to earn higher purses.

For every action, there is an equal and opposite reaction. An average foreign-bred will always be at least two to three classes better than local-bred runners, which points to what should be an overhaul of how promoting company Supreme Ventures Racing and Entertainment Limited classifies imported horses.

Prior to 1993, all foreign-bred, maiden horses, runners yet to win a race, started their careers locally in ‘B2’, the equivalent of overnight allowance under the existing claiming and conditions system.

Horses imported as winners went straight to ‘A’ Class, where they immediately stamped their names and remained as champions, few ever going below B2 for the remainder of their careers.

Government needs to “invest” again, but SVREL should also revisit their system of classification. Better purses and proper classification will attract owners, who are unable to afford high-end importees, creating balance and, most importantly, harmony in a fragmented industry.

The everyday horseman, owners of the blue-collar workers, local-bred horses, must get their piece of the pie.