EXECUTIVE SUMMARY .................................................................................................

2
Betting..............................................................................................................................4
The Stud Farm Sector 199-2007..........................................................................................5
The Jamaica Racing Commission........................................................................................8
Performance...................................................................................................................11
The Economic Contribution Of The Racing Industry Year 2007..............................13
Horse racing stakeholders by place of residence...........................................................15
Portmore Public Perception of Caymanas Park.............................................................16
The Claims Market....................................................................................................22
Distances Ran.................................................................................................................25
Betting............................................................................................................................29
Total Purse Paid Out (1991-2007).................................................................................30
The Betting Sector, Years 2002-2007........................................................................33
A General Overview of The Betting Sector...................................................................33
The chart above however reveals that overseas sales has become a major
determinant of the bookmakers’ sales and actually plays a pull push role in respect to
local sales...................................................................................................................38
Overseas Betting........................................................................................................39
Number of Local Racing Bookmakers and Offices 2004-2007.................................40
Betting Offices...............................................................................................................42
The Backstretch.........................................................................................................44
Cull.................................................................................................................................45
The Stud Farm Sector 199-2007........................................................................................47
Stud Farm Earnings....................................................................................................60
Farm Hygiene Practices ................................................................................................64
Farm Community Relationship......................................................................................67
RACING INDUSTRY SWOT ANALYSIS 2009 and onwards ................................69

1
EXECUTIVE SUMMARY

The period 1999 to 2007 was in the main a very testing period for the Racing Industry.

The industry went through a decline in all areas of production and sales between the

years 2004 to 2005, a period which saw the consolidation of betting shop operations, a

down turn in betting sales, etc. The period 1999-2007 also demonstrated the capacity of

industry to innovate and grow. The Claiming Market has become a very vibrant sub

sector, attracting investors (potential owners) from all sectors of the economy.

Below are small snap shots of extracts from the Industry Study.

Visiting Caymanas Track

Caymanas Track has a strong appeal to young college educated males and females, who

do not live near to the track. Their not visiting Caymanas Park comes has a result of not

been invited (females) or not having an excuse to go (males).

While the negative influence of gambling on family members and on the family has a

whole can possibly explain the negative attitude of some respondents to thoroughbred

racing and to visiting Caymanas Park, further studies are needed to explain why both

male and female respondents who live near to Caymanas Park seem to have a lower

interest in thoroughbred racing and to visiting Caymanas Park. It is interesting to note

that females are more willing to go on a date at Caymanas Park, than are males prepared

to invite their girlfriends on dates to Caymanas Park. The role played by male insecurity

and fear of competition could be feasible reasons for the higher level of male reluctance

to carry their dates to Caymanas Park.

2
The Claim Market

The claiming system in use at Caymanas Park over the years, has given birth to a very

vibrant and active claiming market, albeit unregulated, with a value in the calendar year

2007 of over J$100,000,000.00 (US$1,448,016.2 at the 2007 rates).

A particular feature of this market is the role of the trainer, who carries out the activities

of those of a broker, both in regards to buying and/or selling on behalf of the owner

and/or purchaser of the horse in question. .

The market is highly segmented, with some trainers working within only one or two

higher price bands. Trading within the band ranges of J$4000, 000.00 to J$ 499,000.00

and. J$300,000.00 to J$399,000.00, is dominated in the main by a relatively small

number of traders (i.e. trainers) and exhibits very strong speculative behavior on the part

of the traders. In fact it is possible to find a trader selling a given horse in one claiming

race and return two or three race days after to re-purchase the very same horse at a higher

or lower price. not regulate the functioning of the claiming market, for example it cannot

give any assurance about the state of health of a horse at the time of delivery to the new

owner, it does not issue certificates of fitness for horses entering the claiming races, nor

does it in any way seek declarations about source of funds or the fitness of the traders

and or their clients to trade.

The Quality and Consistency of The Racing Product

Caymanas Track has in the period between 2000 and year 2005, fought to maintain its

race day structure and race card offerings, as can be seen in the table above and in the

3
graph below. It was only after the depression in the industry bottomed out in 2004, that

recovery started, with some signs of a new bout of downturn on its way In spite of the

above mentioned challenge in maintaining its race day and race cards,

The track did remarkably well in maintaining the structure of its race cards, and there is a

very high degree of correlation between the structures of the race cards when seen from a

year to year stand point.

Betting

Earnings from betting when expressed in US dollars also reflect a period of challenges,

which became most clearly visible in the year 2002, worsened in 2003 and began to

improve in the year 2004. While the figures for the promoters total was still less in the

year 2007 than it was in the year 2000, it was a definite recovery of positions previously

held.

The period reviewed 1991 to 2007 saw a decline in the total amount of money paid out

reduced by some nineteen percent, in other words, purse money paid out in 2007 was

some nineteen percent less than that paid out in the year 1991. The depreciation of the

Jamaican dollar over the period has had a very devastating effect on purse money, making

participation by owners and potential owners of thoroughbred horses in the sport of

racing, less attractive. Simulcast betting has become the major performance driver of the

sector, followed by local betting. Overseas betting in its classical form is on the decline in

terms of its contribution.

A major deterrent to the expansion of the racing market, especially among the more

stable segments of the population and among women is the state of the betting offices.

4
The typical betting office is located in small shops, equipped with a counter where the

bets are bought and sold, a television for the punters following of the races and one or

two long benches. Very few and far between are betting offices that have bathroom

facilities, for example no such betting office has been found anywhere in Portmore, or in

the Half Tree area. A visit to two offices on Knutsford Boulevard in Kingston, revealed

that none of the two offices there located had bathroom facilities open to the general

punting population.

Because of the Laws and regulations under which betting offices operate, they are unable

to sell food or a beverage, which places them at a distinct disadvantage when compared

with the sale of the Lotto and other such types of number games, which can be sold

nearly anywhere. The Betting and Gaming Act and its various amendments, have created

a legal environment that stifles the growth of the betting offices in terms of the effective

use of facilities and staff. In fact most betting offices operates on a part –time basis, two

days per week, and are generally located in structures that are approaching the demolition

stage of their life cycle.

The Stud Farm Sector 199-2007

The stud farm sector during the period has remained relatively unstable and extremely

risky, similar to the horse industry as a whole and reflective of the state of the racing

economy in particular. Any stability of the sector owes a lot to the operation of a few

5
larger farms, which have been better able to withstand the blows experienced better than

the smaller farms.

Stud farm operators in a bid to maintain income, sought to increase the availability of

covering services, thus increasing the number of farms with standing stallions. In spite of

the various challenges, the quality of the farms in terms of the distribution of stallions has

remained fairly constant, with the number of farms with three or more stallions increasing

relative to the year 1999..

The availability, marketing and distribution of visiting stallions, have remained very poor

and is yet to become an industry-wide practice especially among the smaller farms. The

average age of the serving stallion has remained steadily between ten and twelve years of

age. This is a good sign, and may be taken as an indicator of quality, owing to the fact

that a stallion within the ages of ten and twelve years, is an animal at its reproductive

prime. Stud farm operators and breeders seem to have a preference for the younger

stallions of ages less than twelve years.

The number of mares in foal also increased over the period, from four hundred and sixty

three in 1999 to seven hundred and forty one in the year 2007. One must however note

that the increase in the number of mares in foal was done in a very erratic and unplanned

manner and carried with it significant losses to the industry.

The percentage increase in the number of mares in foal however does not lead to a one-to

-one matching in terms of live foals. This once again is consistent with the Law of

6
Diminishing Marginal Returns. Notwithstanding the difficulties experienced over the

period, the industry has been able to perform well in terms of live foal production.

The Jamaica Racing Commission

The Jamaica Racing Commission as the Division of The Government of Jamaica ,

responsible for ensuring the quality of the racing product and the development of the

thoroughbred industry overall, the Commission has over the period been a guiding force,

navigating the industry through the storms to calm waters , using ever declining

resources . How is it possible to increase performance and operational efficiency while

been starved for resources is difficult to explain, however during the period under review,

that was what was done by the Jamaica Racing Commission, making one of the most

efficient arms of the Government of Jamaica.

End

7
The Jamaica Racing Commission

The Measuring of Performance

The performance of the Jamaica Racing Commission in this section is assessed against

the three pillars that define its policy and task domain, namely:

1. The Jamaica Racing Commission Act of 1977

2. The Mission Statement of the Commission and

3. The Racing Rules of 1977

These three instruments in terms of their intent, have remain stable over the years, with

minor amendments and refinements been made to the Act and to the Rules. It is from

these three instruments that bench-marks are developed.

8
Task & Policy Environment

The Jamaica Racing Commission operates in a task and policy environment, which is

defined by the presence of three powerful and influential monopolies, namely the

Caymanas Track Limited, Jamaica Betting and Gaming Commission and the Bookmakers

Association. These monopolies have the ability to influence the Jamaica Racing

Commission source of funding, amount of funding and speed of funding. The Ministry of

Finance and the Public Service, acts as a broker between the parties in this task and

policy environment.

At a second level the environment is defined by: - occupational (professional)

groupings are carrying out the functions of lobbying bodies and as platforms for engaging

in negotiations between the Jamaica Racing Commission and the promoter, Caymanas

Track Limited in advancing their own particular interests. These occupational groups are

known to at times, try to use either of the two monopolies i.e. the Commission or the

promoter, to act against each other with the intent of modifying, stopping or delaying

actions by either body that is not in their interests. At this second level one finds the Stud

Farm operators and the breeders, who are organized within their respective bodies.

Thus while the parties at this second level may be individually smaller, numerous and

operating within a monopolistic market, their coming together for pursuance of shared

goals and interests, means that within the Jamaica Racing Commission task and policy

domain, they appear as monopolies in their own rights.

9
The Jamaica Racing Commission is a very small and highly specialized Division of the

Ministry of Finance and The Public Service, established by Act of Parliament, with the

responsibility and mandate to regulate the racing industry and facilitate the development

of thoroughbred racing and breeding in Jamaica.

The Jamaica Racing Commission is managed by a General Manager Mrs. Ruth Smith-

Sutherland who is assisted and understudied by the Director of Racing, Mr. Lloyd Cobran

and the Director of Finance, Mr. Ainsworth Carroll, all three having a combined

experience in the Racing Industry of no less than sixty years. The function of the

Commission is to provide strategic policy direction, participate in solving problems of a

policy nature, and recommend where needed amendments to the Racing Act and the

Rules of Racing.

The main source of direction and guidance to the Jamaica Racing Commission are the

Jamaica Racing Commission Act, The Rules of Racing and the annual strategic plan of

the Jamaica Racing Commission. All of these foundation documents are reviewed on a

regular basis, and are recommended to be amended in keeping with the development of

the racing industry and thoroughbred racing in particular.

While the racing industry in terms of revenue turn-over is one of Jamaica’s largest and

most dynamic, with revenues running into the billions of Jamaican dollars, the Jamaica

Racing Commission full time staff compliment is less than forty, hence making the

Commission one of the most efficient arms of government and civil administration.

10
Apart from the regulating of races, the Jamaica Racing Commission is the sole agent in

Jamaica that is currently involved in the training of racing professionals such as jockeys

and trainers, with the training of grooms and farriers currently at the curriculum

development stage. Additionally the Commission administers the industry’s health

insurance policy, directs the remedial education programme, pension scheme and other

such welfare activities from its Welfare Office which is located at Caymanas Park.

Performance

Over the years, the Jamaica Racing Commission has been forced to meet growing

demands for its service while spending only a fraction of what it spent in the year 2001.

In simple terms the Racing Commission, has been forced to raise it level of productivity

and efficiency while spending less. See table below.

Expenditure Total Percentage Change

Exchange Expenditure in In Total Expenditure
Rate US$ over 2001

2 $132,093,738.0
001 0 $46.08 $2,866,617.58 100
2 $140,748,382.0
002 0 $48.54 $2,899,637.04 101
2 $149,252,134.0
003 0 $57.93 $2,576,422.13 90
2 $107,772,820.0
004 0 $61.34 $1,756,974.57 61
2 $106,272,601.0 $62.50 $1,700,361.62 59

11
 005 0
2 $115,642,076.00
006 $65.88 $1,755,344.20 61
2 $136,728,443.0
007 0 $69.06 $1,979,850.03 69
Source:-Jamaica Racing Commission Financial Statements.

Percentage Change In Total Expenditure over

2001

120
Percentage change

100
80 Percentage
Change In Total
60
Expenditure
40 over 2001
20
0
1 2 3 4 5 6 7
years

Equally as real expenditure declined, one also saw a decline in real income over the

period. In short, not only was the Jamaica Racing Commission spending less while doing

more than the year 2001, it was also receiving less to do more. This situation can only be

justified from either of two perspectives: (1) The Jamaica Racing Commission was

assumed to have a lot of unused reserves on which it could call on, or, (2) The Jamaica

Racing Commission was assumed to be producing at a level significantly below its

optimal potential and thus could do more with what it had. See income table below:-

12
 Year Total Income
Total income % change in
in US$ Total Income
over 2001
Exchange Rate
2001 $135,619,103.00 $2,943,122.8 100
$46.08 9
2002 $134,000,260.00 $2,760,615.1 94
$48.54 6
2003 $140,028,766.00 $2,417,206.3 82
$57.93 9
2004 $105,463,623.00 $1,719,328.7 58
$61.34 1
2005 $121,987,964.00 $1,951,807.4 66
$62.50 2
2006 $119,695,038.00 $1,816,864.5 62
$65.88 7
2007 $136,876,950.00 $1,982,000.4 67
$69.06 3
Source:-Jamaica Racing Commission Financial Statements

% change in Total Income over 2001

150
Percentage

100 % change in
Change

Total Income
50 over 2001
0
1 2 3 4 5 6 7
year

If there were spare reserves, these reserves appear to be long exhausted, with the
Commission forced to demand more and more from its staff in terms of output.

The Economic Contribution Of The Racing Industry Year 2007

Economic Contribution of
the Racing Industry in US
dollars, for year 2007

Purse Paid Out 4189805.166

13
 JRC Expenditure 1979850.029
Breeders and owners 483470.1709
Promoters Sales 57040747.02
Bookmakers Local sales 2623218.02
Bookmakers Overseas Sales 1203534.728
Caymanas Park LTD Turnover 57043.17
Value of Claimed horses 1653527.368
Stable costs 112042797.57
Crop culture Contribution 3625855.778
Mare Covering Fee 365217.3913
Revenue from Foal crop 413829
Revenue from keep and care at Stud
farm 2951244
TOBA Sales 819722
Total Contribution 189449861.4

The size of the industry Multiplier= 94.688996

In other words one US dollar invested into the Jamaica Racing Commission created a

value of 94.69 times greater than the initial investment.

Productivity for one US dollar invested in Jamaica Racing Commission personnel

expenses (i.e. wages etc)= $176.50, in other words one US dollar invested in personnel creates
a total of $176.50.

Jamaica’s Gross Domestic Product at end for 2007, using World Bank figures, was

US$10,739,000,000.00, which means that the racing product, narrowly defined, contributed some

two percent of the Gross Domestic Product

14
Horse racing stakeholders by place of residence.

Owners Trainers Assistan Jockeys Grooms Stable Exercise

t Assistants Riders

Trainers
Kingston 248 60 10 39 43 6 5

&

St. Andrew
St. Catherine 189 62 26 88 335 15 32
Clarendon 30 5 2 1 7 0 0
Manchester 6 0 0 0 1 0 0
St. Elizabeth 4 0 0 0 0 0 0
Westmoreland 1 1 0 0 1 0 0
St. James 5 0 0 0 0 0 0
Trelawny 3 0 0 0 0 0 0
St. Ann 6 0 0 0 0 0 0
St. Mary 5 0 0 0 1 0 0
Overseas based 44 0 0 0 0 0 0

interests

Place of Residence of Caymanas Park Thoroughbred Owners and Associated

Horsemen

15
 Parish of Residence of Horsemen and Owners

400
350 Owners
Number of persons

300 Trainers
250 Assistant Trainers
200 Jockeys
150 Grooms
100 Stable Assistants
50 Exercise Riders
0

y
n
w

th
.A &

ny
r

es
an o n
e
n

ar
d

An
te

s
re

ri n
to

be

an

st
aw
am

.M
es
nd
nd
s

re
he

t.
a

el
ng

el
re

ch

S
liz

St
.J

te
or
at

Tr
Ki

la

.E

in
St
tm
.C
St

d
St

es
St

se
W

ba
s
ea
rs
ve
O
Parish

Portmore Public Perception of Caymanas Park

Given the fact that the Municipality of Portmore still retains a very strong dormitory

characteristic, and given the fact that Portmore is the home of some 150 thousand adults,

while Caymanas Park employs just a bit more than 1000 persons directly or indirectly , a

person’s attitude towards Caymanas Park is strongly determined by the person’s family

history, the age of the person, the persons attitude towards gambling in general, the

employment status of the person, the person’s relationship with employees of the track

and the person’s gender.

Caymanas Track has a strong appeal to young college educated males and females, who

do not live near to the track. Their not visiting Caymanas Park comes has a result of not

been invited (females) or not having an excuse to go (males).

16
While the negative influence of gambling on family members and on the family has a

whole can possibly explain the negative attitude of some respondents to thoroughbred

racing and to visiting Caymanas Park, further studies are needed to explain why both

male and female respondents who live near to Caymanas Park seem to have a lower

interest in thoroughbred racing and to visiting Caymanas Park. It is interesting to note

that females are more willing to go on a date at Caymanas Park, than are males prepared

to invite their girlfriends on dates to Caymanas Park. The role played by male insecurity

and fear of competition could be feasible reasons for the higher level of male reluctance

to carry their dates to Caymanas Park.

Its is however clear, that Caymanas Track Ltd. in is Marketing Strategy, needs to do more

to provide “young college educated” persons with a reason to visit Caymanas Park, here

the approach used in selling Baseball by the deliberate promotion of “stars” such as

Michael Jordon, Magic Johnson, Pepping and others, the promotion of clashes between

teams, could be adopted, where jockeys are promoted as super stars and clashes between

stables are promoted.

There also appears to be a space on the “date venue” market that could be exploited by

Caymanas Park Ltd. If college educated females find the idea of going with their

boyfriend on dates to Caymanas Park, appealing, then maybe Caymanas Track Limited,

has a responsibility in assisting these females to get their boyfriends to carry then to

watch thoroughbred racing.

17
It is important to note that people and young people in particular do not see visiting

Caymanas Park as being identical to being willing to gamble. Equally the existence or

none existence of corruption in races at Caymanas Park is not a determining factor in

deciding whether or not a visit to Caymanas Park would be refreshing and exciting. In

fact the thought of “set races” and “bandolu runnings” are much stronger among

unemployed males who feel that they can make a money from horse racing if they had

the right links.

It is also important to note that, visiting Caymanas Park is less appealing to parents over

the age of thirty.

Attitude to Caymanas Park (percent of age sample of 600)

Attitude to Would Would Caymanas Cayman. Park does

Caymanas Park/ visit not visit Park adds not add value to

Personal attributes Value to the community

community
College Educated 70 25 80 17

(female)
Did not attend 60 35 70 30

college(female)
College Educated (male) 90 10 65 30
Did not attend 95 5 73 27

college(male)
Live near to Cayman 30 70 80 20

Park (female)
Does not live near to 80 20 70 25

Cayman Park (female)

Live near to Cayman 65 40 78 15

Park (male)
Does not live near to 80 20 84 10

18
Cayman Park (male)
unemployed 90 5 96
employed 78 12 65 30
Respondent older than 55 30 60 28

30 years of age
Respondent younger 77 13 83 10

than 30 years of age

has a punter in family 60 35 55 43
Does not have a punter 83 15 76 15

in

family
Would carry girl friend 75 20 70 20

to Caymanas Park
Would not carry 65 35 68 27

girlfriend to Caymanas

Park
See Appendix 1 for sample questionnaire

As was expected, the vast majority of respondents do believe that the presence Caymanas

Park, does positively contribute to the Portmore community. In fact there is a strong

positive correlation between those who would visit Caymanas Park and those who think

that its presence contribute positively to the community of Portmore.

The views of female college students, are of particular importance, firstly because of their

abilities to influence male views as to where is a good place to visit or where is not a

good place to visit and secondly because of the fact that within the near future, these will

be individuals with some amount of disposable income to spend on entertainment.

A survey done on this population of females (see table below) has revealed that it is of

importance to separate the act of visiting Caymanas Park from the act of gambling. While

19
a majority of the respondents do not see the act of watching a live race as being

particularly sinful, the act of betting on a horse is seen by a significant number of these

respondents, as being sinful. In other words nothing is wrong with watching a live race,

but something is wrong with betting on horses, even where the respondents buys Pick 3,

Lotto etc.

Previous exposure to equine (horse or donkey) racing does not seem to play an important

role in determining the attitude of the respondents towards horse racing; what is more

important seems to be their view as to the correctness or incorrectness of young

professional women seeing horse racing as an acceptable form of entertainment. Is it a

place where a good progressive woman can go?

Caymanas Track has a very difficult job in encouraging second visits by this group of

respondents, because the ambience is seen as being very noisy, unruly, smoked filled and

harassment encouraging, by those respondents of the group that has actually visited the

track. It is seen as a “man’s space’ and not being female friendly. It is also important to

note, that a significant percentage of these respondents would accompany their boyfriend

or husbands to the track.

Female Full Time College ( UWI & UTECH) Students Views on Horse racing (

Sample size =400)

Question % responding % % not

“yes” responding answering
“no”
Have you ever gone to 33 67 0
Horse racing at Caymanas Park?
Do you think that upstanding 61 35 4

20
progressive young women should visit
Caymanas Park?
Have you ever placed a bet on horse 24 75 1
racing?
Do you play Lotto or Pick 3 or any 30 66 4
other such betting?
If your husband or boyfriend invited 58 42 0
you on a date to Caymanas Park,
would you go?
Do you know of any woman of any age 40 54 6
who goes to watch horse racing at
Caymanas Park?
Have you ever seen a live horse racing 35 65 0
competition?
Have you ever seen a live donkey 3 97 0
racing competition?
Do you think to go to watch horse 11 89 0
racing is a sinful act?
Is betting on horse racing a sinful act? 57 41 2
Do you watch horse racing on 34 66
television?
Can you give the name of one racing 48 48 4
horse?
Can you give the name of one jockey? 53 47 0

See Appendix 2 for sample questionnaire

Horse racing is seen as being relatively boring by a significant number of respondents

and its broadcast by television is not seen as being exciting. Further studies are needed in

order to compare audience response to television as against radio, and in order to identify

the specific determinants of excitement in horse racing, e.g. tone of voice, speed of

speech, level of excitement in the voice of commentator, position of cameras, facial

expression of jockeys, the movements of the horse etc.

21
The Claims Market

The claiming system in use at Caymanas Park over the years, has given birth to a very

vibrant and active claiming market, albeit unregulated, with a value in the calendar year

2007 of over J$100,000,000.00 (US$1,448,016.2 at the 2007 rates).

A particular feature of this market is the role of the trainer, who carries out the activities

of those of a broker, both in regards to buying and/or selling on behalf of the owner

and/or purchaser of the horse in question. .

In its purest form, this market, allows for owners to dispose of, with relatively low

transaction costs, his or her under-performing or non-performing horse, while still

retaining one last chance of earning some purse money if the horse ended the claiming

race in the frame. In reality, the market has taken on other complimentary functions, such

as enabling those trainers whose experience or social relations would curtail their

possibilities of training horses for graded stakes, to ply their trade at another level in

racing, it also facilitates some of these trainers to retain their stalls by obtaining claimed

horses. In doing this, these small trainers work closely together with the smaller owners

or prospective small owners. This market also allows breeders to obtain bloodstock at

relatively low prices, than they would otherwise be able to obtain.

The market is highly segmented, with some trainers working within only one or two

higher price bands. Trading within the band ranges of J$4000, 000.00 to J$ 499,000.00

and. J$300,000.00 to J$399,000.00, is dominated in the main by a relatively small

number of traders (i.e. trainers) and exhibits very strong speculative behavior on the part

22
of the traders. In fact it is possible to find a trader selling a given horse in one claiming

race and return two or three race days after to re-purchase the very same horse at a higher

or lower price. not regulate the functioning of the claiming market, for example it cannot

give any assurance about the state of health of a horse at the time of delivery to the new

owner, it does not issue certificates of fitness for horses entering the claiming races, nor

does it in any way seek declarations about source of funds or the fitness of the traders

and or their clients to trade.

Value of Transactions and Number of Transactions on the Claiming Market

Year Value of Transactions ∆in VT # of Transactions ∆in #T

2001 45480000 0 298.00 0
2002 35767500 -21.3555 235.00 -21.1409396
52.5686
2003 54570000 7 305.00 29.78723404
-18.6885245
2004 74620000 36.7418 248 9
15.1098
2005 85895000 9 373.00 50.40322581
24.5241
2006 106960000.00 3 434.00 16.3538874
6.76196
2007 114192600.00 7 443.00 2.073732719

Source:- Jamaica Racing Commission

23
 Marginal change in Value of Transactions and in the
number of Transactions

60

40

20 ∆in VT

0 ∆in #T
1 2 3 4 5 6 7
-20

-40

The marginal changes in the number of transactions in the Claims Market has had a very strong
influence on the marginal changes in the value of the transactions, this influence can be seen

between the points 1 and 4 in the graph above.

The claiming system is an exciting and possibility creating addition to the activities of the

Caymanas Track Ltd; over the years it has witnessed significant growth, it has positively

contributed to the democratization of the racing industry, and has created significant

quantities of new wealth.

24
Distances Ran

Distances Ran

2000 2001 2002 2003 2004 2005 2006 2007

2 fur 0 2 1 0 2 1 1 0
3 fur st. 2 4 2 3 5 4 5 5
4 fur st. 11 10 8 11 9 9 8 5
5 fur. St 160 191 191 154 151 161 163 158
5 fur rd 80 65 68 64 36 38 33 18
5 1/2 fur
st. 109 110 107 103 109 109 107 113
6 fur 126 133 141 133 131 102 128 139
61/2 fur 92 89 76 67 61 66 58 56
7 fur 89 96 95 101 86 82 90 84
7 1/2 fur 91 87 86 86 82 72 72 70
8 fur 91 87 87 87 21 80 85 81
8 1/2 fur 22 21 24 24 13 12 20 17
9 fur 19 22 13 13 66 12 9 12
9 fur 25
yds 84 80 78 78 17 61 54 58
10 fur 19 22 19 19 1 20 22 22
11 fur 1 1 1 1 1 1 1 1
12 fur 2 2 0 1 2 2 2 2
998 1022 997 945 793 832 858 841
Source: Jamaica Racing Commission

∆
Year Totals Change Average
2000 998 1 142.5714
2001 1022 2.40481 146
2002 997 -2.44618 142.4286
2003 945 -5.21565 135
2004 793 -16.0847 113.2857
2005 832 4.918033 118.8571
2006 858 3.125 122.5714
2007 841 -1.98135 120.1429
Source:- Jamaica Racing Commission

Caymanas Track has in the period between 2000 and year 2005, fought to maintain its

race day structure and race card offerings, as can be seen in the table above and in the

25
graph below. It was only after the depression in the industry bottomed out in 2004, that

recovery started, with some signs of a new bout of downturn on its way (see the

flattening of both marginal and average curves starting at the mid-point of year 6 in graph

below).

the mid-point of year 6 in graph below).

Average of races ran over all

distances

200
150
100 Average
50
0
1 2 3 4 5 6 7 8
Yaers

Marginal and Average Changes in

Distances Ran 2000-2007

200
150
100 Average
50 ∆ Change
0
-50 1 2 3 4 5 6 7 8
Years

26
In spite of the above mentioned challenge in maintaining its race day and race cards,

The track did remarkably well in maintaining the structure of its race cards, and there is a

very high degree of correlation between the structures of the race cards when seen from a

year to year stand point.

Please see table and charts below.

Distance/Year 2000 2003

2 fur 0 0
3 fur st. 2 3
4 fur st. 11 11
5 fur. St 160 154
5 fur rd 80 64
5 1/2 fur st. 109 103
6 fur 126 133
61/2 fur 92 67
7 fur 89 101
7 1/2 fur 91 86
8 fur 91 87
8 1/2 fur 22 24
9 fur 19 13
9 fur 25 yds 84 78
10 fur 19 19
11 fur 1 1
12 fur 2 1
Totals 998 945
Source: Jamaica Racing Commission

Coefficent of correlation
between individual pair of
years.
Coefficient of correlation 2000 & 2003
0.999329
Coefficient of Correlations between 2003-2006
0.998623
Coefficient of Correlation. Between 2000& 2006
0.997232
Coefficient of Correlation between 2000&2007
0.995774

27
The coefficient of the line of regression between years 2000 & 2001 is 0.947729

which is positive and very close to 1. The coefficient of the line of regression between

years 2000 & 2007 is 0.846899. Which is positive, but indicates a slight reduction in the

level of predictability between year 2000 & 2007, a fact that is also reflected in the

coefficient of correlation between the same two years.

The very high positive values for both the coefficient correlation and regression between

the individual years indicates a very high level predictability and reliability of the

offering of Caymanas Park, which are important factors in retaining horse racing and

betting. This is further highlighted in the table below which where the total distances ran

per year is matched against the promoters total take for the given year.

Promoters Total in
Year Total Distance Ran US$
2000 998 41400.35
2001 1022 40502.02
2002 997 34279.42
2003 945 28181.53
2004 793 25720.49
2005 832 29679.46
2006 858 32033.47
2007 841 34925.92

Co-efficent of Correlation 0.724868

28
Betting

Earnings from betting when expressed in US dollars also reflect a period of challenges,

which became most clearly visible in the year 2002, worsened in 2003 and began to

improve in the year 2004. While the figures for the promoters total was still less in the

year 2007 than it was in the year 2000, it was a definite recovery of positions previously

held.

Promoters Total in
Year Promoters Total Exchange Rate US$
2007 2411984 69.06 34925.92
2006 2110365 65.88 32033.47
2005 1854966 62.5 29679.46
2004 1577695 61.34 25720.49
2003 1632556 57.93 28181.53
2002 1663923 48.54 34279.42
2001 1866333 46.08 40502.02
2000 1783527 43.08 41400.35
Source:
Jamaica Racing
Commission

Promoters Total As
Year Promoter’s Total in US$ ∆ in Promoter’s Total in US$ % of 2000 Total
2000 41400.35 0 0
2001 40502.02 -2.16986 97.83014
2002 34279.42 -15.3637 82.79983
2003 28181.53 -17.7888 68.07075
2004 25720.49 -8.7328 62.12627
2005 29679.46 15.39225 71.6889
2006 32033.47 7.931459 77.37488
2007 34925.92 9.029461 84.36141
Based on the table and the graph below, it is possible that the track is on the verge another

cyclical depression even before it has recovered its year 2000 values in terms of the

promoter’s take from betting.

29
 ∆ in Promoters Promoters Total As % of 2000
Year Total in US$ Total
2000 1 100
2001 -2.16986 97.83014
2002 -15.3637 82.79983
2003 -17.7888 68.07075
2004 -8.7328 62.12627
2005 15.39225 71.6889
2006 7.931459 77.37488
2007 9.029461 84.36141

Percentage and Marginal Curves of Changes In

Promoter,s Total (year 2000=base)

120
100
80
60 ∆ in Promotors Total
in US$
40
Promoters Total As
20
% of 2000 Total
0
-20 1 2 3 4 5 6 7 8
-40

Based on both the year-to-year changes in the number of race days and the number of

race days expressed as a percentage of the number of race the year 2000, also seems to

indicate that the year 2007, marked the potential entrance to another period of cyclical

depression.

Total Purse Paid Out (1991-2007)

The period reviewed 1991 to 2007 saw a decline in the total amount of money paid out

reduced by some nineteen percent, in other words, purse money paid out in 2007 was

some nineteen percent less than that paid out in the year 1991. The depreciation of the

30
Jamaican dollar over the period has had a very devastating effect on purse money, making

participation by owners and potential owners of thoroughbred horses in the sport of

racing, less attractive.

Change in the rate of exchange for period 1991 to 2007 in percentage=1717.888% Change in the

rate of exchange for the period 2000 to 2007 in percentage =150.6901%.

Purse Paid Out

Purse in Purse in US
Year J$ Exchange Rate $
1991 21718657 12.22 1777304
1992 35856820 22.99 1559670
1993 48447700 25.11 1929419
1994 76957470 33.29 2311729
1995 121082145 35.35 3425237
1996 139312146 37.25 3739923
1997 176319800 35.51 4965356
1998 201930230 36.65 5509692
1999 224164776 39.2 5718489
2000 247595680 43.08 5747346
2001 257975900 46.08 5598435
2002 253210425 48.54 5216531
2003 257086950 57.93 4437890
2004 302511250 61.34 4931713
2005 312876550 62.5 5006025
2006 341121273 65.88 5177919
2007 373102150 89.05 4189805
Source:- The
Jamaica Racing
Commission and
Bank of Jamaica

31
 ∆ Change in
Year Purse Purse as % of 1991
1991 1 100
1992 -12.24517 87.75483
1993 23.706822 123.7068
1994 19.814819 119.8148
1995 48.167755 148.1678
1996 9.1872725 109.1873
1997 32.766256 132.7663
1998 10.962683 110.9627
1999 3.7896251 103.7896
2000 0.5046289 100.5046
2001 -2.590952 97.40905
2002 -6.821622 93.17838
2003 -14.92642 85.07358
2004 11.127426 111.1274
2005 1.5068237 101.5068
2006 3.4337372 103.4337
2007 -19.08322 80.91678

It is to be noted however that purse money paid out in the years 2001 and 2005

marginally increased over the amount in the year 1991. Once again as previously pointed

out the year 2007 has the markings of a new round of decline, as was in the period 2001

and 2003.

Marginal Change in Total Purse and

Purse express as % of 1991 Total
Purse

200
150
∆ Change in
100 Purse
50 Purse as % of
1991
0
1 3 5 7 9 11 13 15 17
-50
Period

32
The Betting Sector, Years 2002-2007
A General Overview of The Betting Sector

The performance of the betting sector over the period has been very dynamic

and showed a high level of resilience in its ability to bounce back from

periods of lower economic activity as was the period between the years 2002

and 2005, as can be seen in the table and graph below:-

General Over View

Summary of Racing Promoters Sales 2000-2007
Total Sales in Total Sales in % Change over Marginal
J$ US$1=J$ US $ 2000 change
2000 2666133788 43.08 61887970.94 100 0
2001 2938534250 46.08 63770274.52 103.0414692 0.03041469
2002 2936552026 48.54 60497569.55 97.75335761 -0.0513202
2003 2775473016 57.93 47910806.42 75.13031233 -0.208054
2004 2848061124 61.34 46430732.38 76.74809537 -0.0308923
2005 3022351442 62.5 48357623.07 100.932601 0.04150033
2006 3357503867 65.88 50963932.41 109.763361 0.05389656
2007 3939233989 69.06 57040747.02 117.9560603 0.11923755

The graph is in many ways a reflection of what is de facto an ordinary business cycle,

please see marginal sales curve below:-

33
 % Change in Total Sales over 2000

140
120
100
Percent

80
% Change over 2000
60
40
20
0
1 2 3 4 5 6 7 8
Period

It however should be noted that there is not a one to one relationship between the number

of race days and the volume of sales.

Marginal change in Total Sales 2000-2007

0.15
0.1
marginal change

0.05
0
-0.05 1 2 3 4 5 6 7 8 Marginal change
-0.1
-0.15
-0.2
-0.25
period

The percentage change in the average race day curve is flatter than the percentage change

in total sales curves, hence reflective of a greater level of consistency and predictability.

34
 % change in
Number of
Number of Race Days
Race days over 2000
2000 94 100
2001 94 100
2002 93 98.94
2003 95 101.06
2004 87 93.55
2005 79 83.16
2006 81 93.10
2007 83 105.06

% change in Number of Race Days over 2000

120
100
80 % change in
percent

60 Number of Race
40 Days over 2000

20
0
1 2 3 4 5 6 7 8
period

There is also a very close relationship between the number of races and the number of

starts over the period as can be seen from the table and chart below:-

% change in #
races over year % change in the # of
# of Races # of Starts 2000 Starts over 2000
2000 998 10050 100 100
2001 1022 9929 102.40 98.80
2002 999 9599 100.10 95.51243781
2003 923 8784 90.31 88.46812368
2004 839 7916 83.98 82.46692364
2005 854 8162 92.52 92.91894353
2006 858 8206 102.26 103.6634664
2007 841 7519 98.48 92.12202891

35
 Percentage change in races and starts over year
2000

120
100
% change in # races
percentage

80
over year 2000
60
% change in the # of
40
Starts over 2000
20
0
1 2 3 4 5 6 7 8
period

Hence in concluding, one could say that there is very close relationship between the race

card offered by the promoters and the performance of the Betting Sector in terms of sales.

36
The gaming sector over the period, from the perspective of sales and number of betting

offices, have proven to be very resilient. (See table below):

Bookmakers Sales, Years 2002-2007

Year Local Sales in US $ Overseas Marginal

Marginal
Sales in US $ Change in
change in Overseas
local sales Sales
2002 22321302.45 0 13844360.21 0
2003 17498712.16 -0.216053266 11879586.62 -0.14
2004 1955539.24 -0.888246677 888213.4755 -0.93
2005 1955417.97 -6.20135E-05 1020425.602 0.15
2006 2339067.95 0.196198453 1203440.424 0.18
2007 2623218.02 0.121480042 1203534.728 0.00

Year Marginal change in local Marginal Change in Overseas

sales Sales
2002 0 0
2003 -0.216053266 -0.141918699
2004 -0.888246677 -0.925231954
2005 -6.20135E-05 0.148851746
2006 0.196198453 0.17935146
2007 0.121480042 7.83619E-05

As can be seen from the above table, the bookmakers were able to recover from the

2003-2004 slump and recover lost ground in terms of sales. (See chart below)

37
 Marginal Change In Sales

0.4
0.2
Marginal Change

0
Marginal change in
-0.2 1 2 3 4 5 6 local sales
-0.4 Marginal Change in
Overseas Sales
-0.6
-0.8
-1
Period

The chart above however reveals that overseas sales has become a major determinant of

the bookmakers’ sales and actually plays a pull push role in respect to local sales

38
Overseas Betting

Year Bookmakers, Local

overseas ∆ in OVS Simulcast Betting in ∆ in L
betting in US $ Betting Betting in US $ ∆ in Simul. Betting US $ Betting
2001 14442.40451 0 24332.09635 0 69519.6398 0
2002 -0.16975734
14537.43304 0.006579828 22626.51422 -0.07009598 57718.1706 1
2003 -0.19448617
12431.21008 -0.144882728 21014.60383 -0.07123989 46492.7844 4
2004 -0.07759736
12545.20704 0.009170222 21998.761 0.046832059 42885.0668 5
2005 13534.24 0.078837516 22966.352 0.043983886 48080.704 0.121152596
2006 13967.62295 0.032021225 25297.04007 0.101482729 51787.629 0.077097977
2007 11872.03881 -0.150031552 30476.97654 0.204764528 57062.0475 0.101847074

Year ∆ in OVS ∆ in Simul.

Betting Betting ∆ in L Betting
2001 0 0 0
2002 0.006579828 -0.07009598 -0.169757341
2003 -0.144882728 -0.07123989 -0.194486174
2004 0.009170222 0.046832059 -0.077597365
2005 0.078837516 0.043983886 0.121152596
2006 0.032021225 0.101482729 0.077097977
2007 -0.150031552 0.204764528 0.101847074

Marginal Change In Overseas & Local

Betting Sales 2002-2007

0.4
Marginal

∆ in OVS Betting
Change

0.2
∆ in Simul. Betting
0 ∆ in L Betting
1 2 3 4 5 6 7
-0.2
Periods

39
As can be seen from the tables and chart above, simulcast betting has become the major

performance driver of the sector, followed by local betting. Overseas betting in its

classical form is on the decline in terms of its contribution.

Number of Local Racing Bookmakers and Offices 2004-2007

Year Number of Number of #of Betting

Betting Offices/
Bookmakers Offices # of
Bookmakers
2004 12 391 32.58333333
2005 11 365 33.18181818
2006 10 359 35.9
2007 10 359 35.9

Among the Bookmakers, there was some consolidation, with the number of Bookmakers

declining from twelve in the year 2004, to ten in 2007, one also witness an increase in the

number of betting offices to the number of Bookmakers, representing a strengthening of

individual operations.

Year 2005

40
 Closure rate in
Parish Number of Betting Shops Number of closed betting shops %
Clarendon 61 28 45.90164
Hanover 5 1 20
Kingston 43 21 48.83721
Manchester 22 5 22.72727
Portland 10 2 20
St. Andrew 18 5 27.77778
St. Catherine 147 48 32.65306
St. Ann 17 9 52.94118
St. Elizabeth 25 11 44
St. James 7 2 28.57143
St. Thomas 17 13 76.47059
Westmoreland 25 13 52
St. Mary 17 4 23.52941
Portland 7 2 28.57143

Source:- Betting and Gaming Commission

As can be seen from the table above, the betting sector is very dynamic and relatively unstable,

with betting offices coming in and off the scheme, and thus demands a relatively high level of

managerial skills from the Bookmakers. In terms of closure rates, St. Thomas leads with seventy

six percent of all betting office opened being closed. This is followed by the parish of St. Ann

with nearly fifty three percent of all betting offices opened being closed. Of the high population

density parishes of the south coast, St. Catherine is the most stable with a closure rate of less than

thirty five percent. The presence of Caymanas Park in that given parish, coupled with the history

of racing in the Old Harbour area are possible determinants of its success rates. One should note

that the argument that the presence of large sugar estates is a determinant of success in betting

office operations, does not hold true, since St. Thomas, Clarendon and Westmoreland are also

sugar cultivating areas, but the closure rates for betting offices are above forty percent. This

would suggest that there are other factors at play.

41
Betting Offices

A major deterrent to the expansion of the racing market, especially among the more

stable segments of the population and among women is the state of the betting offices.

The typical betting office is located in small shops, equipped with a counter where the

bets are bought and sold, a television for the punters following of the races and one or

two long benches. Very few and far between are betting offices that have bathroom

facilities, for example no such betting office has been found anywhere in Portmore, or in

the Half Tree area. A visit to two offices on Knutsford Boulevard in Kingston, revealed

that none of the two offices there located had bathroom facilities open to the general

punting population.

Because of the Laws and regulations under which betting offices operate, they are unable

to sell food or a beverage, which places them at a distinct disadvantage when compared

with the sale of the Lotto and other such types of number games, which can be sold

nearly anywhere. The Betting and Gaming Act and its various amendments, have created

a legal environment that stifles the growth of the betting offices in terms of the effective

use of facilities and staff. In fact most betting offices operates on a part –time basis, two

days per week, and are generally located in structures that are approaching the demolition

stage of their life cycle.

42
Amount Paid To Breeders and Owners of Sires 2002-2007

Exchange rate Amount paid in US $ Value ∆ in US Amount

year US $1.00=J$ J$ Paid Paid
2002 48.54 22565950 464893.9019 0
2003 57.93 25097650 433240.9805 -0.068086334
2004 61.34 28084400 457848.06 0.056797673
2005 62.5 27801500 444824 -0.028446249
2006 65.88 30599423 464472.116 0.044170539
2007 69.06 33,388,450 483470.1709 0.040902466

∆ in US Amount Paid 2002-2007

0.08
0.06
Marginal Change

0.04
0.02
∆ in US Amount
0
Paid
-0.02 1 2 3 4 5 6
-0.04
-0.06
-0.08
Period

US $ Value
Paid to Owners % paid out over year 2002 base to
Year and Breeders owners and Breeders
2002 464893.9019 100
2003 433240.9805 93.19136661
2004 457848.06 105.6797673
2005 444824 97.15537508
2006 464472.116 104.4170539
2007 483470.1709 104.0902466

43
The Backstretch

The backstretch of Caymanas Park lies on some 131 acres of low lying land, with

significant parts of the property lower than the adjoining communities especially in that

area where one finds Stable 51, and the area directly behind the walls of the

Veterinarian’s office. As such seasonal flooding is a problem, especially in the hurricane

period, when complete sections of the road leading to stable 40 and others can be

completely submerged and accessible only on foot or by high axle vehicles. In earlier

years during floods the horses would be removed to the track which is on higher ground.

Flood waters still settle in the rectangular court yard enclosed by the stalls, making

movement and work in the stable area unpleasant.

There are some eighty stables in the backstretch area, this is the working area of four

hundred and eight grooms, one hundred and forty one trainers, forty seven exercise riders

eighty-nine jockeys, forty-five assistant trainers and eight food/snack vendors in addition

to a number of stable lad, an estimated fifteen unlicensed farriers, one medical doctor,

one nurse, and an estimated three veterinarians.

Stables and stalls were built in three separate waves at varying construction standards and

dimensions; in the very early days of Caymanas Park, trainers built their own stalls, for

example the Nunes Stables were built by the trainer Mr. Nunes, stables built by trainers

were built at standards and sizes affordable to the given trainer; later Caymanas Track

Limited built a set of stables to meet the growing demand for stables. These stables were

44
built in accordance to engineering standards and are better able to withstand the

challenges posed by storms, winds and/or floodwaters. The last set of stables were built

by private contractors, contracted by Caymanas Track Limited and are the least able to

meet the challenges posed by high waters and winds. The stables and their stalls are

distributed to the trainers in accordance to number of horses in his or her care.

Stable and Horse Distribution By Trainer

Trainers Number of Average # of horses per

trainers trainer
Having less than 10 stalls 54 6.462963

Having more than 10 <but less 34 13.47059

than< or =20 Stalls
Having more than 20 13 22.53846

Total Horse Population at Caymanas Park=1100

Source:- Caymanas Track Limited

Cull

As may be seen from the data below, the number of horses culled from racing has

declined over the years, when looked at as a percentage of the number culled in the year

2002. However when examined on a year to year basis, one finds a relatively high level

of volatility in the rate of culls, reflecting the natural differences in the performance of

one cohort as against another cohort of horses. The volatility in the rate of cull reflects a

high level of objectivity in the cull, with the performance of the given cohort determining

the number of horses culled, with no attempts being made for the sake of establishing any

given pattern or trend. As pointed out, the cull rate is in the main determined by the

45
performance of the cohort, and as such the rate is not indicative of one culled horse

performing better or worse than a given horse in a next year group.

Cull
year to year as As % of
# culled % 2002
2002 53 100 100
2003 37 69.81132 -30.1887
2004 30 81.08108 -43.3962
2005 18 60 -51.3514
2006 25 138.8889 -16.6667
2007 25 100 38.88889
2008 15 60 -40
Source:-Jamaica Racing Commission

year to
year as As % of
% 2002
2002 100 100
2003 69.81132 -30.1887
2004 81.08108 -43.3962
2005 60 -51.3514
2006 138.8889 -16.6667
2007 100 38.88889
2008 60 -40

Analysis of Culls years 2002-2008

150

100
year to year
Percentage

50 as %

0 As % of 2002
1 2 3 4 5 6 7
-50

-100
Years

46
The Stud Farm Sector 199-2007

The stud farm sector during the period has remained relatively unstable and extremely

risky, similar to the horse industry as a whole and reflective of the state of the racing

economy in particular.

Distribution of Broodmare Operations

2007
Parish Number of operations
St.
Catherine 10
Clarendon 1
Trelawny 1
St. Mary 1
St. Ann 1

Distribution of major studs 2007

Parish Number of operations

St
Catherine 9
Clarendon 2
St. Ann 2
St. Mary 1
St.
Elizabeth 3
Trelawny 1

Total
number
Of stud
farms

26
20
22
22
24
25

47
 22
25
21

The relative stability of the sector owes a lot to the operation of a few larger farms, which

have been better able to withstand the blows experienced better than the smaller farms.

Stud farm operators in a bid to maintain income, sought to increase the availability of

covering services, thus increasing the number of farms with standing stallions.

# of Stud
farms
without
Year
resident
or visiting
stallions
1999 11
2000 4
2001 5
2002 3
2003 4
2004 5
2005 5
2006 6
2007 6
Source : Jamaica Racing Commission

In spite of the various challenges, the quality of the farms in terms of the distribution of

stallions has remained fairly constant, with the number of farms with three or more

stallions increasing relative to the year 1999..

Year # of # of # Of Total % Of
farms farms Farms # of Stud
with with with stud Farms
more three or stallions farms with
than more Stallions
one but resident
under stallions

48
 three
resident
stallions
1999 12 3 26 57.6923
15 1
2000 11 5 16 32 50
2001 12 5 17 34 50
2002 14 5 19 38 50
2003 16 4 20 40 50
2004 13 4 17 34 50
2005 10 7 17 34 50
2006 14 5 19 38 50
2007 9 5 14 28 50

Marginal Change in Number of Farms

with Stallions Years 1999-2007

1
Marginal Change

∆ in farms with
0>#St>3
0.5
∆ in farms with
3>#St>∞
0
∆ in # farms with
1 2 3 4 5 6 7 8 9 Stallions
-0.5
Period

The availability and distribution of stallions during the period under review, show signs

of unpredictability, however it clearly demonstrates in part the positive impact on the tax

concessions given to the breeders, especially on those farms with three or more stallions.

Total Total
number of number of
years
resident visiting
stallions stallions
1999 44 0
2000 43 0
2001 47 0
2002 46 0
2003 39 0
2004 33 0
2005 49 0
2006 50 2
2007 50 3
Source: Jamaica Racing Commission

49
The availability, marketing and distribution of visiting stallions, have remained very poor

and is yet to become an industry-wide practice especially among the smaller farms. The

average age of the serving stallion has remained steadily between ten and twelve years of

age. This is a good sign, and may be taken as an indicator of quality, owing to the fact

that a stallion within the ages of ten and twelve years, is an animal at its reproductive

prime. Stud farm operators and breeders seem to have a preference for the younger

stallions of ages less than twelve years.

% of % of % of Average
Stallions Stallions stallions age of
Eleven 12 years age 16 resident
years or and older and over stallions
Year Year
less but under in years
not over
15 years
of age
1999 50.00 27.27 22.73 1999 12
2000 53.49 25.58 20.93 2000 12
2001 59.57 21.28 19.15 2001 12
2002 58.70 13.04 28.26 2002 12
2003 56.41 23.08 20.51 2003 12
2004 54.55 30.30 15.15 2004 12
2005 64.44 24.44 11.11 2005 10
2006 64 22 14 2006 11
2007 72 14 14 2007 11

This can be seen in the graph below, which shows a going tendency towards the usage of

the stallions in the lower age band as compared with the stallions in the other two older

age bands. This tendency is consistent, with what occurs in other branches of industry,

where capital equipment or stock of a younger vintage is preferred to equipment or stock

closer to the write-off point.

50
 % distribution of stallions by age

80 % of Stallions Eleven
70 years or less
60
50
Percentage

40 % of Stallions 12
30 years and older but
20 under not over 15
10 years of age
0 % of stallions age 16
1 2 3 4 5 6 7 8 9 and over

Period

The sector also shows two clear stallion restocking periods, namely the years 2001 and

2005. In the years 2000 and 2004, stallions of ages between twelve and fifteen years were

partially used as substitutes for the younger stallions.

Year Total # Total # Total Total

of of # of # of
resident visiting tested live
mares mares Barren Foals
in foal In foal
1 314 149 91 225
999
2 313 138 56 218
000
2 358 204 56 235
001
2 407 225 68 291
002
2 388 166 83 279
003
2 423 201 64 126
004
2 444 261 114 312
005
2 480 277 107 314
006
2 575 166 76 351
007
Source: Jamaica Racing Commission

51
The number of mares in foal also increased over the period, from four hundred and sixty

three in 1999 to seven hundred and forty one in the year 2007.

Total # of % increase
Year
mares in foal over 1999
1
999 463 100
2
000 451 97.41
2
001 562 121.38
2
002 632 136.50
2
003 554 122.84
2
004 624 111.03
2
005 705 111.55
2
006 757 136.64
2
007 741 118.75

% increase over 1999

160
140
120
100
Percent

80 % increase over 199

60
40
20
0
1 2 3 4 5 6 7 8 9
Period

One must however note as can be seen from the table and chart below, that the increase in

the number of mares in foal was done in a very erratic and unplanned manner and carried

with it significant losses to the industry.

52
Year
Marginal
change in the
number of
mares in foal
1
999 0
2
000 -0.02592
2
001 0.24612
2
002 0.124555
2
003 -0.12342
2
004 0.126354
2
005 0.129808
2
006 0.073759
2
007 -0.02114

Marginal change in the number of mares in foal

0.3

0.2
Marginal Change

0.1 Marginal change in

the number of mares
0 in foal
1 2 3 4 5 6 7 8 9
-0.1

-0.2
Period

Year Total
# of % increase if
live foal crop over
Foals 1999
1999 225 100
2000 218 96.89
2001 235 104.44
2002 291 129.33
2003 279 127.98
2004 126 53.62

53
2005 312 107.22
2006 314 112.55
2007 351 278.57

The percentage increase in the number of mares in foal however does not lead to a one-to

-one matching in terms of live foals as can be seen in the table above and in the chart

below. This once again is consistent with the Law of Diminishing Marginal Returns.

Notwithstanding the difficulties experienced over the period, the industry has been able to

perform well in terms of live foal production.

Year
Marginal Marginal
change in change in the
foal number of
production mares in foal
1
999 0 0
2
000 -0.031111111 -0.025917927
2
001 0.077981651 0.246119734
2
002 0.238297872 0.12455516
2 -0.04123711
003 3 -0.123417722
2 -0.54838709
004 7 0.126353791
2
005 1.476190476 0.129807692
2
006 0.006410256 0.073758865
2
007 0.117834395 -0.021136063

54
 Marginal analysis of increase in mares in foal and
live foals 1999-2007

2
1.5 Marginal change in
1 foal production
increase/decrease

0.5
Marginal change in
0 the number of mares
-0.5 1 2 3 4 5 6 7 8 9 in foal
-1
period

Equally there is no one-to-one matching of the increase/decrease in foal production to the

increase/decrease in the number of stud farms in operation. This is largely so, because the

bulk of foal production is carried out by three or four larger farms. See table and chart

below.

Marginal
Change in
the number
of Stud Marginal change in foal
Farms production
1999 0 0
2000 -0.23076923
1 -0.031111111
2001 0.1 0.077981651
2002 0 0.238297872
2003 0.090909091 -0.041237113
2004 0.041666667 -0.548387097
2005 -0.12 1.476190476

55
 2006 0.136363636 0.006410256
2007 -0.16 0.117834395

Marginal change in the number of farms and

marginal change in foal crop out put

2
1.5
marginal change

Marginal Change in
1 the number of Stud
Farms
0.5
Marginal change in
0 foal production
-0.5 1 2 3 4 5 6 7 8 9
-1
period

If the performance of the stud farm sector should not be determined by the performance

of the three or four larger farms, there is a need to increase the level of capitalization,

especially in terms of mares and access to land to the smaller stud farm operators.

Lost foals
as
Total # of percentage
mares in Live of total
foal Births Lost foals pregnancies
1999 463 218 245 52.92
2000 451 235 216 47.89
2001 562 291 271 48.22
2002 632 279 353 55.85
2003 554 126 428 77.26
2004 624 312 312 50
2005 705 314 391 55.46
2006 757 351 406 53.63
2007 741
Source: Jamaica Racing Commission

As was pointed out earlier, the increase in the number of mares in foal also brought along

with it significant losses to the industry in terms of false pregnancies, which in some

56
instances can result in a loss of a complete breeding season. As can be seen in the table

above, the percentage of false pregnancies surpasses that for feral horses which are less

than thirty percent. In short with this rate of false pregnancies, the Jamaican native bred is

faced with significant danger of extinction. Here one is forced to inquire if the

veterinarians are using standard and known procedures in the examination of the mares,

their familiarity with the usage of ultra sonic hand-held devices and if fit to breed

examinations were carried out on the mares. Equally important is the carrying out of

pasture hygiene examination, and the recording of parasite load per square foot of

pasture. These operations within the Jamaican context, given the relatively low level of

training of the average farm-hand , is best done by the veterinarian.

Lost foals as percentage of total pregnancies

100

80
Percentage lost

60 Lost foals as
percentage of total
40 pregnancies

20

0
1 2 3 4 5 6 7 8
Period (1999-2006)

The loss leaders in this regard are the larger farms that handle considerable numbers of

mares per season. While mare densities per acre are not the most significant possible

factor here, there is a need for its urgent review.

Mares To Stallions

57
 Year Total # of Total
mares number
served of
serving # Mares to
stallions stallion
1999 554 44 12.59
2000 507 43 11.79
2001 618 47 13.15
2002 700 46 15.22
2003 637 39 16.33
2004 688 33 20.85
2005 819 45 18.2
2006 864 50 17.28
2007 817 50 16.34
Source: Jamaica Racing Commission

The mare to stallion ratio in Jamaica is relatively good and compares well with the

breeding jurisdictions of the developed world where the figures range from 1:30, 1:35

and 1:45. One however should note that the flooding of the fields with mares starting

from the year 2002, has negatively affected the Jamaican ratio: See graph below.

# Mares to stallion

25
Mares to stallions

20
15 # Mares to
10 stallion
5
0
1 2 3 4 5 6 7 8 9
Period

The Distribution of Mares By Age

% of mare
younger or % of mares of % of mares of
equal to 11 ages between 12 ages 16 years
Year years and 15 years or older
1
999 64 21 15
2
002 64 27 10
2 59 27 14

58
 003
2
004 59 26 16
2
005 62 25 13
2
006 66 20 14
2
007 66 19 16

Similar as in the case of the stallions, breeders and stud farm operators have a strong

preference for the younger horse of eleven years and under, when compared with the

demand for the older horses. Except for the years 2004 and 2007, there is a gradual

tendency towards the reduction in usage of mares of ages sixteen years and over.

Distribution of mares by age in %

70
60 % of mare
younger or equal
Percentage

50
40 to 11 years
30 % of mares of
20 ages between
10 12 and 15 years
0 % of mares of
ages 16 years
1 2 3 4 5 6 7
or older
Period

The chart above however shows a substitution relationship between the distribution of

mares ages eleven and under and mare of ages between twelve and fifteen years of age.

When there is an increase in the usage of the elevens and unders, there is a reduction in

the usage of the twelves and overs, when there is an increase the usage of the twelves and

overs there is a decrease in the employment of mares of ages eleven and less.

59
Stud Farm Earnings

The sector in terms of revenue from stud services, performed in a most erratic and

unpredictable manner during the period. This was tied directly to the unplanned nature in

which mares are put up for and or removed from coverage, which is again tied into the

level of confidence owners and breeders have in the future of the racing industry, for

example the period starting in 2004 and ending in 2007, breeders and owners had a

higher level of confidence in the industry than they had in previous years, and hence put

up more mares to be bred. It however should be noted that the confidence shown was

more of a subjective nature and had less to do with the actual performance of the sector.

Earnings from Stud Services

marginal Changes
change in revenue
Average revenue from Stud
price for from Fee as a
Mares coverage in Revenue in Stud Fee percentage
covered US $ US $ in US$ of 1999
1999 559 507.2463768 283550.7246 0 100
2000 573 507.2463768 290652.1739 0.025045 102.5045
2001 622 507.2463768 315507.2464 0.085515 111.2701
2002 481 507.2463768 243985.5072 -0.22669 83.94415
2003 640 507.2463768 324637.6812 0.330561 102.8939
2004 478 507.2463768 242463.7681 -0.25313 99.3763
2005 747 507.2463768 378913.0435 0.562762 116.7188
2006 620 507.2463768 314492.7536 -0.17001 129.7071
2007 720 507.2463768 365217.3913 0.16129 96.38554

60
 ∆ in Stud fees (1999-2007) % Change over 1999 revenue

0.8 140
0.6 120
100
0.4 % Change

Percent
Marginal Change

80
over 1999
0.2 ∆ in Stud fees 60
revenue
0 40
20
-0.2 1 2 3 4 5 6 7 8 9
0
-0.4 1 2 3 4 5 6 7 8 9
Period period

As is shown below the number of mares covered showed a strong upward tendency,

reflective of the level of confidence the stakeholders had in the industry and or as a result

of a bid to shore up revenues.

Mares Covered 1999-2007

800
700
Number of mares

600
500
covered

mares
400 covered
300
200
100
0
1 2 3 4 5 6 7 8 9 10
Period

marginal Changes in
change revenue
revenue from Stud
from Stud Fee as a
Fee in US$ percentage

61
 of 1999
1999 0 100
2000 0.025045 102.5045
2001 0.085515 111.2701
2002 -0.22669 83.94415
2003 0.330561 102.8939
2004 -0.25313 99.3763
2005 0.562762 116.7188
2006 -0.17001 129.7071
2007 0.16129 96.38554

The sector performed better in terms of earnings on foals produced, than it did in terms of

revenue from stud fees. The figures below indicate that the period between the years 2004

and 2007, the industry in terms of foal production experienced strong growth. One should

also note here that other sectors of the industry such as racing was also experiencing

similar strong growth and stimulated the demand for stud services, foals etc.

Total
# of Price
live of Revenue ∆ in % change in
Foals averag from foal Revenue Revenue
Year e foal in US $ from foal from Foal
2002 291 1146.5 333631.5 0 100
2003 279 1141 318339 -0.04584 95.41635
2004 126 1065 134190 -0.57847 40.22102
2005 312 1158.5 361452 1.693584 113.5431
2006 314 1160 364240 0.007713 271.436
2007 351 1179 413829 0.136144 114.4907

% change in Reveue from Foal

∆ in Revenue from foal crop 2002-2007
300
2 % change in
200
percentage

Reveue from
change

1
marginal change

∆ in Revenue 100 Foal

from foal
0 0
1 2 3 4 5 6 1 2 3 4 5 6
-1
period period

62
In terms of revenues from “keep and care” operations, the farms earnings were equally as

erratic and unpredictable, with the strongest period of growth been between the years

1999 and 2003 (see table and charts below), based on the performance of average

revenue earned.

%
change
in keep
Price for Revenue ∆ in and care
keep and earned keep and revenue
Mares care in from keep care over
covered US$ and care revenue 1999
2291313.0
1999 559 11.23 5 0 100
2348698.3 0.02504 102.504
2000 573 11.23 5 5 5
0.08551
2001 622 11.23 2549546.9 5 111.2701
1971594.9 86.0465
2002 481 11.23 5 -0.22669 1
0.33056
2003 640 11.23 2623328 1 111.6928
76.8488
2004 478 11.23 1959298.1 -0.25313 7
3061915.6 0.56276 155.301
2005 747 11.23 5 2 5
2006 620 11.23 2541349 -0.17001 96.875
150.627
2007 720 11.23 2951244 0.16129 6

63
 % change in keep and care revenue over 1999
∆ in keep and care revenue
200
0.7
0.6
150
0.5
0.4
% change in keep
100 and care revenue over

percent
marginal change

0.3
0.2
∆ in keep and care 1999
revenue
0.1 50
0
-0.1 1 2 3 4 5 6 7 8 9 0
-0.2 1 2 3 4 5 6 7 8 9
-0.3
period
period

Farm Hygiene Practices

The main challenges facing most stud farms in the area of pasture management, remains

the question of having in place an effective system for vector control and reducing the

parasite densities as found in the pastures.

The failure to remove animal droppings and to ensure that suitable run-off systems are in

place, has created on many farms, conditions ideal for the breeding of various types of

flies ranging from the common house fly (Musca domestica) to the black soldier fly

(Hermetia illucens Linnaeus), mosquitoes (Culicidae), various species of roach

(Blattaria), rats (rattus) and mice (Mus musculus). These vectors tend to contribute to the

creation of an environment that is both unpleasant and unhealthy to both man and horse.

The failure to timely remove horse droppings, also serves as a medium of distribution for

various internal parasites (worms), which are deposited from the animal along with the

droppings, hence increasing the spread of these worms and increasing the rate of re-

infection.

64
The current practice is to allow the dropping to dry as deposited, after which it might be

removed by some field hands for sale to horticultural interests, or left to remain in the

field. Compounding this unhealthy state on some farms is the failure to remove the

horses from those enclosures within which the grass is below for inches in height, thus

forcing the animals to gaze within the parasite belt.

While crop rotation or the turning over and replanting of the pasture, where possible or

resting the land where crop rotation or pasture replanting is not possible, would serve to

reduce the parasite load; it would also in the short run reduce revenue flows while

increasing operations costs and thus in the main is not pursued.

One large farm uses peafowl {Pavo cristatus (Asiatic)} and the guinea fowl (Numida

meleagris) as a means of managing the parasite and insect loads, this practice of mixed

husbandry is not widespread, because of the high rick of theft. For example the Peking

Duck (Anas platyrhynchos domestica) would be an ideal addition to the farm because of

its feeding habits and the fact that it is not a transmitter of internal parasite. How long

they would be allowed to remain on the farms without being stolen remains an open

question. Equally the presence of flowering plants and fruit trees tend to allow the horses

to de-worm themselves in a natural manner; however these very same plants tend to act

as attractants to people seeking to harvest their fruits. One however should note that most

farms tend to be less than creative in this area, since plants such as the red hibiscus

65
(Hibiscus rosa-sinensis) which is relatively rich in protein and natural diuretic with the

flower has antifungal, emmenagogue, emollient and refrigerant effect.

The two major cause for the relatively low level of pasture hygiene are (1) the need to

reduce operating costs and (2), the relative lack of formal specialized training of the field

hands and supervisor staff.

Relationship between the farm and the neighbouring communities also have adverse

implications for farm hygiene, in the sense that most vectors tend to be highly mobile and

migratory in nature; thus while the farm might control for ticks, flies etc, failure to carry

out simulations parallel control in the neighbouring communities (especially those with a

high concentration of dogs and pit latrines) tend to undermine the efforts of the stud farm,

since ticks, fleas, roaches etc are all migratory moving from location to location.

Many farms are straddled with considerable unpaid debts owed by breeders and owners,

which when coupled with the relatively low daily rates being paid for keep and care,

considerably constrains the number and size of projects that the average stud farm

operator is able to carry out. For example a farm faced with a relatively large amount of

unpaid debt and having low daily rates for keep and care, is not able to readily afford the

cost of turning over or resting a pasture, but rather is forced to focus on finding avenues

for increasing revenue flows, an exercise that easily could result in the over-crowding of

the pasture leading to a worsening of the already poor state of hygiene. Equally such a

66
farm would not be able to afford the level of veterinary care that is needed to ensure that

the stock is healthy and ready to breed.

Some farms have tried to diversify their activities into crop production and even fish

rearing, however they are faced with the high costs of protecting their crops and or

animals from thieves, given that stud farms tend to be relatively large, without live-on

tenants and are very difficult and costly to secure. Here one notes that Ham Stables once

used to rear fish and birds -- fish rearing however has ceased and the rearing of birds has

been significantly reduced.

Farm Community Relationship

The relationship between the stud farms and the neighbouring communities tend to be at

best distant and at worse hostile. The communities in the main provide the day labour

needed by the farm while the farm provides limited employment. The numbers of jobs

created by the farms tend to be relatively small and seasonal in nature, except for those

farms that carry out some level of crop production.

The communities are also a source of problems for the farms, the communities tend to be

the source of the thieves that raid crops and fruits thus reducing revenue flows, it is the

source of stray or partially stray dogs, the source of rats, mice, roaches and flies

undermining the best of efforts by the farm operators at implementing vector control

regimes.

67
The nature of the relationship between the farms and the communities at times takes on

racial and class overtones, in that the farm operators and breeders tend to be from the

racial minorities and are from the point of view of the residents of the communities,

wealthy, while on the other hand, farm operators, breeders and owners tend to look down

on or patronize the residents of the communities. Residents of the communities are as a

rule, not invited to the “big functions and or dinners” being kept on the farms; sometimes

even the farm hands and their families are excluded from these events, a reality that

further negatively influences the relationship between the parties. One should however,

carefully note, that Ham Stables not only yearly sponsors a youth club, but also has

present at some of its events some citizens from as far as Greater Portmore. The Ham

Stables approach to community relations however is not widespread as can be seen

around Grange Lane where four stud farms are located.

In order to reduce some of the operating costs to the farms, there is a need for closer

collaboration between the farms and their neighbours. The removal of horse waste from

the fields could be greatly enhanced if the communities were encouraged to carry out the

commercial growing of potted plants or to manufacture compost for sale, the pest loads in

the pastures could be reduced if the farms facilitated the leasing of sections of the pasture

for the seasonal cultivation of crops or rearing of free range ducks/poultry. This type of

collaboration would serve to increase employment, reduce security and hygiene costs by

spreading the risks, and greatly improve the relationship between the farms and the

neighbouring communities.

68
The restructuring and decline of the sugar industry has left a large pool of unskilled

labour at the doorsteps of the stud farms. Here the active management of expectations is

of vital importance for peaceful co-existence and economic development.

RACING INDUSTRY SWOT ANALYSIS 2009 and onwards

Strengths

• Create local employment possibilities at the track and at neighbouring related

facilities.
• Act as an oasis for local plants and animals, in an environment where-in the pace
and scale of urban development pose significant risk to local plant and animal life.
• Functions as an entertainment center in a community where there is a lack of
entertainment facilities.
• Preserves skills which are elsewhere dead, e.g. grooming, horsemanship, horse
training, horse shoeing etc.
• Create training opportunities and career choice exposure to students on work
experience.
• Facilitates and encourages social exchange and dialog between the various social
groupings that make up the Jamaican society.
• Facilitates the development of specialized veterinary skills.
• Facilitates and encourages the development of skills in the areas of sport facilities
management, sports activities organization and scheduling, sports medicine etc.
• Create a market for the sale of grass, medina and other native non-traditional
plants.
• Provides a low cost source of supply of organic manure.
• Create areas of investment for both large and small investors, in racing directly, in
betting parlor operations or in the area of breeding.
• The industry, taken as a whole has demonstrated the ability to adopt to a changing
environment.
• Contributes to the increasing of the velocity of money circulation within the
economy.
• Contributes to the Gross Domestic Product.
• There remains a very high level of punter loyalty to the sport.

69
Weaknesses

• The Track is inefficient in terms of the recycling of animal and stable waste.
• Stud farms lack an organized vector management regime.
• Security at the tack in terms of fencing and in terms of the visible presence of
security personnel in the stands on race days, is lacking.
• Track utilities management regime has room for improvement.
• The backstretch covers a vast but mainly underutilized area.
• The betting sector has been very slow in the identification of a suitable
response to the growth and aggressive marketing of game lounges, lotto and
lotto type number games ;
• Gender conscious marketing and gender targeting as a strategy aimed at
increasing market share have been largely ignored.
• Method of mare selection for breeding purposes remains largely a craft with
little or no scientific (read veterinary) input.
• Stud farm hands and other farm employees remain largely without formal and
only a few stud farm operators/managers have any formal training in animal
husbandry and or equine breeding.
• Pasture hygiene practices on average is below expectation, characterized by
uncollected animal wastes, high densities of horses to pasture and low cut
grass.
• Betting shops remain very female unfriendly and transmits to the wider public
the idea that they are not places to be.

Opportunities

• Technology if applied could, coupled with an aggressive marketing

campaign, could lead to an increase in racing market share on the
gambling market. There is no technological or ethical reason why racing
tickets could not be sold from kiosks in supermarkets and elsewhere.
• Existing technology allows for races to be watched from main bus
stations, squares and other public venues, thus potentially increasing
public awareness of the sport, allows punters greater mobility and
strengthening market presence.
• A more scientific approach to mare selection for breeding could lead to a
reduction in breeding costs of both breeders and stud farm operators.
• The formal training of stud farm hands and employees could lead to
reduction in farm operating costs and a further reduction in foal mortality
rates.
• A gaming lounge with several table games in addition to gaming
machines, located on the premises of the Caymanas Track, could possible
increase revenue flows of the track, if designed to meet the needs of those
individuals within the income range of J$1.5-to-J3.5 million.

70
• A petting zoo or other children educational/recreational facilities located
on the premises of Caymanas Track Limited could serve to enhance the
product offering of the Caymanas Track Limited.
• The average betting parlor with simple but creative redesign would serve
to reduce public apprehension of these locations.

Threats

Short term

• Further reduction in the quality of the promotional offering by

Caymanas Park as a result of a lack of funding to maintain or improve
facilities.
• Further erosion of market share as a result of declining real wages in
the economy and the growing appeal of alterative betting/gaming
possibilities.
• Reduction in interest in horse ownership owing to escalating real costs
and the relative inelasticity of purse money.
• Increase in economic crimes and crimes against the person, in and
around the premises of Caymanas Park.
• The deepening of a “we and them” attitude among the various
stakeholders.
• Increase pressure on jockeys and owners to ensure that horses in their
care either win or place, in other words increase in the intensity of the
competition for pursue money and the growing dangers to horses and
jockeys.

Long Term

• The urge and desire to compare the rent earning capabilities of

Caymanas Park as against other alternative land usages.
• The demographic changes occurring in those communities around
Caymanas Park, characterized by the aging of owners with
pensions replacing salaries coupled with the exodus of the more
affluent and socially mobile segments of the population (the
growth of the tenant class and its implications).
• The increased reluctance on the part of parents to expose their
children (read sons) to horse racing, thus reducing the influence of
tradition in market creation/preservation.
• Increased and intensified competition for the “betting dollar”.
• The lack of review and updating of laws governing both the
Betting and Gaming Commission and The Jamaica Racing
Commission, where-in these laws become obstacles to the
modernization and recapitalization of the racing industry.

71
End

72
73