Puerto Rico: Horse breeders seek to revive their industry

By the 1990s, the overall racehorse bet generated $298 million, while by the end of 2022, bets had generated $144 million, a 52% decline that has hurt the industry, especially horse breeders. thoroughbred that relies on 0.1% of the money from the plays.

“Puerto Rican horse racing has undergone great changes during the past two decades. Just 15 years ago, on the Island there were over 30 farms/pastures dedicated exclusively to horse breeding, today that number is just eight, (a 73% reduction), "explained Javier Velazco, president of the Association of Breeders of Thoroughbred Horses in Racing in Puerto Rico in an interview with EL VOCERO.

Likewise, the birth figures have dropped from 740 specimens registered in 1997, its highest point, to 260 in 2021.

“They entered 2009 (SVJ) with the purpose of improving the industry, improving prizes and improving breeding. While, in the United States, the casinos that are in the racetracks are to improve the prizes and breeding of each state, in Puerto Rico it was not like that. We were not included in that bill for the inclusion of the percentage discount for breeders. Those machines began to suffer a huge effect, because the plays began to drop drastically. Therefore, the breeders' fund, which for many was the lifeline for several years to keep the operation active and maintain healthy inventories in the industry, did not give”, explained the horse breeder.

According to the Law, at the moment the operating company of the SVJ distributes the net income received as follows: 15% for the commission of the horse racing agents, 15% for the horse racing prize accounts and 70% for the company operator.

For this reason, the Association is advocating for the approval of Senate Project 1206, which will change the distribution of the Electronic Video Game System (SVJ) to allocate 0.5% to the Breeders Fund with the purpose of encouraging this agricultural activity, which generates between 15 to 20 jobs per farm.

Despite this, he clarified that they have never opposed the SVJ, but rather "on the contrary, we want to be part of this because the only fund that encouraged parenting in Puerto Rico was affected, because the game has not grown more." .

According to Velasco, raising a foal amounts to between $15,000 and $17,000 per year, depending on the size of the company's operation and the operating expenses to which it is subject.

With the amendment, the operating company of the SVJ will receive 69.5%. According to the Statement of Motives of the project, amending said article to add a new paragraph assigning 0.5% of the income generated by the SVJ to the Breeders Fund, would inject the necessary resources to strengthen the industry and encourage a resurgence in the associated agricultural activity. to the breeding and development of thoroughbred horses in Puerto Rico.

This would mean an amount of $2.8 million for the horse breeders fund, according to the most recent statistics. It should be noted that the Equestrian Industry represents over $29 million in revenues for the treasury, according to the president of the association. 

“It is not only keeping native breeding alive, but also it is the main product of international horse racing competitions. That would help encourage other farms to open and get to what we had in the 2000s, where there were so many breeders that people came to buy farms and breed,” Velazco said.

In this regard, the Gaming Commission recommended to the Puerto Rico Senate Youth and Recreation and Sports Commission to take into “high consideration” the position of the components of the horse racing industry.

“'After analyzing the measure before the consideration of this honorable Commission and the current rule of law regarding the Commission, we recognize that it is certainly important to seek and develop new initiatives to strengthen the industry and promote its growth, especially in the development and breeding of native thoroughbred horses”, stated the Commission in its presentation before the legislative body.

However, they clarified that in this case it is imperative that the Legislative Assembly grant ample opportunity to the operating company and other components of the horse racing industry that are part of the distribution of the SVJ's net operating income to express whether the proposed reduction in the receipt of said income represents an obstacle or makes it impossible in any way to fulfill its purposes.

"It seems to us that such an input is essential prior to continuing with the process of measure P. del S. 1206. If the reduction does not represent a problem for Camarero Race Track, Corp., the equestrian agents and the horse owners, we do not envision reasons why it could not continue with its approval”, reads the document delivered by the Commission.