Horse Racing in India: A legal primer

India has a long and rich tradition of horse racing, polo, cross-country and other equestrian sports. Equine law encompasses all laws pertaining to the equestrian industry and includes those pertaining to the trading of horses (sale, lease agreements, importing), real estate (race course, stud farms etc.) and animal welfare (liability of trainers, veterinarians and farriers^[1] etc.). Equine laws in India are not well-developed. With certain equine laws coming under both the union and the state governments, the regulatory landscape can be complicated and fragmented. 

Horse races are organized by turf authorities/ clubs. There are 7 turf authorities in India: the Royal Western India Turf Club Ltd. (RWITC), Bangalore Turf Club Ltd., Hyderabad Race Clubs (HRC), Royal Calcutta Turf Club, Madras Race Club, Mysore Race Club and the Delhi Race Club. These turf authorities both independently and jointly under the banner of Turf Authority of India regulate horse racing in India. Horse owners register race horses with the clubs. The clubs also license jockeys and trainers. The jockeys and trainers may choose to not restrict themselves and be associated with multiple clubs and work with multiple horses. The clubs most often do not own race courses, i.e. real estate for the racing. For instance, the famous Mahalaxmi racecourse in Bombay is leased by the RWITC from the municipal corporation^[2]. HRC is the only turf authority in India to own its entire race course premises^[3].

The clubs are granted a license to operate their business under specific state laws^[4] and are bound by the license conditions. They provide for the conditions of the license, licenses fee, penalty upon contravention of the license conditions and also definitions for horse racing and race tracks. While the turf authorities are a private enterprise, by condition of the license, the Government in most clubs has the right to appoint a nominee to its governing body/ committee of stewards. They are also expected to encourage Indian bred horses and Indian jockeys.

Gambling: The turf authorities also conduct betting operations for the horse races. Agreements by wager are void under the Indian Contract Act, 1872, however, betting on horse races is permitted under law. The subject matter of “Gambling” comes under the legislative purview of the States^[5]. Many states have gambling laws that exempt games of skill from the definition of

gambling. Others specifically exempt horse racing from the gambling laws^[6]. In 1996, the Supreme Court held: “We have no hesitation in reaching the conclusion that horse-racing is a sport which primarily depends on the special ability acquired by training. It is the speed and stamina of the horse, acquired by training, which matters. Jockeys are experts in the art of riding. Between two equally fast horses, a better trained jockey can touch the winning-post.”^[7]

Taxation: Horse racing is taxable under the Goods and Services Tax (GST), an indirect tax on goods and services. Here, the value of the bet placed is subject to GST and deductible at source at a rate of 28%^[8]. In addition, winnings from horse races are subject to Income tax at a flat rate of 30% on the winnings^[9]. 

Breeding: The Stud Book Authority of India (SBAI) is the nodal agency for all matters concerning registration of breeding establishments, thoroughbred stallions, thoroughbred mares and newly born thoroughbred foals in India^[10]. They register breeding establishments, register broodmares and stallions for breeding purposes, register and keep records of coverings, births, deaths, movements, pregnancy, foal casualties, ownership details and microchip implants of all stock on its records and issue passports and export certificates when required^[11].

Horse racing in India is restricted to Indian bred horses. The rule was put in place soon after Independence to protect the Indian breeding industry which could not have survived international competition then, and still exists to date^[12]. This has led to a rise in breeding enterprises/ stud farms in India.

Importing: The import of horses into India is regulated by the Livestock Importation Act, 1898. India had previously prohibited the import of horses. The Department of Animal Husbandry, Dairying and Fisheries by notification dated 7th May, 2010, permitted import of horses, subject to certain criteria aimed at reducing the spread of diseases. 

Animal Welfare: The Animal Welfare Board of India^[13] is responsible for the promotion of animal welfare in India and was established under the Prevention of Cruelty to Animals Act, 1960. Horses involved in racing come under the definition of “Performing Animals” under this Act. Performing Animals are defined as any animal which is used at or for the purpose of any entertainment to which the public are admitted through sale of tickets. While the Act requires the registration of such Performing Animals, race horses which are registered with a turf authority are exempt from this requirement^[14]. 

The owner of the horse is subject to certain rules^[15] with respect to the care of their horses. These pertain to the shoeing of horses, usage of whips, stabling facilities, transportation of horses, manner of castration, manner of branding and the prohibition of certain practices that are cruel and harmful. Some rules which are more relevant to the sport of horse racing are: 

• Whips: The owner of any equine shall not use any whip other than shock absorbing whip which has been scientifically tested to prove that it will not cause weals, bruising or other damage to the horse and subject to the conditions that: 
  • the whip shall not have raised binding, stitching, seam or flap. 
  • the whip shall be used by licensed jockeys only. 
  • the owner shall also ensure that the whip is not used other than either on the quarters in either the forehand or the backhand position or down the shoulder in the backhand position or use the whip with the arm above shoulder height. 
  • the whip shall not be used more than 8 times in a race. If used in excess, the Animal Welfare Board of India in consultation with the turf authorities shall decide if the use is justified.
  • each horse immediately after the race and again between a period of 6 hours to 8 hours from the race shall be checked by veterinarian for injuries. 
• Transportation: A horse shall not be raced unless provided 24 hours of rest after a journey exceeding 6 hours. A horse shall not be transported within 24 hours of having raced.
• Doping: The turf authorities notified the “Rules For Medication Control for Horses in Training and Education” on 15th October 2013 for all owners and trainers licensed by them. The rules provided for sample collection, list of categories of prohibited substances, administration of medicines, approved laboratories for analysis and penalty in case of infringement. The most severe punishment under the rules is 2 years suspension/ non-grant of trainer’s license and fine of Rs.15,000 to the trainer and disqualification of the horse. This is only where the trainer is vicariously liable, and the punishment may be made more severe in case of actual involvement^[16].