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GOLD Circle, which controls the country’s multibillion-rand horseracing industry, could have its licence revoked for an alleged lack of transformation.
The decision rests with the KZN Gaming and Betting Board and Belinda Scott, the KZN MEC for Finance, who will convene a meeting for that purpose on Tuesday.
Three interested parties - the SA Grooms’ Association (Saga), the SA Bookmakers’ Association (Saba) and Anil Maharaj, a former horse trainer - are expected to object to the renewal of Gold Circle’s operating licence. The trio want the board to monitor and enforce strict stipulations on transformation when it considers the renewal of Gold Circle’s licence, which expires at the end of the month.
According to gaming law, the licence may be renewed only provided the applicant has satisfied the board it had made adequate progress in facilitating the realisation of transformation objectives.
One of these was promoting opportunities for historically disadvantaged people in the horseracing and betting industry by way of ownership, membership and shareholding. That was the gist of the allegations Maharaj made in his recent court action against Gold Circle in the Pietermaritzburg High Court.
Maharaj claimed he faced racial discrimination when he tried to secure a trainer’s licence from Gold Circle after serving a five-year ban for an assault charge, yet a white trainer received a slap on the wrist for a similar offence.
Maharaj approached the Equality Court on two occasions between 2008 and 2013 with his allegations, but was turned away.
However, last month, the high court ruled that the Equality Court had to hear Maharaj’s matter.
Maharaj said Gold Circle was punishing him because he had assaulted a white person at Summerveld.
The court stated Gold Circle’s declining Maharaj’s application for a renewal of his licence was motivated by a lack of desire to give effect to the transformation goals entrenched in the KZN Gaming and Betting Act.
It added that while Gold Circle was a private company, it should be reminded that it operated under the auspices of the board and the terms and conditions attached to its licence.
That judgment had raised the hopes of the other parties calling for transformation in the horseracing industry.
Saga outlined its racial discrimination concerns in a letter to the board last month. It also accused the board of being biased toward Gold Circle by allowing the company to flout transformation standards in renewing its licence.
Saga president Cophelikhaya Simoto said they had raised numerous complaints with the board about Gold Circle’s conduct, but these had been ignored. “Maharaj’s judgment is a turning point and we hope the board will enforce its rules - or they will be in contravention of the high court judgment.
“Gold Circle never transforms for anyone and only operates for the benefit of wealthy white people,” Simoto claimed.
He said grooms were being discriminated against and sidelined in every respect.
“We are opposing the licence renewal because Gold Circle has failed dismally to meet transformation requirements; yet funds are directed to a unit that cares for retired horses,” claimed Simoto.
Saba chief executive Sean Coleman said they had asked the board to investigate possible abuse by Gold Circle in the manner of operation.
“We made a submission requesting the board to consider the terms of section 91 of the KZN Gaming and Betting Act regarding Gold Circle’s dominant market position and possible abuse thereof,” said Coleman.
Section 91 stipulates that the board may grant an application only if it is satisfied that the racecourse operator has made adequate progress in facilitating the realisation of its objectives.
He said they also objected to the reappointment of some board members who, as members of Gold Circle, would be conflicted and biased in the board’s decisions on Gold Circle.
Horse owner Shawn Meaker said the horseracing industry had not transformed - it was dominated by Gold Circle. “Gold Circle and the other agencies haven’t done enough to create opportunities for black African people. The industry is still dominated by white people and Indian people. Black people are mainly workers at junior levels.
“Gold Circle is in a mess at times and something needs to be done.
“The key lies with the board. Attendance at horseracing events is non-existent except for the Durban July and people only go there to party,” he said.
“Gold Circle has excluded other people. Even buying horses has become expensive. You have to fork out millions of rands and who has that kind of money?”
He said the grooms’ situation was sad. “The grooms are not making any money, but Gold Circle and trainers make money. The grooms don’t even have a medical aid. There are hardly any new people coming into the industry. It’s still dominated by the same people who were there before,” said Meaker.
Gold Circle’s chief executive, Michel Nairac, said the agency was committed to the transformation of horseracing and had far exceeded the goals set by the KwaZulu-Natal Gaming and Betting Board.
“Illustrative statistics are 96% black employment, 88% black management, 50% black senior management, 31% black membership, a board comprising six black directors headed by a black woman chairperson and black vice-chairperson. He added that Gold Circle did not employ grooms.
KZNGB chairperson, advocate Bethuel Khuzwayo, said he could comment only after the hearing.
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