progress of work being done at the facility.
By Neto Baptiste
President of the Antigua Turf Club (ATC) Hansen Richards has revealed that work at the Cassada Gardens Race Track is at a standstill due to Cabinet’s delay in approving “a certain tax exemption request” he deems “crucial for the investment to proceed”.
In a social media post on Sunday, a seemingly frustrated Richards revealed that not granting the un-specified tax could result in the cancellation of the EC$22 million investment by the St-Croix based Caravelle Group.
“The project is at a standstill due to a certain tax exemption request that is crucial for the investment to proceed. Should this persist, it’s either the investment group withdraw their interest or a significant restructuring of the investment is done. Either way will collapse the racing operations in less than five (5) years,” Richards wrote on Facebook.
“This tax must be exempted for the period requested as well as implementing the Antigua and Barbuda Racing Commission which would oversee the racing industry as well as the breeding industry. A new industry means EMPLOYMENT, EMPLOYMENT, EMPLOYMENT! There will be many more tax payments than the exempted ones,” the turf boss added.
Although the specific tax is yet unknown, Observer has learnt that the proposed exemption has to do with the erecting of a casino at the track.
Further, Richards who was elected as president of the turf club in May of 2023, took Cabinet to task, asking them to name any other association that has brought that type of investment to the country’s shores, taking shots at both the Antigua and Barbuda Football Association (ABFA) and the Antigua and Barbuda Basketball Association (ABBA).
“Somebody please tell the Cabinet for me since I was told to ‘cease and desist from badgering them to waive government’s taxes’ after securing XCD22M that will be spent within a year in Antigua’s economy. Name one other sporting organisation who has done that in the last five (5) decades! The ABFA can’t build a stadium yet neither ABABA,” he said.
“As small as Cassada Gardens Racetrack facility is in comparison with Jamaica and Trinidad, it will take a significant amount of money to maintain it much less to host races and pay attractive purses. Before anyone comes at me, ask yourself this question, would you proceed to invest over XCD20M in a foreign country on a product that if not properly supported, would faulter (sic) in less than five (5) years? All you’re asking is for a tax break for a brief period so the product can grow and sustain itself before you contribute all the taxes payable to the government????”
Richards said that in 2024, the government agreed to a 50-year lease with the ATC “with a sublet clause for the investment group to build and operate a gaming centre”. Additionally, Richards said Cabinet agreed to provide 2,000 tons of Barbudan sand and 500 tons of topsoil to be used in the resurfacing of the track as well as assistance from the Public Works Department.
This aspect of the agreement, Richards said, was however withdrawn while the Turf Club is still awaiting documentation on the lease arrangement.
“The other agreement was to provide 2,000 tons of Barbudan sand and 500 tons of topsoil which would be used to resurface the running area of the racetrack as well as assistance from the Public Works Department. This has since been rescinded and to this date, we have not received a draft of the lease terms although we had submitted all the required documents to the Ministry of Lands a few months ago. We understand these things take time and we are not upset about the rescinding of the sand and soil. All we required from the government, were the concessions, waivers and licenses that were submitted which would enable the investment to be feasible,” he said.
Richards highlighted economic benefits to be derived from the multi-million dollar investment into the horseracing industry here in Antigua.
“Our gaming partners, who will employ 60 persons, would create the opportunity for the Antigua Turf Club to now employ its personnel to undertake the day-to-day operations of the organisation which would then allow owners to purchase horses to compete. The backstretch network would consist of trainers, grooms, exercise riders, hot walkers, jockeys, farriers, veterinarians, etc all of whom have to be licensed by the Racing Commission (Government). The owners hire the trainers who hire his staff,” he said.
“Trainers and owner(s)(syndicates) will be required to incorporate their businesses at Intellectual Property and then register at the Inland Revenue Department. See how much taxes are to be paid now? See how many people will be employed? Whether you are heavily degreed or a primary/secondary school dropout, you can earn a comfortable living in the racing industry,” he added.
Work commenced at the facility in September 2024 with the building of a small dam to channel the water course to ponds located on the property. All work has however been shelved as investors await Cabinet’s decision.
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