The early 70s also found the racing authorities in a similar financial crisis. The introduction of inter-venue or off-course betting came as a blessing in disguise to infuse fresh lease life into the industry. The ailing clubs and the state governments were substantially benefitted. The breeding industry flourished beyond imagination with the mushrooming of new studs. The production of thoroughbreds went up four-fold with their prices scaling new highs.

Now, in sharp contrast, the 1998 auction of thoroughbreds conducted by the Royal Western India Turf Club (RWITC) with much pomp and gaiety at Mumbai and Pune (for the first time) was most disappointing. Horses were available for as less as Rs 1,000.

The clubs recklessly increased the stakes. The racing authorities, who reaped rich dividends then, never dreamt of the tough times ahead. The RWITC is offering nearly Rs8 crore as stakes for the 90 race days which it conducts in Mumbai and Pune. It is understood, the club is facing a deficit of nearly Rs 2 crore.

The RWITC has strained relations with the state government, which issues the licence for racing. The then Sharad Pawar government reduced taxes by five per cent, but the new government increased the betting tax from 5 to 10 per cent to heighten the misery of the clubs.

Though the turf authorities are in constant touch with the concerned ministries for reconsideration, it's doubtful they will get any cocessions. The club derives a major share of the revenue from the bookmakers by way of stall fees and six per cent betting commission. They now want to increase the stall fees.

However, the bookmakers are in no mood to oblige. A senior bookmaker said: ``There are no punters and the business had gone down alarmingly. Moreover, the betting pattern is totally changed. Whatever bets we receive from the punters are only for the winner and the runners-up. The runnerswho have no followers in the betting ring don't come even in the frame.

``The fluctuations in the odds are so disturbing that it's very difficult to make the book round. Even the horses, which are opened with short prices at the beginning of a particular race, go upwards and bets are not received. On the other hand, it often happens that a horse opened at higher odds, say 8-1 or 10-1, suddenly receives inspiring support and the odds come down to 3-1 within minutes. Above all, such horses return home victorious. In such an unstable scenario, who can survive?''