(OK, so that last part was mine, but you get the idea. So send in the clowns, the pigs, and get me someone from the Revlon company on the line, stat).
Actually, despite the bad economic news contained in a chart provided by NTRA and Equibase reprinted here last week (see HRI archives), racing isn‘t doing nearly as badly as many other American businesses, including its major competition for the wagering dollar.
As another aside, following the lead of Churchill Downs Inc., Equibase unfortunately no longer will provide quarterly handle summaries beyond daily handle figures noted at the bottom of result charts. And this is despite requests from media outlets that they continue doing so for the sake of reportage. So much for transparency.
To the point, it’s ironic that the Video Lottery Terminal form of casino wagering that has injected fiscal life into struggling racetracks is, along with traditional forms of casino wagering, also suffering the effects of a failing American economy. Sobering that not even gambling, long considered as being recession proof, no longer is.
Las Vegas visitation has flattened or has been declining for months, with projections indicating that the slide will continue at least in the near term. Air travel to Las Vegas is on the wane not only domestically but from foreign sources as well, especially the Asian market, and that‘s been a much bigger problem.
Despite the progress on display during the recent Olympics from Beijing, Asian economies have slowed down. Between the deceleration of Asian economies and competition from glitzier Macao-based casinos, many of which were built and owned by household American gaming-industry giants, the whales have been lured into staying closer to home, afforded more and more perks.
Macao-based casinos have made serious incursions into Hong Kong’s horseplaying market, too, a longtime staple of the Asian betting community, where handle on a single program can reach an unthinkable nine figures in Hong Kong dollars.
But compared to racing’s slide here and elsewhere, casino receipts for high-roller gaming have fallen at an alarming rate. According to the Post story, table revenue in Las Vegas is down nearly 19 percent, while the exclusive baccarat action is down more than 26 percent. Nowhere is racing’s losses as dramatic.
Casino business in Atlantic City isn’t much better. Since travel to AC commonly is done by auto, steep gas prices have taken a toll. For slots players, the cost of a full tank is tantamount to pulling a lever for an entire afternoon. Staycation for slots players means having to stay and play joker poker at the local tavern. Be still my heart.
Atlantic City receipts are down a comparably acceptable 5.2 percent through August, which includes both table games and slots. What’s troublesome is that the downturn reflects not only high rollers but mom and pop slots players, too. If this trend doesn’t abate soon, Atlantic City gaming receipts will be down for a second straight year.
Along with gas prices, competition hasn’t helped. Connecticut casinos have been cutting into Atlantic City visitation for years, but competition from Pennsylvania and Delaware, especially the former, has been devastating to not only New Jersey and Maryland racetracks but to shore-based casinos as well. And it doesn’t figure to improve when a 100 percent smoking ban begins October 15.
Parenthetically, Maryland has been playing politics with slots for almost as long as Albany has been delaying construction of a racino at Aqueduct. For the last seven years over-burdened New York taxpayers have not gotten any relief from VLT revenues. What’s the definition of criminal negligence, anyway?
And now the Pimlico barn area is closed, and their racing dates have been cut drastically except for the traditional spring Preakness meet. Even if a slots referendum passes this November, it’s doubtful whether Pimlico, which this year marked the 70th anniversary of the celebrated Seabiscuit-War Admiral match race, ever will race year-round again. http://www.washingtonpost.com/wpdyn/content/article/2008/09/13/AR2008091302213.html?hpid=sec-metro.
But as we all learned upon awakening Monday morning, horse racing and gaming are only the tips of an economic iceberg whose bottom cannot be seen below the murky waterline.
17 Sep 2008 at 01:38 pm | #
John,
I simply find the VLT debacle in New York astounding to say the least. Here you have a chance to attract more ‘numbers’ to attend the Aqueduct Race track and it has taken seven years and still no determination.This is the politics of our elected officials in New York...and it stinks.!
However, the rant aside I still wake up each morning very thankful to have thoroughbred racing a part of my life...what else can I say!
Jack Z.
17 Sep 2008 at 03:05 pm | #
Them’s the facts, Jack.
17 Sep 2008 at 05:45 pm | #
John:
What are the crooks in Albany waiting for? How much graft do they need to make a simple decision?
Do they realize that their irrationally long delay has now connected two of the worst financial cycles ever inflicted on our friends in Lower Manhattan? If the criminal acts of 9/11/01 proximately caused Albany to approve VLTs, in the first place, what “solutions” would now be available to alleviate the current financial fiasco?
One does not have to be smarter than a fifth grader to understand that the instant crises on Wall Street will completely devastate the New York State economy. The diminution of Wall Street profiteering will leave us with a deficit of over $10 Billion dollars next year. Who or what will pay this bill?
While we debate, the meter is running. I call on the current, unelected Governor to uphold the oath he took and make a decision. Just pick anyone, someone, to operate the Aqueduct slot-sino. As John and I have repeatedly explained, Failure to act ASAP will be an impeachable offense against the citizens of this great State. What are you waiting for, Mr. Governor?
18 Sep 2008 at 04:23 am | #
Paul,
A dear friend has an apartment she rents out in Battery Park City while working on the Nassau/Suffolk border. Every year she feels compelled to visit the site to pay her respects, say a prayer. She called me in tears at 11 p.m. on Sept. 11 to tell me that nothing--nothing has been done seven years later. We have gotten so far away from what the framers had in mind when they founded this great country. It’s what makes the coming election the most important of our lifetime. My deep concern is for my daughters, not myself. Thanks for caring, sharing.
John