And so it seems that the love affair between certain jurisdictions with expanded gambling and the racing industry has hit a rocky patch. Just like in a marriage, when things go south, the fight over money intensifies.
Many states which were facing great big budget shortfalls decided to, for lack of a better term, marry for money. They climbed into bed with the racetracks, which were having a not-so-little revenue problem of their own.
The states enabled the tracks to get a much needed makeover into racinos, and then the casino side of the operation funneled all that fresh money- and lots of it- into the state coffers.
Everyone was happy and the bottom line on both sides got healthier. Purses got bigger and the quality of racing got better. Now it seems that some jurisdictions think the racing industry is getting too much of the good thing.
Now they want to change the relationship.
As of late, there have been plenty of stories in the news about certain states, with Pennsylvania and Indiana among them, wishing to pull back on the amount of the take from slot machines and other forms of gaming at the racinos that is returned to the horse racing industry.
In the Province of Ontario, Canada, the word is that the government wants to end payments generated by the slots-at-racetracks program as early as one year from now. That revenue sharing program, which returns 20% of the profits to be shared by the tracks and the Thoroughbred, standardbred and Quarter Horse horsemen while the government retains 80%, has been in place since 1998.
Since then, the Canadian horse racing industry has seen an increase of an average of $345 million per year and much of that money has fueled purses and other operating expenses. Without that money, it is feared that most of the province’s 17 tracks would no longer be able to support live racing and it is reported that about 60,000 people employed by the tracks, owners, breeders and ancillary industries would be thrown out of work.
Now the Ontario Lottery Gaming Corporation reportedly wants the government and its agencies to keep all of the money. In Pennsylvania, which passed a bill authorizing slots at tracks in 2004 that resulted in the construction of fan-friendly new Thoroughbred and harness racing tracks where purses have shot through the roof, there are similar problems.
Today, Wednesday, March 14, more than 10,000 Thoroughbred and standardbred owners, breeders, farm owners and others who make their living in the industry are scheduled to attend a news conference at the state capitol rotunda to make their voices heard. They stand in opposition to a proposal to redirect $72 million annually from the Pennsylvania Race Horse Development Fund to other state programs. That money is reportedly in addition to $49 million annually already being diverted.
At issue here and elsewhere is the very heart and future of the industry.
When the states and the racinos entered into the blessed state of holy business venture, it was a win-win. Owners and breeders invested in the industry, purses went up, green space was preserved for farms, breeding programs flourished, outfits hired workers, tracks were able to revitalize, and racing was back on the right track.
Moreover, tens of thousands of jobs were preserved and tens of thousands more were created. And the states which had the racinos, complete with those slot machines and/or table games that generated all of that new cash, enjoyed a significant competitive edge over the states that didn’t.
If a horseman could get a hell of a lot more money for winning a race in a state with slots revenue, why would he or she ever want to base an operation in a state that didn’t offer much bigger purses plus breeders’ awards?
The bottom line is that it’s the casino side of the racino operation which continues to fuel state coffers with hundreds of millions of dollars annually. For these jurisdictions, now that they’ve gotten what they wanted, they’re trying to kick the racing industry out of bed.
That’s not fair. And it’s not right.


14 Mar 2012 at 09:22 am | #
Why didn’t the states that needed more money to balance budgets and proceeded to legalize casino gambling build their own casinos? Why bother to even get involved with racetracks? The answer, obviously, is that the legislators were fearful that they would be voted out-of-office; they grabbed at an easy route to achieve their objective: since racetracks already existed, representing gambling, and have the facilities, there should not be such an uproar by constituents opposed to gambling.
Racetrack management enjoying slot revenue, led by Sir Charles Hayward, has acted pompous and without regard for how the public perceives their actions.
The increasing of purses to ridiculous amounts for stake races does NOT improve the quality of racing, and represents a very poor distribution of purse money. Why should one race on a day’s race card have a purse well into six figures while the other races on the card are P,000 or less; particularly when 90% the six figure purse will be
divided by nine people - three owners, trainers, and jockeys.
The massive increase in purses has come to the attention of numerous legislators, and the public as well. Racetracks enjoying slot revenue have simply overplayed their hand giving the impression of a carefree attitude, tossing money about frivolously, easy come easy go; such does not sit well with the have-not, nor with state governors trying to balance budgets. Seems the thing most bothering legislators is the question: why so much money going to racetracks when few people are watching the races?
So, why isn’t all that money going to an advertising/marketing program instead of purses?
Duh?
14 Mar 2012 at 12:04 pm | #
It doesn’t do much good to advertise and promote unless you have an enticing product to show in an appealing environment- one that people want to come and see and where they will enjoy spending their hard-earned money.
14 Mar 2012 at 02:39 pm | #
I tread lightly here, as I do not know you. But, your above comment has left be totally bewilder. No company, organization, or self-proprietorship will survive without advertising and promoting their product, service, or whatever.
What I get from your comment is that Thoroughbred racing is not ‘an enticing product’.
As I have said numerous times before at HRI, it is hopeless!!!!
Simply put, no one gets it. What is ‘it’? Well, ‘it’ is that Thoroughbred racing is about gambling, about cashing tickets, about making money. Whether the race is a cheap claimer or a stake race, bet it, and you win or lose; and the excitment is precisely the same, be it Finger Lakes, are, Calder, Saratoga, or my favorite track Philly.
14 Mar 2012 at 03:45 pm | #
Lynne,
Nice write, but like any healthy marriage there has to be some middle ground.
A bottle of white, a bottle of red
Perhaps a bottle of rosé instead?
I don’t pretend to be smart enough to know the answer to prevent the casino/horseracing divorce. While it would not be right for the governing agency to now pull the slot money plug from the racetrack, the tracks need to find a way to raise handle to meet the purse raises. Lower takeout anyone? Customer service anyone? Newbies anyone?
While I agree with WMC about more money going to an advertising/marketing program, I disagree with his belief that cheap races have the same appeal as Stakes races. Like any successful business, it’s about a quality product and customer service.
And the beat goes on ....
A bottle of white, a bottle of red
Perhaps a bottle of rosé instead
We’ll get a table near the street
In our old familiar place
You and I - face to face hm, hm
A bottle of red, a bottle of white
It all depends upon your appetite
I’ll meet you any time you want
In our Italian Restaurant
Things are okay with me these days
I got a good job, I got a good office
I got a new wife, got a new life
And the family is fine
Oh we lost touch long ago
You lost weight
I did not know
you could ever look so nice after so much time
Do you remember those days hanging out at the village green?
Engineer boots, leather jackets and tight blue jeans
Oh you drop a dime in the box play a song about New Orleans
Cold beer, hot lights, my sweet romantic teenage nights ooh, ooh
Oh, oh, oh, oh…
a
Brenda and Eddie were the popular steadies
And the king and the queen of the prom
Riding around with the car top down and the radio on
Nobody looked any finer
Or was more of a hit at the Parkway Diner
We never knew we could want more than that out of life
Surely Brenda and Eddie would always know how to survive.
Oh, oh, oh, oh…
Brenda and Eddie were still going steady in the summer of ‘75
When they decided the marriage would be at the end of July
Everyone said they were crazy
“Brenda you know that you’re much too lazy
and Eddie could never afford to live that kind of life.”
Oh, but there we were wavin’ Brenda and Eddie goodbye.
Oh, oh, oh
Well they got an apartment with deep pile carpets
And a couple of paintings from Sears
A big waterbed that they bought with the bread
They had saved for a couple of years
but they started to fight when the money got tight
And they just didn’t count on the tears.
Oh, oh yeah rock ‘n roll
Oh, oh, oh
Well, they lived for a while in a very nice style
But it’s always the same in the end
They got a divorce as a matter of course
And they parted the closest of friends
Then the king and the queen went back to the green
But you could never go back there again
Oh, oh
Brenda and Eddie had had it already by the summer of ‘75
From the high to the low to the end of the show
For the rest of their lives
They couldn’t go back to the greasers
The best they could do was pick up their pieces
We always knew they would both find a way to get by
Oh and that’s all I heard about Brenda and Eddie
Can’t tell you more ‘cause I’ve told you already
And here we are wavin’ Brenda and Eddie goodbye
Oh, oh, oh
Oh, oh, oh
Oh, oh, oh
Yeah
A bottle of red, a bottle of white
Whatever kind of mood you’re in tonight
I’ll meet you anytime you want
In our Italian Restaurant
14 Mar 2012 at 06:43 pm | #
My point is that you can spend exhorbitant amnounts of money advertising and marketing your “product”, but if you don’t make capital improvements to your racetrack (and admit it- an awful lot of them aren’t exactly “user-fiendly” let alone as glitzy or as flashy as a casino)and you don’t fill an enticing card with full fields and competitive racing, no one will ever come back.
14 Mar 2012 at 06:45 pm | #
What I meant to say is that no one who isn’t a regular will come back.
15 Mar 2012 at 06:05 am | #
It should be a foregone conclusion that the dole from casinos be used to upgrade the racing facility and advertise/market what Thoroughbred racing offers.
No longer are there an awful lot of racetracks that are not user-friendly; most are, indeed, modern and simply a nice place to spend an afternoon or evening. The problem is that numerous racetracks are totally ignored by the marketing arm of racing - turf writers!
15 Mar 2012 at 07:43 pm | #
See that, Lynne? You thought you were trying to be a journalist. Don’t you know you’re supposed to shill for the house?