'Pha' Permanent Slots License
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by Blood-Horse Staff
Date Posted: 12/19/2007 8:12:48 AM
Last Updated:
12/19/2007 9:05:26 AM
Philadelphia Park Casino and Racetrack received approval for its
master plan from the Pennsylvania Gaming Control Board Dec. 18 and now has a permanent license to operate slot machines.
The master plan calls for construction of a stand-alone slots casino on racetrack property. Currently, slot machines are located in the grandstand/clubhouse.
By law, Philly Park could operate under its conditional license for one year from the date it began operating slots. The conditional license expired Dec. 19. Approval of the master plan was necessary for the facility to receive a permanent license and continue operating the machines.
Philadelphia Park stepped up to the plate over the last month and worked with the board, local government, and horsemens groups to finalize a master plan that demonstrates its commitment to building a world-class facility, gaming board chair Mary DiGiacomo Colins said in a statement released after the boards Dec. 18 meeting. The plans also show that Philadelphia Park will use numerous cross-promotion initiatives to assure that the slots and horseracing facilities operate in the type of integrated manner envisioned under the (gaming law of 2004).
The gaming boards
approval came just a week after Philly Park and the Pennsylvania Thoroughbred Horsemens
Association announced a seven-year extension of their live racing agreement. The Pennsylvania THA previously expressed concern with the facilitys current set-up in which almost all pari-mutuel operations are located on the fifth floor. Total on-site handle is down almost 10% this year.
Expected to be completed in November 2009, the $250-million plan calls for upgrades to the grandstand and $25 million for
renovation of 36 barns and 12 dormitories. The commitment is more than twice that mandated by the gaming law, officials said.
The plan also enables Philly Park to explore options for additional build-out between the grandstand and new casino, including retail facilities or a hotel. According to the master plan, the new slots casino will be located in the vast parking lot located between the track entrance on Street Road and the grandstand/clubhouse.
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Ohio Forms KEEP-Like Coalition
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by Tom LaMarra
Date Posted: 12/11/2007 9:12:36 AM
Last Updated: 12/12/2007 9:05:49 AM
The Ohio horse industry, in an effort to make its voice heard around the Buckeye State, has formed a coalition similar to the Kentucky Equine Education Project, a horse industry advocacy group in Kentucky.
Early members of the Ohio group are the Ohio Horsemen’s Benevolent and Protective Association, Ohio Harness Horsemen’s Association, Ohio Thoroughbred Breeders and Owners, Ohio Quarter Horse Association, and the Ohio Horse Council. The Ohio Farm Bureau and groups representing draft horses and trail riding are involved as well.
“We’ve incorporated an organization like KEEP,” Ohio HBPA executive director Dave Basler said Dec. 10. “Any horse industry group is welcome to join. Basically, we’re trying to model our organization as a KEEP-type organization and advocacy group.”
The Ohio horse racing industry has taken hits in recent years with declining Thoroughbred and Standardbred foal numbers and pari-mutuel handle. Thus far, it has failed to win approval to use alternative forms of gaming as a revenue source, most recently in 2006 when a statewide referendum on racetrack video lottery terminals failed at the polls.
According to the industry Web site saveohioracing.com, horse racing provides about 16,000 jobs in Ohio and generates $770 million for the state’s economy. In 2006, there were 292 registered Thoroughbred foals in the state, down from 611 in 1997; for Standardbreds, the figures were 1,468 and 1,940, respectively.
The most recent figures provided by the Ohio State Racing Commission show statewide wagering on Thoroughbred racing down 11.1% through Dec. 1, and betting on harness racing down 14.5% compared with the same period in 2006.
In 2006, Thoroughbred purses averaged about $63,000 day, and harness purses $45,000.
There are seven commercial tracks in Ohio--three Thoroughbred and four harness--as well as more than 70 county fairs, many of which offered limited pari-mutuel wagering during short harness meets from late spring to early fall. The fairs give the horse racing and breeding industry a presence throughout the state.
The coalition has been in the works for the better part of this year. Basler said that like KEEP, the group’s legislative efforts will include non-racing issues that impact the horse and farm industry.
“Initially, the legislative end will be non-racing related, but somewhere down the line we hope to use our grassroots efforts to push legislative issues that would benefit racing,” Basler said.
In recent years, KEEP has pushed for tax equity and racetrack gaming in the Kentucky General Assembly. The group has raised millions of dollars through two stallion season auctions since it was launched in 2004.
The Ohio group is being headed by Brock Schmaltz, who has worked for the American Horse Council and United States Trotting Association, among other organizations. Schmaltz’s father, Brad, was the longtime racing writer for the Columbus Dispatch in Ohio.
“We’re just about ready to start a publicity push to get a lot of groups on board,” Basler said
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08 ballot proposal
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Casino issue split into 3, with racetracks' help
By James Nash
THE COLUMBUS DISPATCH
Friday, December 7, 2007
Backers of a proposed casino in southwestern Ohio will have to overcome not only voter resistance to gambling in the state but also opposition from owners of horse racetracks who could emerge with a rival proposal.
The owner of Beulah Park in Grove City fired the first volley this week at would-be casino developers MyOhioNow.com.
A lawyer for Beulah Park owner Charles J. Ruma helped persuade the Ohio Ballot Board to break up the casino proposal into three separate proposed constitutional amendments, which would increase the cost of gathering petition signatures and muddy the water for voters.
Ruma said the owners of the state's seven racetracks could emerge with another ballot measure of their own in 2008. That would give racetracks a motive to push MyOhioNow.com off of the ballot, said political consultant Gerald Austin, who briefly worked on a gambling campaign last year that was pushed aside for the Ruma-led measure.
"If it's two competing measures, you already have a built-in 'no' vote that's a solid 40 percent based on the results of ballot measures in the past," Austin said. "Now, you've got 60 percent that you need to vote 'yes' and you've got the added issue that when voters are confused, they usually vote 'no.' "
MyOhioNow.com, a partnership of two Cleveland-area investors, responded yesterday by rewording its proposal to try to qualify again as a single proposed amendment.
The group aims to persuade voters in November 2008 to approve a $600 million casino in Clinton County.
"We're going to be on the ballot regardless of any opposition," said Rick A. Lertzman, one of the MyOhioNow.com principals. "The racetracks are a separate issue. We're certainly not looking to hurt the racetrack industry."
Ruma, however, suggested that Lertzman and business partner Brad A. Pressman would have a fight on their hands.
"If Beulah Park is facing the prospects of a full-blown casino 40 miles from our front door, then that's a huge problem," Ruma said. "You might as well put a chain on our front door and lock it up."
Ruma led an unsuccessful campaign last year to persuade Ohio voters to approve slot machines at the seven racetracks and in downtown Cleveland. It was the third gambling-related ballot measure to be defeated since 1990.
Lertzman and Pressman have criticized the racetrack slots campaign, saying it tried to hide the fact that it was about gambling.
In its unanimous vote Wednesday, the Ballot Board concluded that MyOhioNow.com required three constitutional amendments: one to authorize the casino, a second to allow granting of a liquor permit and a third to empower a gaming-control commission to make laws regulating the casino.
The Ballot Board reached its conclusions after hearing from Donald J. McTigue, Ruma's attorney.
Lertzman said his group will take out the language on the liquor permit and the gaming-control commission because the casino still could apply for a liquor permit and a commission still would oversee its operations.
jnash@dispatch.com
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Racetrack owners hope to thwart a proposed $600 million casino in southwestern Ohio.
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MTR GAMING GROUP TO OPEN 50 TABLE GAMES AT MOUNTAINEER CASINO, RACETRACK AND RESORT DECEMBER 20
CHESTER, WV – December 5, 2007 – MTR Gaming Group, Inc. (NasdaqGS: MNTG) today announced that by letter dated December 4, 2007, the West Virginia Lottery Commission approved the plan submitted by Mountaineer Casino, Racetrack and Resort to conduct charitable table gaming events on December 17 and 18 from 7:00 p.m. until 10:00 p.m., paving the way for opening of the games to the public at 10:00 a.m. on December 20. Proceeds from the charity events will benefit the Weirton, West Virginia, United Way. The 50 table games will be located in the Speakeasy Casino in four newly renovated areas and will feature craps, blackjack, roulette, three-card poker and other games. Additional table games are planned to be placed in a pit near the trackside poker room, subject to Lottery Commission approval.
Edson R. (Ted) Arneault, CEO of MTR Gaming Group, stated, “With the pending launch of table games and the recent opening of 37 poker tables in October, we are significantly expanding the entertainment offering at Mountaineer and entering a new market that appeals to a broader demographic. The table games market is primarily age 50 and under, and we believe that our offering will attract this new demographic, as well as drive increased play from our existing customers. In addition to the 50 new table games, due to significant demand for poker on weekends, we are adding four more poker tables.”
With the addition of poker tables and table games, the resort will now be known as the Mountaineer Casino, Racetrack and Resort.
About MTR Gaming Group
MTR Gaming Group, Inc., through subsidiaries, owns and operates the Mountaineer Race Track and Gaming Resort in Chester, WV; Presque Isle Downs and Casino in Erie, PA; Scioto Downs in Columbus, OH; the Ramada Inn and Speedway Casino in North Las Vegas, NV; and Binion's Gambling Hall and Hotel in Las Vegas, NV. The Company also owns a 90% interest in Jackson Trotting Association, LLC, which operates Jackson Harness Raceway in Jackson, MI, and a 50% interest in the North Metro Harness Initiative, LLC, which has a license to operate a harness racetrack 30 miles north of downtown Minneapolis. MTR is included on the Russell 2000© and Russell© 3000 Indexes. For more information, please visit www.mtrgaming.com.
Except for historical information, this press release contains forward-looking statements. The Company does not intend to update publicly any forward-looking statements, except as may be required by law. The cautionary advice in this paragraph is permitted by the Private Securities Litigation Reform Act of 1995.
For Additional Information, Please Contact:
MTR Gaming Group, Inc.
www.mtrgaming.com
Steven D. Overly, VP, Business and Legal Affairs
(304) 387-8558
soverly@mtrgaming.com
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Ohio horse racing needs help, not hits
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Dayton Daily News, Saturday, November 24, 2007
In the recent coverage of the Ohio General Assembly's hurry to outlaw skill-based games, Dayton Daily News readers may have missed a related Associated Press article posted to the newspaper's Web site on Oct. 19 that reported on Ohioans traveling to Wheeling, W.Va., to play the new casino table games there.
The irony is obvious: While our lawmakers made it a top priority to insert an anti-gambling provision into Ohio horse-racing legislation, Ohioans continued to participate in gambling activities at racetrack casinos across the borders.
The Ohio equine industry continues to suffer from competition at surrounding racetracks supported by expanded gambling, yet our legislature continues to act against any type of expanded gambling that could help boost our track revenue and race prizes to keep top horses, breeding and racing operations here. One Ohio racetrack is for sale because the owner has decided it can't compete without an additional gambling option.
The new table gaming starting at Wheeling and Chester track casinos in West Virginia is just the latest blow. Ohio is becoming strangled by gambling attractions that bring in tens of thousands of Ohioans and their entertainment dollars every year. If Ohioans truly hated gambling, as the legislature would have us believe, this traffic would not exist.
There's another irony here: House Bill 177 was originally designed to help horse racing by changing the rules so more than one track can be held by the same owner. While that provision will go into effect with the passage of the law, the inclusion of an amendment to outlaw skill-based games was an affront to the equine industry, causing sponsor Rep. Lou Blessing to vote against his own bill.
Ohio horse racing could use help from the Statehouse. Our lawmakers need to accept the reality of gambling surrounding Ohio and figure out how to benefit from the money that is currently leaving the state.
Frank Sensel, Kettering
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Horse farms struggling to survive
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Associated Press – Columbus Dispatch, Youngstown Vindicator, Cincinnati Enquirer
Friday, November 23, 2007 3:06 AM
XENIA, Ohio (AP) -- A decline in betting at Ohio racetracks in the past few years has meant smaller purses for winning horses and their breeders, many of whom are under pressure to scale back their farms or sell them to developers.
"I'd love to keep this as a horse farm," said Tom McCann, co-owner of Golden Glen Farm near this southwestern Ohio city. "But I'm afraid I'll be joining the growing list of people who have shut their farms down."
Two years ago, Golden Glen was home to 32 thoroughbred race horses. Today, the 157-acre farm has just 13 horses, and its financial hopes ride on a promising yearling bay stud named Cowboy.
Breeders and owners say Ohioans' objections to legalized gambling are in part responsible for the uncertain future of horse farms. When voters said no to slot machines at racetracks in 2006, they also said no to millions of dollars in state revenue and no to Ohio's increasingly hard-pressed horse farms, industry advocates say. Ohio voters also rejected casino gambling issues in 1990 and 1996.
With such neighboring states as Indiana, Pennsylvania and West Virginia offering other forms of gambling at their racetracks, total betting at Ohio tracks slipped about 30 percent from 2001 to 2006, from $619 million to $430 million, according to the Ohio State Racing Commission.
Ohio ranks 26th in average daily purses -- about $60,000 in total winnings -- among 30 states that offer horse racing, according to a recent study by the National Horsemen's Benevolence and Protective Association.
Between 2001 and 2006, the number of thoroughbred race horses born in Ohio dropped by more than half, from 634 to 292, according to the association.
"This isn't just affecting horse racing, but the whole horse industry in Ohio," said Laura Schmidt, a horse trainer and the manager of Golden Glen.
More than 16,000 Ohioans owe their jobs to horse racing, which contributes $770 million annually to the Ohio economy, according to the industry.
Gambling opponents say subsidizing the horse industry with revenue from slot machines and casinos would do more harm than good.
"It's not like we're glad to see the horse-racing industry in decline and losing all these jobs," said Rob Walgate, vice president of the Ohio Roundtable, a conservative group that fights gambling in Ohio. "But when they say the only way to revive the industry is to bring in other forms of gambling, we're not for that and the people in Ohio are not for that."
Meanwhile, the cost of feeding and caring for a thoroughbred is climbing. The price tag for raising a thoroughbred racehorse from the time it's foaled until it reaches the racetrack is $35,000, McCann said.
He said many of his fellow horse farmers are getting out of the business altogether and selling their land to developers. McCann said he and his wife, Judy, will tough it out -- not only for themselves and their five employees, but for the sake of the environment as well.
"There's this big push for green space around the cities," he said. "This place will stay green as long as I can survive."
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City OKs plan for "racino'
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Shelby News
11/27/2007
Site development plans for the proposed Indiana Downs horse racing park "racino" to be built early next year received approval Monday night from the Shelbyville Planning Commission.
The facility will feature 2,000 slot machines and operate 24 hours a day, seven days a week, according to track officials.
Representatives of Indianapolis Downs, doing business as Indiana Downs, and local attorney Denny Harrold talked to planning commissioners and addressed their concerns, most of which centered around pedestrian, truck and RV traffic safety.
"I don't like the idea that pedestrians will leave their parked cars in the south lot and have to walk across Michigan Road to get to the facility," Dennis Baker said. "There is a lot of truck traffic out there right now, with the Kroger cold-storage facility and the truck stop. Hopefully you will take those issues into consideration as you finalize your site development plans."
Harrold assured board members that the representatives of Indiana Downs "want to be good neighbors and will address all of your concerns."
"Indianapolis Downs officials have already paid the state $150 million and will pay another $100 million by Nov. 1, 2008," he said. "The slot machines at the new racino should be in operation by next June, and the permanent facility will be complete by next December."
Shelbyville Mayor Scott Furgeson reminded racetrack officials that the racino was a Shelbyville project, being done in the Shelbyville city limits.
"I think you've come up with a fabulous plan, but I want to remind you how important it is that you hire local workers and general contractors and use local construction materials when you do this job," Furgeson said. "I want this project to help our community."
The racino site development plan now goes back to the city council with the planning commission's recommendations.
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Wagering with elderly care
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By: Daniel Gray
The Ohio State Lantern
My grandfather recently turned 86 years old and my grandmother is 80. Both still live at home, but they require in-home care. Giving up independence and moving into a nursing home is not something many seniors wish to do, but not everyone can afford to stay at home. Ohio's Department of Aging is working to change that. PASSPORT is a home care service that offers long-term service and support to offer the elderly an alternative nursing homes. PASSPORT is available to those age 60 or older, financially eligible for Medicaid, frail enough to require a nursing home level of care and able to remain at home safely with the consent of their physician. Currently more than 25,000 Ohioans are receiving PASSPORT care, yet because of a lack of funding thousands of seniors remain on the waiting list.
It might not be common knowledge that Ohio's seven commercial horse racing tracks help to provide funding for PASSPORT. In 1998, Ohio's race tracks helped contribute $5.1 million of wagering revenue to help fund the PASSPORT program. This number has dropped to only $3.6 million in 2006. This is because of a decline in both wagering and attendance at Ohio's race tracks. This decline is quite explainable; because of lower purse prizes, all of the state's best horses are leaving for financial reasons. Ohio's gamblers are now gambling out of state as well for better payouts. The average daily purse for thoroughbred and harness racing in Ohio in 2006 is $105,350. This is miniscule compared to the average daily purse in Pennsylvania of $184,822, and Indiana's average of $232,357. The reason these numbers are so much higher is because both states have passed legislation to allow for extra money to be paid into purses from slots gaming. Pennsylvania slot play started in fall 2006 and purses are already up as much as 142 percent.
In 2006, Ohio's Issue 3 failed by a vote of 57 percent to 43 percent. Issue 3, also known as Learn and Earn, proposed an amendment to the Ohio Constitution that would legalize the use of slot machines at nine different venues (seven at existing racetracks). Thirty percent of the revenue generated from the slot machines would be dedicated to new educational scholarship and grant programs. Another 8 percent would be dedicated to county and town level economic development. The approval of this issue would have provided college scholarships to Ohio's students, as well as be the first step toward saving a sinking industry.
Opponents of Issue 3 seemed to feel Learn and Earn casinos will doom at least 109,000 Ohioans and their families to problem and pathological gambling addictions. It seems to me that if one is already at the racetracks without a gambling problem, the addition of slot machines won't be the catalyst for spawning a serious addiction. Conversely, if one is already going racetracks with a gambling problem, slot machines shouldn't be the biggest concern.
What voters may not have realized is that in addition to contributions to the Department of Aging's PASSPORT service, racetrack revenues also contribute to the Ohio Fairs Fund and Ohio's General Fund. The Ohio Fairs Fund provides funding for Ohio's country fair operations, including direct funding to the 94 agricultural societies hosting fairs. The 2006 Ohio Fairs Fund totaled $1,922,214, collected in taxes on 2006 betting at commercial tracks, down from $2,856,291 in 2000. The last time the Fairs Fund fell under $2 million was in 1978. From every dollar wagered at Ohio's race tracks, 3.7 cents are put toward the state budget. Additionally, more than 16,000 Ohioans owe their jobs to horse racing in the state, which contributes more than $770 million annually to the Ohio economy.
In failing to expand Ohio's gaming laws, Ohioans are strangling the financial capacity of Ohio's horse racing industry. Ohio's horse tracks contribute to both Ohio's economy and social programs. What Ohio voters have really done in defeating Issue 3 is make the decision it's best to export Ohioan's money to help contribute to the social welfare of Indiana, Pennsylvania and our other neighboring states, rather than recycle Ohio's dollars through our own economy.
Daniel Gray is a junior in philosophy and secretary of the Undergraduate Political Science Organization. He can be reached at gray.548@osu.edu.
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$9.6B: State's take in gambling since '89
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Associated Press
November 13, 2007
FORT WAYNE, Ind. -- Gambling revenue in Indiana has increased significantly the past two decades, with gamblers dropping billions of dollars in state-sanctioned gaming over the past couple of years.
Ed Feigenbaum, who has produced a newsletter aimed at the state's gaming industry since its infancy in 1993, said gambling has been good for Indiana without serious negative consequences.
"If we wouldn't have had the casinos, we certainly would have had to raise taxes an exorbitant amount," he told The Journal Gazette.
The bulk of the spending in the past few years has been at casinos, with $2.67 billion wagered in the fiscal year ending June 30, 2007, according to the Indiana Gaming Commission. The lottery accounted for $816 million, and charitable gaming, $533 million for the fiscal year ending June 30, 2006. Horse racing accounted for $182 million in 2006.
Those figures add up to over $4 billion, with numbers not yet available for 2007 in lottery, charitable gaming and horse racing.
Indiana State Budget Agency figures show that various gaming taxes and Hoosier Lottery profits have fed $9.6 billion into the state treasury since the first lottery ticket was sold Oct. 13, 1989, through the end of the state's 2007 fiscal year. More than half the $851 million the state's casinos turned over to the state treasury last year went directly to property tax relief.
The Hoosier Lottery and other forms of gambling kick in $236 million a year to cut Hoosiers' auto excise taxes.
Feigenbaum argues that gambling is a stable revenue source that hasn't dipped during economic downturns.
John Mikesell is an Indiana University professor who specializes in government finances and has researched state lotteries. He said lottery revenues for Indiana have proved to be stable, but he does not think the track record with casinos is long enough to make such a declaration.
"Lottery players ought to be just as discretionary as casinos, and lottery revenues hold up during recessions. In fact, they get a little bump. It might be the desperation factor," Mikesell said.
The newsletter Insight-The Journal of the North American Gaming Industry wrote in 2005 that casinos along the Ohio River and those in northwestern Indiana attract many visitors from surrounding states to spend money in Indiana.
Feigenbaum agrees.
"They wouldn't be coming to Indiana but for the casinos. That is new revenue for the state."
Indiana lawmakers often voice concern about more gambling. But faced with rising costs and a desire not to raise taxes, they have relied more and more on gambling revenues.
Longtime legislator Jeff Espich, the ranking Republican on the budget-writing House Ways and Means Committee, isn't worried from a fiscal standpoint about that reliance.
Espich doesn't see a threat to the state, though he does acknowledge that competition from other states eventually could lessen Indiana's revenues.
Nor does Espich see any move to reduce gambling. "Too many people do it. Too many people enjoy it. Too many people have been to Las Vegas."
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Slots referendum would go to voters next November
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Factions measure progress 1 vote at a time
By Laura Smitherman and James Drew
Sun reporters
November 14, 2007
When Gov. Martin O'Malley proposed a voter referendum on legalizing slot machine gambling, freshman Del. Craig L. Rice opposed it because he thought the General Assembly should decide major policy decisions and not send them to the ballot box.
But Rice changed his mind when fellow legislators who represent the proposed sites for slots parlors asked him to vote for the referendum.
"Slots are not proposed for my district, so I deferred to them," said Rice, a Democrat who represents Montgomery County.
The hunt for votes has intensified in Annapolis as the House of Delegates weighs a measure that would put slot machine gambling before the voters in November 2008, possibly ending years of gridlock in the state capital over the issue. Supporters were scrambling yesterday to line up the final votes to ensure the "super-majority" needed for the referendum to clear the House, where opposition to slots has been strong.
Not only are legislators lobbying one another, but the Democratic governor is talking to legislators to garner support for the historic referendum. House leaders have taken preliminary whip counts, and Del. Kumar P. Barve, the majority leader, said yesterday that they are probably close to lining up the needed 85 votes.
"I have never lost a vote on the floor yet, and I don't plan to do so now," said Del. Frank S. Turner, a Howard County Democrat and chairman of the subcommittee that is crafting the slots bills. "To me, it's an easy vote. You're asking the people do they want this or not."
Meanwhile, anti-slots factions have a whip count of their own and say they still hope to defeat the measure. Del. Luiz R.S. Simmons, a leading opponent, carried a vote-tally sheet around the House chamber yesterday. The Montgomery County Democrat said he was targeting "wobbly Democrats" and counting on Republican opposition.
House Speaker Michael E. Busch, a Democrat who has resisted bringing slots to Maryland but backs a referendum, has not used strong-arm tactics, according to several delegates, but he has tried to gradually build consensus. Busch noted yesterday that support for two tax bills didn't coalesce until hours before the vote last weekend. At one point, a whip count showed that one of the tax bills was almost 30 votes shy of the 71 needed for passage.
The referendum bill would put a constitutional amendment legalizing slots to voters. Another bill, which needs a simple majority in the 141-member chamber, would govern how the program works and is contingent on passage of the referendum bill and voter ratification.
A House subcommittee began considering amendments to the slots legislation last night, and bills could be ready for consideration by the full House as early as tomorrow. Delegates are still debating what slots sites should be included in the legislation.
The Senate passed versions of both bills last week. The General Assembly is in the third week of a special session that O'Malley called to close the state's projected $1.7 billion budget deficit by raising revenue through a variety of taxes, spending cuts and legalized slot machines.
After years of debate, most legislators' positions on slots are firmly established. But the referendum and O'Malley's proposed structure for a slots program have thrown the dynamics into flux.
Some legislators say they oppose slots but might vote for a referendum as a way to resolve an issue that has languished in the General Assembly for years. Others who support slots, including Republicans who fought for slots with former Republican Gov. Robert L. Ehrlich Jr. for years, say they don't like the idea of a referendum and object to the slots program envisioned by O'Malley.
The governor would put 15,000 slot machines in five predetermined sites that are narrowly defined, and critics contend that only a handful of gambling interests are expected to secure the licenses. The proposed locations are in Baltimore City and in Allegany, Anne Arundel, Cecil and Worcester counties.
"There's no true auction for these licenses, and there's nothing to prevent these chosen people from auctioning their licenses off in a year or two," said Del. Richard K. Impallaria, a Republican who represents Baltimore and Harford counties. "We need a much better slots bill if we're going to have one at all."
A not-in-my-backyard mentality has dictated some legislators' stances on slots. The exclusion of Prince George's County, where Rosecroft Raceway is located, from the bill appears to have helped draw support from Democrats in that delegation who are generally opposed to slots. The Senate rejected an attempt to add Rosecroft as a site, and Busch said the House won't revive the idea.
"No. Absolutely not," Busch said. "There's been no interest from
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Strong draw of Pa. slots sparks envy, competition from region
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By MARC LEVY
Associated Press Writer
5:42 PM EST, November 13, 2007
HARRISBURG, Pa.
After one year of slot-machine gambling in Pennsylvania, casino revenues are considered strong and are generating plenty of cross-border envy.
The slots revenues, which have exceeded daily per-machine averages elsewhere in the Northeast, are particularly impressive considering that most of Pennsylvania's casinos are in temporary facilities or new establishments that are still being expanded, one analyst said.
"I'd say they've done this without breaking much of a sweat," said Joseph Weinert, editor of the Atlantic City, N.J.-based Gaming Industry Observer.
Mohegan Sun at Pocono Downs debuted Nov. 14, 2006, the first of six slots parlors now open in Pennsylvania. Through Monday, gamblers at the six facilities wagered more than $10.6 billion _ or $880 for every man, woman and child in Pennsylvania.
About $913 million was lost by gamblers and was split between the casinos and the state, which then routes the money into tax cuts, civic development projects, local government aid and the horse racing industry.
The draw of Pennsylvania's slots is being felt in other states.
Gross revenues at the 11 casinos in Atlantic City, N.J., are almost 2 percent behind last year at this time. Horse racing advocates from Massachusetts to Maryland point to the newly swollen purses at Pennsylvania's tracks as a reason their states should follow suit.
"Most of the farms in Maryland that had substantial boarding populations ... have lost quite a bit of business," said Cricket Goodall, the executive director of the Maryland Horse Breeders Association. "In some cases, farms have actually relocated."
New competition, however, is coming.
Maryland legislators could give final approval to a bill this week for a November 2008 referendum on legalizing slot machines. In March, West Virginia legalized table games in an effort to protect slots revenues at its racetracks. And New York Gov. Eliot Spitzer agreed to let the Mohawk Indian tribe build a casino in the Catskill Mountains _ 20 miles from the Pennsylvania border.
Calls are already being heard in Pennsylvania to legalize table games.
Bobby Soper, the chief executive of Mohegan Sun at Pocono Downs, said he believes the facility near Wilkes-Barre can be successful, despite Pennsylvania's relatively high 55 percent base tax rate and increasing competition.
"It's hard to speculate what the future holds," Soper said. "Obviously, over time, we hope that there will be a more favorable regulatory climate, such as lower taxes, table games. Those things will allow us to become more competitive with other jurisdictions."
It's difficult to predict how much money the state's slots parlors will bring in over the next 12 months.
Current gross revenues of about $25 million per week translates to $1.3 billion annually. However, Weinert cautioned that such a projection is shaky because of numerous factors, such as the weather and November's historically low casino patronage.
A seventh slots parlor, Hollywood Casino at Penn National racetrack near Harrisburg, is scheduled to open in February. Four more casinos are licensed to be built in Philadelphia, Pittsburgh and Bethlehem.
Ultimately, gross revenues of about $3 billion a year would be necessary to meet revenue predictions by Gov. Ed Rendell and other supporters of the state's 2004 law that legalized slot machines. Rendell and the supporters said the casinos would raise about $1.6 billion a year for the state.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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GOV PULLS PLUG ON OHIO GAMES
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Harness Tracks of America
November 1, 2007
Gov. Ted Strickland of Ohio signed House Bill 177 yesterday, rendering illegal some 50,000 socalled “skill-based amusement games” that had permeated the state in recent years. The games had given rise to mini-casinos in some cases, appearing in bars and other businesses under a loophole that HB 177 now closes. In Zanesville, Newark and other cities and towns where they had become prevalent, the slots-like machines, which returned cash, went dark this morning. Law enforcement officers began issuing search warrants, and police seized evidence from Ohio Skill Games, a Columbus-based distributor of Tic Tac Fruit, one of the most popular games. The home of one of the company’s principals also was raided, according to reports. In one twist in the story, Attorney General Marc Dann said he was not personally involved in the decision to target Ohio Skill Games president Jay Young, from whom he had accepted campaign contributions. Those donations, and others from gambling interests, have been placed in an escrow account, Dann said.
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C7 OUT OF 10 IN MD FAVOR SLOTS
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Harness Tracks of America
November 1, 2007
A poll conducted by the Washington Post shows that 7 out of 10 Maryland residents favor legalizing slot machine gambling at a limited number of tracks, and just as many oppose a sales tax increase. Both measures are being backed by Gov. Martin O’Malley, now in his ninth month of office, and given a 53% approval record in the same poll. With a special session of the legislature called by the governor to begin Monday, the poll -- and approval of slots with conditions by the Maryland Association of Counties -- could help the governor in his quest. The counties, not surprisingly, qualified their approval based on “providing continuing fair and full compensation to the host subdivisions for impact expenses and respect for local land use authority.”
Gov. Ted Strickland of Ohio signed House Bill 177 yesterday, rendering illegal some 50,000 so called “skill-based amusement games” that had permeated the state in recent years. The games had given rise to mini-casinos in some cases, appearing in bars and other businesses under a loophole that HB 177 now closes. In Zanesville, Newark and other cities and towns where they had become prevalent, the slots-like machines, which returned cash, went dark this morning. Law enforcement officers began issuing search warrants, and police seized evidence from Ohio Skill Games, a Columbus-based distributor of Tic Tac Fruit, one of the most popular games. The home of one of the company’s principals also was raided, according to reports. In one twist in the story, Attorney General Marc Dann said he was not personally involved in the decision to target Ohio Skill Games president Jay Young, from whom he had accepted campaign contributions. Those donations, and others from gambling interests, have been placed in an escrow account, Dann said.
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Ohioans head to West Virginia as table games debut at tracks
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WHEELING, W.Va. (AP) — West Virginia took its first step into the world of full-fledged casino gambling Friday, and Fred Miller was there to help make it happen.
The retired coal miner and maintenance worker from Barnesville, Ohio, joined dozens of other gamblers to christen the 20-table poker room at Wheeling Island Racetrack and Gaming Center.
The 65-year-old swung by the 10 a.m. opening on his way to an afternoon doctor’s appointment. He liked what he saw.
‘‘I’d come here all the time, now that they have this,’’ Miller said before sitting down at one of the low-wager tables at Wheeling Island, a subsidiary of Delaware North Companies of Buffalo, N.Y.
Paul Heagy lined up for poker after morning rains scrubbed the day’s construction job. The Martins Ferry, Ohio, resident had occasionally played the slots at Wheeling Island, but was not ready to plunk down the several hundred dollars in his pocket.
‘‘I’ll come a lot more often,’’ said Heagy, 47. ‘‘It’s tough to beat the computer, but you can beat another mind.’’
Mountaineer Race Track and Gaming Resort followed Wheeling’s lead Friday afternoon. The other Northern Panhandle track, owned by MTR Gaming Group and located in Chester, offers 37 tables and high-stakes section in its River Poker Room.
Ulysses and Cynthia Rucker are the sorts of customers Mountaineer hoped to attract with its table games. Traveling from Youngstown,Ohio, for the debut, the 73-year-old retired General Motors worker played poker although his 57-year-old wife prefers the track’s slots.
‘‘This all looks very nice,’’ he said while waiting for his table to open.
The rustling cards and clinking chips denote the culmination of a multiyear fight to legalize casino table games in the Mountain State. After years of failed legislation, lawmakers passed a bill earlier this year allowing the four racetrack counties to vote on the question.
Ohio County was the first to grant approval, for Wheeling, while later elections cleared table games for Mountaineer in HancockCounty and Nitro’s Tri-State Racetrack and Gaming Center. The Kanawha County track will unveil its table games later this year. Tri-State is owned by Racing Corp. of West Virginia, a subsidiary of Michigan-based Hartman and Tyner Inc.
Voters rejected table games in Jefferson County. Charles Town Races and Slots, owned by Penn National Gaming Inc. of Wyomissing,Pa., can request a new election in two years.
As a dry run for Friday, both Wheeling and Mountaineer held charity poker events earlier in the week after the new dealers spent weeks practicing with other employees. But neither sought a huge opening crowd, keeping advertising low-key: Wheeling Island changed its billboards overnight, while Mountaineer workers were still erecting their signs when its room opened.
Still, those limited efforts and word-of-mouth proved enough to fill tables at both tracks Friday.
Each plans to add more table games, including blackjack, craps and roulette, by Jan. 1, Lottery Commission officials said.
The tracks already host 12,000 video slot- and poker-style machines for the Lottery. Racetrack officials sought table games to blunt losses from competing slot parlors in neighboring Pennsylvania. Between 14 percent and 48 percent of the panhandle tracks’ gamblers hail from that state. Both have already seen revenues decline since the nearby slot casinos opened in late 2006.
Officials say the long-sought table games will give West Virginia’s tracks the necessary edge. They also promise to expand their regional appeal and attract gamblers who prefer such live action over slots.
‘‘It just puts us in a whole different light,’’ said Wheeling Island General Manager Bob Marshall. ‘‘We’re a casino now. We couldn’t say that yesterday.’’
The Lottery also recently allowed the two tracks to remain open around-the-clock. Each had been open 21 hours a day.
Table games foes cited the social ills of problem gambling, and warned of the state’s increasing reliance on such revenues. The tracks helped sway voters with promises of multimillion-dollar expansions and hundreds of added jobs. Marshall cited the new hires manning the p.....
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MTR Gaming Group to Commence Poker at Mountaineer Race Track & Gaming Resort October 19
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October 18, 12:39 pm ET
CHESTER, W. Va.--(BUSINESS WIRE)--MTR Gaming Group, Inc. (NasdaqGS:MNTG - News) today announced that it will open 37 poker tables at Mountaineer Race Track Presque Isle Downs Scioto Downs in Columbus, OH; Binion’s Gambling Hall and the Ramada Inn and Speedway Casino in North Las Vegas, NV (under contract for sale). The Company also owns a 90% interest in Jackson Trotting Association, LLC, which operates Jackson Harness Raceway in Jackson, MI, and a 50% interest in the North Metro Harness Initiative, LLC, which is developing a harness racetrack and card room 30 miles north of downtown Minneapolis. MTR is included on the Russell 2000® and Russell® 3000 Indexes. For more information, please visit www.mtrgaming.com.
Except for historical information, this press release contains forward-looking statements. Such statements are subject to a number of risks and uncertainties that could cause the statements made to be incorrect and/or for actual results to differ materially. Those risks and uncertainties are described in the Company’s periodic reports filed with the Securities and Exchange Commission. The Company does not intend to update publicly any forward-looking statements, except as may be required by law. The cautionary advice in this paragraph is permitted by the Private Securities Litigation Reform Act of 1995.
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Running the Race of a Lifetime
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Ohio’s horse breeding industry faces new challenges
Story we held hogs,” Jay said. During that time, their father taught them not only how to hold hogs, but how to run a business, with values like good service, honor and integrity. “He taught us that rich and poor come and go, but our integrity remains with us forever,” Jay said.
But in 1968, Doc’s integrity was put to the test. That was the year cholera was eradicated, and the vaccinations, which the Mossbarger family relied on for a steady income, were discontinued. “And with Dad, he just couldn’t start charging his customers more for the rest of the services he offered. He just couldn’t do it in good conscience,” John said.
The family knew it had to diversify in order to keep the farm. It was around that time that one of Doc’s customers suggested he start breeding horses. So, in order to keep his farm and ethics intact, Doc Mossbarger began breeding Standardbred horses, and the Mossbarger family business became Midland Acres.
The Mossbargers insist that the struggle to breed quality horses would have lasted a lot longer if equine practitioner, Dr. Robert Schwartz, had not joined the team in 1971. Because he grew up near Lebanon Raceway, Schwartz brought extensive knowledge of the harness racing industry to the farm. “If it weren’t for Bob, we wouldn’t have had one of our first premier stallions,” John Mossbarger said.
By the mid-1990s, the Mossbargers’ hard work had paid off. They had acquired more than 500 acres and were breeding around 700 horses a year, becoming one of Ohio’s largest horse farms.
Working with horses
“The outside of a horse makes the inside of a man feel good,” said John, who manages the breeding program and maintains the large animal veterinary practice at Midland Acres.“When I was in vet school, everyone would call me the horse man,” he said. Once the horses are born and bred, Jay takes the reins, with the feeding, maintenance and breaking of the horses. “This isn’t corn we’re working with here,” John said. “With corn, you plant the seed and you take care of it for six months. The horses, once we plant the seed, from the time of conception to the horse’s first race, are with us for three years.”
The race track
If you spend just one evening at Scioto Downs, in southern Franklin County, you’ll hear the term “Midland baby” thrown around quite a bit. For the Mossbargers, Scioto Downs is the showplace of horse breeding. “The race track is our marketplace,” John said.
The Mossbarger family’s first time at Scioto Downs was in the early 1970s, when they sold their first race horses. They enjoy racing because of the connection they feel to the horses that they’ve raised. “We consider it sort of a silent partnership that we have with any one of our horses that make it to the track,” John said. “We enjoy watching horses race when we have that attachment to them.”
Horse breeding and the economy
By making a contribution to horse- racing, the Mossbargers and other breeders in the state pour money back into Ohio’s economy; the Mossbargers alone spend $400,000 a year on hay, grain and straw. “We support real people and make real jobs,” John said. “By feeding our horses, we keep the grain farmers fed.”
And it doesn’t stop there. According to the American Horse Council, the Ohio horse racing industry is a $900 million a year business, creating about 25,000 jobs in the state. “The Ohio horse racing industry is a vital component of the state’s agricultural industry,” said Jerry Knappenberger, general manager of Ohio Harness Horsemen’s Association.
New challenges
But what used to be the leading horse breeding industry in the nation is now lagging behind as it
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Ohio tracks watch others win
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No slots, slimmer purses
BY ALEXANDER COOLIDGE
Cincinnati Enquirer
Another underwhelming season just ended at River Downs.
Though outperforming other thoroughbred tracks in Ohio, total betting at the riverside track for the racing year that ended Sept. 8 was down 6.9 percent, to $54.4 million. In the same period, thoroughbred betting was down 9.9 percent and all horserace betting was down 11.9 percent, to $274.1 million.
The declines continue a long-term trend seen here and at the six other tracks in Ohio, including Lebanon Raceway in Warren County. Horse betting in the Buckeye State has slid more than 30 percent over the last half-decade to $430.3 million last year from $618.9 million in 2001.
The future doesn't look any brighter. A bill to allow machines letting players place "instant bets" on unidentified pre-recorded horse races died earlier this year in the General Assembly. Indiana soon will join neighboring states allowing slots at horse tracks - and Kentucky voters might consider a similar move.
That depends on who wins this year's gubernatorial election.
"Ohio racetracks are just about all ready for the glue pot," said state Rep. Bill Seitz, R-Green Township, who sponsored the instant racing bill. "All these factors propel folks with good horses to states with higher-paying purses."
Broader gambling elsewhere is siphoning money away from a $1 billion industry that directly employs nearly 20,000 at tracks and farms across Ohio, industry spokesmen say.
River Downs general manager Jack Hanessian understands that horse racing is declining across the country. But unlike Ohio, states elsewhere are supporting the industry with revenue generated by other forms of gambling. He expects River Downs will take a hit after Indiana Downs in Shelbyville begins operating slots next year, thanks to legislation approved this spring.
"The problem is, we're surrounded," he said, alluding to Indiana, Pennsylvania and West Virginia that have liberalized broader betting at their tracks.
North America's largest operator of horse tracks, Aurora, Ontario-based Magna Entertainment Corp. (MEC), expressed similar frustration early this month when it announced it would sell another Ohio track -Thistledown in suburban Cleveland.
MEC said Thistledown was saddled with "very difficult operational and regulatory challenges."
The company said Thistledown lost $4.5 million last year - including $3.1 million it invested in an unsuccessful referendum to allow slots at Ohio tracks. As part of a broader strategic review, the company said it couldn't keep hold of Thistledown or another track in Portland, Ore. also put up for sale.
"This has led to MEC's decision to immediately pursue the sale of these unprofitable tracks," the company said.
WHAT CAN CHANGE IN KY.
Hanessian and other Ohio track officials are also closely watching the governor's race in Kentucky where Democrat Steve Beshear has promised a referendum on slots at tracks. If such a measure passed, it could put slot machines less than 20 miles from River Downs at rival thoroughbred track Turfway Park in Florence.
"They could just stick a fork in us - we just couldn't compete," he said. "We'd be a parking lot for Riverbend."
Mel Hagemeyer, director of operations at Lebanon Raceway, which starts its harness racing on Sept. 28, said the industry has fundamentally changed. So far this year, Lebanon betting is down 15.2 percent, to $25.1 million.
"We're really getting hurt - we're just trying to keep on the same playing field," he said.
In addition to offering other attractions at race tracks, slots and other gambling at rival venues give them another competitive advantage: the extra revenue enriches the "purses" or prizes for winning horses - making those tracks more attractive to the best horses and allowing them to stage better races.
The average daily thoroughbred purse in West Virginia last year was $182,900 - nearly three times the Ohio average of $62,613, according to industry group Save Ohio Racing. Foals registered in Ohio - the baby horses that are bred for future racing - fell to 292 in 2006, compared to 611 in 1997.
"It's a troubling time for horsemen in Ohio," said Dave Basler, executive director of the Ohio Horsemen's Benevolent and Protective Association. He said the declining foal numbers reflect the shift of horses and horsemen out of the Buckeye State.
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Treasure Isle
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When slots and horse racing met in Pennsylvania, it was a jackpot
By Stan Grossfeld, Boston Globe
Wednesday, September 19, 2007
ERIE, Pa. - Nobody is calling this "Dreary Erie" anymore.
The new Presque Isle Downs and Casino is a test model for reviving thoroughbred horse racing, which has seen declining attendance for decades.
Presque Isle boasts 2,000 slot machines plus thoroughbred racing on a revolutionary synthetic surface. The track opened Sept. 1 for a 25-date season, offering big league purses averaging more than $450,000 each day.
The casino, which opened Feb. 28, has reaped so much money from slot machines that the track is increasing purses by 175 percent for the short September season. Next year there will be a 100-day racing season, May through September.
Most thoroughbred owners lose money, so the news that nearly $13 million will be distributed in September was met with a giddyup to Western Pennsylvania by some of the top trainers and jockeys. The nation's leading trainer, Steve Asmussen, who handled Preakness winner Curlin, has 30 stalls here, and trainer Scott Lake, second in the standings, has 24. Joe Hampshire Jr., once the leading jockey at both Suffolk Downs and Rockingham Park, loves the place.
"I couldn't be more happy; this place is fabulous," said Hampshire. "Not only is the racetrack phenomenal, but the people you meet at the grocery store are very excited."
It didn't use to be that way here. Commodore Downs, which opened in 1973, averaged meager purses of less than $14,000 per day. The track struggled, closed, and was reborn as Erie Downs. But it died again on Sept. 7, 1987. An industrial park was built in its place.
Then horse owners in the commonwealth hit the jackpot. In July 2004, the Pennsylvania legislature passed a law to authorize more slot machines than any state other than Nevada. Six of 11 casinos will be at horse racing facilities. So far this year, more than $5 billion has been dropped into Pennsylvania slots.
With 500 stalls in five huge barns and 500 more to be built in time for next year's 100-day season, Presque Isle is betting heavily that if you build it, they will come.
"There probably wouldn't be a racetrack if we didn't have slots, but there wouldn't be slots if we didn't have a racetrack," said Debbie Howells, director of racing at Presque Isle Downs. "The legislation was to help horse racing."
Under Pennsylvania law, 12 percent of racetrack slots revenue is set aside for horse racing, nearly 10 percent for purses. Last Saturday, they had a $400,000 Presque Isle Downs Cup race and a daily purse of $928,500.
Struggling Suffolk
Veteran Presque Isle Downs publicist Bill Mooney has been at racetracks all around the country. He has a soft spot for Suffolk Downs because he saw the Beatles play there Aug. 18, 1966. "I remember Paul McCartney stepping up to the microphone and saying, 'This is our last song of the night,' and before the crowd could yell too much, he went right into 'Long Tall Sally,' " said Mooney.
With decreased attendance and fewer dates, Suffolk Downs could be playing its own swan song if the Massachusetts legislature doesn't allow it to bring in slots, horsemen have said. New owners, a new ad campaign, and the return of the Massachusetts Handicap have raised hopes. Boston Mayor Thomas Menino envisions a full-scale casino-entertainment center at Suffolk, and Governor Deval Patrick announced Monday that he supports three gaming resorts in Massachusetts.
"We think Suffolk Downs is ideally situated to help the governor achieve his vision of economical development, and we think it can be done in a way that benefits racing, too," said Suffolk Downs chief operating officer Chip Tuttle. "We're going to go the distance."
Lee Struss, the Presque Isle Downs clocker, fondly remembers Suffolk Downs. A former jockey, he won his first race at Suffolk Downs in 1959, aboard Noble Feat. Now he shrugs when he talks about horse racing in Boston.
"I don't know how they survive there," he said. "They've been skating on thin ice for a long time."
Ted Arneault, CEO of Presque Isle Downs's parent company, MTR Gaming Group, agrees.
"I think thoroughbred racing has to be part of a greater entertainment complex," said Arneault. "Otherwise, it is a struggle."
Arneault is sort of the Walt Disney of the racetrack/casino world. He turned a losing facility into the thriving Mountaineer Racetrack and Gaming Resort in Chester, W.Va. Mountaineer was the first track to install video lottery machines, in June 1990, and Arneault was instrumental in bringing slot machines to Mountaineer in 1994. The following year, when Arneault was named CEO, he took the "racino" from a $5.2 million loss to a $34.9 million profit in 2000. Now there are more than 40 racinos in 12 states.
Arneault believes customers are more demanding these days
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Jug Purse To $1 Million In 2009?
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Standardbred Canada
Wednesday, September 19, 2007
Word from the Little Brown Jug Society indicates that the purse for the 2009 edition of the Jug could possibly be $1 million.
The Little Brown Jug Society has made changes in all Grand Circuit stakes payments and added monies which will be reflected in 2009 purses.
"Our goal is to increase the Little Brown Jug purse to $1 million," said Tom Wright, vice-president of the Little Brown Jug Society and Race Secretary of the Delaware Fair racing program. "These increases will also increase purses for all other Grand Circuit stakes."
Wright has spent the year comparing Delaware stakes payments with other major stakes throughout the sport.
In 2006, the Little Brown Jug nomination fee was increased from $25 to $50.
"Our number of nominations remained the same but we received double the amount of money," said Wright. "We will increase our two-year-old payment from $300 to $500. We made no changes in the three-year-old payment or starting fees."
Wright added, "We also increased our added money by 20 per cent. We did not feel it was proper to ask the horsemen to increase their payments if we did not increase our added money."
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Kentucky Breeder Incentives Could Increase 20%
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by Tom LaMarra Bloodhorse.com
Date Posted: 9/10/2007 2:42:40 PM
Last Updated: 9/12/2007 9:12:59 AM
The Kentucky Breeders Incentive Program, which began offering financial awards for various breeds of horses in 2006, is poised to increase by 20%--to about $18 million or $19 million--next year.
The program, for Thoroughbreds, Standardbreds, Quarter Horses, and non-racing breeds, took effect Jan. 1, 2006 as part of a tax-modernization plan. Funded by the state’s 6% sales tax on stud fees, the program began by providing about $12 million for Thoroughbreds, $2 million for Standardbreds, and $1 million for other breeds.
The Kentucky Horse Racing Authority, which oversees the program, will report on the status of the breeder incentives during a November meeting of the Kentucky General Assembly’s Interim Joint Subcommittee on Horse Farming. The KHRA is making payments this year for awards earned in 2006.
“All payments are out for Thoroughbreds and Standardbreds,” Republican Sen. Damon Thayer said Sept. 9 during a KHRA-hosted dinner at The Red Mile, which featured eight $200,000 stakes for Kentucky-sired horses as part of a “super night” program. “The good news is there’s more money coming into the fund this year--perhaps 20% more.”
Thayer, heavily involved in formation of the program from a legislative perspective, said he was pleased to make a trophy presentation for a Kentucky Sires Stakes event to Alan Leavitt, whose Walnut Hall Ltd. owns and bred in partnership the 2-year-old trotting filly Debbie Hall, who won one of the $200,000 stakes. Thayer said Leavitt was the first person to contact him a few years ago to urge that Standardbreds be included in any breed incentive program.
“I think the Breeders Incentive Program has injected new life into the Standardbred industry in Kentucky,” Thayer said. “These purses tonight are about three times higher than they were two years ago. It’s nice to see the fruits of the program work to invigorate the racing and breeding industry.”
Democratic Sen. Joey Pendleton, also on hand at The Red Mile, said the fact more than $1.6 million was paid out Sept. 9 to a host of well-bred horses speaks volumes for the program. The Standardbred industry opted to use its share of the program to bolster sires stakes purses rather than pay breeder awards.
“I think it’s pretty obvious with the purses and horses we’re seeing here tonight that the program is working,” Pendleton said. “However, I’m a little disappointed with the number of people that came out to witness it and see what we’re doing to help the industry.”
Thayer, who has ties to the Thoroughbred industry, agreed. “I’d like to see more people here tonight, but maybe as ‘super night’ grows, on-track attendance will increase.”
The KHRA and the Kentucky Natural Resources and Environmental Protection Cabinet arranged to have some Kentucky products available for guests, but the event wasn’t otherwise promoted to attract the public’s interest.
Should Kentucky legislators and the public, through a constitutional amendment, ever approved racetrack casinos, revenue from gaming would be used in part to increase breed development awards and probably add new programs.
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Table games at casinos more a matter of 'when' than 'if'
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Even foes concede legalization likely
By Gary Rotstein, Pittsburgh Post-Gazette
Friday, September 07, 2007
The early success of Pennsylvania slots parlors has energized an influential lawmaker who wants to bring table games next to the state -- and do so soon.
At a hearing in North Strabane of the House Gaming Oversight Committee yesterday, Majority Leader Bill DeWeese, D-Greene, touted his legislation to broaden the state's gambling options.
The expansion beyond slots, not surprisingly, was embraced by Pennsylvania racetrack casino operators who say they need it to compete with other states that offer the full gambling menu. West Virginia racinos are adding the table games this fall.
Mr. DeWeese and other proponents acknowledged it may be too soon to get Pennsylvania lawmakers to approve table games in the 2007-08 session, but by the same token, opponents conceded that the new legalization appears to be more a matter of "when" than "if."
"I do think [table games are] coming," said Rep. Kerry Benninghoff, R-Centre, a self-described gambling opponent on the committee. "I'm not a fan of the industry, but it's a matter of doing it smart, making it a win-win" for both the state and casinos.
As at hearings near the four other racetracks that added slots parlors since late last year, the gaming committee members heard praise for the new jobs, government revenues and minimal problems associated with the casinos. The Meadows Racetrack and Casino opened June 11 in Washington County, and township officials testified that it has been everything promised.
Bill Paulos, an executive of The Meadows' Las Vegas-based parent firm, said the temporary casino has collected more than $51 million in losses by slots players, with nearly $30 million of that going to state and local governments and the horse-racing industry.
The revenue and jobs at The Meadows will increase greatly with completion of a permanent casino and racing facility in early 2009, he noted. He said the boost would be even greater if the facility can include about 40 tables for poker, blackjack, craps and roulette. The new building will have room for those on the assumption they will be allowed eventually.
"It's the obvious move," Mr. Paulos said of legalized table games. "We're being attacked by West Virginia, and now's the time to do it ... as we expand."
Mr. DeWeese told committee members that discussion of the issue is "probably only in the second inning," with much debate ahead before passage is a possibility. He noted there were insufficient votes to include table games as part of the 2004 gambling legislation, but that could change because of the early experience with slots.
"The reaction among the wagering public is favorable, and the dollar yields are quite robust," he said.
At the same time, he conceded that Gov. Ed Rendell's lack of support for table games until there's more state history with slots is a "tangible impediment."
Pennsylvania has legalized slots in as many as 14 locations, but thus far only five at racetracks have opened.
"I'm just trying to generate momentum, to put heat and light on the issue. ... It's very important the conversation take place," the House leader said, expressing hope his bill will receive consideration this year or next.
A key part of the debate, highlighted yesterday by Mr. Paulos and Robert Soper, president of the Mohegan Sun at Pocono Downs racino, is the tax rate that would be applied to table games.
Casinos typically earn less revenue from table games than slot machines, although their costs of running the tables are higher because of the number of employees that are needed. It's thus commonly discussed that the tax bite from new games would have to be less than the 55 percent rate on slot machines.
West Virginia set a 35 percent rate for table games, lower than it uses for slots, and Mr. DeWeese's legislation proposes a 34 percent rate. Mr. Paulos said the rate should be no higher than 20 percent, and Mr. Soper said anything above that would limit what casinos would offer.
Jim Pappas, executive director of the Council on Compulsive Gambling of Pennsylvania, told the committee that it should not consider newly legalized gambling without additional funding and programs to combat addiction problems. He said the state has been slow to undertake such efforts using the $1.5 million appropriated in the original legislation.
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Ohio Racetrack for Sale
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Thistledown Owner to Sell Racetrack, Blames Lack of Slot Machines
AP, By Joe Milicia, Associated Press Writer
Friday, September 7, 8:53 am ET
CLEVELAND (AP) -- The owner of Thistledown racetrack plans to sell and is blaming the decision on an inability to operate slot machines, which Ohio racing industry leaders say has made it difficult to compete with neighboring states that offer higher purses.
Magna Entertainment Corp. said in a statement that it's pursued other gambling for Thistledown in suburban North Randall for several years and that the thoroughbred track is losing money without it.
Voters rejected a statewide referendum last November that would have allowed slot machines at racetracks.
Save Ohio Horse Racing, a consortium of race track owners and horse breeders, says Ohio's seven race tracks have suffered because of the referendum's failure. Horsemen are taking horses to neighboring West Virginia, Indiana and Pennsylvania where other gambling allows tracks to offer higher purses.
"When Las Vegas came east and we're not part of it, it makes it very difficult for us to compete," said John Mossbarger, past president of the Ohio Harness Horsemen's Association. "We're losing our breed stock and good race horses to other states."
Mossbarger, a breeder who owns Midland Acres in Bloomingburg, said he's lost two stallions to breeders in Pennsylvania, where 90 miles away from Thistledown the newly opened Presque Isle Downs in Erie, Pa., offers purses more than three times as big.
The average daily thoroughbred racing purse paid in 2006 was $62,613 in Ohio, compared with $131,140 in Indiana, $106,848 in Pennsylvania and $182,900 in West Virginia, according to Save Ohio Horse Racing.
Mossbarger believes that the racing industry and the 16,000 people it employs got overlooked when voters vetoed the slots referendum.
"We have to be able to get our message to the legislators and people in the state of Ohio that this is an important agricultural industry," he said Thursday.
Gov. Ted Strickland is unlikely to be swayed to back any future gambling initiatives.
"Ohio voters spoke very clearly when they voted against any expansion of gambling in Ohio," said Keith Dailey, spokesman for Strickland.
"Gov. Strickland is committed to protecting the will of the voters."
Magna, based in Ontario, Canada, says that Thistledown, which it's owned since 1999, lost $4.5 million last year, including $3.1 million in costs related to the state referendum.
Magna also plans to sell its interest in Portland Meadows, a thoroughbred track in Portland, Ore. Magna owns 11 racetracks, including Pimlico Race Course in Baltimore, Md., which hosts the Preakness, a leg of the Triple Crown.
A message seeking comment was left with Blake Tohana, the company's chief financial officer.
Dave Basler, executive director of the Horsemen's Benevolent and Protective Association, believes Thistledown will continue to operate under a new owner.
"We've been working with Magna to try to come up with solutions, he said. "I know there are some prospective buyers out there."
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Rich Purses at New Pa. Track Increase Pressure on Maryland Racing
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By John Scheinman
Special to The Washington Post
Wednesday, September 5, 2007; E06
As if pressures from Charles Town, Delaware Park and Philadelphia Park were not enough, Maryland racing now must contend with a new track in Erie, Pa.
Although a six-hour drive from Laurel Park, Presque Isle Downs, its coffers full of slot machine money, is offering $500,000 in daily purses for its 25-day inaugural meet. The lure of riches, even at such a faraway track, has proven irresistible to horsemen on the Maryland circuit. Tim Tullock, Flint Stites, Scott Lake, Mark Shuman and Phil Schoenthal all have vanned horses up the Pennsylvania Turnpike.
"I wanted to check it out; they're giving away a lot of money," said Tullock, who has eight horses stabled at Presque Isle and 25 at Laurel, which opens this afternoon for its 17-week fall meet. "I think the Maryland trainers have been very, very loyal to Maryland racing and loyal to [Magna Entertainment Chairman Frank] Stronach and the Maryland Jockey Club. However, when we take a purse cut, we're taking a pay cut. The people in Maryland don't want to leave. Nobody wants to leave, but we've got to feed our families."
While Presque Isle filled its purse account with money bet on slot machines in operation months before racing began at the track, the Maryland Jockey Club cut stakes races and purses in order to meet a projected $3 million budget shortfall this year.
Despite often handling less than $80,000 a day in on-track wagering
-- nearly a third of what is bet on track at the tiny Maryland State Fair meet -- Presque Isle prize money rivals that of Saratoga.
Maryland Jockey Club President Lou Raffetto said Presque Isle, which runs through Sept. 29, only will have a minimal impact this fall on Laurel racing. Still, he calls the track, which will expand to 100 days of live racing next year, a looming problem.
"Of course it is, but not as much as Philadelphia Park is," Raffetto said. "It's one thing to have a seasonal track; it's another to have a year-round circuit. Every jurisdiction -- Charles Town, Delaware, Philadelphia Park, Presque Isle -- has an impact on us."
Meantime, Presque Isle appears to be having a devastating impact on Thistledown, a Magna Entertainment track located outside of Cleveland, two hours from Erie.
After conducting 187 days of live racing in 2005, the rise of Presque Isle has led Thistledown management to request just 91 days of live racing from the Ohio Racing Commission.
While the horse population in Maryland is "a little light," according to Laurel Racing Secretary Georganne Hale, new stall applications will be accepted in October and an influx of horsemen is expected after Suffolk Downs in Boston concludes its meet Nov. 10.
As always, Laurel's trump card is its turf course, one of the finest in the east and a magnet to trainers with good claiming and allowance runners.
"The turf is what's getting me through," Hale said. The turf is a blessing."
Raffetto agreed. "We've got two solid 10-race cards the first two days. But if we didn't have turf racing we wouldn't be racing at all.
Because of the competition of the surrounding area, the horses have run in other jurisdictions. People focus on Laurel for the turf course."
Grass racing may be the backbone of the daily race cards, which run on a Wednesday-through-Saturday schedule, but the Laurel Park fall meet also boasts two of the premier days on the Maryland racing calendar.
The 22nd Maryland Million, a showcase for the state breeding program, will be held Oct. 13. The following month, the Grade I Frank J. De Francis Memorial Dash heads the Fall Festival of Racing on Nov. 24.
The Dash, one of the most important six-furlong sprints in the country had its value reduced by $50,000 to $250,000 this year, but Raffetto hopes to catch runners coming out of the Breeders' Cup Sprint on Oct. 27 at Monmouth Park.
"It's a matter of how the stars align," Raffetto said. "If we're in a situation where the sprint championship is on the line, the fact that the purse is $50,000 less is not going to prevent them from running in a Grade I."
Even with the cutbacks, Laurel Park will still run 32 stakes races worth $3.3 million.
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Hoosier: No Slots Yet, But Racing
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by James Platz
Bloodhorse.com
Friday, September 2, 2007
Thoroughbred racing returned to Hoosier Park Sept. 1 for the Indiana track’s 13th season in a big way--officials reported attendance of 7,203, the largest crowd in seven years.
Hoosier Park officials said the track, which uses turnstiles, last drew more than 7,000 people for one program in 2000, when 10,827 were on hand for the Indiana Derby (gr. II).
“I couldn’t be more pleased with the turnout for our Thoroughbred opening night,” Hoosier Park president and general manager Rick Moore said. “The weather was great, and even with the large crowd, our staff was able to accommodate them with the best possible customer service. I’m a big believer in momentum. With the addition of slots in our near future, this is a great way to start off our Thoroughbred season.”
Officials are looking forward to a solid meet.
“We received stall applications for almost 1,600 head of horses,” said racing secretary Raymond “Butch” Cook. “We have full fields for the first few days, which are what we strive for. Things are going pretty well.”
With a purse structure of roughly $130,000 per day, plenty of horses dropped in the box to compete opening weekend. Of the 13 races carded Sept. 1--nine Thoroughbred and four Quarter Horse contests--eight attracted full fields. The Sept. 2-3 programs attracted similar interest.
“Our focus is on full, competitive fields,” Cook said. “Last year, we averaged over nine starters a race. That’s a very nice number.”
The condition book and stakes schedule haven’t changed much from previous years. Cook said his bottom condition is a $9,000 purse for $4,000 claimers. That, of course, could change next year after Hoosier Park realizes revenue from on-track slot machines, which were legalized earlier this year.
Hoosier Park will offer the $500,000 Indiana Derby, its signature event, Oct. 6. The $400,000 Indiana Breeders’ Cup Oaks (gr. III) is slated Oct. 5. In all, five stakes will be offered that weekend, including the $100,000 Michael G. Schaefer Mile, which was paired with the Indiana Derby for the first time in 2006.
“That’s a big weekend for us,” Cook said. “We’ll offer five stakes that weekend. We moved the Schaefer Mile last year and had an 11-horse field. With its place on the schedule, it’s a good prep for the Clark Handicap (gr. I at Churchill Downs in November).”
Though ground hasn’t been broken on Hoosier Park’s 92,000-square-foot casino, the interest and excitement is present around the track. Cook said he received several stall applications from outfits that had not applied in previous years, resulting in nearly 300 more horses vying for space in Hoosier Park’s barn area than in 2006.
“There is a lot of new interest from the slots bill,” he said. “You see a lot of excitement among the horsemen.”
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Slots Parlor to Introduce Horse Racing
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AP
By Daniel Lovering, Associated Press Writer
Friday August 31, 1:38 pm ET
Western Pa.'s First Slots Casino to Open Horse Racetrack
ERIE, Pa. (AP) -- For gamblers at western Pennsylvania's first slots parlor, there's a new game in town: horse racing.
Presque Isle Downs and Casino plans to open its newly built thoroughbred racetrack Saturday, with daily prize money totaling roughly $500,000, a groundbreaking synthetic track and races with top-tier horses from across the country.
The facility is among many slots-driven racetracks that have sprung up nationwide since the early 1990s, helping to revive a struggling segment of the horse racing industry and perhaps attracting new fans.
MTR Gaming Group Inc., the Chester, W.Va., company that opened the Presque Isle casino six months ago, has built five large barns -- with 100 stalls each -- and plans to build five more before next season.
"This is a state-of-the-art facility," said Jennifer See, Presque Isle Downs' director of marketing.
The racetrack has planned eight races for Saturday, including an inaugural stakes race with purse money of $100,000. A master's stake race, with prize money of $400,000, is scheduled for Sept. 15 as part of the monthlong meet.
The promise of such rewards has drawn top trainers and put the track in league with established venues such as New York's Saratoga and Kentucky's Keeneland, according to racing experts and trainers.
Among the trainers with horses at Presque Isle Downs are Steve Asmussen, who trained Preakness winner Curlin, and Pennsylvania native Scott Lake. Asmussen's Real Dandy, winner of the $750,000 West Virginia Derby two years ago, has a stall.
Like the casino, which has about 6,000 visitors a day, the racetrack is expected to attract fans mainly from western Pennsylvania, Ohio and New York.
Spectators can watch races from a bar and restaurant overlooking the track or an outdoor lot next to the oval, which is slightly longer than a mile. There are also more than 170 video monitors throughout the casino grounds.
The track's all-weather surface, called Tapeta, is the first of its kind at a U.S. racetrack, though it's been used at training facilities, according to Tom LaMarra, news editor of the industry magazine The Blood-Horse.
The surface, a mix of sand, rubber and carpet fibers, is believed to be safer for the animals because of its cushioning effect, he said. Other types of synthetic tracks, introduced in the U.S. two years ago, have been used in England for years, he added.
LaMarra said he had never seen a racetrack offer so much purse money during its opening meet. "Outside of, say, the major tracks in New York, California and Kentucky, no racetrack pays that kind of money," he said.
It's also unusual because Erie has not had live horse racing in two decades, since the closure of an earlier track where horses raced for purses of $1,500 to $2,000, LaMarra said.
While crowds have continued to grow at high-end racetracks such as Keeneland and California's Del Mar, smaller tracks in states such as Ohio, Pennsylvania or Michigan have struggled in recent years to fill their stands, he said.
That's partly because the smaller tracks have seasons of at least 200 days a year, while the bigger tracks hold races for just six weeks to two months a year and may be located in areas appealing to tourists, according to LaMarra.
Tracks with longer meets generally have slot machines, he said. So-called racinos have opened in states such as Louisiana, New Mexico, Pennsylvania, New York, Delaware, West Virginia and Iowa since the early 1990s.
The casinos have helped raise money for purses and breeder awards, but it's unclear whether they have boosted horse racing's popularity, LaMarra said.
"It's improved the product, but whether or not the public is responding to the product remains to be seen," he said.
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Ohio horse racing faces tough challenges
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Ohio horsemen link racing's decline to casino issue
Cleveland Plain Dealer
Peter Krouse
Plain Dealer Reporter
Friday, August 31, 2007
Shortly after Thanksgiving, as the days grow shorter and winter's chill sets in, the lights will go on in John Mossbarger's horse barn around 5 p.m., and stay that way until midnight.
They're not glaring lights -- just enough to trick a barren mare into thinking spring is around the corner.
The artificial light will penetrate the pea-sized pineal glands in the mares' eyes, triggering the reproductive cycle, which would otherwise remain dormant in winter. After 60 days of such exposure, the mares should be ready to mate, giving birth 11 months later.
It's a necessary deception undertaken each year to jump-start the breeding season for Ohio's horse-racing industry. It allows the foals to be as mature as possible when they have grown up and it's time to compete against others in their age group. For racing purposes, all foals turn 1 year old on Jan. 1.
But the economic conditions underpinning equine romance, as expedited as it might be, have grown less favorable in Ohio. Breeding sheds across the state have become lonelier by the year as horsemen ship top stallions and mares to other states, where offspring can compete for larger purses and qualify for the rewards offered to horses bred in those states.
At Mossbarger's Midland Acres farm, 30 miles south of Columbus, he bred 375 standardbreds (the breed using in harness racing) from mid-February through mid-July this year, less than half his annual volume in the late 1990s.
Statewide foaling numbers are equally depressing. In 2006, Ohio produced 292 registered thoroughbred foals, compared with 611 in 1997. Standardbred foals totaled 1,468, down from 1,923.
Several factors have contributed to the decline, but those in the racing industry lay considerable blame on one issue -- the lack of casino-style gambling in Ohio. If race tracks had slot machines to supplement their revenue, they argue they could offer bigger purses, attract better horses and infuse more money into the industry from top to bottom.
Instead, they say, horsemen are going to other states where the tracks offer larger purses fueled by expanded gambling. Places like West Virginia, Indiana and Pennsylvania.
The newest threat, Presque Isle Downs in Erie, Pa., opens Saturday with purses more than three times Thistledown's offerings.
An industry consortium called Save Ohio Horse Racing offers up this comparison: The average daily thoroughbred purse in Ohio for 2006 was almost $63,000, while in Pennsylvania it approached $107,000. Harness purses between the two states showed a similar relationship.
A statewide referendum last November would have allowed slot machines at all seven thoroughbred and standardbred tracks in Ohio, as well as two sites in Cleveland, but it went down to defeat.
Racing industry hopes to spread word
The racing industry hopes educating the public about its plight, and to the thousands of jobs at risk, will eventually turn public sentiment in favor of expanded gaming. They've set up a Web site - www.saveohioracing.com - to help get their message out.
Last year's referendum probably should have included more discussion about the boost that slots would give the entire Ohio racing industry, said Tom Aldrich, chief operating officer at Northfield Park.
It didn't help that two prominent Cleveland developers, Forest City Enterprises Inc. and Jacobs Entertainment Inc., also stood to gain to the exclusion of others.
There's no debating that Ohio has a rich tradition of horse racing. It has been the leading breeder of standardbred horses in the country until Pennsylvania and perhaps New York surpassed it this year, Mossbarger said. And each year, the country's best standardbreds meet at the Delaware County Fair for the Little Brown Jug, the second leg of harness racing's Triple Crown. Most of the state's 88 county fairs offer harness racing.
But for the most part, Ohio is seen as a feeder to better tracks in the East, while its lesser horses remain in state, racing at Northfield Park, Scioto Downs near Columbus or tracks near Cincinnati and in Toledo.
It's similar for thoroughbreds, although they run for more money. The state's biggest thoroughbred race of the year is the Ohio Derby at Thistledown, a cut below more prestigious stakes races such as the Kentucky Derby and Preakness Stakes. Beulah Park near Columbus and River Downs in Cincinnati also offer thoroughbred racing.
Other factors also affect profits
The industry's challenges, however, go beyond competition from tracks in states with slots. The advent of Internet gambling, for instance, has further skewed the economics. Players can bet on races from their homes using a computer, or from the track using a cell phone.
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Slots fuel Erie's Presque Isle Downs revival
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By John Grupp and Andrew Conte
PITTSBURGH TRIBUNE-REVIEW
Sunday, August 26, 2007
Scott Lake, one of the nation's top thoroughbred trainers, worked last week in the basement of his Philadelphia home, locked in concentration.He was planning an invasion of Erie."I have horses at seven different tracks," Lake said, "and I'm shipping from everywhere."Lake, North America's leading trainer for wins in 2006, and other well-known trainers plan to send horses to the new Presque Isle Downs in Erie from storied tracks such as Saratoga in upstate New York and Churchill Downs in Louisville.
The lure? Slots-fueled purse money.Because of slots revenue generated since the Presque Isle casino opened in February, the adjoining thoroughbred racetrack plans to award about $13 million in purses during its upcoming monthlong meet, which begins Saturday.That equals about $520,000 a day in purses, rivaling payouts at plush, high-stakes thoroughbred destinations in New York, Kentucky and California.
Industry backers hope that infusion of money will bring the public back to racing, which long has been in decline across Pennsylvania. Statewide, slots money has started drawing better horses, bigger fields and tighter, faster races. Industry backers hope that leads to more interest from bettors and a chance to restore the image of thoroughbred and harness racing in the state.
"Our mission is to move Pennsylvania racing to the pinnacle of racing in North America," said Todd Mostoller, the executive director of Pennsylvania Horsemen's Benevolent and Protective Association.
"If we don't use this to better our racing product, shame on us. The thoroughbred industry is a broken business model. We have an opportunity to fix it. That's what we need to do."
Slots have raised more than $75 million for racing -- with $60 million for purses -- since Mohegan Sun at Pocono Downs near Wilkes-Barre opened the first casino last year. Purses go to the owners, trainers and jockeys of winning horses.
Three other tracks have opened casinos: The Meadows Racetrack and Casino in North Strabane, Philadelphia Park Casino and Racetrack, and Harrah's Chester Casino and Racetrack. Hollywood Casino at Penn National Race Course, near Harrisburg, is scheduled to open early next year.
For years, thoroughbred tracks such as Penn National and Philadelphia Park were infamous for mainly bottom-level horses and being a simulcast option of last resort for many bettors. The Meadows, a harness track, was in decline for more than a decade before slots.
"This is the renaissance," said Jerry Connors, administrative officer for the state Harness Racing Commission. "We have to work hard to build some of the fan interest back up and show what a quality product we have here."
Twelve percent of the money raised by slots at each track goes into a horse racing fund, and 80 percent of the fund supports purses at that track. Sixteen percent goes for breeder awards, and 4 percent into a health and benefits fund for jockeys.
Presque Isle's purses are based on the amount of money it expects slots to generate this year. The 2,000 machines have raised $8.3 million for purses so far -- compared to nearly $30 million for property tax relief.
Rosemary Williams, director of racing for Presque Isle's owner, MTR Gaming, based in Chester, W.Va., said she never dreamed of writing a race book with purses at $500,000 a day. She has been fielding calls from trainers in Kentucky who plan to try out the track.
"If you look at the trainers list of who's coming there, it is changing," Williams said. "Those trainers are starting to recognize Pennsylvania as a place to race, as an option."
The last time Erie had thoroughbred racing 20 years ago, the average purse at Erie Downs was about $15,000 a day. That's less than the cheapest single race at Presque Isle this fall, with purses starting at $24,500.
"It's on par with any race meet in the country," said Ken Kirchner, a Kentucky-based consultant and former executive director of the Pennsylvania Thoroughbred Horseracing Commission. "You will draw a significant number of good horses from bigger stables."
Because it will hand out all of its purse money over just 25 racing days, Presque Isle can expect to draw top talent this year, but no one knows whether that will last when the track goes to a full 100-day season next year.
In 2008, the racing program will stretch from May to September, with an average purse of about $300,000 a day.
States such as New York and Kentucky create a circuit by eliminating overlap of racing dates at different tracks. Pennsylvania tracks often run against each other.
"If (Pennsylvania regulators) work together and develop a race circuit, they could very well rival any state in the country," Kirchner said. "Pennsylvania would be at the top of the pack."
Even so, purses should remain
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KEEP Still Undecided on Push for Casino Gambling
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by Esther Marr
Bloodhorse.com
Date Posted: August 24, 2007
Last Updated: August 25, 2007
While the Kentucky Equine Education Project continues to lobby for legislation that would remove the sales tax on equine feed and supplies in Kentucky, a decision is pending in regard to whether the organization will again push for casino gambling at racetracks in 2008.
"(Lobbying for casino gaming) would depend upon the action of the board, and the board hasn't taken any official action yet," KEEP chairman Brereton Jones said Aug. 23. "It would be their decision as to what or how much. They meet every 60 days or so, and I'm sure it will be discussed at the next meeting and future meetings."
Jones serves on the 33-member KEEP board along with vice-chairman Bill Casner of WinStar Farm and other prominent Thoroughbred industry figures, including John Sikura, Steve Sexton, Duncan Taylor, Nick Nicholson, Doug Cauthen, Robert Clay, and Bill Farish.
"We will be discussing (casino gaming) once the details are fleshed out," Jones said. "That doesn't mean to imply that we're leaning against doing this at all. We've already taken the stand that if it's done the way we introduced the legislation the last session, I would assume the board would agree to do that again. But I can't speak for the board without the board taking action."
In 2006, KEEP proposed a constitutional amendment on expanded gambling that would be limited to the state's racetracks. The organization listed specific percentages for revenue and the state programs gaming funds would support, but the House of Representatives declined to back the concept.
KEEP announced earlier this summer its endorsement of the Democratic Steve Beshear/Daniel Mongiardo ticket in the 2007 Kentucky gubernatorial campaign because of the candidates' support of horse industry-related issues, such as the tax equity bill and expanded gaming. Incumbent Republican Gov. Ernie Fletcher is campaigning against casinos.
The tax equity bill would remove the sales tax on feed, grooming supplies, and other products sold for equine use. Supporters of the bill view it as an unfair tax only levied on horse farmers, as sales taxes are not applied to the same items purchased for other livestock.
A similar tax equity bill was filed during the 2006 session and received more than 31 additional co-sponsors in support. The bill, however, didn’t make it out of committee for a vote.
"The issue that we've already made a decision on is tax equity—to try and get the sales tax on horse feed and supplies to be treated the same as other livestock supplies,"Jones said. "We'll be lobbying very hard on that issue."
According to Jones, KEEP made a $1,000 contribution toward the Beshear/Mongiardo campaign, and several others in the 11,000-member organization have made individual donations. In addition, 30 KEEP members and non-members will co-host a fundraiser on Beshear's behalf Sept. 6 at the Lexington Country Club.
In campaigning before the primary election, Beshear claimed that if he is elected, expanded gaming could be on the ballot by November 2008, and the law could take effect in January 2009. Revenue could start streaming in later that year.
"We're trying to unite the whole industry--that's the primary purpose of KEEP—to try to unite all horse interests so we can support legislation that we think is helpful to the horse industry," Jones said.
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Hoosier Expansion Gets OK
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From the Harness Tracks of America Executive Newsletter August 21, 2007
The Anderson, Indiana, Board of Zoning Appeals approved plans last night for the addition of 2,000 slots in a new facility at Hoosier Park. the plans call for a 92,000 square-foot building with a connector facility between the two. The track also met with the Indiana Racing Commission today for final commission approval. Jeff Smith, CEO of Centaur, which now owns the tracks, told the planning board they would be back for approval to add 800 parking spaces, which would give Hoosier 2,000 when the racino opens.
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Table games passes by 343 votes
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Lawrence Messina
The Associated Press
Friday August 17, 2007
Table games prevailed in Kanawha County's Aug. 11 gambling referendum by 343 votes, according to a Friday audit of last weekend's results that resolved more than a thousand challenged and overlooked ballots.
The Kanawha County Commission certified the results 23,192 votes in favor to 22,849 against after a nearly 12-hour canvass of all 175 voting precincts.
"As far as I'm concerned, this election is over," Commission President Kent Carper said afterward.
More than 46,000 valid votes were cast in the special election to decide whether Tri-State Racetrack and Gaming Center can host poker, blackjack and other casino table games.
Gambling opponents can request a recount, within 48 hours of the publishing of the certified results at a Tuesday commission meeting.
The Rev. Dennis Sparks said table games opponents will meet Monday to discuss options, after their lawyer reviews the canvass results. A coalition of churches, social conservatives and others, the foes have not ruled out a recount bid or some other sort of challenge, Sparks said.
"This is a justice issue for us," said Sparks, executive director of the West Virginia Council of Churches.
The tally for table games was buoyed significantly when the commission discovered that more than 150 "yes" votes from two Charleston precincts had been counted but not reported to county officials.
The prospects for passage also improved when commissioners counted 534 ballots that had been initially overlooked following Saturday's special election. That count increased the margin for table games by 84 votes.
In its role as the county's canvassing board, the commission further added to the vote tally by reviewing nearly 800 provisional ballots. These had been challenged by precinct workers during Saturday's voting.
More than half of those ballots were validated during the canvass. Most of those had been cast by poll workers at precincts in which they were not registered. The rest were from voters who had recently moved but whose records had not yet reached their new polling places.
Nearly all of the challenged ballots tossed Friday had been cast either in the wrong precinct or by unregistered voters. One was voided because that voter had already cast an early ballot. Another was cast by a voter actually registered in neighboring Clay County.
The Nitro track has pledged to add hundreds of jobs and invest $250 million toward expanding its facilities. But the gambling proposal met with stiff opposition from churches and social conservatives.
McCormick read off the tally sheets and other precinct records as her workers unsealed each of the 175 large aluminum ballot boxes and counted the ballot stubs from the 175 canvas | | |