Archive for February, 2011

Slot Machines Not Long Term Solution

Monday, February 28th, 2011
Part of the problem with horse racing is that they are not thinking about the long term.  It appears to me that the people that run these tracks do not realize that their entire industry is a dinosaur and they need to figure out a way to make racing as a whole more relevant.  Right now most tracks are concerned with convincing legislators that they should be permitted to offer slot machines.  There are tracks in states like New York that seem to be doing well because slot machines have upped their purses attracting better trainers, better races, and more enthusiastic gamblers.  However, these tracks are not pulling down the revenue that they used to.  They are just doing much better than the failing tracks, which is not saying much.

What horse racing needs to do is figure how to get people interested again.  I am sure when the movie Seabiscuit came out much of the industry was excited.  It would not be the first time a movie has made a sport or a form of gambling popular again.  Seabiscuit did not do the trick.  I have my doubts that a single exciting horse would be enough to cause a resurgence in the sport unless the horse was extraordinarily fast, but we would have to be talking Guinness book speeds.  Unfortunately, the spectacle of little men galloping around on the back of top shape horses no longer appeals to the average gambler.  Individual tracks need to come together and figure out how to save the sport as a whole.

Never Disappear

Monday, February 28th, 2011
Horse racing will likely never disappear forever.  To be honest I do not want it to.  My problem is not with horse racing.  I do not even really have a problem with horse racing offering slot machines.  My problem is that horse racing has a habit of interfering with the casino industry just to keep itself going.  The people that come out to horse racing events are not the most youthful.  A vendor at Maywood Park in Illinois described the few dozen people in the park grandstands as one being older than the next.  These customers are likely the remnant of a generation that got into racing when the sport was hot and still drawing crowds in the tens of thousands.

I suppose what is destined to happen with horse racing is that slowly but surely small and obscure tracks will close their doors forever.  After that some of the bigger named tracks will eventually close up shop.  Then ultimately there will only be a few tracks operating in only a select few states.  Maybe, and this is extremely wishful thinking, the obscurity of horse racing will create a resurgence of the sports popularity in some niche market.  However, I believe it is safe to say that the days of any racetrack pulling in 40,000 attendants the was they did when Secretariat was king of the track are over now.  If track owners are smart they will sell their venues while they still can and invest in some other project that might turn a profit.

Can’t Help But Cringe

Monday, February 28th, 2011
So here is a sad story from Maywood Park in Illinois.  A loyal patron recently slipped on a icy spot in the parking lot.  He busted himself up pretty bad.  He hurt his neck and drew blood from his forehead.  Luckily a good Samaritan was on hand and tended to the gentleman, I am sure until the paramedics arrived.  The man who fell was 90 years of age.  The young man that saved him in his time of need had lived to see his 85th birthday.  This is an example of the demographic that is showing up to racetracks in most places in the country.  Racing does not seem to be a very current affair in the world of gambling.  It seems that the sport is only being carried along by the traditions of a prior generation and only just barely.

I have long said that the problem with most racetracks is not the fact that they are not allowed to operated slot machines.  The problem with racing is that it no longer appeals to modern audience.  More than one generation that is old enough to gamble now has grown up in an era of rather modern technology.  These people do not have interest in watching horse run around a track.  This is particularly true of these crumbling tracks sparsely decorated with the elderly where even if you win you cannot possible get paid very much money.  Nobody is wagering a lot and not a lot of people are wagering.  Times are bleak in racing.

Vacant Lot

Monday, February 28th, 2011
I read somewhere that the attendance at the Maywood Park racetrack in Indiana was so low that only a few dozen people were in attendance on any given day.  This is an embarrassingly low number of people for any sporting event, however for a park that used to bring in 20,000 people this is a major ego blow.  I find it strange that it is not received as message.  There are not the kind of low numbers that can be turned around by one great race.  It is likely not the type of numbers that can be turned around by a season of great races, this is a sign of a sport no longer being popular in the current age.

Maywood has apparently suffered because many of the great races and horse are moving to states that allow their tracks to offer slot machines or at least receive a government subsidy.  But even the tracks that do receive a subsidy are not doing very well.  New Jersey’s tracks have thrived off of popularity for several years, but they have not turned a real profit for sometime now.  At one point in time a major racing event at Maywood caused serious traffic jams and there was not a spot to be found in its parking lot.  The parking lots are still full, but now they are filled with Target customers.  I suppose it is only a matter of time before the whole parking lot is filled with customers of a strip mall.  Not even tradition is enough to keep a sport alive if there is no longer an entertainment value.

A Little Better Than Awful

Monday, February 28th, 2011
I have recently found a lot of information illuminating how much of an impact horse racing once had on the economy.  Most of the information has come from a particular article that explains the history of horse racing in Illinois as well as its current demise.  Horse racing has fallen a long way in most states.  It only seems to be doing reasonably well in states like New York, New Jersey, and Indiana.  However, even in those states things are not so hot.  Many of the tracks are are not making a profit.  The only thing keeping those tracks afloat are slot machines.

New Jersey’s racetracks are stealing customers from the best horses and trainers from places like Indiana.  However, New Jersey is not doing hot at all.  As a matter of fact things are doing so terrible at the new Jersey racetracks that the government decided to stop granting the subsidies that it offered the track for years keeping it alive.  So it would appear that racing is in such a state that one dying tracks is simply stealing clients from another dying track.  Horse racing venues can hardly keep themselves open, let alone contribute to the economy.  Horse racing does not even seem to be able to keep its clients happy.  Most grand stands, once cluttered with tens of thousands of bettor now has an attendance of a few dozen.  It is a rather bleak and unfortunate sight.  All the slot machines in the worlds cannot fix that problem.

Amends for Irreverence

Monday, February 28th, 2011
I know that I often seem rude and perhaps irreverent to the horse racing industry.  I am well aware of what horse racing used to mean to this country.  I simply disagree with the the strange desire of states to support a collapsing industry that no longer generates the kind of revenue that it once did.  Revenue from slot machines, while it is typically ample, should not be wasted on things that do not help residents of the state as a whole.  However, just to show some due respect to the industry I would like to highlight the power it used to display in this country.  This is also a part of my journey to understand why states would continue to support the industry regardless of how absurd it may seem.

One of the finest moment in the entire history of the state of Illinois occurred at the old Arlington Park racetrack.  It was the day that 40,000 people cluttered into the stadium just to get a glimpse of the world most famous racehorse, Secretariat.  This event occured one month after Secretariat had one the Triple Crown.  The popularity of Secretariat spurred an unbeleivable growth in the sport as a whole.  In the years that followed the industry started making major contributions to the state coffers.  In 1979, horse racing in Illinois was responsible for $85 million dollars in tax revenue.  While slot machines are capable of producing hundreds of millions of dollars for a state.  $85 million is nothing to sneeze at.

Dangers of Nostalgia

Monday, February 28th, 2011
Illinois is one of those states that has really helped shape the nostalgic view that people seem to have of horse racing.  A point of view that has led to radio silence on what I think is one of the most outrageous waste of government revenues.  Regardless of the history of racetracks and how they were once the heartbeat for blue collar Americans as well as the most distinguished of our political figures, there is no way they have the right to revenue from slot machines.  However, in Illinois, it is hard to deny racetracks a helping hand in their time of need when they have been at the center of several historic occasions.

One of the more interesting stories about slot machines and their involvement in Illinois history is the bribery scandal involving federal judge Otto Kerner in 1973.  Kerner was also once the Governor of the state.  It was discovered that he was involved in a bribery scheme where he received kickbacks from certain tracks.  Kerner was taken down by an ambitious federal prosecutor James R. Thompson.  For those of you that know your Illinois political history, Thompson later went on to become the Governor of Illinois himself.  The press from that political scandal is what launched Thompson’s career.  It is hard not to appear a super hero when taking down a huge political figure steeped in corruption.  Illinois has a rich history where the horse racing industry plays in integral role in some chapters.  But every good book comes to an end and a great performance showed know when to bow out.

Strange for a Recession

Monday, February 28th, 2011
During a recession like the one currently plaguing our nation, how is it possible that state officials manage to convince residents that slot machine revenues should go toward the support of racetracks.  It does not make a lick of sense to be honest.  Racing is not the sport of the average Joe any longer.  As a matter of fact it seems to be reserved for the few people that can still call themselves a part of the upper middle class…. and the elderly.  I suppose it should not surprise me that the wealthy has managed to get their way in this country, but things should be different during a recession.

This recession is the worst economic crisis to hit the United States since the Great Depression.  It has made people ultra aware of how the Government is spending tax dollars.  People even had the nerve to get upset about how much money insuring the safety of our President cost as he went over seas.  Yet, somehow a state politician saying we should make sure that racetracks get a few million dollars from legalized slot machines does not get people red in the face.  It is likely that there are literally thousands of government services that are better deserving of the money that some state donate to the horse racing industry out of some weird form of historic loyalty.  The horse racing industry manages to still wield some powerful lobbying maneuvers but these efforts should be rather transparent during a recession.

Disappointment

Monday, February 28th, 2011
While expressing disappointment is often useful and certainly cleansing, I often find it better to find out the source of why a disappointing event was allowed to occur.  In my last post I expressed how frustrated it makes me that more people do not stand up and tell their government that if slot machines are to be legalized in the state we do not what that revenue to go toward the racing industry.  Horse and dog racing venues all across the country are trying to stay afloat on the back of slot machines.  Slot machine revenue should go toward bettering the lives of citizens not keeping a dying industry alive for a few more years.

It has become clear to me that the racing industry has blurred the issue for most residents by pitching slot machines at racetracks means new casinos will not have to crop up your neighborhood.  This appeals to many residents, especially families that are not interested in a nightlife scene cropping up next door.  Since most Americans have a strong sense of fairness, especially when it comes to money, the idea of the racetracks getting a cut of the revenue from the slot machines they are hosting does not seem in the least bit unfair.  If anything they should be getting a form of rent money for housing the state’s slot machines.  It is a clever disguise on the part of the racetracks to appear as some community saving entity that will prevent crime from infiltrating a neighborhood by centralizing the gambling venues of a state.

Surprise, Surprise!

Monday, February 28th, 2011
While there are examples of states giving up on trying to support the racing industry as it meets its twilight years I am still surprised that there are not more protests from citizens and state residents against allowing the racing industry to take a cut of slot machine revenues.  I was very proud of New Jersey for realizing supporting the casinos of Atlantic City was a much better way of spending money that on trying to keep their crumbling racing venues open.  I was in full agreement when Massachusetts Governor Deval Patrick rejected the idea that legalizing casinos in Massachusetts meant that race tracks were somehow entitled to operate slot machines.

Legalizing slot machines is not typically something residents in a state take very lightly.  It is rare that slot machines are legalized without some sort of controversy.  However, the idea of added revenue is typically the selling point for expanded gambling while I am sure there are some gambling enthusiasts that just love the idea of not having to take a road trip to sate their waging cravings.  This is why it surprises me that more people do not get upset when politicians like the House Speaker of the Massachusetts House of Representatives, Robert A. DeLeo, openly suggest that any of this revenue should go to supporting race tracks.  Racetracks do not affect enough peoples lives for that to fly in most circles.  I am disappointed that more people do not demand that the revenue be spent solely on schools, infrastructure, or cutting down on taxes.