Racing industry continues to struggle

Gambling expansion sought by legislators

As Delaware legalised sports gambling this week, Maryland legislators are concerned that their new slots programme could be jeopardised. It was a long hard battle to get slot machines approved in the state and the additional income was supposed to help Maryland’s horse racing industry. With the present economic downturn racing is particularly badly hit and in general purses are down and the racing calendar shortened.

In West Virginia the Mountaineer Racetrack already has cut overnight purses as revenue from the video lottery terminals declined in the winter. It is widely thought that West Virginia voters could allow table games at its casinos before too long and Delaware’s new sports betting measure includes a statement of intent to allow table games at its three race tracks. Racing in Maryland is being hit by the bigger purses offered at racetracks in West Virginia and Delaware.

Kentucky Governor Steve Beshear this week has been discussing possible legislation for allowing VLTs at the state’s famous racetracks. Churchill Downs has announced it is to cut race days and reduce purses because of financial troubles. Beshear described the vital Kentucky racing industry as being in crisis, with other tracks reporting financial problems. He also said that Kentucky could be facing a US$1 billion budget shortfall in the fiscal year starting 1 July.

Earlier this month the Pennsylvania Gaming Control Board published figures showing that slots casino revenues in April had double digit increase over April 2008. Board Chair Mary DiGiacomo Colins said, “The success of regulated gaming can be seen by how the numbers are exceeding projections, even as the economy struggles.” Small wonder, then, that some legislators in neighbouring states see gambling as a beacon of hope for the future of their racing industries. (E-05.15.09)

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