An industry in need of gambling support

RACING CALLS FOR RACINOS

It has been commented that in every state where horseracing is successful it is through an association with other forms of gambling. This may be an over statement but it cannot be denied that traditional racetracks are struggling to maintain their industry. There are presently only 11 states that have passed legislation for slot machine operations at racetracks although in two of them, Florida and Pennsylvania, they have yet to open.

Racinos were pioneered in West Virginia in 1990. Since then the horseracing industry around the United States has lobbied for, and in some cases won, the right to operate slot machines to support the ailing industry. The states where racinos are already part of the gambling scene are Delaware, Iowa, Louisiana, Maine, New Mexico, New York, Oklahoma, Rhode Island and the original West Virginia. Some of these only licence video lottery terminals. Alabama has two racinos but they have only limited Class II gaming.

In Montana the state has been accused of competing with horse racing through the state lottery and helping to put the industry out of business. A survey has been commissioned to study the economic impact of horseracing in Montana. The Kentucky Equine Education Project (KEEP) has long been fighting for a constitutional amendment to allow racinos at eight tracks. In Kansas in June last year a proposal to allow 5,500 slot machines at pari-mutuels was unsuccessful. In June this year a bill described as being about saving the Californian horseracing industry proposes introducing video gambling machines at racetracks.

In Illinois legislators have been accused of failing to find ways to rescue thousands of jobs in racing and a push for racino legislation is being made. Massachusetts recently disappointed racetrack owners who insist they need slot machines to maintain the viability of racing. Whilst Texas continues to debate the issue its citizens spend around US$1.1 billion at neighbouring Louisiana racetracks and casinos. It is a similar story around the country.

It is also a similar story in much of the world. Bankruptcies and track closures are common but the arrival of slots operations in many cases provide the finances that keep owners, breeders, trainers and jockeys in the game by providing larger race purses and maintaining the racing infrastructure. It is hardly surprising that so many are lobbying for the expansion of racino gambling around the United States. (E-08.08.06)

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