Category: Florida

Election Aftermath Mixed for Thoroughbred Interests

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By T. D. Thornton

In the aftermath of Election Day, the gambling landscape shifted significantly overnight in three states. But the results are mixed in terms of how the measures will affect Thoroughbred horse racing.

In Arkansas, Oaklawn Park won the right to add full casino gaming and sports betting to its existing wagering menu of pari-mutuels and electronic gaming. The vote percentage was 54-46.

In Idaho, historical horse racing (HHR) video gaming at tracks was defeated by a 53-47 margin, putting the state’s already tenuous Thoroughbred future in even more of an endangered flux.

Florida voters banned greyhound racing by a 69-31 margin, with a 2020 sunset date but a provision to keep other forms of gaming at those tracks.

A separate Florida measure that passed by a 71-29 margin mandates that any future changes to casino gambling have to be approved through statewide citizen-initiated ballot measures, and not the Legislature.

All tallies in this story cited are listed in rounded percentages, and are according to results posted as of 2 p.m. Wednesday on Ballotpedia.com.

Arkansas

In Arkansas, the passage of Issue 4 amended the Arkansas Constitution to grant four casino licenses in specified locations. Oaklawn in Hot Springs and the Southland greyhound/gaming venue in West Memphis were granted “automatic licenses” for expansions “at or adjacent to” their existing operations. Both tracks already offer electronic games of skill under a 2005 state law.

Additionally, one casino license will be up for bid in both Pope County and Jefferson County.

As part of the Arkansas measure, “casino gaming shall also be defined to include accepting wagers on sporting events.”

The ballot initiative also included a tax revenue distribution plan that mandates “17.5% to the Arkansas Racing Commission for deposit into the Arkansas Racing Commission Purse and Awards Fund to be used only for purses for live horse racing and greyhound racing by Oaklawn and Southland.”

Idaho

The defeated Proposition 1 was designed to once again legalize HHR video terminals at tracks in Idaho, where seven fairs circuit tracks raced short meets in 2018. The measure would have granted HHR gaming rights to any track that cards eight calendar dates annually, and passage would almost certainly have meant the re-opening of Les Bois Park, formerly Idaho’s only commercial track.

Idaho had briefly legalized HHR in 2013 but the law was repealed in 2015. When the state pulled the plug on HHR, Les Bois, which was one of three locations that had the machines, shut down. Les Bois spent heavily to support Proposition 1, and reportedly had several hundred HHR machines still on the property ready to resume operation, along with live racing.

Florida

Florida’s two approved ballot measures might end up raising more questions than they answered in an already confusing state for gambling.

The Amendment 13 ban on dog racing actually had the support of some of the state’s 11 greyhound track operators, who saw it as a de facto way of attaining “decoupling” from less-profitable pari-mutuels while retaining lucrative gaming rights.

Some “What happens next?” scenarios could include horse tracks angling for similar decoupling rights based on this precedent. And with greyhound racing mandated to end, animal rights activists might now more closely focus on horse racing.

Carey Theil, the executive director of GREY2K USA, one of the leading backers of the ban, told the Orlando Sentinel that the vote appears to mean the greyhound industry will likely be “swept away in the night” and that “the historical consequences of this are incredibly significant.”

Amendment 3, which took control of future casino gambling decisions out of the hands of the Legislature, was proposed by Voters in Charge, a political committee largely financed by the tourism-centric Walt Disney Co. and the Seminole Tribe, which operates existing gaming facilities. According to published reports, that committee spent more than $31 million on the effort to transfer future casino decisions to voters.

According to a post-vote analysis in the Tampa Bay Times, “While the amendment, in theory, gives voters the power to expand gambling, it could actually make the process more difficult. Changing anything by voter decision is a long process, and would therefore keep competition low for the Seminole Tribe and ensure a more ‘family friendly’ tourism environment here, to Disney’s benefit.”

The Miami Herald recapped the vote this way: “Opponents to the amendment—like NFL teams, online betting sites like FanDuel and DraftKings and dog and horse tracks—have argued that it is unclear what affect the initiative would have on previously authorized gambling sites across the state.”

United States Congress

Two U.S. Representatives in positions to have an impact on Thoroughbred racing both won re-election bids Nov. 6.

Andy Barr (R-KY) and Paul Tonko (D-NY) are co-chairs of the Congressional Horse Caucus. They are also co-sponsors of HR 2651, the Horseracing Integrity Act of 2017, which was first introduced in a different form in 2015. Its revised version has not had any legislative action since a June 22 subcommittee hearing.

Barr won by a 51-48 margin. Tonko’s winning margin was 68-32.

Lexington Mayor

Linda Gorton bested Ronnie Bastin by a 63-37 margin in the Lexington, Kentucky, mayoral race.

In a profile published the week prior to the election, Gorton told TDN that “I have a long history of working with the equine industry here. I know many of the horse farm owners and managers. I understand their concerns…. That’s important for me, to have people understand that I have worked with this industry for many, many years, and have great experience in doing that.”

Churchill Downs Inc. Hopes to End Racing at Calder

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Horsemen note that such a move would cost some $10 million in purse money.

Florida industry groups have lined up to oppose a plan by Churchill Downs Inc. to end Thoroughbred racing at its Calder property, a move that could cost horsemen about $10 million a year in purses generated by slot machines at Calder Casino.

In February, CDI was awarded a pari-mutuel jai alai license from Florida’s Department of Business and Professional Regulation, Division of Pari-Mutuel Wagering. With that approval, CDI currently holds pari-mutuel licenses for both jai alai and Thoroughbred racing at Calder, but the latter will expire in 2020.

In documents submitted to the DPMW, CDI said it wishes to switch from racing to jai alai, a move that would reduce its expenses associated with statutory purse fund requirements. On July 31, Calder submitted an email to the DPMW requesting a declaratory statement from the regulator about whether the switch would jeopardize its casino license.

Under state law, the casinos at Gulfstream Park and Calder both pay into a single Thoroughbred purse fund, a commitment of 10% of their slot machine revenues. Even though Gulfstream owner The Stronach Group has taken over racing operations at the former Calder Race Course property—now run as Gulfstream Park West—the Calder casino generates revenues for purses and breeder awards all year. The Florida Horsemen’s Benevolent and Protective Association estimates revenue from the Calder casino committed to the purse fund will reach $9 million-$10 million this year.

The Florida HBPA has filed motions with the DPMW opposing CDI’s plans to change the Calder pari-mutuel license from Thoroughbred racing to jai alai. Late Aug. 23 in a joint release, Gulfstream Park, the Florida Thoroughbred Breeders’ and Owners’ Association, and the Ocala Breeders’ Sales Company each expressed opposition to CDI ending racing in favor of jai alai.

The Florida FTBOA noted that voters approved casino gaming at Calder with the understanding that it would support Thoroughbred racing. It said that support has allowed CDI to successfully operate slot machines at its Calder property since 2010.

“Now, Churchill Downs apparently sees the opportunity to pull a ‘bait-and-switch’ in the interests of increasing its profits, with little regard for the economic harm its moves will cause to the faithful Florida trainers, owners, and breeders that have long supported its racing program, as well as the other Florida tracks and participants in Florida’s Thoroughbred industry,” the FTBOA noted.

Calder officials believe that under the language of the state law, a move from racing to jai alai should be allowed. Under the company’s interpretation, it’s not a high bar to clear for such a switch. It said the law only requires the property be located in Miami-Dade County, existed at the time added gaming was adopted, and conducted live racing in the calendar years 2002-03—all standards Calder meets. If the DPMW agrees with the company’s assessment, Calder plans to offer summer jai alai and discontinue Thoroughbred operations.

The Florida HBPA noted that following the 2004 state-wide vote that allowed slot machines at Calder and six other pari-mutuel facilities in Miami-Dade and Broward counties, the legislature recognized the “importance of protecting and promoting Florida’s Thoroughbred racing industry against the possibility that Calder and Gulfstream Park, the state’s two Thoroughbred tracks eligible for slot machine gaming, would abandon their Thoroughbred racing activities and instead offer patrons slot machine gaming only.”

In a filing with the DPMW, the Florida HBPA noted that in 2004 it committed $1 million to Calder to help campaign for the approval of slot machine gaming at tracks. It also outlined the far greater interest in Thoroughbred racing, as opposed to jai alai.

“The division knew, or should have known, that the substantial interests of FHBPA and its members would be or would likely be adversely affected,” the FHBPA argued.

In the release, Florida industry groups said if Calder is allowed to abandon Thoroughbred racing, the negative impact will be significant.

“It is extremely disappointing to watch Churchill Downs continue its effort to extricate itself from the racing business in Florida while adding millions more to its bottom line in slot revenue,” OBS officials said, before referencing the elimination of the grandstand and barns on the Calder property. “Calder’s Florida mission is illustrated by its past performances, which include bulldozing over half of the barn area, taking a wrecking ball to the grandstand, and supporting decoupling. Its latest attempt to exit racing via jai alai is a backdoor effort to continue operating slots and reopen its card room without horse racing. If Churchill gets its wish, the implications will stretch far beyond the Florida borders, and ripple effects will be felt nationwide in the sales ring, on the racetrack, and in the breeding shed.”

Decoupling is a proposal being debated that, if adopted, would allow operators to cease pari-mutuel wagering but retain their casino license.

In terms of casino operations, Gulfstream noted that if Calder eliminates its commitments to racing, that reduction in expenses will provide its casino a competitive advantage in the South Florida area. It also said Thoroughbred racing and breeding in the state would be hurt.

“We are obviously worried about the unlevel playing field and advantage Calder would have, along with the loss of breeders’ awards and purse money that has helped grow the industry,” Gulfstream officials said. “The ability just to change the use of a license after being granted slots under a different license would undermine all the growth we have achieved.”

On Aug. 24, a CDI spokesperson declined to comment on the Florida industry release.

Calder began advertising a part-time position on the company website and on LinkedIn for a jai alai player manager/trainer Aug. 6 and a position Aug. 9 for a cesta and pelota maker. A cesta is the basket a jai alai player wears on his or her hand to throw and catch the ball, and the pelota is the ball.

Since 2014, The Stronach Group has run the racing operations at Calder, which races as Gulfstream Park West. According to the DPMW, in fiscal year 2016-17, Gulfstream Park West offered 37 race dates and 346 races, with total purses of $7,593,910.

Florida Weathers Hurricane, Gulfstream to Race Sept. 16

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No injuries to horses or horsemen reported at tracks, training facilities, or farms.

released a collective sigh of relief Sept. 11, as initial reports suggested the industry had dodged a bullet.

While some communications were hampered by phone and power outages, representatives of horsemen’s groups, tracks, and training centers from South Florida to Ocala Monday morning said there were no initial reports of human or equine injuries because of the storm.

Barns, track surfaces, and frontside facilities all held up well at tracks and training centers. Some barns at Gulfstream Park saw shingle damage, but the facility and track surfaces were in good enough shape that the track plans to resume training Sept. 12, simulcasting Sept. 13, and racing Sept. 16.

Roof damage to barns was reported at Tampa Bay Downs, which currently is not racing; and the Palm Meadows training center had tree damage. Barns at Gulfstream Park West also held up well, sustaining minor gutter damage. There were also downed trees.

Training will resume Tuesday morning at Gulfstream Park West and Palm Meadows.

Trainer Kathleen O’Connell stayed with her horses in a Gulfstream Park West barn through the storm. She said the height of the storm lasted a long time, from early Sunday morning through the entire day.

“The winds were horrific, and they were still bad until 1 a.m. Monday morning,” O’Connell said. “I have a big ice machine here and at the height of the storm the winds moved it about eight inches. There are big oak trees down, but all in all, it weathered it pretty good.”

O’Connell said she was confident the barns at Gulfstream Park West were safe, and she wanted to be close to her horses.

“Structurally it’s a very safe building. I weathered Hurricane Andrew here, actually. It seemed to be the best choice: a concrete barn with a flat roof,” O’Connell said. “I wanted to stay here too because my help was in the dorms, which is pretty far away. Most of the time it was too dangerous for anyone to come out and try to help out with giving the horses water and hay. So it was my choice, and I figured it was the safest and best thing to do.”

With Hurricane Irma approaching the area, Gulfstream cancelled its race dates from Sept. 7-10. The track had tentatively looked at racing Sept. 13, but all racing will be cancelled until Sept. 16. Challenges the region faces in terms of power outages and clean-up factored into the decision.

Several Gulfstream officials, including track president Tim Ritvo, weathered the storm at the track. Assessing the property Monday morning in the wake of Hurricane Irma, P.J. Campo, Gulfstream’s general manager and vice president of racing, said Gulfstream fared “very well” during the pounding South Florida took the past two days.

“First of all, people and horses are always our first priorities, and everyone is safe,” Campo said. “The horses are all well, and those who work on the backstretch and live in our dormitories are all safe. Over the past two years, we have taken precautions to help our facility by installing a flood retaining wall and pump stations, and they worked. The stables were not flooded.

“Except for some minor damage to roof shingles on our older barns, we’re ready to go. We are waiting until Saturday to resume racing because we have to wait for outside resources and utilities in the South Florida area like power, gas, and clean-up, to catch up.”

Bob Jeffries, president of the Tampa Bay Horsemen’s Benevolent and Protective Association, said the Tampa Bay Downs backstretch saw damaged roofs that didn’t appear to be major. The track property also had a number of downed trees. As Tampa Bay is dark, no horses were at the track.

Florida Thoroughbred Breeders’ and Owners’ Association CEO Lonny Powell said Monday morning that he’d heard of no injured horses or horsemen but did add that the Ocala area faced communications issues with phones being out.

“It looks like it could have been a lot worse,” Powell said. “It looks like the biggest things we’re facing are a power outage and gas shortage. Downed trees also have been a big issue here.”

O’Connell also feels like Florida dodged a bullet. She was amazed by the size of the storm.

“It could have been so much worse. It was just so big in terms of the area affected,” O’Connell said. “I had friends of mine evacuate Naples for a house I have in the Tampa area and they ended up in the storm’s path there, too. There was no getting away from it.”

Florida Legislature Making ‘Substantial’ Push To Get Gambling Deal Completed In Current Session

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by | 04.26.2017 | 2:10pm

Florida’s capitol building in Tallahassee

 

 

In a push to finally get a gambling bill approved during the current legislative session, the Florida House of Representatives made a few major offers during a session held Wednesday morning.

The SaintPetersBlog reports that the House has agreed to allow ‘decoupling’, which would permit pari-mutuel racetracks to stop offering live horse or dog racing, but keep their slots licenses if approved by local voters.

Only Calder among Florida’s Thoroughbred tracks would be allowed to decouple, according to current language in the negotiations, which also includes Thoroughbred “purse pools” created through contributions of other gambling entities.

The House bill does not appear to expand slots to eight counties with pari-mutuel wagering (including the flag-drop racing in Gretna and Hamilton county), and where local voters have already approved via referendum. It does permit a new South Florida slots parlor, provided it is at least five miles from an existing casino, and allows the Seminole tribe to add caps and roulette to its seven casinos throughout the state.

The Florida Senate’s gambling bill also permits decoupling but expands gambling dramatically by permitting slots in eight counties north of Dad and Broward counties.

Republican Senator and conference chair Bill Galvano called the House proposal “serious” and “substantial”.

Read more in the SaintPetersBlog