Archive for the ‘Slot machines’ Category
Thursday, March 11th, 2010
After much back and forth about the legitimacy of the deal struck by Governor David Paterson and AEG, the Division of the Lottery in New York has refused to give the controversial investor group the slots bid at Aqueduct.
Because of this refusal, Paterson’s administration informed AEG the state has withdrawn their support of the organization.
No doubt this came as a result of the political pressure and lack of transparency in the bid process for the long anticipated VLTs at the Queens racetrack.
Read it at Bloodhorse.com
Then come back to the Paulick Report and let us know what you think
- Bradford Cummings
Tags: AEG, bloodhorse.com, bradford cummings, david paterson, Division of the Lottery, New York, Paulick Report, Queens, VLT
Posted in New York Racing Association, Slot machines | 16 Comments »
Tuesday, March 9th, 2010
Since embattled Governor David Paterson named Aqueduct Entertainment Group the vendor for Aqueduct’s proposed VLTs, there has been nothing but controversy swirling around his decision. And while nothing specific has been released, it appears the probe from state investigators into AEG is only making matters worse.
"It’s becoming clearer and clearer that there’s a problem there," a source close to the investigation said. Digging through emails and documents between the state and racino bidders, officials have told investigators they were shocked with the selection of AEG.
"AEG was not highly thought of, at least not by the (administration) bureaucrats."
Read at the NY Daily News
Then come back to the Paulick Report and let us know what you think
- Bradford Cummings
Tags: AEG, Aqueduct Entertainment Group, bradford cummings, david paterson, New York Daily News, Paulick Report, slot machine, VLT
Posted in New York Racing Association, Slot machines | 12 Comments »
Thursday, February 25th, 2010
Baltimore-based Cordish Companies filed a suit against Citizens Against Slots at the Mall, alleging their recently filed petition was ‘riddled with fraudulent signatures’. The petition was created to keep the developer from installing VLTs at Arundel Mills mall.
This issue created real controversy at the end of 2009 when the VLT license was given to the shopping center of Laurel Park, causing many Marylanders to feel duped by the recently passed law that was sold as aid to the racing industry.
Read it at the Baltimore Sun
Then come back to the Paulick Report and let us know what you think
- Bradford Cummings
Tags: Arundel Mills Mall, Baltimore, Baltimore Sun, bradford cummings, Citizens Against Slots at the Mall, Cordish Companies, laurel park, Maryland, Paulick Report, VLT
Posted in Maryland Horse Industry, Slot machines | 12 Comments »
Monday, February 22nd, 2010
Sometimes polls lie, but when they are as lopsided as the recent Siena poll on the Aqueduct racino ’situation’, it’s hard to ignore the results. Only 3% called the contract ‘fair and appropriate’, a third of the voters felt it was ‘politically motivated’ and 64% didn’t have enough information. While that is a large unknown, 33-3 is a blowout under any circumstance. To put it perspective, on the 25th anniversary of his death, 7% of Americans still believed Elvis was alive.
Read it at the New York Daily News
Then come back to the Paulick Report and let us know what you think
- Bradford Cummings
Tags: aqueduct, bradford cummings, Elvis, New York Daily News, Paulick Report, racino, Siena poll
Posted in Slot machines | 1 Comment »
Friday, February 12th, 2010
The following op-ed, written by KEEP Executive Director Patrick Neely, is a well thought out plea for a reconsideration of expanded gaming in Kentucky. Refreshing in its details, it is clear that not only does KEEP want to continue to push for expanded gaming through collaboration but is also open to other ideas to help Kentucky’s signature industry.
- Bradford Cummings
By Patrick Neely
Executive Director, Kentucky Equine Education Project
During the last month, much has been written about expanded gaming in the context of our state budget crisis. Lost in most of the discussion about whether money from expanded gaming should be used to fill budget holes is the simple and sad truth that our signature horse industry is in a rapid state of decline.
It is not disputed, even by opponents of expanded gaming, that competitor states are successfully stealing our industry right out from under our noses. Using money from expanded gaming to significantly boost their purses and breeders’ incentive funds, states like Pennsylvania, Indiana, West Virginia and Louisiana are luring our racehorses and breeding stock out of Kentucky.
When horses leave, jobs go with them. Every horse that lives in the state of Kentucky is like a little factory, a full-blown jobs creator. Every horse requires people to grow their food, give them vet care, transport them, produce and sell tack and other equipment, build their barns and paint their fences, care for them on a day to day basis, shoe them and train them. Most racing and breeding stock also create jobs in the legal, insurance, advertising, and banking fields. Not to mention all of the employees at industry trade publications, sales companies, and of course, Kentucky racetracks. And how about the millions of dollars that come from worldwide tourists who recognize the beauty and attraction of our industry?
It is beyond dispute that tens of thousands of Kentuckians depend on the horse industry to make their living. And without a doubt, those jobs are being lost or moved to other states at an alarming rate.
The most common complaint I hear is that if our industry cannot stand on its own two feet, it does not deserve any special treatment. This would be akin to telling the University of Kentucky that they are not allowed to offer scholarships to their athletes, and then expecting them to “stand on their own two feet” and remain competitive. The simple truth remains—if your competitors are given a significant advantage, it makes it nearly impossible to compete. That is why the industry has been so steadfast in its request for a level competitive playing field.
In the wake of a recent Bluegrass State Poll that showed overwhelming support for putting video lottery terminals (VLTs) at Kentucky racetracks, and similarly showed an overwhelming desire of Kentucky residents to vote on the issue of expanded gaming, it has been suggested that the industry should support Sen. Damon Thayer’s proposed constitutional amendment, which would finally “let the people decide.”
It should first be noted that Sen. Thayer has done much good for Kentucky’s horse industry, including strong support of the Breeders’ Incentive Fund. However, we fundamentally disagree with Sen. Thayer’s approach to this problem. First, an amendment could not be voted on before November. It seems a foregone conclusion that our out of state competitors, who have spent tens of millions of dollars to defeat gaming amendments in other states, would no doubt spend whatever it took to defeat an amendment here in Kentucky. But assuming an amendment would pass, where does that get us?
According to Sen. Thayer’s amendment, the legislature is not required to allow VLTs at racetracks, even if an amendment did pass. It simply gives the legislature the option to do so. In other words, even if an amendment passed, we would be in the exact same place we are right now in 2011, asking the legislature to pass a statute allowing VLTs at Kentucky racetracks. If they won’t pass such a law now, why would they pass it a year from now? We don’t need a referendum to know that Kentuckians support the concept. Poll after poll has demonstrated that a wide majority of Kentuckians believe we should have VLTs at Kentucky tracks. So why not just pass the statute right now?
If the industry were to clear the amendment and legislative hurdles, the Thayer provision then calls for a local referendum to approve VLTs at tracks. If the local referendum passes, then VLTs go out to a bid process that is open to everyone, and the machines do not have to go to racetracks. So a big out of state casino company could open a stand-alone slots facility in the same cities as our racetracks. After the bidding, a license procedure would have to take place, and if New York and Maryland are any example, the bidding and licensure process can last several years. Finally, once all of that is accomplished, the winning bidders would have to build the facilities and get up and running.
Even if the industry cleared every one of those numerous hurdles, the process would quite clearly last several years. The industry cannot wait several years for permission from state government to compete. We are losing horses and jobs today. Timely action is critical.
So where does that leave us? Our industry is willing and anxious to work with our elected officials to arrive at a creative solution. The Speaker of the House has offered an idea that seems to be the right compromise. His plan would allow cities that have racetracks to vote on whether those tracks should be allowed to install VLTs. This proposal should answer most everyone’s objections. The local referendums could take place as soon as this summer, and would be handled in a manner similar to wet/dry alcohol votes. Assuming the measures passed, money could flow to purses, breeders’ incentives and other worthwhile programs in a very short time after that. This proposal should also satisfy those legislators who want to “let the people decide.” Under this scenario, the people who live in communities with racetracks will make the decision whether or not they want VLTs in their communities. This system works for alcohol sales, so why not use it to decide the VLT question?
Another idea is to slightly lower the pari-mutuel tax, and to divert the tax proceeds to purses and breeders’ incentives. Kentucky racetracks are double-taxed on the wagers they receive (pari-mutuel tax and corporate income tax), so if the state wants to continue double-taxing the industry, it would make sense to send some of that tax money back to support the industry. A tax reduction and redirection could save our struggling racetracks a small amount, and could redirect funding into purses and breeders’ programs. That change would not come close to leveling the playing field, but it would be a good start.
Horse owners, breeders, trainers, and racetrack operators are willing to work in a collaborative fashion to solve this monumental crisis in the industry. The only option that is unacceptable is legislative inaction. The future of our signature industry and thousands of Kentucky jobs are at stake.
Tags: Bluegrass State Poll, bradford cummings, damon thayer, Indiana, keep, Kentucky, Louisiana, patrick neely, Paulick Report, Pennsylvania, vlts, West Virginia
Posted in Kentucky, Slot machines | 25 Comments »
Monday, February 8th, 2010
Barry Irwin, the founder and CEO of Team Valor International, has made no secret of his opposition to the racing industry’s reliance on revenue from slot machines or other casino games. The following piece not only cautions pro-slots advocates about the threat of a Trojan horse strategy by gaming companies but suggests racing would be better off in the long run by promoting the sport and not the financial aspects of horse ownership. While his proposals could lead to a reduction in the number of tracks, racing dates and Thoroughbred foals, Irwin says the industry needs to find a viable level at which it can sustain itself. — Ray Paulick
By Barry Irwin
David Greathouse once said to me "We made a big mistake telling people they could make money racing horses."
The "we" referred to by the bloodstock agent and partner in family owned Glencrest Farm of Central Kentucky were those folks that sold a bill of goods to newcomers by telling them that racing was a financially viable pursuit.
Greathouse made a very insightful comment, one that I have reflected upon for the last 3 decades.
As he pointed out, one only has to look at other equine sports to see how they have presented themselves. Trainers of sport horses, dressage horses and show horses rarely if ever promote their sport to participants based on how much money can be made. The ones that do are not around very long.
Yet, by and large, the cost of keeping a three-day event, dressage, jumper or show horse in training is not insignificant. Any parent of a son or daughter with a horse in training at a local riding academy or stable knows precisely what I mean.
Those involved in these disciplines, however, willingly pay the costs because they receive value from the enterprise. That value, in most instances, is not derived from the earning of prize money or the resale of their animals.
Not that these horses lack value. A top dressage horse or jumper or event performer or even a very good child’s pony can be quite valuable in terms of dollars. The best of these animals sell for prices in the hundreds of thousands to the millions of dollars, especially if they are World Equestrian Games or Olympic quality.
But somewhere along the line, marketers of Thoroughbreds shook the genie out of the bottle and promoted their horses as a means by which one could expect to make a buck.
And it wasn’t just the hardboots of Kentucky, the sharp-tongued bloodstock agents in Florida or the fast-talking middle men in California that focused on the dollars.
The scholarly Joe Estes, a staid, analytical and proper gentleman whose bent for statistical analysis made The Blood-Horse the must-read trade magazine of the Thoroughbred industry, in 1948 developed the Average Earnings Index as the measurement by which sires were rated and ranked. It was all based on how much money the offspring of those stallions earned on the racetrack in a given year.
Clever marketers grabbed the ball and ran with it. Racing, a prospective owner could read and see and hear, was a good way to get rich.
For sure, there is money to be made in the Thoroughbred industry. Owners of farms, especially the majors like Coolmore/Ashford, Darley, WinStar and Lane’s End, need to operate on a sound financial basis and they prosper.
Support staff for horses such as trainers, veterinarians, hospitals, rehab facilities, training centers, transportation and insurance companies all make money. Just as they do in all other equine disciplines.
But the people Greathouse was referring to are the consumers of the horses, and the notion that has been floated for the past century in the United States that owners of racehorses are involved in a money-making venture. We would be better off today, he said, if we had never introduced the notion that one should expect a return on investment in a racehorse.
Can and do some owners of racehorses make money?
Of course.
But the percentage is so small that anybody getting into the game must be realistic and understand that these successful owners are the exception, rather than the rule.
If the marketers of racehorses promoted the enterprise based on racing’s intangibles, rather than the tangibles, it would be better for all concerned. Expectations could be better managed and the inevitable turnover rate of owners would decrease. Also, a lot of pressure would be taken off of the marketers themselves.
So if one cannot count on making money by racing horses, where is the value? Where’s the beef!
NO. 1 REASON TO BUY HORSES? THE THRILL OF RACING
I have been forming racing partnerships since 1987, so I have learned a lot about why people want to race horses. Invariably, the prime motivating factor is the prospect of racing a good horse and experiencing all of the magic and excitement that goes along with it.
The thrill of racing is the number one reason why people buy a racehorse. Yes, there is a lot of posturing about wanting to make money and getting the best deal, but mostly, in my experience, those people making this type of chatter feel they must treat it seriously, because they fully realize (consciously or even subconsciously) that they are totally indulging themselves and find a need to justify their purchase of a racehorse.
I know that many reading this will scoff at what they have just read, but I know it to be true in virtually every instance. And here is another reason I know that money is not the primary reason that people buy horses: even if these folks that are so concerned with dollars are offered a reasonable profit, they invariably do not take it. They will come up with any number of sound reasons for not accepting the profit, such as the tax man’s bite or capital gains holding periods. But in reality, they do not sell because they bought the product to consume it, not primarily to profit from it.
For these people, who form the vast majority of racehorse owners throughout the world, the value is not in the vaunted and much ballyhooed ROI, but in the intangibles, such as pride of ownership and race day thrills.
Have I taken the time to write the preceding 1,000 words just to make a point that people buy racehorses just for the excitement of it all?
C’mon … gimme a break! This is just laying the groundwork. Now, here comes the good part.
Racing is at a critical crossroads in its history, much like it was a third of the way through the last century, when horseracing’s very existence was threatened by those seeking to outlaw it.
The pari-mutuel system of betting, despised by those who wanted to bet with bookmakers, changed the entire face of racing and offered a financial boon to troubled states at a time when the nation faced a worse financial crisis than it does now.
Today, three forces threaten to shut racing down or at the very least, reduce it to a pitiful sideshow. The entities are, in no particular order, racetracks, state governments and gaming interests. In some instances, the racetracks and the casino interests work together. In the future, all three have financial reasons to join forces and work against horseracing.
Right now, there are plenty of people inside of horseracing that see the way to stemming the downward slide and growing the sport is to get in bed with the casinos. There already has been enough evidence on record to indicate that the casinos represent a Trojan horse. They want access inside a racetrack in order to gain a foothold, which they can use to entice both the racetrack and the state to eliminate the expense of horseracing.
Horseracing interests have spent entirely too much capital, time and energy trying or getting into bed with interests whose ultimate goal is to snuff out the game.
Given that the people attracted to horse ownership find more value in the sport than the money involved, I would like to suggest that racing consider making two adjustments that can lead it on a different path, one that hopefully can go some way in establishing a more viable future for the game.
PROMOTE THE SPORT, NOT THE FINANCIAL REWARDS
If I am correct in my contention that the sport trumps the dollar, let’s start by reframing the goals of horse ownership by concentrating on promoting the sport and not the financial rewards to newcomers.
Those marketing horses can take a lead from the top racing partnerships like Dogwood, West Point and Team Valor International. When communicating with newcomers, these outfits stress the intangible aspects of the sport and let neophytes know right up front that if they are getting into racing with the expectation of making a fortune, they are being unrealistic.
Believe me, we are selling our sport short if we think that we must rely on greed and the false promise of life-changing riches in order to attract newcomers and keep them. People, guess what? This sport really is this good!
Secondly, and more importantly, if the sport does indeed trump the dollar and purses are not the end all and be all of the game as we have been told, I suggest that it behooves racetracks to stop pursuing partnerships with casinos and return to their original purpose, which is to promote the sport of horse racing.
I think the non-profit racing associations would be more receptive to this concept, as the for-profit groups seem bent on providing the most return to their shareholders no matter how adversely their actions impact horseracing. Some tracks right now act like they would like to stop producing a live sport altogether.
In the final analysis, the only way our game is going to prosper at a high level again is for the sport to thrive, because it is the sport that provides the driving power, not alternative gaming. Casinos are great for racetracks. They are not good for racing. In the short run, horsemen will be compensated. But in the long run, the casinos will drive them out of business.
MAKE PEACE WITH HORSEPLAYERS
Racetracks that want to stay in business should promote racing. Otherwise, they should not apply for a license and go into the casino business and leave racing alone, so that it can find others to promote it that have their heart in it.
High purses are good, but they are not critical. Racing for years has prospered in many locales where prize money has been very low. It is not ideal to have low purses. But one of the reasons racing in America in particular could use a high purse structure is that expenses to have a horse in training are too high. A lower purse structure, however, could have the benefit of giving a break to gamblers that have supported our enterprise for years.
For racing to prosper again, here is what needs to happen:
1. MEDICATION: racetracks need to take charge of all veterinary supplies to gain control over the use and cost, so that the public is better protected from unscrupulous practitioners and owners can have their horses treated by drugs at as close to cost as possible. Vets can make their money diagnosing and treating horses, like human doctors have forever. They should not look for their compensation from middling strapped owners on the difference in the wholesale and retail price of drugs such as GastroGard and hyaluronic acid.
2. FEED: racetracks need to buy the feed and make it available to horsemen at as close to cost as possible to lower the expense to owners.
3. TAKEOUT: it should be reduced on all wagers to 12 percent, with the state getting 2 percent and the horsemen and the track getting 5 percent each. The states have been greedy for too long and they mostly have budgets inflated by expenses for racing commissions that are woefully inept. Horseplayers have carried the game on their backs for far too long and we need to cut them some slack. It is more important to cater to the bettor than to have higher purses.
So by adjusting to lower purses, horsemen can accomplish a lot. They can make peace with horseplayers. They can keep the casino wolf at bay and improve the chances for the longevity of the sport. And they can concentrate on promoting the game, which in the end is the only thing that can offer it salvation.
In conclusion, racing needs to do whatever it can to concentrate on the core activity, which is racing. The sport must be promoted first and foremost. Secondly, the game must realize that contraction is its friend. By reducing the number of horses bred, the number of tracks in operation and the sheer number of races run, the concentration in quality will only aid the game. Bad horses, bad racetracks and lousy races help nobody. There are too damn many tracks that are nothing but an excuse to have simulcasting.
If by having lower purses the result is that the game contracts, so be it. That way, at least we will find a viable level at which the sport can be sustained. The subsidies from gaming are temporary, no matter what the law says, because as we have all seen, when state budgets get low, the legislators simply amend the law and grab what they need.
Racing must change its focus to promote itself, seek its viable level and send out the best product we can to the bettors that support our game. We need a new model. The present one is broken. It is time to get real.
Tags: barry irwin, gaming revenue, Horse Racing, Paulick Report, racehorse ownership, racing partnerships, Ray Paulick, Slot machines, team valor international, vlts
Posted in Medication, Slot machines, Thoroughbred Business, Thoroughbred Ownership | 99 Comments »
Thursday, February 4th, 2010
State Senate GOP leader Dean Skelos was not alone in questioning Gov. David Paterson’s decision to award Aqueduct Entertainment Group the Aqueduct contract. Skelos is now calling for a hearing to uncover the selection process, one that was done behind closed doors.
"The governor’s selection of AEG raises more questions than answers," he said. "After seeing reports about possible political considerations as well as reports that AEG may have been the lowest-rated bidder by the Lottery Division, the public has every reason to be skeptical."
Not knowing the situation as intimately as some, we will not pass judgment on the Governor. But there is certainly no harm in shedding light on the process, regardless of the outcome.
Read it at The Saratogian
Then come back to the Paulick Report and let us know what you think
- Bradford Cummings
Tags: AEG, aqueduct, Aqueduct Entertainment Group, bradford cummings, david paterson, Dean Skelos, Paul Post, Paulick Report, The Saratogian
Posted in New York Racing Association, Slot machines | Comments Off
Wednesday, February 3rd, 2010
After months of back and forth between Republicans in the Senate and Democrats in the House and Governor’s Mansion, the people have finally spoken out on the issue…and they want slots. A new WHAS11/Courier-Journal Bluegrass poll shows that 59% support slots while only 37% oppose them.
This is welcome news for those in the Kentucky Thoroughbred industry. However, it’s not all sunshine here as the poll also indicates 85% in favor of letting the people decide, not the legislature.
Read it at WHAS 11 news
Then come back to the Paulick Report and let us know what you think
- Bradford Cummings
Tags: Bluegrass poll, bradford cummings, Courier-Journal, Democrats, Governor's Mansion, House, kentucky thoroughbred industry, Paulick Report, Republicans, Senate, WHAS11
Posted in Kentucky, Slot machines | 16 Comments »
Tuesday, February 2nd, 2010
In Jeff Scott’s column today in The Saratogian, he tackles the recent selection of the Aqueduct Entertainment Group to install VLT’s at the Queens racetrack. There are still hoops to jump through, perhaps most daunting is the $100 million licensing fee AEG must pay, but Scott brings up another valid point. In all of the sketches, it seems the new look Aqueduct may not exactly be concentrating on the racing side of the track.
As Scott says, there will be bars and restaurants, stores, an entertainment center, conference rooms, a 300-room hotel and seven ‘neighborhoods of VLTs’. And most puzzling, there will also be an ‘internal sustainable rainforest atrium’.
The racing, according to the drawings, seems to be an afterthought. But I suppose there’s good news here. If racing ever becomes extinct, the EPA will save the day. After all, we can’t afford a good rainforest to die.
Read it at The Saratogian
Then come back to the Paulick Report and let us know what you think
- Bradford Cummings
Tags: AEG, Aqueduct Entertainment Group, bradford cummings, EPA, Jeff Scott, Paulick Report, Queens, The Saratogian
Posted in Slot machines | 13 Comments »
Friday, January 22nd, 2010
House Speaker and slots supporter Greg Stumbo has all but declared slots dead in Kentucky. “I really don’t see a scenario where those bills will become an issue in this session,” Stumbo said. “Nothing has changed in the Senate, so why would the House want to act again?”
Click here for the entire article by the Lexington Herald-Leader’s blog
Then come back to the Paulick Report and give us your reaction
- Bradford Cummings
Tags: bradford cummings, greg stumbo, lexington herald-leader, Paulick Report, Senate
Posted in Kentucky, Slot machines | 8 Comments »
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