SLOTS AMENDMENT ‘DEAD ON ARRIVAL’
By Bradford Cummings
Kentucky Republicans connected to the horse industry will find themselves in an interesting predicament next year. The always-pending slots issue has caused much consternation for those of us on the right that see this as an economic development issue and not a moral one. In a state with legal gambling on horse racing, a statewide lottery and an abundance of charitable gaming, the overused/misused word hypocrisy easily comes to mind when considering the social right’s argument.
And yet I have stayed silent on this issue publicly. Until recently, I was the chairman of the Jefferson County Republican Party (Louisville) while also working for the Paulick Report. It was a non-paying 40-hour-a-week volunteer position, and eventually I had to make a business choice and walked away after 16 months served to fully focus on the growth of this website. (Those of you who have served in volunteer political positions can attest it is a love-hate experience if you try to do it right.)
While not the reason I resigned, the slot machine issue is a perfect example of why my career will likely never head back in the direction of party politics. (That sound you just heard was the last shred of my political career flushing down the toilet…I sure hope we can turn the racing industry around!)
Part of the party game, Republican and Democratic, is to create a platform and get the entire machine to walk in the same direction while beating the same drum. I do not say this to disparage the process. To a certain extent, this sort of singular focus is necessary to get anything done politically or otherwise. Have you ever attempted to get a consensus among 30 people, 10 people or even you and your spouse? The concept of majority rules definitely serves its purpose. But it can also be incredibly destructive for those who feel passionately about an important issue.
And this is where I find some sympathy for the likes of state Sen. Damon Thayer, the Georgetown, Ky., Republican who plans to file legislation in support of a constitutional amendment to legalize slot machines at Kentucky racetracks. Damon is a friend of mine and from what I can tell, a good man trying to do right in a difficult position. Anyone who believes his actions are to help himself personally needs to consider a Kentucky state legislator only makes roughly $30,000 a year. I am not sure what his other work pays, but considering his talents and the fact he has a family to feed, the Senate job probably has less short term upside than his Thoroughbred interests.
Philosophically, I agree with the constitutional amendment. On large fundamental issues, the people’s voice should be heard from directly and I assume Damon’s intentions are to find an opportunity to give this issue a proper public hearing. But upon further review and especially with the details of his proposed legislation, I have to admit to being wrong. The statutory path is likely the only one to bring expanded gaming to the Bluegrass State.
Obviously, much of this rides on how the special election for Republican Sen. Dan Kelly’s now vacated seat turns out. The district has a heavy Democratic registration advantage and their candidate, Jodie Haydon, comes from the most populous region within its boundaries. The Republican, Jimmy Higdon, is well liked and will be a strong candidate but comes from a much less populous part of the region. In many ways, this race shapes up to be a mirror of the election this summer that went to Democrat Robin Webb by a slim margin. If history repeats itself, Kentucky will see a Senate that once had a 23 – 15 Republican advantage slip to a 20 – 18 margin (including one Independent caucusing with the Republicans) in little more than a year. With the commitment from Kentucky’s horsemen obvious, a strong case could be made that this slip may lie primarily at the feet of David Williams’ decision to go down swinging on the slots issue.
Assuming the worst for Kentucky Republicans, which is more likely? Republican Tom Buford continues to vote for slots as he did this year and one other Republican is swayed out of fear of an electoral minority after 2010, or an amendment passes by a margin of 23 – 15, meaning that three Democrats throw away the pro-slots momentum their party currently enjoys and allows Republicans to claim a victory for the horse industry? Anyone who believes Democrats will give up that power clearly does not understand the underbelly of the political system.
Additionally, the House would have to find eight more votes than it had this year and again ignore the historical boost of momentum Republicans would earn from this legislation. The Democrats who possess a super-majority in the House would have been more likely to publicly admit voting for John McCain in last year’s Presidential election.
Even more concerning though is the cost a referendum would put on the horse industry. Millions of dollars would have to be spent to win this referendum, millions of dollars many horse industry folks do not have to spend, especially after the performance of Kentucky’s Thoroughbred sales this year. The opposition would be well funded by social conservatives and other lobbying interests who would prefer to see Kentucky without slots. So while the slots issue polls well now, the political climate would be impossible to foretell. As they say, a year equals several lifetimes in politics.
Assuming this process was a success, Thayer’s amendment proposition requires passage of a local referendum in the counties with racetracks. Likely, most counties would agree to the local referendum but another year would pass, putting us into 2012 before slot machines could be seriously considered. That time frame doesn’t take into account the bidding and licensing process. And if my interpretation of the proposed legislation is correct, racetracks may have to compete with other potential gaming outfits to secure the franchise rights, and might end up without VLTs. While money would still be earmarked for purses, the tracks would suffer if that occurred.
But at least you don’t have to worry about that worst-case scenario happening. This would never get out of the Kentucky House. As Senate Democratic leader Ed Worley, it would be “dead on arrival.”
Tags: Brad Cummings, bradford cummings, damon thayer, Dan Kelly, david williams, ed worley, Georgetown KY, Jefferson County Republican Party, Jimmy Higdon, Jodie Haydon, john mccain, Kentucky, kentucky democratic party, kentucky republican party, Louisville, Paulick Report, Republican Party, Slot machines, tom buford
October 27th, 2009 at 6:27 am
Well said
October 27th, 2009 at 8:52 am
Well said but nothing new!
The “BC or Bust” journalistic theme should be: “Why tracks don’t work together.”
The fundraising part is very commendable. I will certainly give back, what I can, to these courageous athletes.
Looking forward to some good stories on how to improve Thoroughbred racing,
on the road to SA.
October 27th, 2009 at 10:28 am
Enough with the slots, already! The reality is that there are MAJOR problems within the horse in horse racing industry that have to be fixed in order to stay viable. What will putting a finger in the dyke solve or the long run?
There are too many races, too many low end tracks, and too many people in the business who should be doing something else. Nobody wants to see half dead claimers flounder around on tracks like Beulah Park for $5,000 purses in the middle of winter. People do want to go to Kenneland where the stands where the reserved seats were sold out on a rainy Saturday.
The primary focus should be getting people back to the track to watch and bet on the horses. When the industry says it needs slots to survive it is saying that they are no longer capable of delivering a quality product. It’s defeatist and an insult to those of us who truly love our sport and have dedicated out lives to it. Let’s use our resources and energy to make the racetrack a great place to watch horseracing!
October 27th, 2009 at 11:40 am
Well said Mac!
October 27th, 2009 at 11:43 am
Brad,
It is a moral question, though not in the way you’re using it. The moral issue is; what moral right does one group of investors (horse owners) have to use government force to expropriate earnings from one set of investors (slot owners - even by proxy thru public corps.) in favor of the other set of investors (horse owners).
Let’s say I set up a slots casino and charged a fee for parking, a fee to enter the casino, sold a sheet of paper with a list of slots machines on it, and then set the takeout at 20+%. How successful would that be. Now I want to use political power the expropriate horse racing handle to subsidize my poor business model. You’d support that, right?
October 27th, 2009 at 11:50 am
Mr. Cummings correctly notes that the process of adding slot machines to racetracks is sure to take several years if the Republican constitutional amendment process is followed. And millions and millions of doallars would be wasted by Christians and know nothings fighting racing lobbies and behind the scenes gambling corporations in an endless stream of televsion commercials to support or defeat such amendments. Why can’t this legislature simply vote? What ought to be is the elected legislators simply square up with the guts to vote for or against a proposition on its merits — rather than slither under the rock of the constittutional amendment proscess (which ought to be reserved for something really serious.)
If people wonder why Washington politicians are reviled, it is partly because those they see on the state level are just as gutless and susceptable to lobbiest’s bribes. Close up they lokk just as bad. One reason the public so dislikes Mr. Williams, I suspect, is he LOOKS and ACTS exactly like what they hate. Same with the rest of the legislature.
Thank you, Nancy P
October 27th, 2009 at 12:18 pm
Nancy P, of course the legislature can vote this issue up or down. Last time, Greg Stumbo pushed through a narrow House victory, with a huge Democrat majority on his side, only after promising nearly a BILLION dollars we don’t have in new spending. Even if the Senate went with slots at tracks, they would demand at least that much for their votes because that’s how the game is played in Frankfort. Why would Senate Republicans fund Democrat House projects without their own projects? THEY WOULDN’T!! Robin Webb, with a huge money advantage, against a rookie Republican, only won by 300 votes with a third party candidate getting a thousand votes and he was anti-slots, so gaming lost that race! What we have is stalemate and without the people voting this issue is going nowhere for quite some time. Book it.
October 27th, 2009 at 1:50 pm
Phil,
Nobody is forcing the tracks to put in slots. Are you simply opposed to any gambling or just gambling that would take money away from the riverboats and riverside casinos?
Frank.
October 27th, 2009 at 2:53 pm
Frank,
I’m not opposed to gambling, I’m opposed to subsidizing an outdated business model, whether it’s horses, cars or derivatives. It’s also about property rights. The investors of the slot machines should own those earnings. Why are horse owners entitled to slot earnings? Also, the subsidies will ensure that the poor business practices continue. It’s time for racing, even though they’re kicking and screaming, to be dragged into the new century. They can start be pricing their product to compete with other gambling and open up to other betting methods. Pari-mutuals are outdated, and French. England and Australia offer the tote, along with bookies and peer-to-peer (exchanges). Only in the Land of the Free, Home of the Brave, are the people not free or brave, at least when it comes to gambling.
October 27th, 2009 at 9:40 pm
MAC says “There are too many races, too many low end tracks, and too many people in the business who should be doing something else. Nobody wants to see half dead claimers flounder around on tracks like Beulah Park for $5,000 purses in the middle of winter. People do want to go to Kenneland where the stands where the reserved seats were sold out on a rainy Saturday.
First, you should go to Beulah to watch some big time Kentucky owner run his $200,000 Kenneland Sept filly in a $6000 MSW at Beulah trying to get a win on her before he sends her off to a $50,000. Stallion……great for the breed.f
What an interesting concept. Therefore minor league baseball and college football should be abolished, because they degrade MLB and the NFL? Only high priced yearlings should be sold…(Taylor made sold 40 for under $10,000 in Kee 9-09.) Racing is more popular in Atlanta and Kansas City and Birmingham because there is no local racing? The Lexington real estate agents are going to stop selling farms to people that don’t breed top quality horses? Only $3.1 Mil yearlings should be allowed to run 5th in a MSW at Keeneland?
Your plan is really well thought out. And in case you haven’t noticed, the boxes and seats at Keeneland (and Churchill) may be sold but the people are absent.
October 28th, 2009 at 9:20 am
Con. Ob. : I agree that slow horses should have a place to run as long as people choose to participate in inferior racing and as long as the racing of all horses is acccomplished off drugs, under tough oversight to prevent abuse and protect the welfare of horses and their jockeys.
October 28th, 2009 at 12:59 pm
We need to concentrate on marketing the top 10% of the sport to the general racing fan just like MLB, NFL, NHL etc only market the top 10% of the athletes that are involved in their sports.
October 28th, 2009 at 1:20 pm
as long as the old guard runs the breeders cup, jockey club and their park avenue offices and the ntra — NOTHING IS GOING TO HAPPEN — this is delusional –