Posts Tagged ‘racinos’
Tuesday, July 21st, 2009
By Ray Paulick
The Paulick Report is giving its first annual Chutzpah Award to Don and Mira Ball of Donamire Farm near Lexington, Ky. The Balls, well, they have the balls to be hosting a fundraising reception at their farm July 28, one week from tonight, “honoring Kentucky’s Senate Republican Caucus and benefiting the Republican Party of Kentucky’s Senate Trust.”
 The Senate Republican Caucus the Balls want us to “honor” is the same one that killed legislation desperately needed by the Kentucky horse industry during a special session of the general assembly last month. Don Ball is a good friend of Senate President David “Blackjack” Williams, who orchestrated the death of House Bill 2, which would have permitted slot machines at racetracks and substantially increased purses. The bill was approved by the House of Representatives but killed by the Republican-controlled Appropriations and Revenue Committee in the Senate, denying it a vote before the full Senate.
Williams is the guy who enjoys visiting casino boats in Indiana and Mississippi, according to numerous sources. We don’t know if Ball likes to gamble on the riverboats or in Las Vegas casinos, but we do know he is adamantly opposed to Kentucky racetracks and horsemen having the ability to compete on a level playing field with tracks in states like Indiana, West Virginia, Pennsylvania, Delaware, Florida, Louisiana, New Mexico, New York, Maryland and others, where slot machines are in operation or have been approved to benefit purses and breeding programs.
And because Don Ball is one of Kentucky’s largest political donors (he and his wife have given $243,317 to state and federal Republican causes since 2002), folks in office tend to listen to him. So in some ways, he may be the person most responsible for killing House Bill 2.
The state’s Republican Party shares in this award, because it had the nerve to send the invitation addressed to “GOP Friends” to numerous people in the Thoroughbred industry. Included in the invitation was an urging to “help us to strengthen the Senate Republican Majority and maintain balance in Frankfort.” Can I get an amen on that?
For $500, you, too, can attend. It may actually be worth the money, just to tell the Balls and the Republican State Senators likely to be there what you thought of their opposition to House Bill 2. To RSVP, contact Brittany Dowell at the Republican Party of Kentucky, at (502) 875-5130, or send her an email at Brittany@rpk.org.
On second thought, why not just call that number and send an email explaining why you won’t be supporting most Republican candidates for Kentucky’s state Senate in the near future—even if you’ve been a lifelong Republican. (Please note: Tom Buford of Nicholasville was the only Senate Republican to support the bill in the A&R Committee vote; he deserves industry support.)
This outrageous invitation comes to Kentucky breeders and owners at a time when they are just learning how much of an economic beating they may be taking in the yearling marketplace. The first day of the Fasig-Tipton Kentucky yearling sale on Monday saw 49% of the yearlings catalogued go unsold as buy-backs or withdrawals. Prices for the horses that sold, despite being buoyed by significant spending from Sheikh Mohammed of Dubai (whose associate bought Fasig-Tipton last year), were down 33.3% in median and 23.8% in average. And it’s only the first inning of a long ball game.
Keep in mind breeders are selling yearlings in 2009 that were conceived through 2007 stud fees based on an “up” market. In many cases, the yearlings were produced from mares purchased by breeders in more bullish times.
But the Balls and their Senate guests at the Donamire shindig probably will be oblivious to the pain many Kentucky breeders are feeling. The Senate Republicans will marvel at the architectural beauty of Donamire and its 13,000-square-foot residence. They’ll wonder how the horse business can possibly be struggling when it has such a beautiful showplace farm. Of course, they’ll have no idea that Donamire is the antithesis of a typical Kentucky Thoroughbred farm that is struggling to get through difficult economic times and facing an even tougher economic climate down the road as the industry continues to be weakened by external forces (i.e., states that can offer higher purses and better breeding incentives through slots revenue).
Donamire Farm and its owners do not depend on a healthy Thoroughbred industry to survive; the farm was funded through the thousands of homes built by their Ball Homes LLC. In fact, some suggest Ball Homes will be even more profitable if the Thoroughbred industry fails and farm land is sold cheaply for residential development.
Now a final word about our Chutzpah Award winners, Don and Mira Ball. They’ve won many other, more prestigious awards for the good work they’ve done in the Central Kentucky community. Mira Ball has been active in supporting higher education, substance abuse programs, Kentucky Educational Television, and medical research, among other endeavors. Don Ball is a former president of the Kentucky Thoroughbred Association and is a director emeritus of that organization. They breed to race and support Kentucky racing that way. They’ve opened their farm to many, many other worthwhile causes and fundraisers over the years.
Don and Mira Ball are not bad people, but when it comes to Kentucky politics and the horse industry, you have to give them credit: they have a lot of chutzpah.
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Tags: ball homes, chutzpah award, david williams, don and mira ball, Don Ball, house bill 2, kentucky republican party, kentucky senate, kentucky slots, mira ball, Paulick Report, racetrack slots, racinos, Ray Paulick, vlts
Posted in People, Regulatory Issues, Slot machines, State Government | 24 Comments »
Thursday, July 2nd, 2009
By Ray Paulick
There were several byproducts of the Kentucky General Assembly’s special session called last month by Gov. Steve Beshear to tackle the state’s budget crisis and consider a bill to allow video lottery terminals or slot machines at racetracks.
One of those was anger, an emotion directed largely at Republicans in the Kentucky Senate who defeated House Bill 2, the VLT legislation that would have leveled the playing field with so many other racing states in the region. Another was a feeling of abandonment by the government at a time when people in various parts of the horse industry are hurting. Yet another was a belief among many that the end is near for Kentucky’s year-round racing circuit, with Ellis Park and Turfway Park the tracks most vulnerable to being closed.
The anger many of us felt in the wake of the defeat of the VLT legislation is perfectly normal. The Republicans, led by the bully of the Senate, David “Blackjack” Williams, are the villains in this saga. Williams, who likes to gamble at casinos in nearby states like Indiana and Mississippi, is one of those politicians who wants to “protect us from ourselves” and legislate morality. But Williams can’t, and hasn’t, stopped countless Kentuckians from driving across bridges into Illinois or Indiana or West Virginia and gambling to the tune of hundreds of millions of dollars a year, or more—to the benefit of horse racing in those states and to the detriment of Kentucky’s signature industry.
He’s enlisted people like Damon Thayer, the “Senator from Scott” who was jeered during a horse industry rally at Keeneland held after the Senate Appropriations & Revenue Committee voted to kill House Bill 2. I’ve known Thayer for more than 20 years, and like him. We’re about as far apart on the political spectrum as two people can be, but we both want to see the horse industry succeed.
I’m amused that Thayer, who comes from a Republican Party that believes government should stay out of people’s lives, feels Frankfort politicians should keep Kentuckians from gambling on slot machines in their home state to the benefit of the horse industry. He would rather raise taxes on (guess what?) other kinds of gambling, including the lottery and horse racing. In a speech on the Senate floor during the special session, Thayer said he favored raising taxes on these other forms of gambling so the horse industry would get temporary, Band-Aid relief. He was simply hawking Blackjack Williams’ alternative to VLTs, and I’m sure Williams will reward him for his loyalty.
I encourage you to view Thayer’s speech, which can be seen by clicking here, and decide for yourself if he is a friend or foe of racing.
The interesting thing about the inability to get more Republicans behind this bill is that so many powerful horse breeders in Kentucky are major contributors to the Republican Party on the federal level. Perhaps there is a disconnect between people like Kentucky Sen. Mitch McConnell, the de facto head of the Republican Party in Kentucky, and Blackjack Williams, the strongman of the state Senate. (Williams, according to many sources, takes his direction from homebuilder Don Ball, who as former head of the Kentucky Thoroughbred Association owes an explanation to the horse industry for his opposition to leveling the playing field with VLTs or slots.)
The feeling of abandonment was countered at that same horse industry rally at Keeneland when more than 20 Republicans and Democrats from the state House and Senate came to show their support to the crowd of about a thousand people. As Keenelend’s Nick Nicholson said, people in the horse industry should know that they have more than a few friends in Frankfort. There seemed to be no quit in those who gathered inside Keeneland’s sale pavilion that night, and let’s hope the enthusiasm they showed can carry forward to 2010 and beyond, if necessary.
The industry didn’t have enough friends, though, and it’s more important now than ever to get involved politically, to contact those Senators and Representatives who voted against House Bill 2 and let them know your feelings but to also contact those who supported the industry and thank them for what they did. Respectfully tell the opponents of the VLT legislation that you will work to replace them with people who are willing to support the horse industry in Frankfort.
Finally, there is the issue of how long this industry can maintain a year-round circuit without the economic necessity of slot machines at the tracks. Racing in Kentucky experienced significant growth during the late 1980s and early to mid 1990s when tracks capitalized on in-state and out-of-state simulcasting, but it’s been stagnant in recent years as other states have improved their purse structure thanks to slots.
Ron Geary, the owner of Ellis Park, has said 2009 would be the Western Kentucky track’s final year, but he’s apparently reconsidered that stand after hearing an appeal from local government officials. It’s a good thing that Turfway Park, which sits on land more valuable for development than for racing, is owned in part by Keeneland. Racing will not thrive at either track until the legislature recognizes the need for help, but perhaps it will survive another year or two.
In the meantime, channel the emotions that came out of this special session in a positive way by supporting those individuals in state government that support our industry. And let’s work to replace those who aren’t willing to give racing the tools it needs to compete. Know who your friends are…and aren’t.
Copyright © 2009, The Paulick Report
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Tags: blackjack williams, damon thayer, david williams, Don Ball, ellis park, house bill 2, Keeneland, kentucky slots, kentucky vlt legislation, mitch mcconnell, nick nicholson, Paulick Report, racinos, Ray Paulick, ron geary, turfway park
Posted in Kentucky, Slot machines | 20 Comments »
Wednesday, June 24th, 2009
By Ray Paulick
Brereton Jones, the former governor of Kentucky and the chairman of the Kentucky Equine Education Project, pulled no punches during a horse industry rally at Keeneland Wednesday night when talking about what derailed House Bill 2, legislation that would have permitted video lottery terminals at state racetracks and enhanced purses. In an obvious reference to Senate President David “Blackjack” Williams, the "anti-gambling" Republican from Burkesville who likes to visit riverboat casinos in neighboring states, Jones talked about how a “third-world dictatorship” killed the legislation in a Senate committee controlled by Williams’ followers. “The only way to get rid of a dictatorship is through a revolution,” Jones said, “and the revolution starts here tonight. We are going to make this happen.”
 That brought the crowd of over 1,000 to their feet in one of many standing ovations during a rally that in some ways demonstrated the resilience, hope and perseverance of horse people. Individuals from virtually all segments of the horse industry attended.
Nick Nicholson, president of Keeneland, served as the emcee of the rally, which was scheduled less than 24 hours earlier in the wake of the defeat of the VLT legislation in the state capital of Frankfort. It began shortly after 7 p.m., when Gov. Steve Beshear and First Lady Jane Beshear arrived to the first standing ovation of the night.
“I know that we’re disappointed in the final result,” Nicholson said about the legislation that was approved by the House before being killed in the Senate Appropriations and Revenue Committee. “We’re angry, scared, and more determined than ever. This industry has more solid friends in Frankfort now than it did a month ago. Let me be real clear, no question about it, no doubt. This fight ain’t over yet. We as an industry are more unified than we have ever been.”
Nicholson introduced Kentucky legislators on hand who were among the horse industry’s friends and supported the VLT bill. Present were House members Rocky Adkins (D-Boyd, Elliott, Lawrence, Rowan Counties); Linda Belcher (D-Bullitt); Leslie Combs (D-Harlan, Letcher, Pike); Robert Damron (D-Fayette, Jessamine); Kelly Flood (D-Fayette); Reginald Meeks (D-Jefferson); David Osborne (R-Jefferson, Oldham); Sannie Overly (D-Bath, Bourbon, Fayette, Nicholas); Ruth Ann Palumbo (D-Fayette); John Will Stacy (D-Menifee, Morgan Rowan and Wolfe); John Tilley (D-Christian, Trigg); and Susan Westrom (D-Fayette).
Supporters on hand from the Kentucky Senate were: Walter Blevins Jr. (D-Boyd, Elliot, Fleming, Lawrence, Rowan); Tom Buford (R-Boyle, Fayette, Garrard, Jessamine); Perry Clark (D-Jefferson); Denise Harper Angel (D-Jefferson), Gerald Neal (D-Jefferson); Joey Pendleton (D-Christian, Logan, Todd); Kathy Stein (D-Fayette); Johnny Ray Turner (D- Breathitt, Floyd, Knott, Letcher); and Ed Worley (D-Lincoln, Madison, Rockcastle).
Nicholson also thanked House Speaker Greg Stumbo and Speaker Pro Tem Larry Clark, co-sponsors of the bill. Neither was able to attend the rally.
 One local politician who wasn’t mentioned by name but was referred to several times as the “Senator from Scott” (county) was Republican Damon Thayer, a horse industry consultant and former Breeders’ Cup and Turfway Park executive who has been the point person for the horse industry on legislation in Frankfort but has been silent on the issue of VLTs or slots. Thayer is not a member of the A&R Committee that killed the VLT bill, but today on the Senate floor he reportedly said Beshear and anyone else who wants to support the horse industry should get behind an alternate bill proposed by Williams that would divert funds toward purses through a tax on the state lottery, out of state wagers on Kentucky races, and charitable gaming. Those comments angered Senate minority leader Ed Worley, who gave an impassioned speech on the floor of the Senate criticizing Thayer and others who said Beshear doesn’t support the horse industry. In that speech, which was shown on video at the horse industry rally, Worley challenged those who criticized Beshear to come to Keeneland Wednesday night and hear first-hand from members of the horse industry.
Worley was then introduced at the rally and began his brief talk by asking, “Would the senator from Scott please stand up?” a comment that brought derisive laughter from the standing room only audience. Thayer apparently was not present.
“You do not deserve people who represent districts with horse tracks and horse farms, if they vote against the horse industry. You need to remember them on election day,” Worley said.
Patrick Neely, the executive director of KEEP, was even more blunt in his remarks to the crowd. “Elections matter,” Neely said. “We cannot forget that Alice Forgy Kerr–whose district is home to so many horse farms and to Keeneland—voted no. Only Tom Buford (the lone Republican supporter on the A&R Committee) had the courage to vote yes,” a comment that brought the crowd to its feet with thunderous applause. Another Republican supporter, Rep. David Osborne, was cited as evidence that the VLT legislation was not a partisan bill.
Beshear said he felt if the VLT bill had gotten a chance for an up-or-down vote on the Senate floor, it had a good chance to be approved. “Some of these senators are now looking for cover,” Beshear said. “They’ve thrown out some quick proposals. The senator from Scott (Thayer) said we could even take the money out of the general fund. My friends, they are looking for cover, and I’m telling you: Don’t let ‘em find that cover.”
Now that Ohio appears to have racetrack slots on a fast track to passage, Beshear said Kentuckians will be “educating Ohio’s kids, building Ohio’s roads,” by gambling at Ohio casinos, just as they’ve been doing at Indiana casino boats. “It’s time we kept that money at home to help our people,” he said.
“Tonight is not an ending,” Beshear added. “It’s a beginning of a campaign that’s not going to quit until we have done our job to save our beloved horse industry.”
It’s time to do one of two things, Beshear said. “Change some of the state senators’ minds, or we’ve got to change some of the state senators. Over the next 18 months, let’s get this done.”
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Tags: A&R committee, Appropriations and Revenue Committee, brereton jones, damon thayer, david osborne, david williams, denise harper angel, ed worley, flt legislation, gerald neal, greg stumbo, house bill 2, jane beshear, joey pendleton, john tilley, john will stacy, johnny ray turner, kathy stein, Keeneland, kelly flood, kentucky equine education project, larry clark, leslie combs, linda belcher, nick nicholson, patrick neely, Paulick Report, perry clark, racinos, Ray Paulick, reginald meeks, robert damron, rocky adkins, ruth ann palumbo, sannie overly, steve beshear, susan westrom, tom burford, walter blevins jr.
Posted in Keeneland, Kentucky, Slot machines | 23 Comments »
Monday, June 22nd, 2009
By Ray Paulick
Monday was a sad day in Kentucky for the Thoroughbred horse industry. It wasn’t a great day for democracy, either.
A Senate committee stacked with Republican followers of Senate President David “Blackjack” Williams voted 10-5 not to allow the full Senate to consider VLT legislation designed to close Kentucky’s budget deficit, improve education, and allow the horse industry to compete with other states in the region that have slot machines. The House passed the bill last week under the direction of Speaker Greg Stumbo, but the Senate committee vote went along party lines, with nine of 10 Republicans voting to kill the bill. Four of five Democrats supported it, with one abstaning. (Click here for a live blog including the votes by each Senator.)
Williams, who likes to play blackjack at Indiana and Mississippi riverboats but for some reason opposes Kentuckians gambling in their own state, brought a smokescreen strategy to the special session called by ineffectual Democratic Gov. Steve Beshear. That strategy included a tax-and-spend proposal passed by the Republican-controlled Senate but which never had a chance of getting approved by the Democratic-controlled House. The smokescreen strategy allowed Williams’ Republican yes men/women to say they tried to help the horse industry by voting for the Williams proposal. It would have raised taxes on the lottery, charitable gambling and out of state bets on Kentucky races and provide money for purses and breeders’ incentives. (The out-of-state betting tax increase was a preposterous idea, since out of state tracks would have simply dropped the Kentucky signal on tracks like Turfway and Ellis Park and done more damage than good.)
Some of the Republicans who voted no on the issue probably were representing the strong moral beliefs of their constituents. But others who voted no, specifically the Lexington/Fayette County Senator, Alice Forgy Kerr, were sending a clear message to people in the horse industry that they do not matter.
Kerr is said to be very chummy with Mira Ball, who with homebuilding husband Don Ball is one of the largest contributors to Republican campaign coffers. The widespread belief of many in the horse industry is that the Balls and their Ball Homes want to see the horse industry fail, and the price of Central Kentucky acreage drop so they can build more tract housing. Don Ball and David Williams are closely allied in their opposition to gambling…at least by other people.
The Kentucky Equine Education Project or affiliated political fund-raising groups must now turn their attention to people like Kerr and other elected officials in Kentucky who can be defeated in future elections by well-funded opponents who truly want to help the horse industry.
If Williams was the bully of this aborted effort by the horse industry to level the playing field with other states, Gov. Steve Beshear was the 98-pound weakling. He blew his opportunity in January 2008 to push the same legislation after winning election in a landslide over Republican Ernie Fletcher. And when he called the special session and put the VLT legislation on the agenda, Beshear failed to do what effective politicians do instinctively: call their friends and make sure you’ve got their support, and call your opponents and tell them in no uncertain terms why they need to be with you.
Another politician missing in action on this bill was Sen. Damon Thayer, a Republican who is a consultant in the Thoroughbred industry and is a former executive at Turfway Park and the Breeders’ Cup. Thayer, who like any member of the state GOP who wants committee appointments has to fall in line with Williams, was silent on the slots issue. He isn’t a member of the Appropriations and Revenue Committee, but he could have influenced a more positive outcome and didn’t. Thayer never came out with a position on the bill, to my knowledge.
What happens next? There is only a glimmer of hope that some parliamentary procedures can bring the bill to a vote in the full Senate during this special session. Beyond that, we are looking at the January 2010 legislative session.
The problem is that, by then, Ellis Park will have had a disastrous summer meeting, and Turfway Park will be in a much less competitive position than they are now. The prospects of Kentucky losing its year-round circuit are real. The loss of breeding stock to other states or Canadian provinces is real. The summer and fall yearling sales will be down anywhere from 25%-40%, and the breeding stock will match that or worse.
The downward spiral of Kentucky’s horse business, as Keeneland’s Nick Nicholson pointed out in the Senate hearing, has come faster and harder than anyone could have predicted. And I hate to say this, but it’s not going to get any better without real legislative action.
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Tags: alice forgy kerr, ball homes, damon thayer, david williams, Don Ball, greg stumbo, house bill 2, kentucky equine education project, kentucky slots, mira ball, nick nicholson, Paulick Report, racinos, Ray Paulick, steve beshear
Posted in Kentucky, Slot machines | 58 Comments »
Monday, June 22nd, 2009
UPDATE: The Kentucky Senate’s Appropriations and Revenue Committee rejected VLT legislation by a 10-5 vote on Monday night. The vote went pretty much along party lines, with Sen. Tom Buford the only one of 10 Republicans present voting yes to send the bill to the Senate floor. Four of the five Democrats on the committee voted yes, with one abstaining.
Below is a live blog of the hearing….
After the Kentucky House of Representatives passed video lottery terminal legislation on Friday, the Senate’s Appropriations and Revenue Committee will give the bill a hearing late Monday afternoon. Ray Paulick is on the scene at the Kentucky Capitol in Frankfort and will provide up-to-the-minute coverage.
4:45 p.m. … The committee room was packed with people from the horse industry, but those without seats were told they would have to leave and move to adjacent room. Apparently, the Kentucky Senators may have feared an uprising.
4:50 p.m. … The hearing is called to order by Sen.Charlie Borders,the committee chairman who says opponents and proponents of House Bill 2 (VLT legislation) will each have up to an hour to provide testimony. He dismissed the notion that the bill would not get a fair hearing. He introduces Nick Nicholson of Keeneland, who begins by saying that he knew the bill would have a fair hearing because he knows the principals involved. Nicholson says the industry faces a problem not because of anything that’s happened in Kentucky, but because of what’s happening in competing states that have moved to offering slot machines. Eleven of 12 of Kentucky’s most compoetitive states offer alternative gaming at racetracks, Nicholson said, but the next time he testifies it will be 12 of 12 if Ohio goes in that direction, which Gov. Strickland said is now a necessity.
4:58 p.m. … Six casinos along the Kentucky border had a net win of $1.44 billion in 2008, Nicholson said. "I do know that hundreds and hundreds of millions of dollars of that $1.44 billion are hemorrhaging from Kentucky into Indiana," Nicholson said.
5:00 p.m. …. Nicholson tells the panel that Kentucky’s horse breeders are the best in the world and that they are doing their job in producing the world’s best horses. "We aren’t going away tomorrow," he said. But Nicholson added that what is in crisis is Kentucky’s year-round racing circuit. He said the downhill slide of the racing problem has come more quickly than expected. We didn’t think Churchill Downs would have to cancel one day of race a year, he said. "We thought we had more time." What’s changed the dynamic and caused the decline to happen more quickly than expected, was the bump in purses at Indiana racetracks, the increases in purses in Pennylvania and West Virginia, and the addition of a new track, Presque Isle Downs.
5:05 p.m. … Nicholson called the existing proposal "more moderate, more termparate," saying that the expansion of gambling would not be geographical. "I think it gives us the tools as an industry to compete with other states….We are asking you to give us the tools that our competitors have been given by their state government."
5:10 p.m. … In the absence of House Speaker Greg Stumbo, Nicholson walked through the legislation and the differences between Stumbo’s version and the language proposed by Kentucky Gov. Steve Beshear. Among the differences, it’s worth noting, is that Stumbo’s version requires tracks to maintain the same number of racing dates they currently have. Stumbo’s version also charges a higher licensing fee to the various tracks, over $500 milliion to paid to the state over five years, versus $360 million in Beshear’s version.
"All 138 members of the legislature without exception want to help the horse industry," Borders said. He then referenced the "alternate" legislation proposed by Senate President David Williams that passed out of the Senate last week. That measure, obviously, was meant to be a pre-emptive measure to slow the momentum of the VLT legislation.
5:15 p.m. … Question time. Vice chair Bob Leeper wants to know if the projections were made before the financial markets meltdown of last September and suggests that casino gambling has taken it on the chin since then. Turfway Park’s Bob Elliston replies that "racinos" (racetrack casinos) have shown increases since then, going against the grain of standalone casinos.
5: 35 p.m. … Sen. Shaughnessy comments about the horse industry finally being together on the issue, saying that was far from the case when slots proposals first surfaced in the capital in the 1990s. "I like the way you introduced this," Shaughnessy told Nicholson. Other industries have come to the capital for a bailout, he said, "but all you are asking for are resources to help make you competitive." He asks if the additional gaming will make it easier to market the overall racino experience, and be more than just a revenue enhancer. Tough question for Nicholson, since Keeneland is not planning to add VLTs to its racetrack and instead will share revenue from the Red Mile. "There are many, many disadvantages to being the last state to do this," Nicholson said. He added that being last does have the advantage of allowing Kentucky to see how other states have used the racinos to their benefit.
5:40 p.m. … Sen. McGaha gets a laugh from the audience when he said he’s in a hurry and demands "yes or no" answers from the slots proponents. First he asked Ron Geary of Ellis Park if he plans to run the original number of dates Ellis Park was given or the reduced number they now plan to run this year. Geary starts to give an answer that doesn’t start with "yes" or "no," then McGahah shouts "yes or no.," Geary says "yes," then McGaha says "Yes what?" I’m beginning to worry that the issue may be too complicated for some of these legislators.
5:55 p.m. … In closing, Sen. Borders reiterates his believe that every Kentucky legislator wants to helpo the horse industry, but then tips his own vote by saying, "We believe there is already a measure out there that does that. (the Williams alternate plan that taxes the lottery and out of state wagering on Kentucky racing."
The anti-gambling folks are next.
6:00 p.m. David Edmunds of the Family Foundation begins by complaining that Nick Nicholson’s PowerPoint presentation is getting stale. He also doesn’t think the VLT is constitutional, reading from Section 226 of the Kentucky Constitution. He evokes the name of Bernie Madoff in saying his type of pyramid scheme is unconstitutional under Kentucky law. How reassuring.
Edmunds continues to teach the legislature a history and civics lesson….talking about the founding fathers and the evil of lotteries and horse racing. He also said House Speaker Greg Stumbo is very bad at bad.
6:10 p.m. … Edmunds quoted from several published reports saying the Kentucky horse industry is doinig well, with great attendance at major events like the Kentucky Oaks and Derby, and even quoted from Churchill Downs CEO Bob Evans’ report to the shareholders at the company’s annual meeting, saying he had a bullish outlook for the company.
A number of senators have walked out on Edmunds’ presenation, and can’t say I blame them. Edmunds is providing statistics compiled by people who have been educated at Harvard and MIT…that’s sure to impress some of these senators. His biggest concern seems to be an increase in the suicide rate if VLTs are allowed (oh, wait, they already allowed, just not in Kentucky). That’s the last straw: Edmunds tells us that the definition of insanity is doing the samme thing and expecting different results. No, Mr. Edmunds, you are the definition of insanity.
Next witness, please!
Sen. Shaughnessy ridicules Edmunds’ accusations that the state lottery is a "blood-sucking vampire." He then reminds Edmunds that he supports Williams’ bill to tax the lottery further as means to increase purses at racetracks. Edmunds stutters and hems and haws and then mercifully is done.
6:35 p.m. … House Speaker Stumbo enters the room..,..apparently the House has adjourned for the day.
6: 40 p.m. … The next witness (whose name I did not catch) slams the Herald-Leader for its accuracy and then cites a Herald-Leader story questioning the number of jobs the horse industry says it contributes to Kentucky’s economy. He then says the horse industry doesn’t spend enough money promoting itself and said Churchill Downs should have gone to night racing years ago when baseball and football went to night games. "Welcome to the modern world," he said.
6:45 p.m. Before the head of the charitable gaming association speaks, chairman Borders recognizes House Speaker Stumbo and tells him the pro-VLT legislation team did "an adequate job" presenting their position. When riverboat casinos began in Indiana, charities on the north side of the state suffered a loss in players, Ron Morris of the charitable gaming association said. He said other developments such as anti-smoking laws have also hurt charitable gaming.
6:50 p.m. … Sen. Boswell moved to pass House Bill 2 to the Senate floor without comment. Chairman Borders said the motion was out of order but would be honored in a few minutes. That woke a few people up.
6:55 p.m. … One last speaker on the opposition side represents CAGE (Citizens Against Gambling Expansion). The spokesman for the group said people will be sold into bondage to slot machines in order to support racetracks in Kentucky, that they will spend hundreds of millions of their own money, and money they steal from their employers and credit card companies.
7:00 p.m. … Sen Boswell’s motion is made to pass the bill without expression (meaning no support or opposition stated).
Boswell votes yes, but gives a lengthy explanation as to why he supports the legislation Buford votes yes but wants a local-option amendment to be added on the floor of the Senate.Sen. Angel also votes yes, saying her 81-year-old father is a retired trainer, and she also represents the district where Churchill Downs sits. Yesterday, Angel, said she heard from many constituents by email saying the people want a floor vote on the senate.
Harris votes no, saying the Senate has already passed a bill that protects the horse racing industry through improved purses and breeders’ incentives. "I’m also concerned that the (VLT projections) just don’t work," Harris said.
"This is a tough vote," says Sen. Kerr of Lexington. "I too feel that we have proposals on the table that could help the horse industry without damaging our most vulnerable decisions." Her vote will be a "no."
Wingnut Sen. McGaha says a yes vote for the bill is a vote for suicides and employee theft. Certainly the most rational explanation I heard during the hearing.
Sen. Shaughnessy complained before his yes vote that the committee did not represent a fair hearing, in large part because the committee is stacked disproportionately with Republicans. Shaughnessy said Senate rules call for committees to be divided between Democrats and Republicans along the ratio of their seats in the Senate. Democrats have 40% of the Senate seats but half that on the A&R Committee, he said.
7:15 p.m. … Let’s cut right to it. After a computer failure at just the wrong time, I can report that the measure failed to get the committee support and will not be sent to the full Senate. Voting no were Sens. Borders, Leeper, Harris, Kelly, Kerr, McGaha, Smith, Stivers, Tapp, and Tori.. Voting yes were Boswell, Buford, Angel, Pendleton and Shaughnessy.Sen. Palmer abstained and Westwood was absent.
The room cleared quickly, many of the people from the horse industry leaving with long, sad faces. One horse owner, Jack Smith, shouted in the direction of Republican Sen. Damon Thayer, "You will never get another penny of support from me," Smith told Thayer, who is a consultant to the horse industry and a former Breeders’ Cup and Turfway Park executive. Thayer called the remark inappropriate and said he was not a member of the committee that rejected the slots bill. Thayer never came out in support of the bill, either. And for a senator who claims to be the Thoroughbred industry’s point man on Kentucky legislation, that speaks volumes.
That’s it from the live blog
Tags: A & R committee, Appropriations and Revenue Committee, Kentucky, kentucky horse industry, nick nicholson, Paulick Report, racinos, Ray Paulick, slots
Posted in Kentucky, Slot machines | 40 Comments »
Sunday, June 21st, 2009
Glencrest Farm is a family operation in the purest sense of the term. American as apple pie. Established by John Greathouse Sr. more than 50 years ago, Glencrest today is run by four sons, John, David, Allen and Edward, and the two daughters of John and Mary Allen Greathouse, Nancy and Margaret, also have played a significant part in the operation over the years. The next generation of Greathouses is preparing to carry on into the future. Click here to read a profile about Glencrest, published in the Blood-Horse and entitled "A Family Tradition."
That tradition is threatened today by a struggling Kentucky racing industry that is unable to compete on a level playing field with other states that have allowed racetracks to expand their wagering menus to include slot machines and other casino games. The breeding industry is suffering as a result. The news in the past several days that Ohio’s governor will seek to add slot machines to racetracks in the Buckeye State will only make the situation more grave.
John Greathouse Jr. has written the following open letter to David Williams, the Republican president of the Kentucky Senate who said he does not want Kentucky tracks to have Video Lottery Terminals (VLTs) or slots. A VLT bill passed the Kentucky House on Friday but Williams has said a Senate Committee will kill the bill on Monday.
Time is of the essence Please write to Williams (click here for contact information) and tell him your thoughts on the subject and include either a link to John Greathouse’s letter or cut and paste the letter along with your remarks. Also, you can click here to send an email to all Kentucky Senators. — Ray Paulick
An open letter to Senator Williams
Senator Williams
My name is John Greathouse, co-owner of Glencrest Farm, a family farm just outside of Midway, Kentucky. My brothers, David, Teddy, Allen and I own just over 800 acres where we raise cattle, tobacco, hay, corn and yes thoroughbred horses. To an outside developer this land may be worth many millions in terms of potential. To the people that work and live on the farm, it’s a way of life not commensurate with the development potential. We enjoy what we do and want to continue to do so. It’s a working farm that supported many in our family for over 50 years. We have several young Greathouses that are being trained to fill in our footsteps in the coming years. It’s also the livelihood of the thirty or so people that work there and need to keep their jobs also.
I have been a Republican all my life. I am fairly conservative and that’s the way I vote. Reagan, the Bushes, Fletcher and you have all had a chance at one time or another to help this profession. All said NO! Now my Democratic friends shake their collective heads and ask why I vote the way I do. "Vote for your pocketbook, John," they say! To this point I have stayed the course.
Senator Williams, are you familiar with Pascal’s Wager? It’s a wager with unlimited upside but no downside. That’s what we have here with the expanded gaming bill. Unlimited upside and NO DOWNSIDE. The money is currently leaving the State, so please try not to tell us people can’t afford to gamble!
Senator Williams, you should recuse yourself from these proceedings. You have been influenced by outside forces. This State stands to lo se not only its flagship industry, but its international, worldwide identity.
Do the right thing please. Kentucky needs it, the thoroughbred industry needs it, my family and our workforce need it.
John Greathouse Jr
Glencrest Farm
P.O. Box 4468
Midway, Kentucky 40347
859-233-7032
Tags: david williams, glencrest farm, John Greathouse, kentucky horse industry, kentucky slots, kentucky thoroughbred industry, Paulick Report, racinos, Ray Paulick, video lottery terminals, vlts
Posted in Kentucky, Slot machines, Thoroughbred Business | 31 Comments »
Friday, June 19th, 2009
By Ray Paulick
UPDATE: Frankfort insiders say that the A & R Senate Committee will not meet until Monday and Senate President Williams will allow the bill to be heard. Interested parties will have the weekend and Monday morning to contact their Senators.
If the bill to approve video lottery terminals for Kentucky racetracks passes the state’s House of Representatives during the special session on Friday, the next battleground will likely be the Senate’s Appropriations and Revenue Committee later in the day. That’s the most likely scenario for the bill, the Paulick Report has learned from sources. Republican Senate president David Williams, an opponent of the bill, is expected to send it to the A & R Committee with the likelihood that it will be killed under the chairmanship of northeast Kentucky Republican Charlie Borders.
Interested parties are encouraged to personally attend the Senate committee meeting.
If you are unable to attend and want your opinion to be heard on the issue, call members of the committee to tell them where you stand. Click here for a list of members of the Senate A & R Committee. Once on the page, click on the names of the individual members to get contact information.
Here is the list of A & R Committee members in the Senate with their Capitol Annex phone numbers/extensions:
Charlie Borders (R): (502) 564-8100 Ext. 676 Sen. Bob Leeper (I) (vice chair):(502) 564-8100 Ext. 712
Sen. David E. Boswell (D): (502) 564-8100 Ext. 662
Sen. Tom Buford (R): (502) 564-8100 Ext. 610
Sen. Denise Harper Angel (D): (502) 564-8100 Ext. 633
Sen. Ernie Harris (R): (502) 564-8100 Ext. 605
Sen. Dan Kelly (R): (502) 564-2450
Sen. Alice Forgy Kerr (R): (502) 564-8100 Ext. 625
Sen. Vernie McGaha (R): (502) 564-8100 Ext. 656
Sen. R.J. Palmer (D): (502) 564-8100 Ext. 714
Sen. Joey Pendleton (D): (502) 564-8100 Ext. 622
Sen. Tim Shaughnessy (D): (502) 564-8100 Ext. 621
Sen. Brandon Smith (R): (502) 564-8100 Ext. 661
Sen. Robert Stivers (R): (502) 564-8100 Ext. 623
Sen. Gary Tapp (R): (502) 564-8100 Ext. 648
Sen. Elizabeth Tori (R): (502) 564-8100 Ext. 645
Sen. Jack Westwood (R): (502) 564-8100 Ext. 615
Tags: charlie borders, david williams, kentucky legislature, kentucky slots, kentucky special session, Paulick Report, racinos, Ray Paulick, vlts
Posted in Kentucky, Slot machines | 20 Comments »
Sunday, June 14th, 2009
On the eve of the Kentucky General Assembly’s special session, the Paulick Report received the following article, one that takes a look into the future of a Bluegrass State without a horse industry, something many thought was the birthright of a generation. It was written by Murray D. West, a family physician based in Kentucky’s Bourbon County who has a lifetime involvement with Thoroughbreds. West came to Kentucky from British Columbia, Canada, in 1981 after working at tracks in Vancouver. He has been involved as an owner, breeder (he bred Grade 1 winner Freedom Cry) and, briefly, as trainer. West has written two books on racing, "Dreams of Roses" and "The Challenge Cup."
West’s story is fictional, but anyone who understands the current trends of the Kentucky horse industry knows it might not be that far from the truth. — Ray Paulick
* * *
By Murray D. West
“What used to be here, grandpa?” the young man quietly asked the old fellow. “Why is this stone fence here? It seems to have no apparent purpose, just meandering from here to there, disappearing for a distance, only to reappear further on down the way. It’s a beautiful old fence but it seems out of place here. Mighty strange.”
The old man looked wistfully along the limestone barricade, his tired eyes coming to rest upon two stone pillars, once a welcoming portal of entry to a grand vista, now leading nowhere, serving only to remind of a another time. Now beyond this fence, as far as the eye could see, lay the monotony of rooftops row upon row, masses of houses without distinction, without character.
“Once, years ago…an age ago…this used to be a grand farm, son. All this land, so much land it would take two hours of hard drivin’ to drive from one side to the other…all farm land. And glorious farms they were, mind you, with manicured pastures stretchin’ to the horizon, with mile after mile of black rail fencin’ followin’ the rollin’ contour of pristine land, disappearin’ over the hill just like a railway track winds ‘round a bend, reappearin’ on the next rise. And horses, magnificent Thoroughbreds, sometimes twenty, thirty or more in a field, buckin’ and kickin’, frolickin’ and racin’ just for the sheer joy of being alive in such a place. Oh my, the majesty of those times. It was so very special, son…so very special.”
“If it was so special, gramps, why didn’t it survive? Why isn’t it still here today? Seems to me that something that wonderful shouldn’t disappear. Seems to me like it should stay forever. Least, that’s how I see it.”
Grandpa placed his hand on the young man’s shoulder. “I surely can’t disagree with you about that, my young man. You’d think anythin’ so fine would be cherished and protected like a national treasure. Come to think of it, that’s pretty much what the Bluegrass country was at one time. Mile upon mile of beautiful, productive horse farms, tens of thousands of acres of nutrient-laden soil, enriched by water rising from the deep limestone springs that flourish beneath this land. Thoroughbred nursery’s in numbers too great to count, stretchin’ from Paris in Bourbon County to Versailles and Midway in Woodford County, from Georgetown in Scott County to the hills of Clark and Jessamine, all this Bluegrass land surroundin’ the pulsatin’ heart of it all in Fayette County. There was a time that men and women, horse people, came from ‘round the world just to be a small part of this wondrous place, many returnin’ year after year as if on an annual trek to some sacred shrine or holy land. I know that to be true. I know it ‘cause before I decided to make my home here I was one of those who made that very pilgrimage.”
They walked slowly along the ancient stone wall, sometimes up close and touching then at times admiring from a distance, even the years of neglect not enough to hide the skill of those masons who had created this masterpiece of craftsmanship. The old man stopped to rest and leaned a fatigued old body against the tired and even older bulwark. “Why in that time the horse sales at Keeneland and Fasig-Tipton would go on for days, even weeks, as the finest Thoroughbred horseflesh in the world went to auction. Upon this stage would proudly stand the most desirable bloodlines to be found on this earth, prancin’ and rearin’ and twirlin’ in anxious circles as the auctioneer would sing his spellbindin’ song, with million dollar horses at one time so commonplace as to be almost an afterthought. Everybody was here, from oil rich Middle East sheikhs arrivin’ in their jumbo jets, to small-time cowboys from out West travelin’ half-way ‘cross the country with their two-horse trailers. There was a niche in the market for everybody and they all came, everybody trying their darndest to catch the big horse, to find the next Derby or Oaks winner. Yes sir, this was where it all happened for many, many years…for a century and more. Those were wonderful times, excitin’ times just to be a tiny part of, but…but all gone now…all gone…”
The young man stood beside his grandfather as they looked across the stone wall, turned to him and laid his hand across his weathered back. “Are you okay, gramps? You seem pretty, well…upset. Is everything okay?”
The old gent looked down and moved away from his grandson, again starting to slowly walk along the wall. “I’m okay son. I just feel kind of poorly whenever I think about all this. I feel so sad about what we lost…so angry that the people couldn’t understand what they had…how very unique and grand it all was. And I feel so damned guilty that it was my generation that let it happen, that it happened in my time, and that I wasn’t able to do anythin’ to stop it.” He closed his eyes and his aged mind transported him back to that era. “We had a wonderland, this Bluegrass of Central Kentucky, a piece of heaven that was the envy of the horse world. You could ask anybody from anywhere…and I mean anywhere…about Kentucky, what it was most identified with, and one word came to mind, one word that exemplified what Kentucky stood for…horses! Beautiful Thoroughbred horses…the very best!
“Oh, the local citizens acted so proud of it all when their guests would come to visit. They would drive their visitors around the countryside, proudly showin’ them all the magnificent farms, takin’ them on tours to see and have their photos taken with the very finest stallions, magnificent beasts often housed in palatial barns that by comparison put most homes to shame, and all the while these folks would carry on, braggin’ about this being the horse capital of the world! Heck, most folks at that time acted like all these farms were their birthright, that they existed for their pleasure and convenience. At moments like that they all seemed to be so proud of it, seemed to understand what they had, how fortunate they were,” he said softly, then paused for a moment, “but they didn’t understand…not at all. They took it all for granted, is what they did. Figured it had always been here and always would. They wouldn’t listen when the economy got real tough and the horse industry was especially hard hit and the horse people started to have big problems. Wouldn’t listen as these horse folks cried out for assistance, as they tried to explain how it was becomin’ so bad that the very future of the horse industry in Kentucky was threatened. These same horsemen tried to tell of some concessions, some urgent legislation, required for Kentucky to remain on top, assistance required to keep them on a level playin’ field with other states.
“Here again, though, the average citizen had this misconception about horse people…figured they were all rich, didn’t believe their call for assistance, figured that they could fend for themselves. They reasoned these farms had always been here and couldn’t conceive that they might ever be gone.” He turned to look at his grandson. “Now those same folks forgot that about 150,000 people made their livelihood from these farms and from the horses that were bred and raised on this land. They forgot that runnin’ these farms, lookin’ after these horses while keepin’ it all looking like a national park, costs a heap of money…a whole heap of money. How can you forgive folks takin’ such a gift for granted, takin’ it so much for granted that it becomes neglected, that it’s allowed to slip away…forever? Beyond me, son…beyond me.”
“Gramps, I’m still very confused. If it was all so beautiful as you say…and if all the people cared for it so much…what happened? Why was it allowed to disappear? That doesn’t make sense to me at all. If I had something so special, something so wonderful as you say, I’d sure be doing everything I could to look after it, to preserve it and protect it.”
“The horse people tried, son. They tried, but they couldn’t make the average citizen realize how dire things were…until it was just too late. You see, there was a time, many, many years ago…really just before and around the time I was born…when horse racing was king! Used to be tens of thousands of folks attended the races every day. Hell fire, on weekends it was nothing to have fifty thousand show up for a major race at any one of numerous tracks around the country. Things began to change, though, when television came along and with time racing became less popular with the general population. There became more and more competition for horse racing, more opportunities for people to spend their entertainment dollar and, if you believe the historians, racing failed to recognize the threat and did a poor job of promotin’ itself to the public. As a result there became fewer arenas of racing that were strong until finally, in the midst of a declinin’ number of strugglin’ race tracks all around the country, there were only a few pockets where racin’ really thrived. For a while none could compare with our racing in Kentucky…not New York, not California…nowhere. Churchill had the Oaks and the Derby, and Keeneland was…well, Keeneland was simply heaven on earth for those who cherished the horse.
“Around the turn of this century things got really bad. The economy in general took a real nasty turn, a terrible recession, and this coincided with a time when the horse industry was facin’ even more problems, especially with the emergence of major competition from casino gamblin’…from slot machines! The situation was especially bad in Kentucky. Casinos opened up in neighborin’ states, often at racetracks, and soon the people of Kentucky were goin’ to other states to gamble on the slots ‘cause the powers that be in our state couldn’t recognize the wisdom of havin’ slots right here, blind to the needs of the horse industry…blind to the importance of horse racin’ and breedin’ to our state…and ignorant to the revenue such slots would return to the state in the form of taxes. Now that attitude, that oversight, was terrible for the Kentucky horsemen because folks only have so much money to gamble and, if they do it somewhere else, well, they can’t do it here. When the gamblin’ goes down at a racetrack the purses are quick to follow, then goes the quality of racin’ and it sure isn’t too long before the breedin’ follows suit. To add further to this misery, a large part of the money gambled in those other states was gambled in slot machines which were set up on the racetrack facilities. For every dollar wagered on the slots the state government got a big hunk in taxes but the tracks also got a share, a smaller portion for supervisin’ the slots and puttin’ on the show. Well, the government of those states took that money, Kentucky money…money they earned from Kentuckians who were forced to another state to exercise their prerogative to gamble…and used it to improve their schools, improve their roads, improve their social systems, and in general used the money wagered by Kentuckians to assist the people of their state.”
The young man stopped walking and looked to his grandfather. “Seems to me like the citizens of Kentucky could have used that money just as well. Why not have slots at the tracks in our state?”
“A lot of people agreed with your line of thinkin’, my young man. But unfortunately there were very outspoken opponents of slots in this state, opponents with political clout. Beats me why some folks think they can dictate to others what they may or may not do, but there you have it. So, to carry on, what do you think the racetracks in those other states did with all the money they made from those slot machines? Never mind, I’ll tell you. They poured it back into their horse industry and the most important thing they did in that regard was to make that money available for purses, bigger purses for the horse people of their state to race for. Now, let me ask you. Let’s imagine you had a racehorse and you wanted to run him. Let’s suppose the amount of money you could win for your race in Kentucky was $12,000 but just across the border in Indiana you could win $15,000, or a little further away in Pennsylvania you could win $20,000. Now, if you owned such a horse, just where would you race him?”
“No brainer, gramps. I’d run in Pennsylvania if I could. I’d be crazy not to do that!”
“Exactly. And that’s just what happened to the horse industry in Kentucky. All the neighborin’ states with horse racin’ were getting’ these slot machines and the tracks were makin’ a great amount of money from them…now remember of course, not near so much as the taxes earned by the government of each state, but still a bundle of money…and the tracks were steadily increasin’ their purse money for the horses. It wasn’t too long before many of the horsemen from Kentucky started racin’ in these other states…and who could blame them? With the reduction in purse money at Kentucky tracks came smaller fields and poorer horses, the result bein’ that wagerin’ further decreased, and the cycle continued. The tracks made less and less money, the purses got smaller and smaller, until pretty soon nobody wanted to race here in Kentucky. With incentives for breedin’ developin’ in other states soon one, then another, big stallion started movin’ away from the Kentucky stud farms until finally there was an exodus of stallions out of our state to other states rich with lucrative breedin’ programs. With the studs go the mares and it wasn’t long before farms were going out of business, ultimately sold to folks who had no interest at all in racin’…didn’t give a damn about history and horses. Just interested in makin’ the most money they could from this now plentiful, and available, farm land. The beautiful barns were torn down, fencin’ was ripped away, and most of the stone walls destroyed, with just the odd one left for show…like this fine fence before us. Truth be known, for old timers like myself such structures mostly serve now as a painful reminder of a better time. Well, you can see for yourself the end result right here where we stand. The famous bluegrass pastures became overrun, not with beautiful mares and foals as before, but with intolerable housin’ subdivisions. It all happened so quickly, almost silently, that it was over before you knew it. And now it’s just a memory…gone forever.”
“Damn gramps, I just don’t understand! It seems so simple. Why didn’t Kentucky bring slot machines to their racetracks so the citizens of this state could benefit and the horse industry could compete with the surrounding states which had racetrack casinos? Just how blind were they? If they’d done that simple thing it seems to me to we’d have had the best of both worlds. The state would benefit greatly with increased taxes, the citizens would benefit from all the improved programs that tax money would bring, and the horse industry would have continued to thrive, and today we’d still have those grand farms, we’d still be the center of the horse industry…still the horse capital of the world!”
“We tried son. We tried. Somehow, though, the folks in Frankfort always found somethin’ more important to argue about than the problems of the horse people. Somehow the needs of the horse industry were always placed on the back burner, on the list to be discussed at the next session…or the next…well, you get the idea. Finally it was too late. We were too far behind, the industry had moved away, the farm land was sold off…and it was forever over as we once knew it. What a bloody tragedy. Nothing short of a terrible, bloody, avoidable tragedy!”
“Gramps. I never realized this before but I was cheated, robbed of a vital part of my heritage, by the ignorance of the people of this state! How could the people have allowed that to happen? I don’t understand how they could be so damned blind!”
“Neither do I son…neither do I!”
* * *
The Kentucky Equine Education Project has called for Kentucky’s horse industry to rally in support of legislation in the Capitol Rotunda in Frankfort, Ky., on Wednesday, June 17, at 10 a.m. Individuals in the horse industry are urged to attend, but to call in advance and schedule meetings with their state Senators and Representatives. Click here to determine who represents your interests in Frankfort.
Tags: kentucky horse industry, kentucky special session, Murray D. West, Paulick Report, racinos, Ray Paulick, slots at racetrack, vlt legislations, vlts
Posted in Kentucky, Slot machines, Thoroughbred Business | 16 Comments »
Friday, June 12th, 2009
Trainer Bob Baffert, elected to the National Museum of Racing Hall of Fame this year, is a native of Arizona who bases his multiple Eclipse Award-winning stable in Southern California. But he’s no stranger to Kentucky, having won the Kentucky Derby three times in addition to the Kentucky Oaks, the Blue Grass Stakes at Keeneland and many other races at Kentucky racetracks. His longtime client, Mike Pegram, got his start in racing by attending Ellis Park in western Kentucky. Pegram is among many clients that Baffert has represented while spending millions of dollars on Kentucky-bred yearlings and 2-year-olds in training at sales in the Bluegrass State over the past 20 years.
Because of his concerns for the current state and the downward direction of Kentucky’s Thoroughbred industry, Baffert wrote the following letter, sending it to Gov. Steve Beshear, all members of the Kentucky state Senate and a number of state Representatives. He told the Paulick Report he was not solicited by any individual or organization to write the letter, but approved our request to republish it here. – Ray Paulick
* * *
I am a Thoroughbred horse trainer. I don’t live in Kentucky, but I spend a good amount of time in your fine state throughout the year and it’s here where I have enjoyed some of the proudest, grandest moments of my life. As I watch racing in your state diminish, I am appalled at the lack of interest or concern on the part of legislators in the Bluegrass…the "Horse Capital" of the world.
This is an industry that generates over four billion dollars to your state and brings in another nine billion dollars in tourism. That’s not including the hundreds of millions of dollars from the Kentucky Horse Park and events such as the Kentucky Derby. Racing in your state directly or indirectly employs more than a hundred thousand workers. That translates into hundreds of thousands of people and their families who depend on it for a living. Over the past several years, I have seen many of our wealthiest horse owners leave my home state of California for the bluegrass of Kentucky. They bring to the Commonwealth a multitude of resources. How can you allow an industry of this magnitude to fail?
The world is ever-changing. Horse racing is no exception. What once worked for an industry must be tweaked or, in some cases, totally revamped. Alternative gaming (i.e. slots) in neighboring states is killing racing in Kentucky. That is fact. Millions of dollars are being spent in areas, which, in many cases, are just a stone’s throw away from Kentucky soil. While there is much work to be done within our industry, you and your fellow lawmakers have the power to give it a fighting chance. As stewards of the state’s economy, it is your duty. Horse racing has been too good to Kentucky for you to turn a blind eye to its plight.
Time is of the essence. If the legislature doesn’t act swiftly, Kentucky will not resemble the state you or your children grew up in. Pristine horse property will be abandoned, or worse yet, replaced by concrete. Once viable, thriving communities will shrink or vanish as their economies disappear. The state will find itself supporting many of the hundred thousand hard working men and women who will be left with no way to support their families. Public works projects will suffer as tax dollars wither away. And then there’s the challenge of caring for the three hundred twenty thousand displaced race horses. Have any ideas?
Rich in history and steeped in tradition, Kentucky has long been the bastion of Thoroughbred racing in America. It should be looked upon not only with a sense of pride, but as a vital and irreplaceable staple of your economy. Racing is not asking for a handout, but simply the tools to compete in a changing, highly competitive market. Your state’s signature industry is fighting for its survival. What are you going to do to help?
Respectfully,
Bob Baffert
Arcadia, CA
Tags: Bob Baffert, churchill downs, ellisl park, Horse Racing, Keeneland, kentucky derby, kentucky horse industry, kentucky's signature industry, mike pegram, Paulick Report, racinos, Ray Paulick, Slot machines, steve beshear, vlts
Posted in Kentucky, Slot machines, Thoroughbred Business | 39 Comments »
Thursday, June 11th, 2009
There is no question Kentucky’s horse industry is in crisis, and the special legislative session called by Gov. Steve Beshear and beginning Monday, June 15, may be the most critical five days ever seen by the Bluegrass State’s horse farmers and all others whose businesses and the livelihoods for their families are dependent on a healthy horse industry. If a proposal to allow Kentucky racetracks to level the playing field with other racing states by installing Video Lottery Terminals is not passed, there could be dire consequences for businesses and families across the state in the very near future.
Many legislators from across the state may not fully understand the impact the horse industry has on Kentucky’s economy. The round numbers - more than 100,000 jobs and billions of dollars in direct economic impact - only tell part of the story. Next Wednesday’s horse industry rally in the state capital of Frankfort organized by the Kentucky Equine Education Project will be an important show of support for the legislation, and I hope everyone will participate in that. But there is more that you can do.
If you’re a Kentuckian or operate a horse-related business in the state, please take a few minutes to fill out a brief fact sheet about your company, and fax or mail it to Gov. Beshear, House Speaker Greg Stumbo, Senate President David Williams and your local elected officials. They will appreciate and benefit from knowing about that business and the impact it has on Kentucky’s economy.(Click here if you need help finding the state representative or senator in your district).
You can access the fact sheet by clicking here. It is suggested you print the sheet out on your company’s letterhead before filling it out. .
I encourage all of Kentucky’s horse-related businesses to participate: stallion stations, boarding farms, training centers, racetracks, tack shops and supply stores, veterinarians and equine hospitals,bloodstock agencies, auction consignors and sale companies, insurance agents, publications, advertising agencies, anyone whose business involves horses. To help get this message out even further, please send either the link to this story or a copy of the PDF fact sheet to other horse-related companies you do business with in Kentucky.
Contact information:
Gov Steve Beshear
700 Capitol Avenue, Suite 100
Frankfort, KY 40601
Tel: 502.564.2611
Fax: 502.564.2517
Sen. President David Williams
702 Capitol Avenue, Annex Room 236
Frankfort, KY 40601
Tel: 502.564.3120
Fax: 502.564.0456
House Speaker Greg Stumbo
702 Capitol Avenue, Annex Room 303
Frankfort, KY 40601
Tel: 502.564.2363
Fax: 502.564.7178
Tags: david williams, greg stumbo, horse industry economic impact, keep, kentucky equine education project, kentucky horse industry, kentucky horse industry crisis, Paulick Report, racinos, Ray Paulick, slots, steve beshear, thoroughbred racing and breeding, vlt legislation
Posted in Kentucky, Slot machines, Thoroughbred Business | 16 Comments »
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