Posts Tagged ‘vlts’
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 »
Monday, January 11th, 2010
A bill proposed by Democrat Frank Turner would reduce the percentage of proceeds set aside for slots to go to purses from 5.5% to 2%, capping supplements at $50 million.
Of course, this deceit would be easier to take if it were going to a great cause, but instead it is just to increase the Maryland lottery’s share for running the VLTs. Certainly, the lottery deserves compensation for its duties in this matter but that money is already built into the legislation that has already passed. Why would Turner be looking for more money to go in that direction?
Click here for the full article
Then come back to the Paulick Report and let us know what you think.
- Bradford Cummings
Tags: bradford cummings, Frank Turner, Maryland Jockey Club, maryland slots, Paulick Report, vlts
Posted in Maryland Horse Industry, Maryland Jockey Club, Slot machines | 15 Comments »
Thursday, October 8th, 2009
By Ray Paulick
I’m not sure how often Kentucky’s Senate president, David “Blackjack” Williams of Burkesville, finds his way into Louisville, but I’ve got some good news for him when he does visit the home town of Churchill Downs and the Kentucky Derby.
 It was something I learned from an advertising billboard while passing through the Louisville International Airport last week. (I suspect Williams travels by private plane, and he may have missed the sign.) According to the ad, the Harrah’s Horseshoe Casino in Southern Indiana offers “better action than Vegas,” but the really good news for Williams is that its location is just “20 minutes from downtown Louisville.” The Horseshoe has another sign at the airport urging visitors to “make a legendary visit” to the casino (Hey, why not? It’s only 20 minutes away!). That’s an in-your-face insult to Churchill Downs, which bills itself through corporate branding and marketing as the “world’s most legendary racetrack.”
Williams understands in-your-face messages. It was just over a month ago, when speaking to a Rotary Club in Louisville, that he said “the folks that lead Churchill Downs now are not racing people, they’re slot machine people.”
Williams is the 800-pound gorilla in Frankfort who for years has used his influence and power as the Senate president to block legislation aimed at revitalizing the Thoroughbred industry by allowing racetracks to install VLTs. He’s opposed to the legislation, he says, because he is trying to protect Kentuckians from the ravages of evil gambling, something he apparently likes doing himself. (By the way, on that note, Williams should come clean, and tell the people of Kentucky just how much time he may spend in out-of-state casinos, which casinos he may have visited, and whether or not he receives any “comps” from those casinos. He has denied receiving money from casinos to oppose gambling legislation in Kentucky, but he hasn’t denied receiving the kind of “comps” that many casinos give to their best customers.)
 During that same Rotary Club talk in early September, Williams said it wasn’t the people in his home district of Burkesville (population 1,756, located near the Tennessee border west of the Daniel Boone National Forest) he was trying to protect, that it was the citizens of Louisville. Yes, those same citizens who now are spending millions of dollars across the river in Indiana every year at places like the Horseshoe Casino. If Williams really wanted to protect them, he might consider blowing up the bridges that span the Ohio River separating Kentucky from Indiana.
On a related note, a few months ago, someone used the social networking site FACEBOOK to bring together people with a common interest, namely to "Get David Williams Out of the Kentucky Senate." There now are at least 1,800 members of this group who say they are "dedicated to defeating David Williams in any election from this day forward and taking any power that he now has in this state." Click here if you are interested in joining the group and supporting the cause.
Copyright © 2009, The Paulick Report
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Tags: churchill downs, harrah's, horseshoe casino, kentucky racing and breeding, Louisville, Paulick Report, Ray Paulick, sen. david williams, vlt legislation, vlts
Posted in Churchill Downs Inc., Kentucky, Slot machines | 39 Comments »
Tuesday, September 22nd, 2009
By Ray Paulick
I’m one of those folks who like to bet on horses. During my infrequent trips to Las Vegas, the only gambling I do is at the race books. I’ve gone to riverboat casinos, gambling barges, slots parlors at racinos, poker rooms and Native American tribal lands that offer casino gambling simply to get an idea of what the places are like, the kind of crowds they attract, and what type of competition horse racing faces. I’ve never dropped a penny, nickel, dime or quarter into a slot machine, or even bought a lottery ticket. Those things just don’t interest me.
In a perfect world defined by me, people would still have to travel to Las Vegas or Atlantic City to get their gambling jollies. That’s the way it was until April 1, 1991, when the state of Iowa—not exactly known as a gambling mecca—opened the floodgates and launched America’s first state-sanctioned floating casino onto the Mississippi River. It’s taken less than 20 years since then for the landscape of our country to dramatically change.
Where are we today? Eighteen of the largest 20 metropolitan areas of the United States are within a three-hour drive of a slot machine or blackjack table, the lone exceptions being Atlanta and Dallas-Ft. Worth. During a summer cross-country drive, I was stunned at the places that now offer gambling, either through casinos legalized by the state or on Indian reservations made through state compacts in the wake of the federal Indian Gaming Regulatory Act of 1988. It made me feel like a stranger in a strange land.
All of this new competition has had an enormous effect on horse racing. Many state legislatures have recognized the competitive imbalance the racing industry faced and enacted measures to “level the playing field.†In most cases, those measures allowed tracks to install Video Lottery Terminals, or slot machines, the most popular form of casino gambling. Those are the “have†states in horse racing: places like Iowa, Delaware, West Virginia, Indiana, Louisiana, New Mexico, Pennsylvania, Oklahoma, Florida, New York and Maryland either have or will have slot machines for an additional revenue stream divided among state government, racetracks and horsemen.
The racing states without these additional forms of revenue, the “have nots,†have suffered: Kentucky, California and Illinois, to name a few. Residents of California have numerous Indian casinos with thousands of slot machines to siphon off potential horse racing gamblers. Illinois has casino “boats†throughout the state. Kentuckians have plenty of gambling choices, too, via a short drive across the state line into Indiana, Illinois or West Virginia. In Kentucky’s case, it’s not only hurt racing, but the breeding industry at its foundation, along with the state budget and the many programs that are in need.
Because of the massive expansion of gambling, VLTs, slot machines or casino wagering has become an economic necessity for racetracks across America (an enlightened Canadian government long ago gave the Ontario Jockey Club the right to compete with casinos at Woodbine). It’s not something I really want to see or particularly enjoy; in my world, racing would be able to survive on its own. But guess what? It’s not my world.
Critics have said slot machines are just a Band-Aid to what ails the sport—and it’s hard to argue that point. But aren’t Band-Aids used to prevent patients from bleeding to death while doctors try to heal the wound? I suggest this industry will bleed to death in some states, including Kentucky, without this help.
Others who oppose the legalization of slot machines say racetrack management is not to be trusted, another good point, given the fact that many tracks are now owned by publicly traded casino companies whose sole interest in racing is in its key to unlocking the casino door. That’s why the late President Ronald Reagan often repeated the phrase “trust, but verify,†when dealing with countries that had a different agenda or priority than ours. In other words, horsemen must be vigilant in dealing with legislators and regulators, get things in writing, and leave nothing to trust.
What’s been missing from the debate in Kentucky over slot machines is a vision for the future of the racing and breeding industry. How will racetracks use their newfound revenue to heal a bleeding patient? Are higher purses all that’s needed, or will tracks be required to invest in marketing the sport of racing, or to modernize their facilities? Will horsemen and tracks work together to readdress a business model that isn’t working, or to lower the takeout and make the game more affordable and attractive to gamblers who have more wagering options than ever before?
The enlightening commentary by Bill Farish of Lane’s End Farm published yesterday demonstrated the resolve that most in Kentucky’s Thoroughbred industry now have to overcome the politics that have prevented a leveling of the playing field with tracks in other states. What’s needed now is a comprehensive plan for how this proposed new revenue would make this sport one on which more fans will want to bet.
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Tags: Band-Aid, Bill Farish, casino boats, Kentucky, Lane's End, Ontario Jockey Club, Paulick Report, Ray Paulick, slots, vlts
Posted in Kentucky, Slot machines | 35 Comments »
Monday, September 21st, 2009
Two months ago, the Paulick Report featured the headline REPUBLICANS VS. REPUBLICANS regarding the 527 group started by Will Farish of Lane’s End and Bill Casner of WinStar Farm. Despite both being prominent and generous donors to the Republican Party nationally and locally, they found themselves strange bedfellows with Kentucky Democrats as they helped Robin Webb squeak past Jack Ditty in a State Senate special election in late August.
What created this unusual alliance? Kentucky Republican leadership has decided to champion the anti-slots viewpoint and subsequently leave Kentucky breeders, owners and racetracks at a disadvantage to neighboring states like Indiana and West Virginia. Bill Farish, the son of Will Farish and the chairman of the Breeders’ Cup and former personal aide to George Bush Sr., makes the case that Senate Leader David Williams and others are not pitting Republicans against Democrats but instead pitting Republicans against Republicans in the ultimate display of “eating your own.”
His accurate statement that the industry has never been more united and his call for bipartisanship among Republicans, Democrats and Independents is an earnest effort toward giving the Kentucky Thoroughbred industry equal footing with those in other states.The Paulick Report hope his editorial does not fall on deaf ears. - Bradford Cummings
By Bill Farish
For almost two decades, Kentuckians have been debating the merits of expanded gaming.  As our signature racing and breeding industries have become increasingly threatened by our neighboring states, who use revenue from gaming to substantially increase race purses and breeders incentive funds, Kentucky residents have responded with a near unanimous belief that we must do everything possible to protect Kentucky’s horse industry, and the 100,000 jobs that go with it.
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A recent statewide poll indicated that nearly 70 percent of Kentuckians support putting video lottery terminals (VLTs) at Kentucky racetracks.  That such a large majority of Kentucky residents would agree on what had been a controversial issue is striking, and speaks to our collective belief that Kentucky’s racing and breeding industries should be put on a level competitive playing field.
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Sadly, those who oppose VLTs at racetracks, and who have clearly lost in the court of public opinion, have decided to engage in cynical rhetoric meant to divide our state instead of uniting it.
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Senate President David Williams has made it clear that he intends to make protecting our signature industry a partisan issue. Â After making a promise to every Kentuckian that the issue would receive a fair hearing in the Senate, Sen. Williams sent it to a committee where the chairman declared it dead before even hearing testimony. Â Imagine going on trial and the judge declares you guilty before your lawyer even makes an opening statement. Â Would you consider that a fair hearing? Â
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Now, in an effort to inject partisan politics into the discussion, Sen. Williams has attacked Gov. Beshear and other Democrats for “poisoning the well†in Frankfort.  Sen. Williams also seems to suggest that Republicans should oppose VLTs at racetracks as a tenet of our political philosophy.  As a life-long Republican, and a member of a Kentucky family that has worked on behalf of the Republican Party and Republican administrations, I can say without reservation that protecting our signature industry is not a partisan issue.  In fact, the Republican Party should be standing up for Kentucky businesses, Kentucky jobs, and a free market environment that would allow Kentuckians to fairly compete with their out of state competitors. Due to Sen. Williams’ utter mismanagement, this issue now pits Republicans against Republicans, not Republicans against Democrats, as he would have us believe.
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Sen. Williams and several members of his caucus are currently advocating that the government should stand in the way of our signature industry, and prevent it from being able to compete.  Government interference with Kentucky businesses and job creation does not sound like a Republican philosophy I am familiar with.  But regardless, saving 100,000 jobs and the industry that identifies our state all over the world does not rest in the domain of any political party. It should be the stated goal of all Kentuckians—regardless of political registration.
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The other strategy currently being employed is similarly distressing.  Opponents have decided that the best way to defeat VLTs at racetracks is to pit horse owners and breeders against racetracks.  By suggesting that racetracks are greedy corporations that don’t care about our horse industry, our opponents lay bare their belief that our industry must be divided in order to be defeated.  In ramping up his rhetoric, Sen. Williams has made it clear that he intends to demonize Kentucky racetracks at every turn.
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The horse industry is as united as it has never been in the past. Â Opponents of VLTs have always relied on our discord to defeat the efforts to compete on a level playing field. Â Now that the industry has formed a united front, opponents seek to break us apart again. Â They will be unsuccessful in their efforts to do so. Â Kentucky breeders recognize that we must have a healthy horse economy in this state in order to run successful breeding operations. Â A healthy horse economy includes buyers willing to invest in our product and take their investment to the racetracks in the hopes of recouping their investment. Owners recognize that they need healthy racetracks offering good purses, so that they can attempt to win back some of their initial investment. Â Racetrack operators understand that they need breeders to produce and owners to race their horses at their tracks.
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We are all in this together, and the attempt to break us into factions is disheartening.  A fractured industry cannot survive, and a failed horse industry would be catastrophic for Kentucky’s economy.  Sadly, Sen. Williams seems less concerned about helping our industry, and more concerned about maintaining control over his Senate fiefdom.  Â
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However, as a new legislative session approaches, we will stand together, Republicans and Democrats, owners, trainers, breeders, racetracks, and the 100,000 Kentuckians who rely on the horse industry to make a living. Â We will continue to hold our elected officials accountable, and we will not stop working until our state government gets out of the way and allows us to have the tools necessary to compete.
Tags: Bill Casner, Bill Farish, bradford cummings, david williams, Expanded Gaming, gov. beshear, kentucky horse industry, Kentucky Thoroughbreds, Lane's End, Paulick Report, Ray Paulick, vlts
Posted in Industry, Industry Reform, Slot machines | 18 Comments »
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.
Copyright © 2009, The Paulick Report
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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 »
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 »
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