Future of Ontario Racing Industry Hinges on Tuesday Vote

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Many members of Ontario’s horse industry are looking at tomorrow’s vote on a budget proposal from Premier Dalton McGuinty and Finance Minister Dwight Duncan as a do-or-die moment for their business.

It’s pretty simple. If the budget by the ruling Liberal Party is passed, the Ontario Lottery and Gaming Corporation’s Slots At Racetracks program is dead, effective in 2013. If the Liberals fail to get a majority vote (and they have 52 members of the 107-member parliament, excluding the House Speaker, with 37 in the Progressive Conservative Party, and 17 in the New Democratic Party), a new parliamentary election will be triggered, allowing those with investments or jobs in the horse industry to cling to the hope that recent decisions to end the Slots At Racetracks program may be overturned.

If the budget fails to pass, an election for a new government is likely to be held May 24. The current parliament was elected last Oct. 6.

Horsemen are hoping for a budget stalemate, but McGuinty and Andrea Horwath, the leader of the even more liberal New Democratic Party, have been holding 11th-hour talks to forge an agreement before Tuesday’s deadline. The Liberals need at least two votes from the NDP to get the budget deal done.

Both Liberals and New Democratic Party members are fine with ending the Slots At Racetracks program, or at least going back to square one to negotiate a new agreement. McGuinty and the Ontario Lottery and Gaming Corporation are confident that taking slots out of racetracks and opening multiple casinos in more densely populated portions of Ontario will result in far greater revenue to government programs.

Horsemen are hoping that a new election could bring back to power the Progressive Conservative Party, which originally approved the slots program in the late 1990s.

Since then, Ontario’s horse business has been strong, but the loss of revenue from the Slots At Racetracks program could deal a devastating blow to tracks, owners, and breeders and the estimated 60,000 direct and indirect jobs the industry sustains throughout the province.

Many of those jobs are in rural sections of Ontario, where the Liberal Party and New Democratic Party are not popular.

Woodbine racetrack was on life support when slots were introduced in 2000. Since then, the Woodbine Entertainment Group has poured millions of dollars into purses and upgrades to the racing and gaming facility that in many ways is a model for how the marriage of pari-mutuel and casino gambling can work.

Since the introduction of Slots At Racetracks, breeders awards in Ontario have more than doubled to $3.2 million in 2011. The foal crop, while declining in North America by 35% from 2000-2012, has grown by 15% over that same period, from 1,138 registered Ontario foals to 1,314 (in 2010). The percentage of North American foals born in Ontario has grown from 3.1% to 4.4%. Average book size per stallion has also risen, indicating an increasingly higher quality of sires to stand in the province.

It’s safe to say all those numbers will begin to plummet, almost immediately, if the budget that includes the termination of the Slots At Racetracks program is passed.

The end of that program is not the sticking point between the two parties seeking a budget compromise by Tuesday. What’s holding up the deal, according to published reports, is the NDP’s insistence on a surtax on incomes above $500,000 annually, something McGuinty adamantly opposes.

The horse industry has been well organized through the Ontario Horse Racing Industry Association (click here for more information) in fighting this potentially devastating loss of revenue. But the leaders of the Ontario Lottery and Gaming Corporation and the Liberal Party clearly don’t see the benefit of the tens of thousands of jobs the horse industry creates and sustains. They also don’t see the inequity of how the horse industry started out as a willing partner in the expansion of gaming, but are now in jeopardy of being squeezed out of existence by greed and politics.

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  • Al

     The budget will pass. Some assistance will be provided by the gov’t.

  • brussellky

    Woodbine should be fine regardless as they will likely end up with one of the destination casinos.  Ft. Erie and the smaller harness tracks will likely die however.

  • pete v

    Word just in from the Toronto Star…Liberals agree to surcharge tax on the rich to get NDP’s Party’s support for their budget…It’s a sorry day for Ontario’s horse racing industry!!  There is note of some compensation to the horse racing industry….

  • http://twitter.com/YYZGUY1 Wayne Neuten

    The McGuinty Liberals have progressively ruined the Ontario economy with their beyond stupid policies. The decimation of the horse racing industry in Ontario fits the pattern of greed without consideration of the consequences. 

    Only when this group of politicians is out of office will the corruption behind these decisions become evident. Follow the money, from US casino companies to the pockets of liberal hacks. 

  • Victoria Jensen

    Woodbine racetrack was on life support when slots were introduced in 2000.

    It was 1998, not 2000. David Wilmot was wise in negotiating back then w/ the OLG.  Slots were enevitable.  He chose to put the hen in the henhouse and it has worked quite well.

  • McGov

    The NDP was always going to pass this budget…they just want to exploit their unique position as far as is possible.  They are not accustomed to being in this seat.
    There is a push to privatize some slots at racetrack locations, Fort Erie being one of them, but it seems that Fort Erie is running out of time on this issue.  For some reason, there is an urgency to remove the slots at Fort Erie by the end of the month.
    I wonder why there is a rush in Fort Erie, the home town of PC leader Hudak, to remove the slots before a proper business plan has been presented to the OLG regarding a private group takeover.
    In the province of Ontario, the agenda of the Liberals is missing a few puzzle pieces.

  • John

    close wood bine horse and casino its run by over paid morons .the govenment should clean house ,all theprofit if any is going 2 the CEOS /

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