Burgess: Reinstate SARP

Well let me start by saying thank you Mr.Burgess for your
straight shooting and no nonsense picture of what has happened
and the devistation that lies ahead if something doesn't
happen soon to stop this insanity.
A quick response to Karen Duck,I fully agree that Mr.Burgess has
what we need right now to spearhead a movement to stop this until
a full and proper study of this is done and in the meantime
return SARP to the race tracks.
I for one would like to say that I'm willing to pledge my
support any way possible.It has always been my opinion that the
people in this industry are caring,supportive,hard working and
resiliant people.I for one do not want a year from now to be
saying I shoulda,woulda coulda to myself.
Has it ever occured to anyone why if the building of new casinos
was such a prosperous investment why the OLG and the liberals
never used the existing casinos profits to try and boost their
case.Why because much like the casinos in the U.S. they are losing
money,and now they want to build more here in Ontario.
Unemployment and the overall state of the economy has more to
do with the demise of free standing casinos.Trying to destroy the
horse racing industry is not going to bring more people into
these casinos when people are already struggling.Slot machines
taking in 10%-20% more on live racing dates should point to the
fact that casino expansion at existing race tracks makes more
sense than new casinos.
Will your right that a certain percentage of the dollars wagered
does go to the purse,however Will from this purse money comes
our expenses too,expenses such as vet bills,feed bills,shoeing bills,
hay and straw bills,equipment bills,transportation costs,insurance
bills and those are just some of the costs involved with the horse
then there are the horse people and families as well.
With all do respect Will if this insane effort to destroy the horse
industry is not stopped,you may find yourself sitting in front of
a slot machine,but it won't be at a race track most likely. Will
your right the prize money to the team and players of the superbowl
does not come from major league baseball,but consider this;every
players association of every major sport when negotiating contracts
have faught hard for their share of revenue dollars.Now isn't that
what SARP is and has it not benefited not only the racing industry
but also the people of Ontario including those that never even go
to the races.Education and hospitalization among other programs have
been the recipiants of SARP monies.Will there are some things that
may possibly improve the overall atmosphere at our tracks,such as
just off the top of my head grand circuit weeks,perhaps meeting the
drivers before or after races like the hambo does,hanover is hosting
a match race soon,but it takes track owners too to help make this happen.
However please understand Will,this is a fight for peoples lives and
livelyhoods.

Good for Mr Burgess.....and Glen Bechtel. But who is listening? Is anybody home? I'm getting no response to my notes either - my most recent letter (To John Snobelen) is this:

Hi John.........

Let me preface my note with the statement that I'm not a "Rural Ontarian"; I don't go to slot facilities or casinos (or even buy lottery tickets!); and I have never seen thoroughbred racing; and I haven't been to the harness races in at least a decade.

That being said, your column in Saturday's London Free Press just happened to appear the same day that my "Letter to the Editor" entitled "Province Wearing Blinders on Horse-Racing Issue" was published in the same paper! And even though the Free Press took a few liberties in order to shorten my letter, it certainly stands out in contrast to your position.

I would sincerely like you to comment on the overall economics of the situation...social as well as fiscal. Because I believe the Province has made a very short-sighted and expensive decision - a decision almost exactly opposite to what should have been done!

Before a decision of this magnitude is foisted upon unsuspecting and hard-working Ontarians, let's at least see the balance sheet that deals with the overall economics of the Slots at Racetracks Program (including the jobs and corporate profits and sales taxes)....and the ill-advised decision to toss it into the trash heap.

I won't argue whether or not the $345 million dropped into horse racing distorted the industry or not. Perhaps it did......but perhaps it didn't....or perhaps whatever distortion was taking place could have been reversed over time.

But my position takes a view from a higher level - a belief that although the $345 might have distorted the industry, the Program was still better than the alternative and could have been tweaked and modified and improved give time and management attention.

As I see it, the Province still took in about $1.1 Billion from the revenue-sharing arrangement (that take will now be sverely diminished); the Province still profited from its take on parimutuel betting (a take that will now be less based upon less racetracks and less racing dates); the Province's take from income and corporate and sales taxes will undoubtedly be diminished as industry job losses escalate (I have seen forecasts ranging from 20,000 to north of 60,000); and perhaps most importantly, it signifies the ripping out of the heart of Rural Ontario in favour of the big cities. Not a pleasant situation given the other trials and tribulations of the Ruralites.

I am of the view that the Program should be continued although it would seem logical to update and focus the objectives and the modus operandi in order that its efficiency can be maximized while everyone benefits. After all, Horse Breeding and Horse Racing has been a staple of Rural Ontario for a very long time and is, in fact, an Ontario "brand" that ought to be promoted and enhanced rather than destoyed.

The arbitrary and quick cancellation of the SARP seems destined to have a negative revenue impact from many angles; and a negative social impact as well. As such, it seems like exactly the wrong medicine for all concerned.

So where am I wrong??

And FWIW - my unabridged "Letter To The Editor" is included below:

Gord Drimmie

Reversing the Decimation of Ontario's Horse Racing Industry

.Unabridged Text of my Letter to the Editor of the London Free Press

If someone approached the Ontario Government with an offer that would cost the Government nothing; and would create and/or save 30-60,000 jobs.......one would think it to be a no-brainer. So what are we waiting for?

Cancelling the "Slots at Racetracks" revenue-sharing agreement is just another example of Dalton McGuinty's failed leaderhip. It's the wrong strategy for Ontario, particularly at this critical time of record and continuing Provincial budget deficits, a soaring and potentially unaffordable Provincial debt, record household debt, unacceptably high levels of unemployment, and a growing recognition that many of those with jobs have "unstable employment" (Toronto Star: 02/23/13).

The answer should be immediately obvious - the decision to cancel the program should be reversed; the slot facilities re-activated and/or restored; the revenue-sharing arrangements reaffirmed and restored; and the Wynne/McGuinty Liberal Government and their band of incompetents should recognize and apologize for this major error in judgement and policy.

Much has been made of the cost of the program - racetrack owners, horse breeders and municipalities that play host to a racetrack received approximately $400 Million annually. But worth noting is the fact that the Government received three times that amount or about $1.2 Billion annually. Perhaps more importantly, the program's cancellation means that the Government's take will be far smaller and representative of only the limited number of facilities staying open..........and that take will be more than offset by revenue declines emanating from job losses in the industry (i.e. personal and corporate income tax), lower betting revenue (resulting from far fewer racing dates and lower racetrack attendance), and reduced economic activity (i.e. sales taxes). Overall, it is probable that cancellation of the program will result in reduced overall revenue to the Government.

Mr McGuinty's Fantasyland vision of Ontario's major cities becoming economic power centers based upon Las Vegas style gambling activity suggests to me that he must be wearing some of those blinders that horses often wear on the track. And it is now time for those with a bit of common horsesense to stand up and be counted; and tell Wynne/mcGuinty that if they can reverse a decision on a gas generating plant costing the taxpayers upwards of $1 Billion, they can also reverse their plans on cancelling the "Slots at Racetracks" program and perhaps offset some of the powerplant losses!

Restoring the "Slots at Racetracks" program will save/restore/create 30-60,000 jobs across the Province; will generate additional revenue for the Government (and has the potential to generate very significant increases in revenue if managed properly); will avoid the revenue losses that the Province is facing as parimutuel betting winds down due to reduced racing facilities and racing dates; will restore a key Provincial brand identity (Horse Racing and Breeding); will help avoid the inevitable euthanization of thousands of animals....and, importantly, give rural Ontario back a bit of hope as it contends with an uncaring and unkind Government intent on destroying their way of life.

This needs to happen...........and it needs to happen immediately. There is no time to waste. Who is on board?

Mr.Campbell,

When i said facing adversity that is exactly what i meant. It doesn't matter to people how you lose your job it just matters to those affected that the job is gone. You people are going thru what millions, not thousands, millions of other people in north america has gone thru in the last 20 years, myself included. Wether it was from corporate downsizing, outsourcing work or places like walmart, staples, and home depots coming in and putting mom and pop businesses out of business. It doesn't matter how you got there it just matters that you are there. Not all mom and pops went out of business, the savvy ones changed there business model and survived. Those who didn't went the way of the dinosaur. The race game does have a choice, adapt or disappear.

When i lost my job of 22 years because of contracting out the work there was about 30 of us affected. Our jobs were just as important to us as your income is to you but we had a choice to sit back and feel sorry for ourselves or get get another job or to become self employed. We never had the numbers to make any noise. I also knew many horse people at the time not one of them came up to me and said this is unfair or to bad i feel for you but i wasn't offended because neither did anyone else other then immediate family or close friends. Yet you horse people expect the main stream public to cry buckets of tears for you or to be outraged because of what is happening.

Guess what they don't care and at the end of the day you people don't care near as much as you like to pretend. You guys have numbers but yet your answer is to come on to a forum like this and whine and complain to each other knowing full well the general public will never read what you have to say. You claim that 60 thousand people will be affected, well if you all care so much why aren't you doing things that will get the public's attention plus the attention of the government and thousands of you blocking the 401 or blocking people from playing the slots. It won't happen because at the end of the day all you people want is for the general public to get on your side and make it easy for you. That is wishful thinking, it will not happen.

Mr. Campbell

When it comes to takeout like many others you obviously do not know what you are talking about. Slot machines which i consider to be for suckers have a very low house edge per play, what does people in is the sheer volume of plays they make in an hour and a low percentage take can add up quickly for the house but other games such as blackjack just by finding a game with fair rules the house only has a half of a 1 percent edge on the player. Single game sports betting the house has a 5% edge not 10% which a lot of people mistakenly believe. If you don't understand the math of it i can explain in a future post. It is also important to keep in mind the next generation of gamblers consider horse race wagering to be for suckers because of high house takes. A game that for the most part is not beatable.

Poker has a relatively low % house rake also. There are games with high percentage takeouts such as lottery tickets which i don't buy but people do because of the size of the payout. The take out at the races is far to high to attract young people as they would rather play poker or single game sports betting where they actually feel it is possible to overcome the house take. The race game at there 15 to 30% takes will never rebuild there customer base and that's a fact. The race game can continue to bury there heads in the sand any deny the obvious or they can try and be more competitive with other forms of gambling and try and increase handle that way. The current path they are on guarantee's two things, empty grandstands and a declining wager.

Mr Yamakva, Mr Carter, we as horsepeople dedicate our entire lives to horses to the point of insanity. It is not a job or a career, it is a lifestyle that consumes you 24/7. We put the product on the track for you to wager on. The rest should be the responsibility of the track. The last time I checked an auto worker at Ford was responsible for assembling a quallity car or truck not for selling it. I agree with you that changes are needed on the wagering side also, but without the horses there will not be any wagering. Mr Carter, can you name a business that the government came in and said we are going to start the same type of business as you, on your property, and sell to your customers? Thats adversity!!! You must be joking about the high takeouts. Do you know the percentage the casino takes!!! Thank you Mr Burgess for being one of the few strong voices we have. We should also take note of Robert Budd's comments as rural Ontario IS the minority now and if we don't stand together we will never be heard.

Thanks again Mr Burgess for your leadership. Would it be too much to ask for the 3 Standardbred horseman organizations to get their heads and acts together and issue a joint press release stating clearly and succinctly that the OMAFRA "sustainability plan" is a phase out plan for racing? And that its a smoke screen for a "gaming modernization plan" that will serve some but will be disastrous for the public interest. Post it as well on Sbred Canada and ask all horseman to send this to their local paper at least.
The public and media outlets largely thinks horse racing is saved due to the way the OLG and gov't has manipulated the issue. WE NEED TO SPEAK CLEARLY NOW!
Next step would be to work with the folks fighting wind dedevlopment in rural On. They are a large organized group that are equally under the gun now and would be natural alies that could join forces under a "Rural Respect" banner.
The two combined forces could easily shut down Toronto on any given protest day. I honestly believe it needs to happen as we are seeing a long term strategy to siphon resources out of rural Ontario as urban influence grows.

Kathy Mcbride,

I do feel for the horse people and yes there livelihoods are at stake and i can appreciate that, as many industries in the last 20 to 30 years have faced adversity,some have survived some haven't. I have a question for you. I see that you pointed out to Mr.Yamakua that the industry cannot make the customer there primary focus right now, well i would like to ask you when have they ever made the customer the primary focus. I have been around for a lot of years and i have never seen it. Sure they have had half price programs and free hot dogs and so on, every now and then but guess what, gamblers who pound the money thru the windows do not care about these types of promotions.

For years and years when bingo was there only competition they took there customers for granted with high takeouts and so on and then when they got the slot revenue they continued to overlook the importance of there gambling base and what has it got them besides empty grandstands, a handle that is in free fall combined with the current mess you know find yourselves in. So how do you expect your current customers, your past customers or your future customers to have any faith what so ever that this industry will ever get it when it comes to there gambling base.

Mr. Yamakva
You will have to forgive members of the horse racing industry for not giving the bettor their primary focus right now. This past year has been a fight for our livelihoods and the lives of our horses. This is not an exaggeration. Race horse owners, trainers, grooms, drivers and jockeys are not responsible for take outs or betting products. We are not responsible for the price of a beer and hotdog at the track, or the cleanliness of the facilities. Those are issues to be taken up with track owners and the CPMA. These are issues that should have been dealt with - no one in the industry will disagree with that. But perhaps you could refrain from kicking us folks when we are already down. Every participant in the horse racing industry needs to stand up against this Liberal government and the colossal mistake that is being made. One would think our customers (the bettors) would be supporting us in this fight for the very survival of our sport.

Is it not possible to take legal action, such as an injunction,
against the removal of slots before it is too late?
Mr Burgess and Mr James have spelled out everything that is wrong
and now should be the time for serious action!

Thank you Mr Burgess. If we our families and friends quit buying lottery tickets and patronizing the slots and casinos it would make a huge dent in the OLG and government take. They have already caused huge losses to us as breeders, owners,trainers and employees of same. It seems obvious that these people are determined to take down the industry. 60000 people making a living in this business plus family and friends of same could make a huge noise by doing this.
Reg and Donna Higgs

Will: We have to find you a Handicapping website where disgruntled horse bettors go to vent. Mr Burgess is not talking about racing as a gambling product he is talking about racing as an agricultural industry. There are zero handicapping subject matters on Standardbred Canada because it is a website dedicated to industry participants and I am not sure if telling all the people who own or train horses that betting on races stinks helps anyone. I suggest a letter to the Cpma or Weg would serve everyone better.

Hey Mr Burgess...

in your letter, you neglect one HUGE part of the horse racing industry, the bettor/fan.

Without us, there is no you.

Are you going to campaign that slot money be put into betting pools so these races become bettable? Or are you going to ask some of the horseman share go to us the bettor?

It's pretty clear the previous gang had made commitments to foreign casinos. Try undoing that now. Although noble, to think that logically or factually presenting arguments will have any beneficial effect for racing is naive. It hasn't worked thus far-over a year now. And hoping a change of face in government will correct a horrible injustice goes beyond naive. We better embark on a more radical, substantive approach if we stand any chance at all. P.s. Finding it pretty incredible some of the most basic questions asked by the expert panel. Have they done any research?

Sent on to my MPP and as many as I can reach including Premier Wynne. Help keep Bob Burgess's letter alive forward it on to your MPP's and anyone you feel can help. Thank You Mr Burgess and all in the industry who are still vocal and put their support in writting and in person at rallies and meetings.

I 100 percent agee with Mr Burgess but I think everyone has to stop appointing people who have the ability to say whatever they want as the new leader of the industry. The reason that Mr Burgess can't lead the negotiations is because there are no negotiations. Mr Burgess was at the meeting where I heard the two favorite lines were "This is what you are going to get!" and "We have no power to give anymore." Mr Burgess has the right intentions but he suffers from the same problem everyone else has which is a lack of access to the people who make decisions. At some point OHRIA, Mr Burgess, Ohha, Cosa, Sboa and any other organization who have followers will have to make a call to action to make the Ontario government uncomfortable. It failed at Mpp s office when a few hundred showed up to show their discontent, it failed at Maple Leaf Gardens where a few hundred showed up to show their disapproval. If this industry really has 30000 people who are directly or indirectly employed in this industry then rallying 5000 people to shut down the slots at Woodbine shouldnt be such a problem. I have said that the gravity of this situation would not be felt until the troughs are empty on Mar 31 . Shutting down racing and slots before Mar 31 would be far more brave looking than waiting til the money runs out and than act like your mad

Mr. Burgess is bang on with his prognosis of the gambling scene in Ontario under the OLG's current "modernization" plan. Again, our thanks for your efforts. The way I see it, if the SAR program is not reinstated shortly, the horse racing and breeding industry, as we know it, will be a thing of the past and soon will be reduced to the equivalent of fair racing. The quality race horses, broodmares and stallions will move to other jurisdictions where racing and breeding conditions are more favourable. The others will be sent to slaughter. There will be numerous bankruptcies because of the loss of equity and the devastation of the livelihoods associated with the industry. The exodus has already begun. As long as Godfrey and his cronies are given free reign to complete their goal of eliminating the gambling competiton in favour of the US based casinos, there is no hope for the revival of the horse racing industry. The Liberal govt`s ill-conceived plan to solve the Province`s deficit problem by promoting and creating casinos will indeed backfire as indicated by Mr. Burgess and the OLG`s own financial statement. The economy in rural Ontario will be sharply curtailed and is already feeling the disasterous effects due the the lack of demand for goods and services affiliated with the racing industry. On the gov`t side, Andrea Horwath and the NDP will contiue to support the Liberals for two reasons. Firstly, they are still paying off debts from the last election and have little or no campaign funds for another one. Secondly, she is in the position where she controls the balance of power in this minority gov`t and has the enviable postion of being the ``king maker`` or the `destroyer` of the current gov`t. I hate to be a PESSIMIST but one must also be a REALIST...

Once again the comments made by Mr Burgess are spot on and well supported as they have been from day one of this debacle.

Excellent letter to the Premier, Mr. Burgess! You stated some very valid points and did your homework...unlike Mr. Duncan. Ms. Wynne has a chance to help do some radical damage control if she chooses. We all appreciate your efforts to help save the industry.

Item #9 says it all. We have just over one month to remain 'mature' and diplomatic. Ten million in purses is insulting and unrealistic. I only hope that Mr. Burgess will be given the lead roll in all future SARP negotiations with this government on behalf of the horse racing industry.

Another factual account of the race horse industry's current situation from Mr. Burgess. Could it be said any clearer? Could it make any more sense to back up and reinstate the SARP? Bravo, Mr. Burgess but will they listen? You are so right when you say that the truth regarding how this all came into place will come out eventually. Unfortunately, it will be too late for horse racing and all of its participants-human and equine-in Ontario. The guilty will simply walk away as did McGuinty and Duncan.

Well done Mr. Burgess. A very truthful document. Unfortunately Kathleen Wynne and company do not have the smarts to realize the devistation they have caused. Bruce T. Winning

Thank you again Mr Burgess. This is a great accounting of what the future holds for racing and the province if the Liberals decision to purposely destroy horse racing succeeds. I am convinced that destroying horse racing and SAR was a prerequesate ordered by US casinos owners before they ageed to invest so heavily in Ontario and the LIBERAL Party. I tend to think that the betting at the ractracks will fall even further then is predicted . We all know that the Liberals don't care about the 60,000 people and their families that they are destroying in this process but they will care when the same 60,000 people refuse to step foot in any Ontario run Casino or slot parlors.If this proceeds as expected the 60,000 will soon grow to include friends and family members and this could easily turn into hundreds of thousands of lost gamblers. I know that this will happen because in order to be involved in horse racing, first of all ,you have to love the annimal and second you must be a natural born gambler.
When you are counting on horses or any animal for that matter to make a living your entire life is a gamble and that's the way we like it. Up until this nonsensicle decision was made my husband and I would frequent Mowhawk or Flamboro probably once a week, to enjoy a free meel and to play the slots. This has stopped . I refuse to go in the front doors unless I am going to the races. I ask myself every day WHY our government would even consider destroying so many lives and families and eventually necessitating the slaughter of thousand of horses in the process. This is inhuman. How is it right for the politcians who have nothing invested in this industry, monatery or personal, have the right to dictate to us ,who have everything invested in it, that we are no longer allowed to persue our lifes dreams and make a living because the Americans don,t want any competion. The OLG will not get any of my money again.

I am asking EVERY horseman and woman to read EVERY line. Only one word came to my mind after reading this. LEADER

Thank you Mr. Burgess!! for your well written categorical. May we all continue the fight the best way we can! Time is even more critical than ever.

Bravo again to Mr.Burgess for taking the time and energy to counter the government with facts and information and make a very strong case for the continuation of SARP. Sadly the governing party and indeed all politicians seem reluctant to challenge the OLG on any matter. Keep up the fight Mr.Burgess there are thousands in agreement with you.