What Does The Future Hold?
An in-depth three-part series on harness racing in Ontario examines the health of the $2.6-billion industry that employs 65,000 Ontarians, and according to the report the industry is "under threat"
. What does the future hold and what can be done to reverse the negative trends?
Published on insidehalton.com, the series reflects on the construction of Flamboro Downs and Mohawk Racetrack and how the tracks changed gaming in the area prior to the introduction of the slots at racetrack program.
As the leisure and entertainment industry underwent sweeping changes in the early 1990s, it became essential for the horse racing industry to set itself apart from other venues that promised families a fun and exciting night out. The horsemen weren’t only competing for the betting buck, they were vying for an audience
“Prior to 1994, the industry was in a state of serious decline, especially the racetracks,” quoting the report of Stanley Sadinsky. “It had largely failed… to attract new horse owners and to reach out to a broader audience that had become accustomed to demanding and receiving exciting entertainment experiences.”
Enter the slot machines, which helped enhance purses but questions surfaced over how the funding was accounted for.
“The public policy of slots at racetracks was to enhance live horse racing and support the agricultural industry,” said Brian Tropea, general manager of the Ontario Harness Horse Association (OHHA). “As it is now, the racetracks receive their money and there’s really nobody to see that they are reinvesting it back into marketing, promoting or creating incentives to bring people to the tracks to grow the horse end of it.”
While the Ontario Lottery and Gaming Corporation (OLG) has distributed $1.45 billion to racetracks and $1.43 billion to horse people since 2002, that "any long-term vision for the racing industry was left at the starting line."
“When the slot program began, the government was more concerned about opening facilities as quickly as possible, and, in my view, not enough attention was paid to the program itself; what impact it would have and how it would really operate,” said Stanley Sadinsky, a former Ontario Racing Commission (ORC) chair, who in 2007 was asked to head a panel on the state of the horse racing industry.
According to Wendy Hoogeveen, the ORC’s director of industry development and support, benchmarks for the funding are now "in the works and told insidehalton.com that these benchmarks will serve as an “excellent opportunity for the industry to tell its story back to government about the value of the program.”
The two tracks in Halton Region, Flamboro and Mohawk, were positioned as opposites by the report, with WEG's Vice President of Standardbred Racing Bruce Murray stating that they have "exceeded the criteria" by investing $300 million since 1997 in its facilities, including a $7-million facelift for Mohawk in 2005.
“We wager 75 per cent-plus of the dollars bet in Canada, the rest of the tracks collectively are betting 25 per cent. That’s a telltale sign itself we’re doing everything we can to ensure the health and well-being of our company and of the industry,” said Murray, indicating that the non-for-profit stats gives the track operator an advantage.
“If we were publicly traded, you’re totally bottom line driven; it’s all about share price and having the stock at certain level. Our advantage (is that) any profits are reinvested back into the industry.”
On the other hand, horsemen like Paul MacKenzie feel that his home track - Flamboro Downs - isn't holding up their end of the bargain.
“They aren’t putting enough time into their business to promote harness racing,” said Paul MacKenzie, who feels that since Great Canadian Gaming acquired Flamboro little improvements were made to the facility. “Nothing stands out that would make me a lot happier.”
Howard Blank, Great Canadian Gaming’s vice-president of media and entertainment, said that he would not "discuss funds that we receive and how we spend,” referring inquiries to the company's financial statements. “We have a marketing budget for that facility that our company uses to work on trying to attract special races, special events, promotions, media, advertising, etc."
Hoogeven notes that the ORC moratorium prevents cuts to race days but went on to say that they are developing a criteria for a racetrack operator to justify cuts to live racing
“We work quite closely with the industry in trying to determine this and evaluate and make assessments where there should be more or less racing,” said Hoogeveen.
The report presents some staggering numbers on how the purse pool is funded at the majority on Ontario's tracks.
While the number of race days has declined, slots patrons continue to contribute to the horsemen’s winnings. The Slots at Racetracks program was supposed to encourage wagering. But at Woodstock Raceway the slots directly fund 93 per cent of the purse money. With the exception of WEG, the majority of purse money awarded at Ontario racetracks comes from slot wins.
Sadinsky, a former chair of the ORC, wonders if the Slots at Racetracks program is “just in effect a money distribution system as opposed to generating pari-mutuel wagering.” His 2008 report highlighted a lack of cooperation by the industry to try to attract more bettors. “We wanted to see something like joint marketing programs,” he said.
Tropea agrees, noting that the horsemen “put a lot of faith and trust that the racetracks will continue to do a good job of marketing and promoting our business... we put a lot of trust in the government that they don’t change the revenue that is currently being allocated for purses so that we can recoup our investment that we make today.”
To read the three-part series in its entirety, please click on the following link: Inside Halton Report On Harness Racing
To use the banking industry
To use the banking industry as an example of an industry that is not competitive does not make any sense because the bottom line is, it is other big banks that they are competing with so they are competitively priced when it comes to interest rates and so on. They are competing with each other so therefore like it or not they are competitive. There is no comparison between the banking industry and the racing industry.
Thirty or forty years ago racetracks pretty much only had other tracks to compete with so they got away with excessive takeout rates but now they have to compete with poker, sports betting, slots, blackjack and i could go on and on so they can no longer get away with uncompetitive takeout rates. So they either have to lower there takeout rates and compete with other forms of gambling or sit back and hope that other forms of gambling increases there takeout rate to 20 to 30% so the race game is once again competitive and we all know that is not going to happen. They either are willing to compete for business or they will see there customer base completely disappear over time. For the record people like me who has walked away from the race game who does not own horses or is not involved as a trainer or driver owes the race game nothing and myself and many others as a result have chosen to take our gambling dollars to other forms of gambling where we get a better bang for our hard earned money and the next generation of gamblers has also soundly rejected the race game and there excessive uncompetitive takeout rates.
Maybe once people realize
Maybe once people realize that the push button world of gambling is NOT always as lucrative as they would like it to be (and, pretending to be "a magician" watching your money disappear, could eventually get very boring, not to mention slightly annoying when the money runs out (OH darn)! (Somewhat comparable - to the mouse - on the proverbial wheel)
Playing 'cards' OH WELL - there, you at least have to think about what you are doing, not to mention looking very cool - just how special is that?
NOW, about playing the HORSES, 'THAT' is a Class Act that's hard to follow (especially if you tried running behind the sulky) - and, fortunately, -- not as predictable as a slot machine -- or - a card game and, you get a little exercise - going to visit the tellers.
The 'SOCIALIZING' aspect of betting on horses, is BY-FAR, comparable to a good afternoon or evening out (Win or Lose!).
YOU May Well Ask -- What
YOU May Well Ask -- What other industry has been, and doesn't need to be competative to survive - try the BIG Banks of N.A. -- they have the gall to charge 29.9% interest on credit card debt for items you could do without, (or simply 19.9%), and then have the nerve to ask for a BAIL-OUT -- when they can't make it work! SO, why shouldn't the Racing Industry do the same. It started out in Good Faith and it should be kept that way - YOU don't bail when the chips (or, in this case, the crowds) are DOWN.
IF 65,000 people are put out of work - it WILL have the great 'domino' effect - NOT a good outcome - just picture this senario, 'out-of-business' --- "RACE TRACKS" --- turned into ovals for human athletes - hoping to compete in the next Olympic games.
Obviously they didn't realize what a huge success the 'Slot Machines' would be -- what they DO forget is that MONIES generated from these vacuum cleaners come from the PUBLIC PURSE of willing DONORS. Big SPENDERS -- Big WINNERS!
HORSES are the sport of KINGS - AND, you reap what you sow!
During the glory days of
During the glory days of harness racing in Montreal, the handle per race card was over 1 million dollars. When the casino opened in 1993, the handle dropped 60 to 70 percent, per race card. people flocked to the casino instead of the racetrack. They were sick and tired of all the nonsense(horseman strike, scandals, corruption etc) that was going on with harness racing in montreal.
They left this gambling industry, and tried another gambling industry(Casino's) and nowadays, some gamblers are leaving the casino's to play poker,and only poker, on the indian reserves,and private clubs. We all know that the harness industry is dead in quebec. Yes, some are trying to revive an industry that was once so economically powerful on its own, without any competition. The gambling reality has changed over the past years. Here in quebec, people are still going to casinos, gambling on-line, betting on horses,(thoroughbred US and Canada) and (harness-woodbine and mohawk) but are really not interested in betting on harness racing in quebec anymore. Those glory days are gone forever in, "la belle province", sorry to say.
The only threat to the racing industry in toronto is that, if a real casino(with gaming tables) were allowed to operate in a big city like toronto,then I might say, the harness industry is in big trouble. But as I see it, the ontario goverment has always been helpful and generous towards the horse racing industry in ontario. And if minor cuts are necessary, so be it. Its not the end of the world. The horse racing industry in ontario is the envy of the world,stop nagging!
So let me get this,
So let me get this, seventeen years later and nobody was watching the money and now we are putting in benchmarks to tell the story of how the funding is working.
Good business practice would have been to have all this in place as the funding started. Isn't this why there are associations and commissions in place.
Horsepeople should be outraged at these statements, but they won't say anything, again.
Does this mean in another seventeen years there will be answers to these grey areas.
It's ok people, there are only what 65000 jobs at stake. Keep up the good work, while you have it.
Greg Parke
In reply to So let me get this, by Greg
I would like to say you're
I would like to say you're right about the problems. Like you say does this mean in another seventeen years there will be answers? Sorry I will not give it that much time.
Please I would like to think, in my opinion you say its ok that 65000 jobs are at stake. No one wants to say this but the horseman have to start to come up with other answers, sorry.
I was in the business of harness racing & thoroughbred racing in the 1970's and harness horseman's business
was still not top. When thay lost greenwood racetrack that lost a lot of fans as some don't drive, so to get to other tracks they can't.
And in my opinion the harness racing drivers should be like the thoroughbred jockeys - you can't own a part of a race horse. This is my opinion. So thay would be all catch drivers and thay would have to work hard to stay in the top 20 drivers and you would see a change in the harness racing
So in closing don't say its all the OLG that's the problem.
I love harness racing but everyone has to come together .
Doug Critch
ONTARIO HAS NOW THE SAME
ONTARIO HAS NOW THE SAME CANCER THAT DESTROY THE 150 YEARS OLD INDUSTRY IN QUEBEC.
I AM WRITNG SOLUTIONS TO THE PRIME MINISTER OF ONTARIO, MOSTLY THE SAMES THAT WERE GIVEN TO QUEBEC HORSEMEN, QUEBEC POLITICIENS STARTING BACK TO 1980.
RICHARD LAVIGNE
LAVAL. QUEBEC
What other industry has the
What other industry has the arrogance to believe that they can remain totally uncompetitive with the competition and survive. They refuse to compete with other forms of gambling and as a result they have lost the majority of there big players and have virtually no chance of competing for the next generation of gamblers. About the only thing the industry does is hold the occasional study which is a waste of time because they are not interested in addressing the real issues. Without getting competitive with other forms of gambling this industry is doomed to die out over the next 20 to 30 years. I like many others haven taken my gambling dollars to greener pastures. If you want me back then compete for my business by reducing takeout to a maximum of 10% or less in every pool.