On Friday (April 23) Woodbine Entertainment CEO Jim Lawson sat down virtually with Jason Portuondo for an update on a number of issues, most importantly the status of horse racing in Ontario as the province remains on lockdown.
Lawson bluntly addressed the current situation in the backstretch at Woodbine Racetrack, refusing to sugarcoat the number of COVID-19 as anything less than an outbreak that has prompted the closure of one barn.
"No question we have a very serious situation on our hands, Jason. We did, as people know, we closed one barn and all of the personnel from that barn are now in quarantine. We don't like it, I'm sure the personnel in that barn do not like it, but we have to take this very seriously and adopt measures. There are other barns, quite frankly, that have positive COVID in them, and we're going to be stepping up and taking measures as it relates to those barns, and we're all going to have to just be stronger together and get through this, and we are in a very very precarious situation right now and serious situation and we've got to find a way to get through the next little while here to allow us to have that racing season that we're all hoping for."
Lawson indicated that Woodbine would be working with Toronto Public Health to ensure that the masks that are being distributed are right grade, and even suggesting double masking while security personnel will enforce the rules on the backstretch. Woodbine also entered discussions with Golden Gate Fields on best practices after that California track survived an outbreak of 300 COVID-19 cases.
"I think what the type of environment that we want to live under and promote is where we're doing the right thing, and the answers come from within, so that you are doing your part to help Woodbine by wearing your mask and doing things properly and we don't want to put in our security people in a position where they need to enforce it, we just need a culture and environment back there where everyone realizes we have to get through this. And so let's hope that those measures come about."
Those measures come as the area around Woodbine Racetrack deals with this COVID-19 variant that Lawson admitted he feels, based on the cases, people on the backstretch aren't taking seriously enough.
"We have worked very hard and a lot of our horsepeople have worked very hard to build a culture back there to keep everyone safe but. And that includes policing each other and making sure we're all doing our part...and we're all suffering from COVID fatigue, it's been too long but as we've stressed over and over, you can't take your guard down and I think that this new variant is really something that we're not taking seriously enough," stated Lawson. "We all are responsible to each other, to our families, to the entire industry. And I think people need to really step up. People have to be transparent with the people that they work with, they have to be transparent with the HBPA, with Woodbine, and if you're not feeling well, you've got to tell people, if you're not feeling well, you've got to stay home. If there's someone in your house that's not feeling well, then you've got to stay home....you've got to answer that honestly on your questionnaire when you come into work. We can't have this anymore."
There was a definite air of frustration from Lawson in that discussion, fully cognizant of the frustration horsepeople feel as they watch their U.S. counterparts racing through the country, with some tracks even opening up to fans in limited capacity.
"We're now in a different space with Toronto Public Health involved. We need to be proactive...and there's been a lot of chatter on social media about the barn closing the certainly the press has been in touch with me to ask about it. The barn closing was something we did and I'll tell you why we did it. We need to be proactive and I think people who have worked with government in different crisis situations before, the government people are very good to work with their understanding. But you need to be proactive and show them that you're taking the steps that you need to take and so we've been in close contact with the Chief Medical Officer for Toronto and I think when we do these things on our own, and I can report that we already have a large supply of medical masks when I can report that we've closed down a barn...these [steps] are showing public health that we're taking it seriously and doing the right steps and when you do that, they're prepared to work with you as opposed to stepping in and enforcing what they feel needs to be done. And so in order for us to continue to provide essential care for the horses. We need to show Toronto Public Health, that we're taking the right steps and the right measures to get this situation under control."
The return date for both thoroughbred and harness racing is up in the air given the current parameters, and nearly every participant is anxiously awaiting the answer to that million-dollar question. It's not something that Lawson can provide at this time.
"I wish I had that exact answer, and I'm afraid to speculate exactly in terms of dates. Wwe've always been reluctant to speculate in terms of dates I know the stay-at-home order [is scheduled to expire] on May 23. I think we don't even know that whether that gets extended. So it's really hard to predict. Is there an opportunity to commence racing before the expiration of the stay-at-home order? I don't know, I do know that we've made our case to the province. We've made our case to Toronto Public Health. I wouldn't count on beginning racing before May 20 but we certainly are having discussions along the lines that everything is on the table for discussion, and we will get back racing whether it's by May the 20th before May the 20th.
"A lot depends on the variant, as was reported this morning. The variant, it feels like it's starting to plateau in Toronto and then the numbers look like they're plateauing and hopefully with the measures that we've been in now for a couple of weeks that they'll start to come back and with the vaccines coming, there is hope on the horizon. The more people that can vaccinated...we, along with the HBPA and other industry groups, are encouraging people to get vaccinated, I think that's just a critical aspect of of our potential to get through this period; the more people we can get vaccinated, the better off we're going to be. I'm just optimistic that as we get this under control and more people get vaccinated, we will be able to look back and say yes, that was a tough few weeks or a tough month but look at us now. We've got a full season ahead that we can look forward to."
Lawson stressed that Toronto Public Health has been very supportive throughout this process, and he also credited the task forces for both breeds in their efforts to support horsepeople with equine support payments. The process for the Standardbred industry started on April 12 while the Thoroughbred application process was announced on the morning of April 23.
"They're certainly acknowledging with this announcement this morning that people are hurting and they're doing their best to try and use those first monies to help people out and it's a positive i know i think we should be very comforted that people care and people are doing their best."
Not everything was doom and gloom during the discussion. Lawson noted some recent developments are certainly signs for optimism, as Woodbine has finalized a new broadcast deal with TSN.
"It's somewhat beyond our control but it's our optimism and intention that we're still going to have great racing seasons," said Lawson. "we have signed a new deal with TSN, so that's exciting. We're going to be showing on TSN the [Thoroughbred] Triple Crown again, which is great. And of course, Racing Night Live. We haven't quite determined with TSN the impact of the CFL season which dominates Thursday and Friday nights, but the CFL [season] is not starting now until the first week of August, So there may be an opportunity if we can get going to have Racing Night Live in June and July so that's exciting."
Another bright spot for horse racing according to Lawson was the passage of Bill C-218 by the House of Commons on Thursday, dealing with the legalization of single-event sports wagering. Lawson recognized the efforts of his team, MPs Kevin Waugh and Kirsty Duncan and Attorney General David Lametti for ensuring the protection of the horse racing industry by amending the bill to prevent fixed odds wagering.
"I explained to [Lametti] the difference between fixed odds wagering and pari-mutuel wagering, and the light went on for him and in terms of what could happen if they didn't build in protection for us with other major wagering enterprises coming into Canada, and being able to wager on horse racing through fixed odds wagering which are products that these major companies offer without in any way sharing that revenue with with us that in we're paying the freight for the operating costs and the persons, and I said it would put us out of business."
While fully mindful of the possibility that sports betting could impact and cannibalize the wagering on horse racing, Lawson's vision is one of long-term prosperity for the horse racing industry.
"Many of [the wagering enterprises] have their background and their origins in horse racing. They want to carry horse racing as part of their sports betting. And so now they're talking to Woodbine, they're talking to Woodbine about integrating horse racing into their sports betting platforms they're talking to Woodbine about our regulatory expertise, our regulatory expertise across the country, our expertise in dealing with responsible gaming, anti-money laundering and also our bricks and mortar network...not only the racetracks, but our WEGZ sports bar, our Greenwood OTB location, and all the OTB locations so we are now in some very good and very positive discussions for the horse racing industry and I'm excited about it.
"There's been, and continues to be a concern that that sports wagering will cannibalize this sports wagering dollar. We're definitely mindful of that and that is the risk yet at the same time, the type of discussions that we are having with the major operators right now are very positive, and Woodbine entertainment intends to play a pivotal role in this sports betting sector, when it commences which could be as as early as late next fall or the beginning of next year. I know that the provinces, and even federally they're still going through consultations, and the bill which just got its third reading yesterday in the house still has to go through the Senate, but the good news is that we are well positioned as an organization to participate in the sports betting sector, and we're working closely with the regulators to make sure that happens because our industry, as everyone knows, we need the support. And our big expectation is if we can do this, we can get out from underneath any sort of government subsidy that's coming our way today for purses and, and we'll be able to move forward. That is very exciting for this industry to stand on its own two feet and what we will be doing: using our assets, including the management team and the technology that we've built over the last five years, to stand on our own and partner, stand on our own in terms of contributing our assets to a joint venture or partnership with a major sports betting player that will position us well in this new sector."
In addition to the questions posed by Portuondo, Lawson fielded questions from the industry in a Q & A session. The questions were asked by Jason Portuondo (JP) and fielded by Jim Lawson (JL), with relevant portions of Lawson's answers appearing below.
JP: Will Woodbine require trainers / grooms coming from the United States who are fully vaccinated to still quarantine before entering the backside?
JL: "The answer is, we are following and need to follow what the what the government is saying and we're not in a position to say, it's 14 days and don't worry about it because you've had vaccinated because that's not within our purview to do that."
JP: What are we working on now, during this time, so that we will be officially considered "an outdoor activity" before the stay-at-home order is over and thus prepare to start racing in the grey zone?
JL: "We have a COVID task force that has prepared documentation, about a 12-page deck, just on the question about outdoor activity because we've been given, certainly, an indication that they're hoping when the language does change or when we do come out of the stay-at-home order that our focus is to race during the grey zone, and the way we might do it, Emma's exactly right, would be to characterize it as an outdoor activity. So we have made that case, we've made that case both to Toronto health and to Halton Health which I think will help, as I've said, have the provincial authorities understand that the local health authorities have looked at our situations. Anything that we can do to buttress the argument that we are an outdoor activity and we can conducted safely, we are doing and have been doing and we have delivered two specific decks on that very point to both local health authorities and to the province for that matter."
JP: Rapid testing, that's obviously a huge topic, a lot of questions coming in regarding that..there's supposed to be like a pop-up clinic, some are wondering what's the latest with that?
JL: "Woodbine quickly instituted a pop-up clinic plan that we were hoping to institute. Last week, we had administrative people ready, we have the administrative people ready to be trained, and had a physical plan for our site to conduct a pop-up clinic, not only for our entire backstretch, but for an equal number in the community. The problem, as I believe people understand, is there's just not enough vaccine around. What vaccine has been around has been spoken for in the pop-up clinics and the vaccination clinics that that were already organized, and so all the vaccine is being used. I had an interesting discussion with the Province last night again, and also with Toronto Public Health this morning. They are still hopeful of bringing a pop-up clinic to Woodbine and potentially a mass vaccination clinic to Woodbine. There's clearly an indication that millions of vaccine doses are going to be coming into the province in May, and Woodbine is prepared to step up and do our part to make that happen, including as I said, a mass vaccination clinic, Jason, so let's hope that happens."
JP: Perhaps is it a good idea just to test everybody. And then those that are negative, they get a sticker on their badge...because apparently a lot of people are coming up positive despite showing no symptoms.
JL: "I'm not sure legally, and sorry I think like this, whether we can force people to get tested, but we're certainly going down the road of getting as many people, rapid tested as we can so I agree...it's, it's a good idea. It's a road we're going to go down again.
"We have a number of trainers and horsepeople coming back from the United States who have been vaccinated twice, but in this current environment in Toronto, in this hotspot, they are carriers potentially, and also a number of the people that were vaccinated already that have tested positive. They have been asymptomatic so it continues to be a case, Jason, that it cannot be a free-for-all even if people test negative because all they have to do is go home the next day and come in contact with someone in their house, someone at a grocery store...The best way to do this is to continue to wear your mask at all times, to respect social distancing, and in particular, let's all go out and get vaccinated, that's the way we're going to put this behind us."
JP: Come May 20, if Toronto stays grey [zone] and Niagara goes red [zone], are there talks ongoing for Fort Erie to perhaps step in and start racing?
JL: "This question is a good one and as I said, we're always transparent, and the conversations with Fort Erie stopped when the whole province went into a lockdown. One of the issues, being quite frank, is the transport of people from what everyone recognizes is a Hot Zone in Etobicoke and Rexdale at Woodbine, now in transporting people down to Fort Erie, and how that's going to be viewed by the provincial health authorities and by the AGCO. Don't forget, it would not be ultimately with our in our decision making to say we're just going to ship horses and have races down at Fort Erie, we would need the cooperation and the blessing of the Alcohol & Gaming Commission of Ontario, and likely the OLG. It's one that I think would be good for horsepeople if that's the situation we found ourselves in and that's why again we were proactive and in and have had discussion with Fort Erie, we've talked about how we would do it, but it's too early to say right now."
JP: Woodbine put out a statement six days ago that there were four cases with no on-track transmission. How do things change so fast?
JL:"Things change very quickly. As a result of the variant and the contagious nature of the variant. I think we can see ,that what's going on in the Etobicoke area has been been duplicated at Woodbine. I know that's not the answer to the question, but I want to answer it in that context that this variant is hugely contagious, and that certainly is impacted the Woodbine situation in terms of things changing quickly."
JP: What about DarkHorse and its potential to cross over between horse racing and sports betting?
JL: "The DarkHorse technology is quite unique, and one that we're very proud of. We've been working over this period to make it more user friendly. Getting a mobile app going and in the app stores is a feat unto itself, and ironing out the technological kinks is is another thing that we had to work through and then once it gets onto the market, like with any app, we've been very receptive and open to feedback from our customers as to how we can improve. Much of it has been around simplification, but I can tell you the underlying technology and the artificial intelligence are aspects of that, that as we have worked with potential partners in the sports betting space that they are extremely pleased. It's an asset that we're bringing to the table in terms of a potential partnership so yes, I see DarkHorse as something that will be a sports betting app for that matter, you know, if you want to look ahead five years, 10 years...it may not take that long, the way that technology changes, that there will be a day where people will not be toggling back and forth between their sports betting and their horse betting and, you know, I can see a day where that's that sports betting app Dark Horse is maybe branded under a different name has a both a sports betting and horse betting capability to it and that's where this industry is going. It will be good for us, as I said there's a risk of cannibalizing our pari-mutuel product, yet at the same time, if we're working with the right people, there's a good chance that people will be using that our sports betting app to do sports betting across the country and working with a major brand name and a major operator in terms of that sports betting technology so I think it's, again, another sign of Woodbine, which is the only legal private betting sports company in the country today, bringing some assets to the table that make us a very attractive partner for the name brand sports betting operators that that you all know about."
JP: What else can people in the horse racing industry do to help resume racing?
JL: "People have asked me if they can help and be supportive, and the answer is yes, the more you can speak to your MPP or your mayor, and have your voices heard. I think those things are another way of reaching the the provincial health authorities, and so all of this dialogue is good, we have the factual evidence, we have the operating evidence and the procedural evidence and the safety record to put in front of them, but I think the hardships that everyone is suffering is something that people need to speak out about with your MPP. People are mad. And I don't blame people for being mad. People are frustrated, and they deserve to be frustrated, so as to getting through to the provincial health authorities and Dr. Williams and his team, I think dialogue with your MPP and having your MPP coming forward, and having the mayors coming forward whether it's Mayor [John] Tory or Mayor [Gordon] Krantz or the mayors in the various jurisdictions, whether it be Ajax or London or Flamborough. All of the mayors, they need to help us because this is an outdoor activity that we've proven can be conducted safely. And the more we can talk about it, the more likely it is there's going to be a dialogue that we have been pushing forward to get all of these people in a room and and review the facts that we've put in front of government and the health authorities on numerous occasions. So we're frustrated, and we need your help. And so the answer to the question is, yeah, everyone do their part and we're continuing to and it's entirely frustrating because of the nature of the discussions I've had with the senior people that I've had discussions with and we're still not there. We just have to keep trying and I don't have a better answer than that, and one of the answers of course is getting vaccinated, and in doing the right measures over the next few weeks and and we will, there's still lots of time to have great Thoroughbred and Standardbred seasons, and we will do so."
JP: What should we tell our owners who are ready to ship out to the U.S. to try and keep them right here?
JL: "All I can do is offer hope that we're taking the right measures, we're having the right discussions, the vaccines are coming, and we've been certainly given positive signs from the government that they're aware of our situation, they want to help us to open, and I continue to be optimistic. The biggest problem the answer to the question is I think if I told you you could start May 20, that's what you want to hear, that's what you need to hear. And, as I'm sitting here I can't guarantee you May 20. I'm still hopeful, but I can't guarantee it so the best thing that I can do for you is give you the facts, tell you what we're doing, tell you the conversations we've had, and people are going to have to make a decision, and I don't blame the Standardbred people that have left. I'm hoping and I'm confident in fact that people will come back."
JP: What can we do to make up the days that we have lost racing? We're looking at back-to-back six months seasons; as much as the money helps the days are most important.
JL: "I currently I don't have an answer for that, obviously, because we don't know how much of the season we're going to lose. Keep in mind, we have a horse supply of 1,500 horses, let's hope we get back up into the 1,800 horses, and with our horse community at that level four days a week, is a lot of racing for that sort of horse population that we have. I'm speaking thoroughbreds now obviously. You know there's going to be the same question on the Standardbred side, I appreciate, but four days a week is a lot. We have a difficulty in inserting a fifth day in the week, and certainly inserting a fifth day in a week in consecutive weeks so it's hard to make up those race dates given our horse population. I hope people understand that we will we will do our best. I know that government -- OLG has been great, Finance has been great and working with the horsepeople associations and working with Ontario Racing to do what we can. I know that's not an answer, relative to the purse monies, but people are trying, they are mindful of that. We're all in this together, we know about the economic hardship in terms of making up race dates. We will do our best.
"Let's hope, with the departure of horses, as we've said that, we do get back into that 1,800 range, and some of these people who have not shipped in yet, that they do ship in once we get going because we have no guarantees that people who are now racing elsewhere, aren't going to stay there, and so it's it's hard to make up additional race dates when you don't have the horse population to make them up."
JP: Any parting comments, Jim?
JL: "I did have a question last night about historical horse racing, and I thought I should address that. Historical horse racing has been once again confirmed in the in the state of Kentucky, and it's been a real bonus for horse racing there. One thing that that we made quite a bit of noise about around the dealing with the Attorney General's Office on the sports betting legislation is, we made a case and we had already been making the case during the pandemic that we'd be allowed to proceed with historical horse racing which has been great for certain U.S. jurisdictions and as I said, it's been a real stronghold recently in Kentucky to support Kentucky. We were hoping that the federal government and the AG's office and the regulators would recognize that historical horse racing is something that we need. I do believe it's a product that would really help this industry, in this province, in this country, and that we were ready to go with it. We felt we'd have enough positive discussions with the Canadian Pari-Mutuel Agency that they were prepared to regulate it. It did not happen as part of the sports betting legislation and the amendments to the Criminal Code. That's entirely disappointing to us and to the industry. We have not given up on the pursuit of historical horse racing; we think it's important, we think it's a product that we should be able to offer as I said it's a product that I think will will help the industry.
"We're also hoping that maybe we look at this differently now and as iGaming is about to be legalized and regulated by the AGCO and Ontario that maybe we come up with a historical horse racing product it's more like iGaming and it has horse races and it's the same theme...We're not going to give up on it being a pari-mutuel product and something that we can offer, but it will take an amendment to the Criminal Code."
"I hope this has been a good session for people. I know a lot of you are going to come away disappointed that I don't have the golden wand and tell you that we can start racing at Mohawk, racing at Woodbine on May 20 Or even before...I don't have that answer. I think the best we can continue to do is to communicate, give you the confidence that we're trying, that we're with you. There is light at the end of this tunnel, and, let's all stay safe, do the right thing and put this behind us and all look forward to the day when we get very successful racing seasons underway as soon as possible."