Don’t overlook real demand

It’s Labour Day, 2013 at Dresden Raceway, and the final photo of the racing season is about to be taken. A nine-year-old mare named Funny Lady is ushered into the winner’s circle to have her picture snapped as the thick crowd begins to dissipate.

It has been 74 long trips to the racetrack, and more than three full years, since the last time this bay veteran made a foray into victory lane. And like her mother, Ms Fun Towner, who earned $298,000 in 183 lifetime starts, Funny Lady has been a longtime fixture of racing in Southwestern Ontario.

But today, this brave old racehorse, making her 167th start - and the track she won triumphantly over, now in its 124th season - are facing their biggest challenge to date – time. As Dresden closes the book on its 2013 program, many are left to wonder about its fate. Will this facility live on in the new horse racing model being announced by government? Or will it be a victim of “progress”.

Like other racetracks across Canada that remain in limbo, Dresden doesn’t have the modern amenities of a top entertainment venue. Its racing product is grassroots in nature and it is showing a little bit of its age. However, like the nine-year-old who won the year’s finale, this track still has life in her.

The arguments in support of saving smaller racetracks usually focus on the need for a feeder system – on supply of horses and participants. This is the place where horses can start and finish their careers and where less talented recruits have a chance to compete - ultimately a back-up plan for yearling buyers and breeders.

While supply based arguments are all accurate and important, the industry has been challenged to focus on demand, and is being asked to tailor the sport to be customer-focussed. This is where the discussion gets interesting.

Dresden is a town of 2,800 people in Southwestern Ontario. Despite a lack of major races or a focus on promotions, marketing or branding, the track continues to draw customers. On Labour Day, the $36,839 in live handle represents more than $13 bet for every man, woman and child living in the town. That’s roughly the equivalent of Woodbine Racetrack, in the Greater Toronto Area, handling $80 million in live handle on a single program.

In a world where the vast majority of dollars bet come from at-home and off-track locations – something not available to Dresden - the amount bet is not insignificant. And as anyone who has ever stood in a lineup for 10 minutes to place a bet can attest, Dresden is operating on Labour Day at maximum capacity. More dollars simply can’t pass through windows that aren’t open. Dollars bet live also produce several times the net revenue as external dollars wagered.

It’s estimated that 1.9 million people have visited the little racetrack in the past decade. So, it’s not surprising then that when you click on the town of Dresden’s website, the huge image that greets you is one of harness racing. And Dresden is not alone. On Legends Day, Clinton Raceway handled $48,915 or just under $17 per man, woman and child in the town. In fact, similarly impactful figures exist at racetracks all across the country.

Shedding ourselves of smaller racetracks in an effort to shore up the customer base is a mistake with severe long-term consequences. The demand that exists in smaller towns is tangible, important and something to grow the business on. It should not be ignored or minimized

Like cheering for Funny Lady to get back to the winner`s circle, it is not difficult to root for a bright future for Dresden Raceway. Like the racehorse, she still has some good years left in her.

Darryl Kaplan [email protected]

Have something to say about this? Log in or create an account to post a comment.