Theories abound regarding the future of the horse racing industry. No one's sure what will be the key for the Sport of Kings to survive in a tightening market for the entertainment dollar. The industry no doubt is in an important time and many companies and tracks are aligning themselves with interactive-based companies. To help keep you up to date with all the happenings in the horse racing industry IGN provides its monthly look at events, business news and other happenings in racing with "On Track."
attheraces.com Launches with High Expectations
The much ballyhooed and anticipated Web site, attheraces.com, went live this month and is off to an impressive start.
The site--a culmination of efforts from BSkyB, Channel 4, Scientific Games Corp. (SGC), and Arena Leisure--utilizes SGC's TrackPlay wagering platform and has nearly 50 affiliate U.K. tracks signed up as part of the system. The group plans to add more tracks from around the world and eventually feature action 24 hours a day seven days a week.
Consortium officials said the new site represents an important new distribution channel for pari-mutuel services.
Say It again Frank
Frank Fahrenkopf, president of the American Gaming Association, is still dancing on the head of a pin when it comes to the Internet. He said at the Governor's Conference on Travel and Tourism this week that the association's position has been to oppose Internet gambling, "but that doesn't mean we'll support any bill that bans Internet gambling."
He said he thinks Internet gambling would give the horseracing industry a competitive advantage.
VLTs Get Thumbs Up in Ohio Legislature
The Ohio legislature is looking to increase state revenue and has its eye on the state's racetracks as a possible venue for video lottery terminals. Acknowledging that the state can't monitor the moral habits of every citizen, Republican Speaker of the House Rep. Larry Householder, would rather see a regulated option. "I would think if it's between asking citizens to put more money in the pot or video lottery terminals, video lottery terminals would be more acceptable."
The speaker called for VLTs at tracks last March, and proponents of the idea agreed in June, saying 1,500 terminals at Ohio's tracks would raise between $700 million and $800 million over two years.
But Senate Ways and Means chairman Louis Blessing, who also favors the VLTs and introduced a resolution calling for a statewide referendum on the issue, let the matter die for the time being when he did not call for a vote, sensing lack of adequate support for the idea. Now Householder has resurrected it, but Gov. Bob Taft is still adamantly opposed.
California Owners Release Goals for Account Wagering
The Thoroughbred Owners of California (TOC) released an open letter dated Dec. 15 that lists its priorities as California moves toward account wagering early in 2002.
The TOC letter, signed by Chairman Jack Owens and President John Van de Kamp, said the organization has a "unique responsibility" because "owners have proprietary rights to the collective image of racing." The TOC said it will exercise those rights in contract negotiations with racetracks and account-wagering operators.
The priorities stated in the letter are:
- the broadest possible distribution of California's live signal and account wagering through multiple advance video technologies (cable television, satellite, wireless communication, and the Internet);
- the highest possible quality of image transmission;
- fan-friendly access to all California racing on a year-round basis without the necessity of opening multiple wagering accounts;
- protections against poaching and rebate practices that diminish on-track handle; and
- fair and equitable treatment of all segments of the industry, including owners, with regard to the distribution of (advanced deposit wagering) takeout and profits for both California and out-of-state wagers.
LA Times Reports Internal Strife in Racing Community
The same time horse owners in California released their priorities on how they want account wagering to take a hold in the state, the Los Angeles Times reported the process has created more strife and turmoil in an industry that is already splintered in the state. The paper published a story this month claiming that telephone account wagering on the coast has further divided a struggling sport known for its internal bickering.
The story quotes Mark Wilson, president of TVG, as saying, "Too many times have we seen racing presented with a golden opportunity, only to see someone come along and create infighting that defeats the purpose. It saddens me, because the racing fans and the
industry deserve better."
Wilson's latest frustrations come from Magna Entertainment's announcement that it is forming its own television network. Wilson interprets that as either Magna trying to scuttle TVG or being naive about how sports on television works, according to the report.
Sale of New York City OTB Put on Hold
New York state Senator William Larkin, chairman of New York's Racing and Wagering Committee, has postponed hearings on the sale of New York City OTB, saying the new mayor of New York, Michael Bloomberg, should have the opportunity to "look at the
sale and make some decisions."
As reported by the New York Daily News, Larkin feels that "once Bloomberg takes a look at it and he feels he still wants to sell it, let him come up and sell us. Let him have his day in court." Bloomberg advisor Bill Cunningham thanked Larkin for "doing us a favor."
Mayor Rudy Giuliani had factored the $250 million sale price from Magna Entertainment and its partners into the city's 2003 budget, and Cunningham said, "It's a big chunk of dough that's built into that budget. We need to look at it and be comfortable with the numbers."
Boyd May be Forced to Sell Track
Boyd Gaming, the casino company that bought Delta Downs, said it might have to sell the track if it loses another casino company's challenge to its plans for 1,700 slot machines.
The Las Vegas-based company made the statement in recent filings with the Securities and Exchange Commission. On Nov. 20, as Boyd was trying to work out a configuration plan for its 15,000-square-foot parlor, a state judge sidelined the company's plans to open the facility. Giving a gambling license to Boyd would violate state law, State District Judge Jewel Welch said. He issued a preliminary injunction to keep Boyd from getting the license until the lawsuit is tried.
The suit, filed by Isle of Capri, contends that the track's former owner
still has an economic interest in Delta Downs, so the slot operation cannot begin until he has gone through a suitability check. Boyd must add $27 million to the $125 million purchase price if certain criteria are met.
In the SEC filing, Boyd said it is not certain that it will win the lawsuit.
Bookmaker Agrees to Help Hong Kong Jockey Club
One of the world's biggest bookmakers has told one of the world's
biggest racing operations that he'll give it a helping hand.
Victor Chandler Worldwide has told the Hong Kong Jockey Club, which has been hard hit by offshore simulcasting pirates, that it will not offer fixed-odds betting to Hong Kong residents on any horse racing in the jurisdiction, eliminating that potential source of competition.
Michael Carlton, group managing director of Victor Chandler, said the firm wanted to work with the Jockey Club to develop the growth potential offered by Internet betting, and it urged the Hong Kong government to take advantage of a "win-win" situation by abolishing the betting duty in favor of a profits tax on Jockey Club revenue.
He said the ideal long-term solution would be for the Jockey Club to
work with Victor Chandler to expand the Hong Kong product.
William Hill, another of the "Big Three" of English bookmaking, wasn't as considerate. It began taking fixed odds betting on Hong Kong racing last week, drawing a charge of piracy from the Jockey Club. Hill said it operates in a global marketplace and has to give its customers what they want.
BHB Chairman Criticizes Abolition of Betting Tax
Bookmakers' turnover could be up by 30 percent since the abolition of
the British betting tax. And with turnover at that level, the bookies will effectively get a tax break worth £250 million a year.
Those were the claims made this week by British Horseracing Board Chairman Peter Savill as he criticized the bookies about the impasse over the future funding of racing.
The BHB extended its introductory offer of a reduced-rate two-year deal on royalties for the sport's picture and data rights--charges still under examination by the Office of Fair Trading and European Court of Justice--until Dec. 31. Bookmakers who delay signing until 2002 face 20 percent higher costs.
The BHB is also going to try to persuade the government that the current levy scheme--the sport's existing finance mechanism--should roll over for the next financial year. At current turnover levels, that would generate an extra £28 million for racing in 2002-03.
AP Story Paints Gloomy Picture of Saratoga Officials
Failing to realize the need to stay competitive and welcome bettors from all walks of life, officials with New York's Saratoga Race Course had some less-than-favorable things to say about the possible introduction of video gambling devices at the track.
The town's mayor held no punches when talking about the changes that could come at the track.
"That's a major concern--that we bring in a totally different element here to Saratoga Springs and change the atmosphere, change the mix that has been so successful,'' Mayor Ken Klotz said.
A state law approved in October authorizes video gambling terminals at several New York tracks. It allows Saratoga County officials to decide if they want to bring the machines to Saratoga Springs' harness track, Saratoga Equine Sports Center. A vote could happen in January. Skip Carlson, general manager of the harness track, said the games will bring more visitors and boost business. Barry Schwartz, chairman of the association that runs the thoroughbred track, said he does not fear competition from video gambling. But he did say the track won't stay the same forever.
"Everything about Saratoga is wonderful and charming. Would it change it? It probably would," he said.