Cooperation, New Lines of Communication and Ignorance

Right now I should be on the road to Chicago but I had to delay my departure to put down some thoughts on the passage of the Horse Racing Purse Enhancement legislation that was passed yesterday by the Minnesota House and now awaits action by the Governor.

While it was an exciting time for Minnesota horse owners and breeders, it was a bit of an uneasy time for me.  I was watching state legislators, folks that we elect to represent us, sound off about things that they obviously knew little about.  Joe Drape’s expose in The New York Times was sourced by one lawmaker who really couldn’t explain how the article relates to Canterbury Park.  She even mentioned several times that “I understand that this isn’t happening in our state”, yet on she yammered.  As a point of reference, the Times piece cited $7,500 claiming horses racing for $40,000 (now a thing of the past since emergency regulations just went into effect in New York capping a purse at two times the claiming price) and unsound horses being pushed just to get a piece of the pot. 

The reality in Minnesota is that this season $7,500 claimers will race for a purse of $10,000.  At maximum impact of 40% (a guesstimate, of course), the purse will “skyrocket” to $14,000.  This is a far cry from $40,000, still under the new New York threshold and certainly nowhere near enough money to encourage any kind of chicanery or animal mistreatment.

Another representative was screaming foul because this potentially “controversial” legislation wasn’t screened by the hearing process.  I can understand that a thorough vetting process of any legislation is ideal, however the last minute compromise struck by the Native Americans and the racetrack was a bit late in the process for that.  Additionally, amendments are passed all the time that impact legislation and are debated openly on the floor of the State House chambers – this is nothing new.  Finally, the two major combatants were on the same side on this one!  What became apparent was that this rep viewed the amendment as an “expansion of gambling”.  I wonder if she feels the same way when Native casinos knock down a wall to add 250 more slot machines or a new bar gets a pull-tab license or a new convenience store registers to sell lottery tickets?  The state has already authorized table games and gambling at the race tracks and their expansions should be treated the same way.  Hell, even the local community was supportive of the measure.  This was an example of a local business expanding what it is already legally doing – and gaining the support of its detractors before doing it.  It looked to me that there was more personal agenda than policy concerns at work with this rep.

Another rep, from what I understand a longtime opponent of gambling, wanted to know how the non-racehorse breeder’s in her district were to benefit from this “bonus” that was being given to the racetracks.  Uh, the racino legislation proposal provided money for all horse breeds in the state. She was adamantly opposed to that as well.  It was completely disingenuous for her to claim she was just looking out for her poor constituents who were going to be burned by this “bonus” when she didn’t want a proposal that would help them see the light of day.

Finally, and I’ve saved the best for last.  This was so incredulous to me that I literally laughed out loud in my living room watching the hearing last night.  Our friend, the New York Times aficionado mentioned above, told the House that she has some experience with racehorses because some young girls in Oregon that she knows have a great-grand-daughter of Secretariat.  I thought she was kidding at first, but she followed that up with the statement that she didn’t think that any other member of the body had ever been so close to racing greatness.  But wait!  There’s more!  When a representative arose to counter her expertise by saying that his first job was a horse ranch manager that included quarter horses among other breeds and not only does he understand racing, but all the economics that go along with it, she actually stood up and re-established her claim of expertise over him because she touched the progeny of the progeny of the progeny of one of the greatest racehorses that ever lived. I swear to you that this is true – and I’m embarrassed to say that it happened here.

For this rep’s edification, Secretariat sired approximately 600 foals.  Let’s assume that between mares and horses those children produced another 1800 animals.  Triple again for one more generation and then you have over 5,000 potential great-grandchildren of Secretariat.  You go back one more generation on her dam’s side and our very own Tabby Lane is a descendant of Secretariat!  My point is, dear representative, your experience is NOT a unique one NOR does it make you an expert.  Quite frankly, you look ill-informed when you make such ludicrous claims.

Eventually, after all the brouhaha calmed down, the measure passed overwhelmingly and was sent to Governor Mark Dayton for signature.  Since he started the process of the track and tribes working together I find it highly unlikely that he’ll veto it and finally, for the first time in a long time, a racing season begins with hope rather than angst.

Congratulations to both the tracks and Tribes for sitting down together and getting a deal done.  I hope that the lines of communication stay open for a long time to come – more can be done working together than pulling apart.

Of course the lawyers and lobbyists may feel differently…

Cooperation Could Boost Minnesota Racing Purses

It looks as if sitting down together actually does get something positive accomplished. Minnesota’s racetracks did not get racino legislation passed this legislative session, but unlike past years when this was all that could be said at the end of the session, both the tracks and Tribes could be walking away with something.

The State Senate passed a bill last night that was amended to include the “Minnesota Horseracing Purse Enhancement Act”.  The particulars of the bill are:

·         An increase in the maximum number of gaming/poker tables the racetrack’s card club can operate from 50 to 80.

·         The maximum bet at each table has increased from $60 to $100;

·         The cardrooms can now offer “house banked games” whereby players play against the house rather than paying a small commission and then play against each other;

·         Removes the limitation on the number of poker tournaments that can be conducted;

·         Allow Native American casinos in Minnesota to simulcast horse racing.

It is estimated that approximate $2.5 million dollars would be earned for the purse account from these changes.  Another upside is that racing fans outside the metropolitan areas of Minneapolis-St. Paul will finally be able to wager on racing without traveling up to six hours to get to the racetrack.  Minnesota law does not permit residents to wager on-line so in the past if you have not been able to get to the track, you weren’t able to place a bet.  Now there may be up to 18 off track betting locations throughout the state including a potentially lucrative location in downtown Duluth.

The legislation still has to pass the House and be signed by the governor with the House scheduled to take action on Monday.  There are also some logistical hurdles that need to be addressed as well: where will 30 extra tables be installed and the details of simulcasting signals and wager, to name a couple.  Additionally, while horsemen will be anxious for the purse enhancements to be effective as soon as possible, it will be hard to award any purse increases without the revenue flowing particularly in the wake of the state shutdown last season that cost the track millions of dollars in revenue and, by extension, dollars flowing to the 2012 purse account.

This isn’t the best that the tracks could have hoped for but there are several positives: something is always better than nothing.  And talking is always better than fighting.  If the casinos and racetracks could find a way to work together to their mutual benefit both industries win instead of just the lawyers and lobbyists.  A lot can be said for sitting down and talking and I hope that this isn’t a lesson lost on the politicians in St. Paul – and in Washington, D.C. (though you know it is).

In the end, assuming about a 40% rise in daily purses when the money is fully vested, if you will, horsemen could be looking at purses on par with – if not slightly ahead of – Tampa Bay Downs.  It makes racing at Canterbury a very attractive option again and gives the industry a reason for hope.  Crowd levels have risen over the past several seasons, setting average daily attendance records year over year: Minnesotans obviously love their racing. Now it has a new life. The slide has stopped and hopefully a reversal can begin.  Fans across the state will have access to the product now, many for the first time within a short drive from their homes.  There are open channels of communication between once bitter rivals that hopefully can lead to bigger and better things.

Now let’s get this passed, implemented and get on with racing!