Tribe & Track Join Forces to Propel Minnesota Racing

Minnesota Thoroughbred racing just got a bit more interesting.  On Monday,  Canterbury Park signed an agreement with the Shakopee Mdewakanton Sioux Community (SMSC) that provides security for the Community by way of Canterbury forgoing any lobbying for a racino (and agreeing to assist the SMSC in fighting other off-reservation gaming) in exchange for purse enhancement funds totaling $75 million dollars over 10-years plus another $8.5 million in marketing dollars to support join marketing efforts.

There are several wins here.

-        Horsemen.  The money provided goes direct to purses.  2012 will see an increase of about 35% in total purse money while 2013 may see another 25 – 30% increase or more.  The funds are staggered so the first year's payment (2012) is the lowest with the payments topping out at $8 million for each of the last 4 years.  State bred maidens will run for $25,600 now while the Lady Canterbury will go back to $100,000 for the first time in years.  Could a graded stake be too many years away?

-        Racing.  Purses won’t go insane here.  You won’t see $5,000 claimers running for $25,000, but you may see open allowances worth $35,000.  You’ll see the entire stakes calendar be black type races. The track has been able to do well drawing trainers and owners because of the fabulous relationship between backside and front.  Add competitive purses to the mix and it is going to be tough to find stall space.

-        Breeding.  It’s going to matter to have a MN bred again.  The small foal crop and increased purses makes for a perfect storm for the few folks that will have good quality MN breds hitting the track the next couple of years.  The money will be there for the taking.  Higher quality broodmares should start entering the state and when mated properly and the right amount of luck, should start producing higher quality horses that will be able to win anywhere.  Exactly where we want our breeding industry to end up.  I want to see a MN bred in the gate at the Breeders’ Cup by the end of this marketing arrangement!

-        SMSC.  The Community no longer has to spend millions for lobbyists to fend off the racino folks. With Canterbury out of the picture that train should really lose steam.  With a protected flank, the Community can now focus on other matters.

-        Shakopee/Prior Lake.  Your gambling destination resort in the Twin Cities.  Spend a day at the races and a night at the casino.  The track could conceivably now send its best bettors (and there are quite a few of them) to Mystic for a night to sample what the resort has to offer.  Additionally, the casinos can send folks over to the track for a reserved table and day of racing.  The possibilities are limitless and the local communities will benefit.

It’s not all peaches and cream for everyone, though.  There are some that find themselves on the outside looking in.

 

-        State of Minnesota.  The state actually will benefit a bit by this.  Keeping  the racing industry vibrant and growing, rather than declining, will attract more jobs, but their big money would be have been made by a racino so the state loses out on the possibility of $100 million plus a year.  Frankly, the agreement is a much better solution for racing and personally I love the cooperation between the Community and the track, but the state coffers might not think so.  Thank your rep if you’re upset about this one.  After 10+ years, it was time to take no for an answer.

-        Running Aces.  The harness track is left out of this picture.  It makes sense in a way – why would the SMSC care what happens in Columbus?  The fact is that even when Canterbury wanted racino, the views of how it would be implemented varied greatly between the two race tracks.  Canterbury wanted the majority of the money to be committed to purses while Running Aces wanted the majority of money to go the track operators.  You can’t blame them, they were built by a casino company and owned by private equity, but they were built on a bet on racino being legalized and lost.  Canterbury has been a vibrant piece of the business community in Minnesota for over 25 years – in fact was the first legal betting destination in the state.  I would suggest that Running Aces talk to the Mille Lacs Band of Ojibwe, the owners of Grand Casino Hinckley, and try to reach a similar accord.  I would be surprised if agreement can be reached, however, if the operators of the track insist on a chunk of the money for themselves.

Ultimately though, this is a win/win.  Racino was never going to pass.  There may have been glimmers of hope to further other agendas from time to time, but ultimately it was not going to happen.  This type of cooperative arrangement is perfect.  Racing gets a legitimate shot to succeed which is all it can really ask for. 

Of course this agreement is only the beginning.  More trainers need to be recruited and, perhaps more importantly, simulcasting outlets need to be lined up.  I’m not talking about in state (though why say no to that?), but places like TVG and various OTB outlets around North America.  What will be happening at Canterbury is going to be significant and the product will be very sellable – it needs to get sold.  The more locations that the signal is shown the more the racing product is bet.  The product is going to be betable, let’s get it out there.

Breeding can now be done with a level of confidence that did not exist for the 2012 breeding season. You can bet that Minnesotans will be out to the various sales this summer and fall to start rebuilding broodmare bands.  Those of us with older racing mares will have to take a hard look at pedigree and racing record and determine if the shed might be in their future.

We’re on the verge of very exciting times for racing in the North Star State.  It won’t be overnight but the future is bright thanks to Canterbury Park management and the leadership of the Shakopee Mdewakanton Sioux Community.  Now it’s time to step up and seize the moment.

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!

A New Look, a Look Back, a New Year and Happy Birthday

Happy New Year to you all! I hope that your celebrations were wonderful and that 2012 brings you all you desire.  Also, Happy Birthday to all our Thoroughbred friends.  Officially they all turn another year older today, no matter their actual foaling date.

As a new year starts it pays to look back and see what 2011 brought us.  As you also have noticed, it signals the launch of the new look of this blog.  I felt that it was time to shake things up and give the space a fresh, new look.  I look forward to your thoughts and comments as well as seeing what 2012 will bring to Tabby Lane, her possible stablemates and the racing world both here in Minnesota and the sport at large.

By all accounts Tabby Lane had a good 2011.  She raced 12 times, winning four, placing once and earning just a shade under $33,000, but there were ups and downs and lessons to learn along the way. She won a quarter of her starts and it’s hard to ask for much more than that. She did it while racing safe and sound and for that I count my blessings.

Tabby’s Best Moment – Winning 3 of 4 at Canterbury.  One of the joys of owning a racehorse is the ability to watch it run and, hopefully, win.  Tabby made it to the winner’s circle three times in front of our eyes and the home crowd this year and it simply does not get any better than that.

Tabby’s Worst Moment – Discovering that for whatever the reason, Tabby hates Remington.  For the second year in a row she completely laid an egg after moving to Oklahoma.  In both cases, though this year much more than the previous, she headed into the Fall with a lot of promise and exited it with a lot of nothing.

Tabby’s Financial situation – Tabs was facing a deep hole after she ran her first race at Tampa Bay Downs in 2011.  She was down over $4,000 since the claim.  She finished 2011 at virtually dead even, making up that deficit and then some.  However, it does draw into contrast how even in a successful year for a racehorse – and by any definition Tabby had a successful year – it’s difficult to make money campaigning a racehorse.  You don’t get into this game to get rich so you better love it and have your eyes open going in.

Biggest Surprise – The Great Canterbury Park Shutdown of 2011.  I would have never thought that the politicians in St. Paul would have ever allowed the state to shutdown over the budget and certainly didn’t think that it would last three weeks and jeopardize the entire season.  It did give me great fodder for my maiden season writing for the Daily Racing Form but dealt Minnesota racing a blow that will be difficult to rebound from.

Best Comeback – Mac Robertson, who was trailing the trainer standings deep into the meet ended up winning the title going away by 8 by the time the final race was run.  All season long was a battle between Canterbury Hall of Famer Bernell Rhone and Michael Biehler with Robertson stalking but not dominating the standings as he has in past years.  The newly minted Canterbury Hall of Famer went on a tear the last four weeks of the meet and had the title all but secure by Festival Day.

Non-Race Race – Dean Butler annihilated the field for the top jockey award in 2011.  He started hot, stayed hot and came back strong after the state imposed break to top the standings with 83 wins, distancing Derek Bell, a 2011 inductee into the Canterbury Park Hall of Fame, by 14 wins.

My Story of the Year – Based upon page views, the story on my trip to the auction and feedlot garnered a tremendous amount of traffic.  To give you an idea, a run of the mill story usually grabs 60 pageviews in a day; if it’s picked up by The Paulick Report or Equidaily that may swell to a couple of hundred. This story wasn’t picked up by either but still pulled in over 600 pageviews.

Most Interesting Story – The ongoing saga of expanded gaming at the racetracks.  A corollary is the sudden resignation of expanding gaming opponent Sen. Amy Koch (R) as majority leader and the elevation of Sen. David  Senjem (R), a vocal proponent of racino, to replace her.  This sets the stage for what will, in all likelihood, be the make or break year for racino – and possibly racing’s future – in Minnesota.

Minnesota Festival Day – Festival Day is always a fun day and, as usual, was a coronation of the best horses at low odds.  The 2011 edition featured some real standout performances.  Bella Notte’s swan song (whoops, not really) win was almost the cherry on the cake of her brilliant career.  Heliskier and Keewatin Ice stamped themselves as the juveniles to watch as they turn three and head for the Canterbury 3 year old stakes next season. Tubby Time’s dominating performance in the Turf capped off a wonderful campaign that led to Horse of the Meet honors.

2011 was a year of ups and downs for Minnesota racing and Tabby Lane.  We learned that Tabby dsilikes the surface at Remington so this season will be spent at Tampa and Canterbury before she heads for R&R, skipping the Oklahoma fall season.  In Minnesota, we knew that racing and politics have always been intertwined, but this year the two intersected in a way to close down racing in the state altogether.  Holes were exposed in the regulation and oversight of the sport here that needs to be addressed in the coming biennium to prevent the closure of a private business as a result of government gridlock.

A new year always starts off with hope and promise and 2012 is no exception. I wish you all a year filled with peace, love, happiness and a boatload of success!

State Reps Gather at Canterbury Park for Fundraiser

The key question among the group gathered at Canterbury Park yesterday for a fundraising event for the House Republican Caucus regarding was whether or not a special session of the legislature would occur before the next regular session (January 24, 2012).  The only way the government can meet before the next regular session is if the governor calls them into session to debate a specific issue.  In this case the issue would be funding for a new stadium for the NFL’s Minnesota Vikings. 

Why would that matter to the horsemen and legislators gathered at Canterbury?  One of the funding mechanisms suggested has been the placement of slot machines at Canterbury Park and Running Aces Harness Park.  Though the idea of a “racino” is not a new one, it does seem as if this past year more serious consideration has been given to the idea as the state slides deeper and deeper into debt.

In an interesting bit of news, the budget projections, set to be released later today, appear to show that the state’s deficit has NOT increased but rather this biennium will actually show a surplus of over $800 million.  Since this news was completely unexpected, it will be interesting to see just how both stadium and racino backers will be able to use this information.   Of course this does not mean the state is out of the woods merely that the next year and a half will end in a surplus – all variables remaining the same. 

Rep Tom Hackbarth (R) is the author of draft legislation for the establishment of a racino and has hedged his bets.  While money would be set aside for the debt service on bonds floated for the Vikings stadium, it would also provide the mechanism for paying back our children the billions borrowed from future school monies to balance the last biennium budget.  There would also be money for purses, the state and a new stadium for the St. Paul Saints.  Regardless of the fate of the Vikings, the school shift WILL have to be paid back and the establishment of a $1.7 million fund for equine development (trails, non-profits, horse shows, 4H etc.) will help equine organizations all over the state, not just the racing industry.  These additional codices could be what help to carry the bill – especially with the surplus projected.

Given the issues facing the legislature as they head into regular session, it’s a good bet that if a special session doesn’t occur, racino legislation – as well as the Vikings stadium – would go on the back burner.

Or disappear altogether.

Gaming Overhaul Needed in Minnesota

An overhaul of gaming is needed in Minnesota.  As the state budget issues worsen and the economy shows little sign of markedly improving, additional revenues are going to be needed to keep the state running.  Spending cuts alone will not make the budget work – the cuts would need to be too deep. Racino has been mentioned in many places are a large part of the answer and that may be correct, but I think a complete look at gaming in Minnesota needs to be looked at and fundamental changes need to be made.

Upfront, I want to say that I’m not going to deal with percentages to the state or any other breakdown.  I’m not even going to advocate for the use of any funds be it for the general fund, Vikings stadium or any other purpose.

There needs to be a look at all three prongs of gaming in Minnesota:  Charitable pull tabs in bars, Native American and racetrack.

First the easy part: get rid of paper pull tabs.  This system is way too easy to cheat and too difficult to monitor.  There is a finite pool and when certain jackpots are hit, they are marked off a sheet that is publically displayed.  At some point the remaining tickets could be “positive”, if you will.  That is, the remaining number of pull tabs can all be purchased and guarantee the buyer a profit.  For that you’d have to know how many cards remain – and there are individuals that do know this number.  The possibility for corruption is great and relatively easy.

Replace the paper pull tabs with electronic forms which would provide a total pool for several million potential outcomes, making the system impossible to cheat.  Each bar or organization would be limited to 3 machines connected by a central system run by the state lottery.  The Lottery will then be in charge of the charitable distribution of the proceeds.  Local referendums should be conducted as part of a primary or general election to determine if municipalities want them in their community.  The replacement of paper pull tabs with electronic versions are overdue, better regulated and serves to limit gaming since an unlimited number of patrons can buy pull tabs while on 3 machines can be occupied at a time.  Any bar or charity on the up and up should have no real issue with this change and, in fact, should welcome it.

Now the tougher part, getting the Native American Bands in Minnesota and the racetracks on the same page in regards to gaming.  Let’s get a few things out of the way first:

-        The gaming monopoly enjoyed by the Bands is not guaranteed.  There are no provisions in the compacts that promises that there will never be any competition for the gambling dollar;

-        The State can want money from the Bands all they want but their compact does not provide for any of it.  The compacts can be reopened only with the mutual consent of the parties.  Can anyone tell me why in the world any of the Band’s would want to reopen a compact?  I wouldn’t.

I try not to take sides on this issue.  I worked in gaming for a long time here in Minnesota (and may again) so the Bands here have been my customers and are my friends.  Conversely I’ve owned racehorses and been involved in the industry one way or another on and off for nearly 25 years and love it dearly.  Is there a way that both sides can benefit from gaming reform?  I think that there is.

I hate to do this to my friends at Running Aces, but you’re out.  Southwest Casinos built this place with the express goal of getting slots while, in fact, the building of the Park probably did more to unify opposition to the idea of racino than anything else.  When slots were only being discussed at Canterbury it was hard for the northern Bands, whose casinos generate considerably less revenue than the southern Bands, to jump on board to the defense of their fellow Natives in Shakopee.  The Mdewakanton Sioux, operators of Mystic Lake and Little Six Casinos, are the wealthiest Band in the state and the per capita payouts are tremendously high due to the success of the casinos and relatively small size of the Band.  However, once Running Aces came into the picture that all changed.  Now there was a threat to the Mille Lacs Band’s two successful casinos, Grand Casino Hinckley and Grand Casino Mille Lacs as well as the potential of the trickle-down effect unemployment would have on the rural counties where they are located.  It was easy then for the Mdewakanton to back off and let the Mille Lacs Band lead the assault on racino because, quite simply, the Mille Lacs story is much more compelling.

Limit the number of slots at Canterbury.  Yup, sorry to you all as well.  No monumental gaming palace, but why not a slot venue?  Especially in Shakopee.  Gamblers will have a choice between Mystic, Little Six and Canterbury.  It almost lends itself to a great joint marketing campaign.  When gamblers don’t win at one place, what do they do?  Move on to the next one.  Where in Minnesota would be the only place that you could actually do that if the track got slots?  Shakopee, that’s where.

What’s the right number, though?  That’s a good question and I would peg the high end at 2,000 with 1,500 probably being a fair number. That’s a good size casino and would produce enough revenue to revitalize the horse industry, build the equestrian park that is sorely needed here and generate generous amounts of cash for the state while still providing a bit of subsidy for Running Aces – you can’t leave them totally high and dry. 

But what about the Bands?  What do they get out of this deal?  Well, first of all get rid of the ridiculous “video only” gaming requirement in the state and let the Bands have mechanical reels as well as the table games that they are currently barred from offering: craps and roulette.  Why not?  Additionally, shed the maximum payback requirement.

According to the terms of the compact between the state and the tribes…the minimum and maximum payouts are regulated as follows: video poker and video blackjack - 83% to 98%, slot machines - 80% to 95%, keno - 75% to 95%. Each tribe is free to set its machines to pay back anywhere within those limits and the tribes do not release any information regarding their slot machine percentage paybacks. (taken from the American Casino Guide).

This limitation is ludicrous and only harms the players.  If I operated a casino in Wisconsin or Iowa I would advertise in Minnesota that my place offers “slots so loose they are illegal in Minnesota!”  Open it up and let competition reign.

Finally, restructure the technical standards that the Bands have to follow in the state.  The standards are so archaic and hard to change that as the gaming industry is moving toward more server based applications for gaming and leading edge computer technology, Minnesota lags behind.  The state should simply adopt the latest Gaming Laboratories Inc.’s (GLI) technical standards.  Once a new set of standards is GLI approved, they are approved in Minnesota.  This isn’t a radical step and, in fact, mirrors most gaming jurisdictions that do not have their own testing lab (which I would adamantly oppose as a waste of taxpayer money, by the way).

The Bands would then get more games and more leeway in the way they can build their business. And, by the way, keep revenue sharing out of any discussion.  The state is getting its money from the racino.

I admit that this isn’t perfect for everyone – it’s not meant to be.  What it’s meant to do is be as perfect as possible for the taxpayers of Minnesota while still providing something for three groups most affected by gaming legislation. 

Ultimately if everyone could get together and talk about this, much could be accomplished for the state and its residents. A comprehensive look at gaming in this state is necessary before we move forward on anything.  A little bit to everyone could very well mean a lot for the state of Minnesota.

Racing Resumes but Issues Remain

When the gates spring open on Thursday night it will mark the first day of live racing at Canterbury Park for three weeks since the budget impasse between the legislature and the governor forced the shuttering of the state at midnight, June 30.   At that time the feeling was that while the track might miss racing on July 1st and maybe 2nd, folks in St. Paul would come to their senses and not let a private business lose their largest money making weekend of the year because of government.  That feeling gave way to depression as the days dragged on and judicial decisions went against the track’s arguments for reopening.

Trainers were just starting to line up alternative arrangements for the rest of the summer when word came on a Thursday evening that there was a resolution - the “framework” of a deal.  Perhaps part of weekend number three could be saved?  That was not to be.  It turned out that the framework of a deal was only that.  Members of the legislature on both sides of the aisle were unhappy with the final result, usually the essence of a good compromise.  Given the choices before them, it was probably the best deal that could be made to reopen government, but sadly, it is no solution to the systemic problem the state faced and will now face again in two years.

This is no place to get into my political views but one thing that needs to happen before disaster strikes again is that the statutory language that authorizes the Minnesota Racing Commission to be self-funded needs to be revisited and rewritten.  Lawmakers and track lobbyists should look to the Zoo’s language which enabled it to stay open despite a very similar financing structure.  What wasn’t similar was the language in the statute that clearly showed that the Zoo did not need legislative appropriation while the MRC did.  I would like to think either Senator Claire Robling or Representative Michael Beard, whose constituencies encompass Shakopee, would be first in line with such an amendment to the law, but whoever does, it should be a top priority of horsemen and the track.

Another component that I know the tracks would have liked to have seen in the budget compromise was racino legislation.

“It is very disappointing that our proposed Racino legislation was not part of resolving the budget impasse,” track president and CEO Randy Sampson said. “Studies have shown that two Racinos would generate an estimated $125 million annually in revenues for the State of Minnesota, while creating thousands of jobs in the racing, hospitality, and equine industries. Racinos would also enable Minnesota’s horse racing industry, which already employs several thousand individuals, to remain competitive and viable. We believe our efforts this year have increased support for Racinos in Minnesota, both among the public and among lawmakers in St. Paul, and we remain committed to the adoption of Racino legislation in Minnesota at the earliest possible time.”

I don’t know why the Racino language wasn’t discussed or if there is a plan for it to be brought up again as part of any potential Viking’s stadium special session, but I think it’s hard for lawmakers to ignore something the amount of non-tax revenue that is on the table.  Maybe the newly minted Republican majority may feel an allegiance to Tony Sutton and his wife that keep them from considering what they call an expansion of gaming?  I know my two state legislators used language right out of a C.A.G.E. newsletter to explain their position on the issue.

Many will blame the Native American lobby, accused of being in the pockets of DFL lawmakers for years, and maybe they were effective.  But if they were, how can you blame them?  The reality is that they are defending their business interests – just the same as anyone else would.  Ultimately they are doing what’s best for their constituency just the same as the horsemen are trying to do the best for theirs.  I can feel MUCH more empathy for their position.  Don’t moralize to me, but I can certainly understand defending your turf.

Is there some room here for a compromise?  Surprisingly, I think that there is and the benefits would be shared by the state, Native American Bands and horsemen.  No one would be 100% happy – well, except maybe the state – but again, that’s compromise for you.  But that’s a post for another time.

The important thing for right now is that there is racing again and starting tomorrow I will be posting about races, where Tabby Lane will run next and my thoughts for some unorthodox partnerships.

See you at the races!