Rise of the Racino - By Richard Thalheimer

re: Rise of the Racino - By Richard Thalheimer

Fran Loszynski — Mon, 28 Jun 2010 19:24:26 GMT

Casinos don't affect horseracing. Some of my friends play the slots while the rest of us play the horses. You know when it comes right down to it, it's all betting. Racehorses can hold their own. Not all people like horseracing and not all people like the slots. I think it works out fine.

re: Rise of the Racino - By Richard Thalheimer

David — Fri, 25 Jun 2010 17:37:11 GMT

Interesting. Yesterday’s business model, you know the one with the outdated pricing system et al, once allowed a bottom line worthy of investment. It still would with increasing sales, something now only a memory. At the end of the day, racing is like any business . . . all about growth. Bob may be correct; tracks in the future may look like the Oak Tree and Keeneland versions, existing solely to promote related endeavors. Surely such a scenario makes sense to (former) shareholders of a certain corporation that comes to mind.

re: Rise of the Racino - By Richard Thalheimer

David — Fri, 25 Jun 2010 14:16:57 GMT

You mean thoroughbred racing should simply lower expectations, accept reality (of declining demand) and quietly trend the way of harness racing? Resignation is a tough pill to sallow but a scaled-down, boutique landscape is no doubt where we’re headed.

re: Rise of the Racino - By Richard Thalheimer

AngelaFromAbilene — Fri, 25 Jun 2010 13:12:51 GMT

Bob- You are absoutely correct, "They did it because they loved the game."

That's the difference between now and then. Until racing is again filled with people who LOVE the game instead of people who are simply trying to make a lot of money, it is going to continue to be the mess that it is.

re: Rise of the Racino - By Richard Thalheimer

Bob — Thu, 24 Jun 2010 19:03:06 GMT

Racing can survive on it's own. Race tracks that offer just horse racing make money but they just don't make that much money and in this day and age that doesn't meet the expectations of business people. The only reason casino owners need the horse racing is to get the casino up and running. Now that the horse racing is a drain on them and doesn't make that much they will in the future try to get ride of the racetracks or cut what they have to pay to the purses down to almost nothing. Race track ownership was never a very big money making venture for the owners of the race-tracks even when things were really good. They did it because they loved the game. But look at this way. Unlike other sports, race track owners don't have to pay for players or coaches salaries so their expenses in relation to a NFL or an NBA teams is not even close. The whole attitude of horse racing executives over the last 15 years has been how bad everything is and without a casino we cannot survive. But one thing reporters never seem to do is ask a race track such as Churchill or Arlington that have no alternative wagering to open their books and prove that these tracks lose money year and year out. If that is the case, they would have my sympathy. But, if they don't and they aren't that interested in racing then sell Arlington to a group or person who loves racing and let them run it and they will be happy making one million a year.

re: Rise of the Racino - By Richard Thalheimer

David — Wed, 23 Jun 2010 22:19:55 GMT

When Delaware crossed the line and racinos became part of racing vocabulary, I honestly felt increased traffic from alternative gaming would serve to boost facility handle. The basis was (subconsciously) a belief that horse racing was a time-tested, better product. Nearly 20 years later, I could not have been more wrong. When sold side-by-side with the more popular offering, racing not only failed to accrue any benefit (in terms of sales volume), handle actually decreased. That fact and many failed attempts at reform have no positive spin. I’ll throw in with you Richard, if revenue trend continues with a decreasing disproportioned share coming from the racing side of the house, they’ll soon be no reason for the endless debate here in Kentucky. The sentiment will shift to “tell me again why was it we need those guys”. Not very pretty.

re: Rise of the Racino - By Richard Thalheimer

Curlin — Wed, 23 Jun 2010 15:43:37 GMT

Slots are a cancer on racing. It is really sad that people greedy for higher purses don't see this.

The problem with slots, is they make more money than racing. Then racing becomes a sideshow. Racing is the loser, something that you just have to do. It becomes the thing you don't want to do, don't want to invest in, and don't care about.

Eventually, all the racing executives get replaced by casino people. The only racing people left are low-level people that are just told what to do.

Then, racing is left to do nothing but decline indefinitely.

This will happen everywhere the casino makes more money than racing, and it is happening at Churchill Downs Inc. The only place it hasn't happened yet is Gulfstream Park, which has strong racing but a weak casino.

re: Rise of the Racino - By Richard Thalheimer

Lady Slew — Wed, 23 Jun 2010 05:03:22 GMT

Oh Fran, what a dream concept! Take it a step further and put in senior care amenities that retirement/assisted living gives and retiring to a racino complex like you describe would be heavenly!

re: Rise of the Racino - By Richard Thalheimer

Brian Russell — Tue, 22 Jun 2010 20:04:28 GMT

Fran,

I live about a mile from Gulfstream and agree with your post. Interestingly, the crowds at the mall/restraunts/bars has slowed to a trickle after the live meet ended. Granted, this area is seasonal but this drop off is way more than that. At least in this part of the country, the live racing is obviously the biggest draw of people to the facility. As I doubt Calder would care so long as it is done at the end of the meet, It will be interesting to see if Gulfstream considers extending their meet (with lower purses for post FL Derby days) to benefit the other ventures.

re: Rise of the Racino - By Richard Thalheimer

Fran Loszynski — Tue, 22 Jun 2010 18:36:50 GMT

The first time I went to Gulfstream Park with all the new malls and potential housing inside the city of Gulfstream Park ; all I could say was "You can virtually live here!" A racino is awesome. Upstairs live horseracing, downstairs casino, outside restaurants, overlooking future condo suites, and all along the complex, shopping malls. You could get up in the morning with your coffee and watch live horseracing, then shop all day and go out to eat. I made the statement as a bettor on horseracing "I was in heaven!" That's exactly what we need at every casino and racetrack. You don't have to travel anywhere-You can live there! Love it, just wish and hope the condo suites are not too expensive, maybe someday alot of us can look forward to retiring not to a village but to a "racetrack!" Can you imagine the money draw from seniors and young bettors also, not to mention the jet set! Wow.