Racetracks like Indiana Downs have seen significant increases in purse structure since adding new forms of alternative wagering like slot machines, but can the good times last?
In a poll that went about three and a half months longer than planned, the readers of this blog voted convincingly that slot machines are the most important form of alternative wagering for the long-term health of the racing industry.
The voting was neck-and-neck between slots and advance deposit wagering in the poll’s early goings. As time wore on, slots pulled away to an insurmountable lead.
Let’s have a look at the results…
Which form of alternative wagering is most important to racing’s long-term health?
Slot Machines – 58% (123 votes)
Advance Deposit Wagering – 22% (46 votes)
We don’t need no stinking alternative wagering – 8% (18 votes)
Instant Racing – 6% (13 votes)
Card Rooms – 3% (6 votes)
Other – 3% (7 votes)
Total votes: 213
“Other” answers (some of the answers could be placed in one of the categories above, but because they were placed in “other,” I am keeping them here):
– “table games, that’s what they want, only slots is not the answer”
– “telephone/Internet wagering”
– “All of the above”
– “exchange betting”
– “nothing we’re dooooooooomed”
There is no question slots have had an impact on the racing industry, and will continue to do so. Just look at the career path of Kentucky Derby winner Mine That Bird.
The classic winner started his career at Woodbine, enjoying slots-enriched purses on his way to nabbing the Sovereign Award as Canada’s top juvenile. His earnings in Canada alone were enough to secure him an invitation to the big dance at Churchill Downs, which removed the pressure from taking the road to Louisville going through New Mexico.
Mine That Bird worked his way through the Derby preps at Sunland Park, which would have been a laughable strategy only ten years ago, and is unorthodox at best today. With the help of alternative wagering (mainly casino-style gaming) in 2009, the Sunland Derby offered a purse of $900,000, among the biggest prizes offered to three-year-olds in the country.
The race was not graded, and Mine That Bird finished off the board, but his eventual win in the Kentucky Derby put New Mexico in a position to become a legitimate path on the Derby trail. The little Birdstone gelding that could’s success has spearheaded the campaign to get the Sunland Derby designated a graded stakes race, officially making it more than a cash-grab race for Derby wannabes.
Simply put, without casino-style gaming, Mine That Bird is clunking around the California allowance ranks, Calvin Borel doesn’t tearfully celebrate his biggest upset on national television, Sunland Park still runs cheap Quarter Horses, West Side Bernie wins the Kentucky Derby and nobody goes home happy.
The story doesn’t end there. Just recently, the connections of Mine That Bird spurned the Haskell Invitational, and a rematch with Preakness winner Rachel Alexandra, to challenge the West Virginia Derby at Mountaineer. If Mountaineer were still in the slums of the racing hierarchy, as it was before the implementation of slots, a trip through the hills of West Virginia wouldn’t have even crossed the minds of team Mine That Bird (even if the gamble did blow up in their faces, leaving with a third-place finish).
Alternative wagering, slots in particular, does not only give gamblers more options at the racetrack. It also leads to horsemen having the option to try their charges in spots previously considered no-man’s land for horses with any class. Mountaineer landed a Kentucky Derby winner. Charles Town landed Commentator for the Charles Town Classic. Last year, Hoosier Park enticed Pyro, once considered one of his crop’s heavyweights, to enter the Indiana Derby. There is a $1 million race in the middle of Pennsylvania for crying out loud.
Even if for a brief moment, racinos can draw the big horses to come to your local track and thrust it into the national spotlight. If a few curious onlookers become serious followers of the sport, the track will be ahead for the day – and all thanks to a room full of retirees mindlessly hitting the “spin again” button.
However, the honeymoon between racing and slots may soon be coming to an end.
Many racino tracks are still struggling to find an identity for themselves, especially when the quality of racing has yet to catch up with the caliber of purses being offered.
Despite becoming a beacon for horsemen from non-racino states (just take a look at all the Michigan-based connections racing at Presque Isle Downs), Pennsylvania still faces issues with keeping the balance between the racetrack and the casino. Further complicating the situation is the radical discrepancy between the money the live handle kicks into the purse structure versus the purse money generated by the slots (as high as 20-to-1 at Presque Isle). According to the article linked to in this paragraph, Pennsylvania racing’s heavy reliance on the slot machine dollar paired with its difficulty generating its own funds could be seen as a sign of blood in the water by other groups looking to profit from gambling monies.
Though it has been confirmed at Prairie Meadows, an Iowa racino, that live racing actually boosts the slots revenue, the track plans to restructure its schedule for next year, with plans to jettison standardbred racing and ask for fewer Thoroughbred dates. While purses have steadily risen, live handle has steadily dipped despite being one of the first racetracks to adopt casino-style gaming.
The racetracks of today are the lab rats in the study of the miracle cure known as slot machines. Tracks with slots get the medicine – tracks without get the placebo. Early returns appear positive, but the side effects are still being discovered. Little is known about the long-term effects slot machines will have on the racing industry because they have only been around for the short-term. Proponents say slots will bring racing to an even playing field with competitors and will encourage the breeding of better competitors, while others worry the bottom line will eventually drive the “Rac” in “Racino” to become a full-blown “Cas”.
The answer is likely somewhere in the middle, but as it stands right now, there is only one way to find out.
A poll running this long deserves a post just as lengthy. To help preserve your eyes and attention spans, I am splitting it up into two separate entries. The next post, examining some of the poll’s runner-ups, will be up whenever I get around to writing it. Keep your eyes peeled.