File photo courtesy of Clinton Raceway.
HEATHER BOA Bullet News CLINTON –The horse racing industry needs provincial funding to remain viable, according to a final report from the transitional panel.
It will require less than the $345 million yearly it received under the Slots at Raceways program, the panel said in a report made public by Agriculture, Food and Rural Affairs Minister Ted McMeekin today, but exactly how much money the horse racing industry will need won’t be made public until negotiations between the province and the horse racing industry are complete.
“Scanning other jurisdictions, the panel could not find a single example of a viable horse racing industry without some form of public support. Even so, the panel found it would be a mistake to reinstate SARP. The program has provided far more money than was needed to stabilize the industry – its original purpose – and has done so without compelling the industry to invest in a better consumer experience,” writes the panel of former cabinet ministers Elmer Buchanan, John Snobelen and John Wilkinson in its final report.
The final report recommends development of a new Sustainable Horse Racing Model, which bases purse money on the industry’s share of pari-mutuel wagering – pooled betting – and slashes race days in half, down from 1,600 to 800 days in order to prop up the purses. In standardbred racing, under the slots at raceways program, as much as 90 per cent of the total purse comes from slots. The new model would see purses at nearly 20 per cent less than the enhanced slots at raceways purses.
The panel is recommending the seven small tracks in the province, including Clinton Raceway, have a total 140 race days, down from 308 race days in 2011. These tracks would have a total purse of $4.2 million, down from $18 million in 2011.
As well, the panel proposes full race fields and cards with at least 10 races.
In return, racetracks will get government assistance for track improvements, with books opened to auditor scrutiny.
The panel suggests new gaming options, such as: a racing-specific lottery; sports book, in which players bet on single sporting events, a move that would only be legal if pending federal legislation is enacted; and a new pari-mutuel product called historical horse racing, which involves electronic betting on the outcome of past races that are not identified to the player. The panel estimates the new $100-million annual revenue stream would offset public funding.
However the manager of Clinton Raceway said he won’t know exactly what this all means until they get into negotiations with the government. No dates have been announced for negotiations.
“By the time I finished the report, I had more questions than answer. I was expecting whether it was good or not, it would be a little clearer,” Ian Fleming said.
“The money thrown around for purse money doesn’t sound like enough unless some of these other revenue streams would be in addition to that. That really isn’t spelled out,” he said. Most importantly, he wonders whether the goals set by the panel will be phased in or will come at the end of a three-year transition period.
The answers will need to come before he and other raceways apply for 2013 race dates, a season which begins in just eight weeks.
The panel recommends an alliance of racetracks that expressed an interest in operating a province-wide racing secretariat to set both race dates and purses. It would also take on the branding and marketing of the Ontario racing product. As a result, the Ontario Racing Commission’s work would be reduced to regulatory only. The ministry would oversee the racing industry.
The plan also calls for continued support of the Ontario Horse Improvement Program, with funding based on the pari-mutuel handle.
“I am confident that this current spirit of collaboration will continue as we work together to transition the horse racing industry to a more sustainable future,” McMeekin said.
