Michigan Horsemen Go On the Attack

May 2nd 2008

 2 comments
Fascinating story this morning in the Detroit News. Here is what the paper's Paul Egan led with: "Northville Downs and other Michigan horse racing interests filed a federal lawsuit Thursday against the governor and state attorney general, alleging that state lotteries and casinos are killing their industry and that state restrictions on installing video lottery terminals and other forms of gambling at Michigan horse tracks violate the U.S. Constitution.
 
"Betting on horse racing plunged 45 percent from $474.6 million in 1997, before three Detroit casinos opened, to about $261 million last year, the lawsuit alleges. It cites the 2005 closure of a harness racing track in Saginaw; the 2007 closure of Great Lakes Downs, the state's last thoroughbred track; and Magna Entertainment Corp.'s recent decision to abandon plans for a new thoroughbred track in Romulus as evidence of an industry in a death spiral. 'Without legislative relief, you will see the end of horse racing in Michigan within three years,'" said Phillip Maxwell of Oxford, an attorney for the plaintiffs."
 
What do we think about this? Are we for this aggressive approach? Do we think it ought to be copied in other states? Chime in (and good morning)

Comments

CarolNJ said...

The horse racing industry failed to protect itself from lotteries and casinos when the various states introduced those competing forms of gambling. Hopefully there is some way to get some "protection" through this type of court action.

posted at 12:32 PM on May 2nd 2008

Don Daniels said...

Too little, too late.

Michigan (my homestate) did not implement full-simulcasting until 1998, and by then simulcasting revenues were already on the decline.

(Andrew note: Actually, as my colleague Gordon Waterstone pointed out, full-time simulcasting came to Michigan in 1996).

Most states/or provinces attemping to jump on the slot/VLT bandwagon at this stage of the game are simply too late.

The NY tracks don't have the revenues they expected.
There was a press-release yesterday or the day before, about the slots in Toronto declining.
There's been a lawsuit filed by the Quebec horseman's association over cuts in race dates and purses as a result of less-than-expected revenues from the company which negotiated for ownership of the Quebec tracks.
There's trouble is "Joisey".
Who know's what's on the sunrise for Indiana?
Repeated attempts by Kentucky have failed.

Your own recent blog mentions the "less-than-desired" attitude of Harrah's management?

Could it be that slots/VLT's (aka subsidation) are not the long-term solution that horsemen expected from each of the following:

1) Extended race dates
2) Expanded exotics
3) Simulcasting

posted at 10:49 AM on May 2nd 2008

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