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We Should Listen to Harrah's CEO

April 30th 2008

9 comments

Good piece posted this afternoon by our fearless leader here at the Horseman, Kathy Parker. She focuses upon the comments made today by Harrah's CEO Gary Loveman, who candidly told the audience at the Canadian Gaming Summit (not, as I originally suggested, the Wagering Conference) in Montreal that he'd rather harness racing's problems not be his problems. No surprise, right? A gaming executive lamenting the fact that he or she has to subsidize racing. Problem is, the more frequent and the louder these voices are heard the sooner the politicians will start asking the same questions.
 
Be creative, Loveman told the horsemen. Amen.

Comments

Murray Brown said...

I would suggeast that perhaps Mr Loveman's remarks are somewhat disingenuous. Prior to Harrahs' purchase of the Chester license, Mr Loveman certainly knew that a major factor in getting the slots' bill pased was for the support of a significant industry, especially the maintenance of the agricultural and land preservation aspects of it. I'm sure that if Harrah's wants to sell its Chester property, there are likely numerous casino entities that would be interested in purchasing it - likely at a substantial profit!!
I would ask Mr Loveman why are there no lights at Chester and why is there no evening racing? Why can harness racing's traditional evening hours not be maintained. There would be substantial benefits from doing so. Firstly, it would enable the vast majority of WORKING PEOPLE who are unable to do so because they are trying to make a living to attend the races and perhaps become fans of our sport. Secondly, it would eliminate harness racing having to go against the highest grades of Thoroughbred Racing which traditionally takes place during the afternoon.
Please forgive my cynicism, but my guess is that the main if not the only reason for no night harness racing at Chester, Mohegan Sun and The Meadows might be that perhaps they want the larger evening crowds to be utilizing their time, filling the parking spaces and spending their money on the slots.
I do not mean to say that the horse industry and horsepeople are without blame or responsibility in this matter. However unless they wake up and do something about it they might be like livestock who are getting fat on the increased purses before being slaughtered.

posted at 11:14 AM on May 2nd 2008

Jessica Schroeder said...

Yes, casinos understood when they were lobbying for, planning and building their racinos that they would be funding...err subsidizing the horsemen and racing. However, I wonder why the horsemen in these slots states do not do more. Where is the PHHA on the opening afternoon at Chester? Was there a manned table there with information about harness racing, brochures on how to wager or pamphlets on how to become involved in the sport? As horsemen we have become "spoiled" and I feel we take for granted the money that is basically just given to us. Unfortunately we basically live in an era where racing cannot carry itself, but what are we, the horsemen's associations, doing to prevent even more loss in our fan base and handle?

posted at 3:46 PM on May 1st 2008

thomas morrissy said...

These casino companies got these slot bills pass because "the subsidies would save the jobs (both agricultural and racing) of a large industry and the slots weren't an expansion of gambling because there already was gambling at the tracks". Now that they have their slot bills they want to renige on the deal and cut racing louse. Typical of the sharks they are.

posted at 2:47 PM on May 1st 2008

thomas morrissy said...

I love how these casino sharks are all on board with slots at rae tracks when the justification for allowing them is 1. That it really isn't expanding gambling because the tracks already have gambling. 2.That a large industry (horse racing) will be saved with all it jobs (both racing and agricultural). And 3. open space will be protected.

posted at 2:36 PM on May 1st 2008

John Buonomo said...

Loveman is correct, and soon the politicians and companies that have millions invested will push to not support the horsemen. Look at Yonkers, there is already no simulcasting on the nights there is no racing, just slots. If you think about it, the track and racing bring nothing to the casino. Why do you think most of the rebate tracks have moved all post times to the day? They do not want competition for the dollar during prime time (at night). Who suffers the most? The true fan of our sport...how can we go watch the best in the business on Monday or Tuesday afternoons? And, if anyone things the Meadowlands would be any different IF slots were ever passed, they are grossly mistaken, post would be shifted to 1pm in a heart beat, just so the slots can take center stage at night.

posted at 7:10 AM on May 1st 2008

Jonathan Klee said...

I think this goes back to my comment about opening day at Chester. It's a beautiful facility that has alot of potential but no marketing to the horse crowd. Only the casino. They couldn't care less about the racing. There are no betting machines outside. The sound system was terrible. You could not even hear the track announcer and they were playing music during the post parade and even one race. The tote board is wholly inadequate. No exacta probables or video capability. In fact, if I didn't know better, they were almost discouraging people to bet since it was such a hastle. This was despite the fact that they had a decent size crowd. If they catered to the horse people maybe they would get a bigger handle.

posted at 8:55 PM on Apr 30th 2008

Paul Siegel said...

While Loveman's comments are hardly surprising, It's not as if Harrah's was not fully aware when they invested in Chester that a piece of the slot win would be used to subsidize purses. Harrah's Chester started life as Chester Downs, which was brought into the world by harness racing participants from the Delaware Valley. In order to fund and complete the project, the founding fathers needed to bring a significant investor on board, as well as a casino operator. They found both under one roof very early on, in Harrah's.

I suspect that Harrah's underestimated how much business the PA racinos would siphon from Atlantic City, where it owns four of the city's large casinos, Harrah's, Showboat, Caesar's and Bally's. I'm guessing that once Harrah's realized they had cannibalized their own business, they thought it would be a great idea if they could get rid of the expense of operating the racetrack.

posted at 8:55 PM on Apr 30th 2008

Kathy Parker, editor, The Horseman said...

Andrew,
In case I didn't make it clear in my news report, Loveman was addressing the Canadian Gaming Summit, not the Standardbred Canada Wagering Conference. The Wagering Conference kind of piggy-backed on the Gaming Summit and the harness folks sat in for Loveman's address. His specific remark about harness racing came after he took a question from Standardbred trainer Darryl MacArthur, who is also a director of the Ontario Harness Horse Association. I can't really remember MacArthur's question that prompted Loveman's response. Also, re: innovation, I'm sure Loveman was thinking of his gaming-oriented audience when he addressed that point since he stressed that innovation isn't simply taking millions of dollars and constructing a fabulous building. But of course, the need for innovation applies to horse racing as well, and was the reason for the gathering by harness people.

posted at 5:02 PM on Apr 30th 2008

Bob Marks said...

In that they're giving out excellent purses yet taking in very little in actual handle, when you realize what they retain after paying out approximately 85% to the bettors his position is understandable.

The question is what do we (this industry) do about it?

posted at 4:30 PM on Apr 30th 2008


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