Analysts say flat growth will hurt racing with government

Attendees of the 36th annual Symposium on Racing & Gaming got an in-depth look at the world of racinos Wednesday, as well as a sneak peek at what lies ahead on the technology front.

 

Even in this unsteady economy, “slots are where the money is,” said Will Cummings, president of Cummings Associates and a longtime industry insider. Cummings moderated the panel “Looking Back – and Forward – At Racinos” Wednesday morning. Cummings described the evolution of alternative gaming at race tracks, from the beginnings in small states such as West Virginia, Rhode Island and Louisiana, to the full-scale casino operations in Iowa, to the troubles New York has had in implementing slots at its race tracks.

 

He also described the correlation between tax rates and a state’s “power ranking” with slots, showing that states with lower taxes on slot income saw better revenue generation. Cummings warned of an impending storm in non-racino states, as cash-strapped governments wrangle with racing for funding.

 

“I see in the next year a collision between political logic and financial logic,” he said. “It doesn’t matter what the states want or what the tracks want. The only people who matter are financial institutions who may or may not release the funds.”

 

Robert Scarpelli, of HLT Advisory, described the experience from a Canadian perspective. “The two biggest issues used for funding racing are unfair gaming competition and economic benefits from job creation,” he said. “These arguments are becoming less relevant to government because the data no longer support it.”

 

Scarpelli showed in dramatic graphs just how flat the growth in racing has been over the past 15 years as compared to other forms of gaming. “(Racing) has a narrow demographic appeal and unless you change that appeal you are not going to change that outcome,” he said.

 

Scarpelli also added that in the rush to help tracks and horsemen and states, “a lot of people have forgotten about the gaming customer.”

 

University of Arizona Race Track Industry Program graduate student Steve May also presented his work on the subject, announcing an updated database of racino legislation. The database was compiled in partnership with the late Brody Johnson of Harness Tracks of America and can be accessed through the UA RTIP web site, www.ua-rtip.org.

 

Also on Wednesday, tech gadgetry was on display in the panel “Are We Dealing with Racing Technology or a Race With Technology?,” moderated by TwinSpires.com’s Rohit Thukral. Thukral demonstrated his company’s innovative wagering interface, which incorporates a high-definition signal. Scott Daruty, of HRTV described the network’s initial experiences with online content distribution. NBCSports.com producer Tom Seeley presented the innovative video format used during the network’s coverage of the 2008 Beijing Olympics as well as Sunday Night Football live streams. Seeley said some of the tech used for the 2010 Vancouver Games would be incorporated into NBC’s coverage of the Kentucky Derby and Preakness. (University of Arizona)