Takes on racing's future

Dr. William Eadington, professor of gaming and economics at the University of Nevada, told attendees at the second general session of the fourth Racing Congress that "Slot machines cannot save racing."



The second session got underway at the Bellagio in Las Vegas Thursday morning, and Dr. Eadington was one of nine panelists who said racing must be prepared for challenges to its slots/video gaming devices in the future. They maintained that the costs to create the horse racing product are too expensive (horses, purses and the facilities) for the business generated, that racing has allowed pricing which undermines its chances of generating profits, and suggested changes they believe could improve the sport's position as a viable gaming product.



In addressing the racino phenomenon which is sweeping the country, Dr. William Eadington questioned if slot revenue is "sustainable in the long term?"



Eight other panelists gave their take on areas where horse racing must improve its strategies or make adjustments.



Ton Aronson, a longtime racing executive who began his career with Stan Bergstein of Harness Tracks of America, said he believes racing lacks the structures and kinds of process utilized in other businesses when challenges are faced. Aronson, who has also owned Standardbreds in the past, also noted that horse racing is the most expensive form of gaming to produce. "Think of the resources it takes to put on a $20,000 claiming event," he said.



Pricing, both takeout rates and the rates tracks sell their signals for to other outlets, was a topic discussed passionately by Lee Amaitis, president of Cantor Index and Cantor Gaming, and David Willmot, CEO of Woodbine Entertainment.



Amaitis believes racing should change its pricing on both fronts: takeout and the sale of its signal. "Volume goes up when prices go down," he noted.



Willmott addressed the price of racing signals to other outlets. "The first time that we sold our signal to a non-racetrack operator…we lost control of pricing. If we don't get a hold of this, we will die the death of a thousand cuts."

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