Horse
racing is one of mankind’s oldest sports. And betting
on “whose horse is fastest” – from the
prehistoric nomadic tribesmen of Central Asia who first
domesticated the horse about 4500 BC, to races like our
modern Kentucky Derby - has been central to the growth
and popularity of this venerable sport.
But the modern U.S. horse-racing industry – including
Idaho’s – has suffered in recent years from
the increasing number of state casinos, state lotteries,
and other forms of legalized gaming. Competition from
these new gaming venues has sharply reduced revenues that
traditionally have supported the multi-million-dollar
horse-racing industry.
In Idaho, for example, the state took in about $9,747,914
in racing revenue in 1988 – the year before our
state lottery was introduced. Fast-forward to 2007, and
the “handle” (a fixed percent of the total
amount wagered that covers track operating expenses, purses,
and state/local taxes) plummeted to just $3,158,844, a
67% decline.
Many industry experts are
convinced that if Idaho doesn’t act quickly, horse
racing in Idaho may no longer exist by the year 2010.
The national horse-racing
industry has come up with new ideas to save the sport
from extinction. Alternate forms of gaming, conducted
at race track sites, have emerged in recent years in an
effort to keep the sport alive.
In the last 15 years, legislators
in states like Iowa, Delaware, Oklahoma, Pennsylvania,
Louisiana, New York, Rhode Island, Maine and New Mexico
have passed bills to allow expansion of gaming at race
tracks
One solution that has brought
tens of millions of dollars in revenue to these states
is the addition of lottery products in electronic format.
The electronic lottery products are operated under the
auspices of the state lottery commissions, with the bulk
of the revenue generated by the play of the customers
going back to those customers in prize money.
Why should Idaho act now
to save it’s horse racing industry? Racing, and
the people it employs, are a vital part of the Idaho economy….people
who own, breed, feed, board, care for horses….the
average citizens who work at tracks taking tickets, cleaning
out stalls, serving food or walking horses…..the
people who “go out to the track” for a fun-filled
day of entertainment…and hundreds of small businesses
that benefit directly and indirectly from racing - restaurants,
hotels, feed and tack stores, veterinarians, farriers,
boarding facilities, transportation providers, saddle
makers and others.
There’s a way for
Idaho to save its horse-racing industry: Create a partnership
between the Idaho Lottery Commission and the Idaho Racing
Commission to allow electronic gaming opportunities at
facilities already offering year-round pari-mutuel wagering
under Racing Commission licenses.
In such a partnership, instead of simply competing, the
state lottery would become a key part of reviving and
sustaining the health of Idaho’s horse-racing industry. |
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