Harrah Profits: The Death of Greyhound Racing or Why Pretend?

Casino to Iowa: We’ll pay you $7 million a year to end dog racing

Iowa would indefinitely receive $7 million a year if lawmakers agree to end live greyhound racing, representatives of the world’s biggest casino chain said today.

“This is a tremendous solution for Iowa,” said Dan Real, assistant general manager at Horseshoe Casino in Council Bluffs.

The offer from Harrah’s Entertainment could be substantially more than an offer made earlier this legislative session in which Council Bluffs and Dubuque Casinos would pay a total of $10 million a year for seven years.

Harrah’s, which owns Horseshoe Casino in Council Bluffs, said today in a press conference that it would be willing to pay its $7 million share annually for as long as the casino holds a gambling license in the state.

They were not speaking for officials from Dubuque Greyhound Park and Casino, now known as Mystique Casino. It was not immediately known if the Dubuque casino would share in the willingness to make and ongoing appropriation to the state.

“That is $7 million a year that can be spent by the state for real issues that affect Iowans like education, jobs and health care as compared to spending this money on a few breeders and owners, many of whom are out of state,” Real said.

Harrah’s Entertainment, which owns 50 casinos worldwide and purchased the Council Bluffs greyhound racetrack-casino in 2001, commissioned a study of the greyhound industry and gave copies to Gov. Chet Culver and key lawmakers in January.

The report shows consumer interest in betting on dogs has drastically dwindled and that it’s expensive for the casinos to subsidize greyhound racing.

The two dog tracks together spend about $12 million a year in profits from slots and other gaming to supplement the prize money, or purses, that dog owners and kennels win, the report states.

The Dubuque and Council Bluffs tracks are currently required by the state to have dog races as part of an agreement lawmakers made in 1994 to save the state’s dog racing industry. In order for the casinos to have slot machines, dog racing must take place.

The Harrah’s report found that about $140 million in revenue from slot machines and table games went to greyhound owners and kennels from 1995 to 2008.

House File 2493 would have granted that casinos the right to end dog racing but the bill failed to meet various legislative hurdles and has been declared dead by Democratic leadership, specifically Senate Majority Leader Michael Gronstal, D-Council Bluffs.

Gronstal, on Friday, told Iowa Public Television’s “Iowa Press” that it’s doubtful that such a bill would pass this year.

Some of the opposition is from lawmakers who believe it’s wrong to accept cash to allow casinos out of their obligations.

“What we’re talking about is paying a for a fee of a re-licensure of a facility,” said Jim Carney, a lobbyist for Harrah’s. “We don’t think it’s correct to characterize it as buying our way out of anything.”

Officials from the greyhound industry have expressed concern that ending the racing would create a huge economic blow to the state and its’ 62 kennels and 146 breeders and owners. Harrah’s, today, said it would also allocate between $4 million and $10 million to help professionals in the dog industry prepare for new careers.

Rep. Doug Struyk, R-Council Bluffs, who has worked on various gambling issues this legislative session, said today’s offer will likely push some lawmakers to reconsider. Lawmakers have had tussles about allocations as little as $1,500 this year. The money is badly needed, he said.

It’s possible that the idea could be attached as an amendment to future budget bills even though Struyk said he isn’t currently planning to introduce such a provision.

“I think, more important than anything, today certainly educated more people about the issue and lets people know that this is an option that’s out there,” Struyk said.