Racing industry leaders call state comptroller's audit of video lottery terminal revenue 'flawed'
SARATOGA SPRINGS — Horsemen and breeders say a state audit of video lottery terminal revenues paints a negative, inaccurate picture of New York thoroughbred racing.The report by state Comptroller Thomas DiNapoli’s office says betting on live racing fell 13 percent from 2004 — when the first racino opened — to 2010 and that it’s unclear whether higher purses generated by gaming have improved attendance and wagering activity.
However, the audit lumps harness and thoroughbred racing together and analysis concluded March 31, only five months after Aqueduct’s new casino, the country’s highest-grossing gaming facility, opened in late October 2011.
“Business is booming for New York thoroughbred racing,” New York Thoroughbred Horsemen’s Association President Rick Violette and New York Thoroughbred Breeders Inc. Executive Director Jeff Cannizzo said in a joint statement. “Our sport is experiencing a rebirth that has already created more jobs for New Yorkers, more revenue for New York businesses and a stronger economy for New York communities.”
Of New York’s nine racinos, seven are at harness tracks. The other two are at Finger Lakes, a small thoroughbred track near Rochester, and Aqueduct. The Aqueduct casino supports New York Racing Association’s three thoroughbred tracks — Saratoga, Aqueduct and Belmont Park.
“We are unable to determine whether the millions of dollars that pay for increased purses (prize money), rather than for education, are having their intended effect,” the audit says.
If such evidence can’t be produced, there’s a growing concern on the part of racing stakeholders that the state could take gaming revenue away from the sport.
But Violette and Cannizzo say the figures speak for themselves.
“In 2012, all three of the NYRA meets have seen significant increases in wagering,” they said.
Total handle at Aqueduct shot up 22.6 percent, Belmont’s on-track betting rose 13.4 percent (9.1 percent overall) and Saratoga’s overall handle is up 6.5 percent halfway through the 40-day meet.
NYRA’s purse increased by more than $30 million this year because of [slot machine] revenue from Aqueduct’s new casino, meaning horses are racing for more money. As a result, out-of-state stables have brought more high-quality horses to New York for both racing and breeding purposes.
“After a four-year decline, there was a 39.4 percent increase in thoroughbred foals reported in New York through May 2012, and every one of the foals creates jobs,” Violette and Cannizzo said. “There are new farms in the state and existing farms are expanding. … And we have only had VLT revenue since the beginning of the year.”
According to the audit, tracking handle and attendance figures alone isn’t enough to determine whether higher purses are benefiting racing. The report says racing officials should develop additional performance measures but does not offer any suggestions.
Lottery Director Gordon Medenica, in a letter to DiNapoli’s office, said racinos have not boosted racing attendance at their respective tracks.
“There is almost no overlap between the casino patrons and the horse racing patrons,” he said. “In the past, one could characterize the facilities as horse racetracks with gaming machines, but now it is much more accurate to describe them as casinos (with a legally required track on the property).”
Others, such as Catskill OTB President and CEO Don Groth, have agreed, saying the racinos simply “prop up” New York’s harness tracks.
However, the long-awaited impact of Aqueduct’s casino on thoroughbred racing is just starting to be felt. Any threat, real or perceived, of removing it would undermine gains made to date, Violette and Cannizzo said.
“New York’s economy is still struggling. The state must stick with what works to create jobs,” they said. “The smart investment in horse racing is paying off for taxpayers.”
http://saratogian.com/articles/2012/08/18/news/doc50303c9332c1f176141234.txt?viewmode=default
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