Odds On Racing - Harness Racing

Slots at Canterbury?

February 11, 2010

Slot machines at Canterbury Park have been pitched as a way to raise money for stadiums, to prop up public schools, and to help fill a gaping hole in the state's budget.

But when Randy Sampson thinks of the "racino" proposal that's been bumping around the Legislature for more than a decade, he thinks about the horses.

The CEO of Canterbury knows that his track competes with similarly sized racing venues in other states, such as Iowa, that allow gambling at racetracks. And slots at the track mean more gaming revenues. Which means bigger purses for the winners of the races. Which means an advantage in attracting the best horses.

"It has been successful in other states in dramatically improving the quality of racing," Sampson said.

Canterbury, using proceeds from its track and card room, offered about $8 million in purses last year, he said. Similarly sized Prairie Meadows racetrack in Des Moines, Iowa, which has slot machines, offered $20 million.

The racino proposal is sure to make headlines again this year, with the state staring down a big budget deficit and looking for ways to fund a Vikings stadium. And although it's not something that gets mentioned much, Sampson points out that it could mean an economic boon for Shakopee and Scott County.

Canterbury had big plans for developing 380 acres near the track with a hotel, restaurants, retail and entertainment, but the recession put the idea on hold. The racino, if the state were to approve it, could attract more people to Canterbury not just for the slots, but also for the improved quality of racing, and that could help make the larger project possible, Sampson said.

Legislators such as former Sen. Dick Day, R-Owatonna, and Mark Buesgens, R-Jordan, have been pushing the racino idea for years. The state would have to agree to an exception in its gambling laws, which now allow slot machines only at tribal casinos, such as Mystic Lake, just down the road from Canterbury on the Shakopee Mdewakanton Sioux reservation.

The racino plan has gained a following among those who see it as a way to raise more money for the state coffers without raising taxes. But others accurately point out that gambling is, in a way, a regressive tax on a small, self-selecting portion of the population -- a good portion of whom gamble compulsively.

And politics makes the subject even more complicated. Some legislators are opposed to gambling in general, while others oppose the racino because they see it as a betrayal of the Indian tribes, who have a deal with the state allowing them exclusive casino rights.

Regardless of the arguments for and against, legislators such as Buesgens point out that the economic benefits of a racino at Canterbury (as well as at the Running Aces harness track in Columbus, which could get slots as well) would extend beyond the direct proceeds to the state government. One study pegged the economic impact of the horse industry in the state at $1 billion annually, and boosting the racetracks would have a ripple effect through the state's horse farms, trainers and other equine services, he said.

"The economic benefits extend far beyond the construction of the project," Buesgens said. "That's why I've always favored this project."

From local governments' perspective, a racino could bring in more money in a time when tax proceeds are down. Day, who is now the head of the advocacy group Racino Now, said any bill would provide for a certain percentage of revenues to go to the city and county to help offset the increased cost of more traffic and law enforcement.

Shakopee Mayor John Schmitt said he doesn't think an expansion of Canterbury would add that much extra burden on city services -- "We're already dealing with the traffic," he said -- and the city would be glad to have any proceeds it could get from a racino.

At the same time, he said, people he's spoken to have learned not to get their hopes up."It's been up and down so many times, people are cautious, with good reason."

Day acknowledged that it's an uphill battle. "It's tough. The other side has lots of lobbyists and lots of money," he said.

But Buesgens, speaking the day after the session started last week, said he's more optimistic than he's ever been. "There was only one time before ... when there's been as much buzz about it," he said.

"I definitely think the atmosphere is different this year."