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Harrah's Hopes To Eliminate Racing

March 19, 2010

Harrah’s Entertainment is vying to persuade Iowa lawmakers to end live greyhound racing in Council Bluffs.

Harrah’s offered to pay the state $7 million a year for an “unlimited period of time” in order to halt the live meet at its Horseshoe Casino in Council Bluffs. The casino company had earlier proposed paying the state $7 million over seven years.

Harrah’s is bound by Iowa law to offer live greyhound racing, but it has tried to convince lawmakers that it is a dying sport. The company’s initial attempt to end live dog racing in Iowa failed when a bill was killed last month in a legislative committee.

Earlier, Mystique Greyhound Park & Casino in Dubuque offered to pay the state $3 million over seven years to halt racing. Mystique is not part of the current offer to extend the payments indefinitely, said Jim Carney, a Harrah’s lobbyist.

The effort is racing against the clock. The Legislature is expected to adjourn its session next week. Harrah’s is hoping that lawmakers who are struggling to balance the budget will take a second look at the proposal.

Harrah’s Entertainment owns two casinos in Council Bluffs: the Horseshoe Casino and Harrah’s. In its early years, the Bluffs track ranked among the nation’s top 10 greyhound tracks in the amount wagered. But with the addition of casinos and other forms of gambling, wagering on the dogs has declined dramatically.

The introduction of dog racing in Council Bluffs in 1986 put new competitive pressure on horse racing in Omaha, too. The Ak-Sar-Ben track in Omaha closed after the 1995 season.

The casinos say dog racing’s days are numbered. Few people watch the races or bet on them, making it a losing proposition for casinos. Harrah’s says it loses about $12 million a year on greyhound racing.

Carney said he thinks a bill to allow the annual payments and end dog racing would pass if it were allowed to come to a vote.

The Harrah’s proposal also includes $4 million to $10 million for Iowa dog breeders who want to get out of the business, in essence providing a soft landing for the industry.