Odds On Racing - Harness Racing

IOWA Owners & Casinos Back Racing Plan

January 27, 2008

Talk of scaling back horse racing at Prairie Meadows might have been much ado about nothing.
The racetrack-casino and horse interests have agreed to support one another in a legislative bill that would eliminate the referendum that Prairie Meadows must have every eight years to continue casino gambling. In return, horse owners would be guaranteed purse money and a number of races similar to current levels.

Prairie Meadows also is seeking a ban on new casinos within 60 miles of the Altoona facility.

In November, Prairie Meadows estimated that horse racing lost $29 million in 2006, causing several board members to say the size of the subsidy needed to be examined. Des Moines businessman Bill Knapp said he would ask legislators to cut racing expenses by $10 million by reducing purses - money paid to the owners of the first five finishers in a race - and racing days.

However, if purses � about $20 million � and the length of the season remain unchanged, there's not much else to cut.

Gerry Neugent was the only Prairie Meadows board member to vote against the legislative agenda at the track's meeting last week.

"I think it's a mistake to have a legislative mandate for the number of performances," Neugent said. "It's taking away our ability to try and manage the horse racing and to cut that deficit."

Troy Skinner, Prairie Meadows' lobbyist, told the board that there was little chance of getting legislative support to end the referendum without the backing of horse owners and breeders in rural areas.

"I am convinced that if we get the horsemen right in unison with Prairie Meadows, we can get this done," board member Jack Peters said. "But if we go up there and the horsemen are opposed to it, we'll both lose.

"Racing generates jobs, a lot of them in Polk County. If we do have an operating (racing) loss, we are still creating jobs no different than if that money were used in a different direction."

Horse breeders have said that uncertainty over racing's future has caused them to lose horse owners.

"We've lost a lot of people just because of the constant hassle and fighting," said Ray Muck, who owns the Special K breeding farm in Runnells. "It seems like it happens every year at this time."

As proposed, horse owners would be guaranteed races that would keep the season at its current level of 90 to 95 racing days for thoroughbreds and quarter horses, and 18 days for standardbreds.

The proposal would also keep the amount of casino revenue that goes to racing purses at the same level - 11 percent of revenue, less Polk County's obligation to Vision Iowa.

Peters said that Prairie Meadows will continue to look at its racing program to see if there are expenses to be trimmed.

"There's no reason why some people can run racetracks and make them pay and we lose this kind of money," he said.

However, thus far he said that he hasn't found any glaring waste.

"There's no question there's areas where you can say, 'Can't you do this cheaper?' " Peters said. "But, are we real flagrant with how we're spending? On first blush, I don't see that."