Odds On Racing - Harness Racing

Horsemen weigh-in in Ontario
....from the Ontario Harness Horse Association

Local members of the horseracing community, which employs nearly 2,000 people in the Windsor, Ont. area, are helplessly watching their businesses and livelihoods fall into crisis while Windsor Raceway and the Ontario Racing Commission (ORC) sort out an acceptable
race schedule for 2005.

At risk are hundreds of breeders, trainers, grooms, veterinarians, tack shop operators, blacksmiths, feed farmers, etc. The Ontario Harness Horse Association (OHHA), which represents their interests, says that the Raceway, headed by former Windsor mayor John Millson, and owned by Toledo interests, has broken its promise to the horse-racing community.

The charge stems from promises made last year, when local horse people agreed to a compressed 2004 racing schedule that would help a financially troubled track get back on its feet. The agreement was based on Millson's promise to revert back to the schedule originally approved for 2004 -- a promise he and the track owners have now gone back on, blaming ongoing financial difficulties.

But the Ontario Racing Commission rejected that argument after reviewing the track's audited financial statements, essentially supporting the OHHA's position in favor of a more comprehensive racing schedule. The Commission has denied three Raceway license renewal applications, clearly stating that Millson's proposed racing program was disappointingly short of the mark. The Commission has requested a fourth proposal.

The horseracing community isn't holding its breath. They fear that, because the track makes more money from its lucrative slot machine program, it won't be in any hurry to resolve the live racing issue.

"Which is really unfair" said Brian Tropea, a local trainer and race driver, is that "because the slots programs at Ontario tracks were specifically instituted to support live horseracing programs."

Windsor Raceway, in the horse people's view, is flagrantly abusing that arrangement for its own profit, and threatening an entire industry in the process. Our costs are already mounting.

"We've invested millions in animals, equipment and facilities" said Tropea, "and it doesn't end there. Our horses need continual care and training, whether the track is running or not. That involves grooms, trainers, truckers, and so on, not to mention feed, medicines and other operating costs. The Raceway seems to be in no hurry to help."

"We've asked the ORC and the Ontario Lottery and Gaming Corporation, which manages the slots programs, to intervene," said Susan Whelan, a local lawyer who has been fighting on behalf of the horse people. "And we remain optimistic for a timely resolution of the conflict. But we're concerned that time may run out and that, by the time they reach an
agreement, the horses, as they say, will have already left the barn."

In an Ontario Harness Horse Association meeting attended by an estimated 200 members on Thursday evening, January 13, in Windsor, Ont., the membership vehemently rejected Windsor Raceway's latest race date proposal, dated January 12, 2005.

This revised submission by Windsor provides for 124 days of racing in 2005, but the Ontario Harness Horse Association membership has requested a minimum 153 live race date schedule at Windsor. The Ontario Harness Horse Association leadership was given an overwhelming mandate at the meeting to take a strong stance on protecting and promoting the core racing product, which includes ensuring live racing, and maintaining and sustaining the revenue generated to purse accounts through wagering on live racing and simulcast wagering.

The Ontario Harness Horse Association's proposed 153 live race schedule for 2005 still represents an eight percent decrease in live race dates, that existed at the track in 1998, prior to the introduction of slots.

Windsor's latest race date proposal was just presented to the Ontario Harness Horse Association last evening. Windsor submitted its first proposal to the Ontario Racing Commission in October, 2004, which requested a 121 day schedule. This was denied by the Commission in a ruling dated November 8, 2004, and it took Windsor until December 23,
2004 to file its next race date application, which called, surprisingly, for 112 live dates -- less than what was already rejected by the commission in its October race date application.
This delay in filing this revised and reduced race date submission was, not surprisingly, strongly rejected by the Commission in a decision dated December 30, 2004. The delay in Windsor filing an acceptable revised submission and subsequent rejection by the Commission resulted in a disruption of racing at Windsor Raceway.

The stoppage of racing at Windsor raceway has had a great and broad financial impact on the horseracing industry, not only in Windsor, but across the province. During this whole process of revising race dates numbers Windsor has not changed or altered any of its materials, such as financial statements, business plans, etc., before the Commission. The
only thing that has been changed over the past three months is the number of live race dates the track has requested.

Windsor Raceway, in its latest application, focuses on the erosion of the slots marketplace, the potential expansion of Casino Windsor, and the detrimental affect that this expansion may have on the generation of revenue for both the track and horsepeople. Furthermore, Windsor, in its revised application, stated that its ability to sustain live racing and to, in essence, offer similar race dates that existed prior to the introduction of slots, is now dependent upon the success of the revenue it receives from slots.

The Ontario Harness Horse Association is also very concerned with the growing industry focus and reliance on slot revenue--as opposed to focusing on our core racing product and sustaining and growing revenue generated to the purse accounts through the core racing product.

Plans or proposals to reduce live race dates or reduce revenue to purse accounts from live and simulcast wagering (core product revenue) can not be viewed as promoting the racing industry in Ontario. The Ontario Harness Horse Association does not believe that the objective and the intent of the slot program, which generates millions for racetrack owners annually, was intended to have the effect of reducing the number of live racing dates.

As well, altering the traditional revenue sharing formula on the core racing product that contributed to the creation of the purse account prior to the introduction of slots does not promote or encourage live racing.

The following table provides an illustrated overview of live race dates and purse revenue that occurred at Windsor Raceway preceding and after the introduction of the slot program. Purse revenue prior to introduction of slots was generated solely from the Ontario Harness Horse Association's share of race wagering.

After the introduction of slots, purse revenue is a combination of race wagering and slot contribution. Windsor Raceway's owner's revenue stream would be the same as the purse revenue, plus the track would also receive addition revenue from its restaurants, concessions, bar sales, programs, etc. Here are the figures:

Windsor Raceway Purses Paid
Year/Race Dates/Purse Revenue
1997 - 149 - $8,632,140
1998 - 166 - $9,001,940
(Slots introduced Dec 16, 1998)
1999 - 193 - $14,085,604
2000 - 184 - $14,810,499
2001 - 171 - $14,771,009 -
2002 - 156 - $13,438,041
2003 - 153 - $12,190,623
2004 - 129 - $14,236,750
2005 - 124 Dates requested by Windsor; 153 requested by the Association

As stated above, the Ontario Harness Horse Association's request for 153 days of racing is still approximately eight percent below the number of live race dates offered by the track prior to the introduction of the slots program.

The Ontario Racing Commission has scheduled a hearing on January 18th to discuss the Windsor Raceway dates application.