Odds On Racing - Harness Racing

Around The Ovals....

December 1, 2007

Gulfstream Park reduces slot numbers
Gulfstream Park Racing & Casino has slashed its slot machines from about 1,200 to 516 as part of a revamped business plan to boost revenue in 2008 after trailing in third place for months among the three Broward County casinos. Broward county is also home to Pompano Park's harness venue.

The plan: change the first floor casino to a half-casino, half horse-racing lounge. Add a dozen new versions of video poker, and swap out other, less-popular machines for more penny and two-cent slots. Once all the changes are complete in mid-December, the casino will have about 825 slot machines and video poker games divided between the second floor casino and the redone, first floor lounge-casino.

The ''racino'' has been troubled for months. Its revenue, calculated on a per-machine basis, has been the lowest of the three state-regulated casinos now operating in Broward. It has averaged $81 per machine in the fiscal year that began in July, compared to $167 for Mardi Gras Racetrack and Gaming Center and $213 for The Isle at Pompano Park.

In the previous year -- though none of the three casinos were open for a full year -- Gulfstream averaged $161 per machine, compared with $216 at Mardi Gras and $193 at The Isle.

Gulfstream also competes with the Seminole Tribe-owned Hard Rock near Hollywood. On Wednesday, Gulfstream filed papers in the Florida Supreme Court asking to join a lawsuit opposing a state agreement to allow the tribe to offer games prohibited at other casinos. Gulfstream argued the agreement will hurt its business and reduce taxes it pays to the state.

But revenues haven't been Gulfstream's only problem. Its casino operation is under investigation by the Florida Department of Law Enforcement. FDLE officials remain close-mouthed about details of the investigation, but they confirmed the probe. Gulfstream officials also refuse to talk about it.

''The investigation has no relation to the business plan change,'' said Sam Farkas, spokesman for the state Department of Business and Professional Regulation, which oversees parimutuels. ``It really comes down to a business decision for them.''

Both the state's business regulation agency and the FDLE have offices at each Broward casino, overseeing the financial and regulated aspects of the business and running criminal background checks on all employees.

An Oct. 30 letter sent by Gulfstream to the state's chief of slot operations, Milt Champion, outlines some of the changes. They include reducing first floor casino slot machines and ``adding back into those vacant areas more simulcasting to accommodate the demands of our racing fans . . . We are striving to increase our revenue over 2007 and we believe we can accomplish that with fewer machines.''

Calabro, who has been on the job since September, said the casino changes will help "marry horse racing fans with video poker slots players. We've got a big uphill battle,'" he said. "We've got to get the perception to the customers that we have the slots they want to play.''

Steeplechase purses rise to record levels in 2007
Total purses for steeplechase racing in 2007 reached a record $5,357,645, up 10.5% from last season, according to the National Steeplechase Association.

The average race purse of $26,655 was also a record, up $4,112 per race from 2006, according to the organization’s year-end statistics.

"This was a very successful year," said Bill Gallo, director of racing for the National Steeplechase Association. "Our typical barometer is total purses, and they were at an all-time high. We hope to continue that trend in 2008 and reward our horseman. There's a strong feeling by the [National Steeplechase Association] to increase purses again, so we are looking forward to 2008."

The 2008 National Steeplechase Association season begins on March 9 at the Little Everglades meet in Dade City, Florida.

Despite a decline in the number of National Steeplechase Association owners, trainers, jockeys, and horses in 2007, Gallo said there is framework for a plan that would boost purses and attract new participants to the sport.

"It's getting more expensive to train and care for horses, so the purses must increase accordingly," Gallo said. "We are working very hard at getting a greater influx of purses and a five-year plan would be to have purses over $10-million. This would impact the game on many different levels, increase participation and interest, and continue the upward trend of purse increases that stagnated a bit from 1990-2000."

The sport lost the Brookhill Steeplechase in Raleigh, North Carolina, this year but several new venues could be added for the 2008 season. Improvements also are planned for several successful stops on the circuit.

"We have a lot of different venues that have shown interest and several new race meets are possible,” Gallo said.

“Palm Beach in Florida is looking to have a meet [March 16] and that would change the dynamic of the early part of 2008.”Kentucky Downs [in Franklin, Kentucky] has expressed interest for next fall, and, although nothing is set, we are hoping to have a few races there on opening day in September. Penn National [Race Course] has shown interest and we would like to have a few more races over the summer at Philadelphia Park, in addition to what we currently have there."

Jack Fisher won his third steeplechase training title with 24 victories in 2007. Jockey Xavier Aizpuru captured 22 races to take the jockey title and Sonny Via led the owner standings for the first time with $370,013 in earnings, thanks primarily to multiple stakes winner Good Night Shirt, who topped all runners with a record $314,163.

They'll miss Raffetto
Lou Raffetto is widely respected as one of the very best racing officials in the country and did a terrific job keeping Maryland racing from totally going down the drain while faced with intense competition from the neighboring slots states. Everyone liked him and respected him. Guess that didn't matter to Magna Chairman Frank Stronach, who fired Raffetto earlier this week.

The reaction to Raffetto's firing has been nothing less than outrage and some have even predicted that it will all but end Magna's hopes of getting slot machines at the Maryland tracks.

"I think they're toast," Maryland Racing Commission Chairman John Franzone told the Washington Post in response to the question of how Raffetto's firing would impact the slots picture. "I think they have made so many management faux pas and are losing money at such a high rate, I don't think [there is] any way anyone on the [State Lottery] Commission can say we should give slots to Magna."

In the same article, Alan Foreman, general counsel for the Maryland Thoroughbred Horsemen's Association called Raffetto's firing "the biggest mistake involving Maryland racing since I've been in the industry here."

Don't feel too badly for Raffetto. He's out of a lousy situation in Maryland and will, no doubt, be offered better racing jobs for more money and with more job security. The real loser in this is Maryland racing, a beleaguered industry that certainly couldn't afford to lose one of the nation's best racing executives.

Chris Dragone, who formerly ran Great Lakes Downs and Portland Meadows, has been put in the difficult position of replacing Raffetto.

Did you know that....
Greyhound Racing in England is the third most popular spectator sport behind football and horse racing?

The British Racing Greyhound Board (BRGB) says that four million people a year go racing, with £2.9bn ($1.45 billion) wagered with on-course bookmakers and in betting shops. It added: "Quality restaurants, corporate entertainment facilities, private boxes and clean, well run bars is the face of greyhound racing in the new millennium."

Greyhound racing traces its origins to Bell Vue, Manchester, where it started in 1926. The sport grew in popularity between the wars, but it fell into decline in the 1960s and 70s. There are now 30 licensed tracks in the UK. The greyhound breed originated in Egypt, it is the only breed of dog mentioned in the Bible.

Lieutenant Ron a Derby sleeper?
Keep an eye on a horse named Lieutenant Ron. He's a serious Kentucky Derby 2008 sleeper. A member of the West Point Thoroughbreds syndicate, he broke his maiden in his career debut by 8 ¼ lengths under Alan Garcia. He did so after dueling with the favorite through a sharp first quarter in :22 2/5. He completed the six furlongs run in the mud in 1:09 3/5 and his Beyer figure for the race was a 102. Only four 2-year-olds have run faster this year.

Kiaran McLaughlin trains him. The horse is now at Palm Meadows in Florida and is expected to reappear at Gulfstream meet. "He's a super fast colt with a great mind," West Point head Terry Finley said. " The question will be if he gets two turns. We think he will, but we're biased."