Odds On Racing - Harness Racing

Racing Industry Eyes Odds

February 23, 2010

A day at the races needs to evolve or else it could become as dated as the 1937 Marx Brothers movie that bears that name.

Christopher McErlean, the vice president for gaming for the seven horse racing tracks operated by Penn National Gaming Inc., said deeper changes need to be looked into, including cutting dates at tracks, better regulation of those involved in the business and an emphasis on cooperation and marketing between tracks to market and sustain the sport.

McErlean and dozens of other racing and gaming officials were in suburban Philadelphia on Monday and today for the sixth annual Pennsylvania Gaming Congress and Mid-Atlantic Racing Forum. Today’s forum focuses on the much more profitable gaming aspect, but on Monday it was the horse racing industry’s chance in the spotlight.

Although cutting the number of racing dates at a track sounds counterproductive, it works, said Tom Osiecki, general manager at Tioga Downs in Nichols, N.Y. That track offers only 57 racing days per year. By comparison, The Meadows Racetrack near Pittsburgh offers 208.

Shonette Harrison, vice president of casino marketing at Harrah’s Chester Casino and Racetrack, announced that the track will cut its schedule down from five days to four per week this season. She said a shift to night racing last year will also end this season, with races being held in the daytime hours, except for Fridays, which will still start during the afternoon, just a bit later.

Osiecki said the shortened schedule “makes the race season something of an event.” And each race day, which at Tioga includes Friday and Saturday nights and Sunday afternoon, takes on the feel of a minor league baseball or hockey event.

Fireworks, giveaways, contests, music and $1 beer, hot dogs and sodas are commonplace and have worked, he said. But the crossover between casino guests and race track visitors is still a minor percentage. That’s been a disappointment for some Pennsylvania tracks.

Harrison said that one thing casinos were hoping to see was more of a crossover between the two guests. That has not happened.

She said the differences between slot machine players and horse bettors are too drastic, but the goal is to attract a new generation of visitors who will place wagers at the track and in the casino.

She said the onset of table games, which for some casinos, including Pocono Downs in Plains Township, will be this year, might change that. She said those who play games of skill such as poker and black jack may be more willing to test their skills at the track.

Right now, Harrison said, “it has been very difficult for us to teach slot customers how to really appreciate racing. And racing fans don’t give half-a-crap what’s going on outside of their little TV area.”

She also said the racing fan is older, and the younger generation is just not getting into it, which sets off alarms for the future if new fans aren’t cultivated.

“People are going to die out pretty soon,” she said of the typical race track attendee today.

Michael A. Dillon, the acting executive secretary for the Pennsylvania State Racing Association, told those gathered that a marketing initiative started last year by the state urging young people to discover the race track is working, but it’s still a work in progress.

“Everybody says a race track has to become a destination. I think they’re right,” said Richard J. Hoffberger, the president of the Maryland Thoroughbred Horseman’s Association Inc.

But the addition of alternative gaming to the race track sites is not the long-term fix, according to some. Others disagreed, saying that efforts to market racing and gaming can work.

Sean Sullivan, general manager at The Meadows, said the two can coexist and strive together.

Sullivan said there’s been a 32 percent increase in on-track wagers since the slot machines were legalized. Some of that is attributed to the addition of slot machines and other attractions at the track’s property.

But he said the table games, outdoor concerts, entertainment initiatives, hotel and conference center planned for some of the tracks/casinos are imperative to a healthy venue.

“We don’t reach too far out past the 50-mile circle. With these new things we’ll be able to do that,” Sullivan said.

Mohegan Sun at Pocono Downs President Bobby Soper, who will be on a panel discussion this afternoon, has repeatedly said that making a casino a destination rather than a stop during the day is the goal.

Dillon gave a more positive prognosis for the industry in Pennsylvania: “I think there are many happy days ahead for our sport.” He and others said the emergence of slot machines and the now-legalized table games will only help what was a floundering industry.

Ed Kobesky, spokesman for the Pennsylvania Harness Horsemen’s Association, was not at the forum, but when contacted Monday said there was no question slot machines and Act 71 have helped the industry. But table games should not be viewed as the next step in upping the ante.

“Slot machine gaming has allowed for millions of dollars in improvements to the facility, making it an even more exciting venue for the sport. As for table games, I’ve seen varying projections regarding its impact on racing, none of which have convinced us that it will necessarily be positive or negative,” he said.