Racing's old Kentucky home
"Today I am calling on legislators and the people of Kentucky to save the horse industry before it is too late." — Kentucky Gov. Steve Beshear. From a distance, it is inconceivable that the business of breeding and racing horses in Kentucky would be allowed to deteriorate to the point at which the governor of the commonwealth is moved to make such a statement while calling a special session of the legislature that will, among other issues at hand, consider permitting slot machines at racetracks.
If the business of breeding and racing horses is a priority of politicians anywhere, it should be Kentucky, birthplace annually of about 10,500 thoroughbred foals — some 31 percent of all those born in the United States; home of the most valuable bloodstock on the planet, iconic breeding farms, racetracks and the world's most famous race.
Horses and Kentucky are synonymous, which would suggest that at least in regard to its signature industry the commonwealth should be above the common numbskullery that defines politics and its relationship with racing in most places with New York, California and Maryland at the vanguard.
The American appetite for gambling in various forms — from state lotteries, to casino game to poker, sports and racing — is a matter of record and vice-driven revenue has become a staple of many state budgets. As gaming options have expanded, racetracks and breeders, up to their ears in competition where once they enjoyed monopolies, have come to rely on revenue generated by casinos, usually on-site video slot machines, to subsidize purses and breeder awards. Those late to the table — Kentucky being one — are now finding themselves surrounded by overwhelming competition.
While Kentucky's solons debate this week, Indiana's casinos are popular nearby destinations of the commonwealth's players and proprietors of small breeding farms are looking toward Pennsylvania as an alternative to the rolling bluegrass-covered hills that surround Lexington. Like most states, Kentucky finds itself with a budget deficit in difficult economic times, which may be ultimately responsible for the governor's call to save the commonwealth's signature industry by passing legislation already several years overdue. The most convincing argument may be the rejuvenation of racing in Pennsylvania that is the result of the marriage of casinos and racetracks.
Since the passage of enabling legislation in 2004, eight casinos have been opened in Pennsylvania, the largest at the thriving Philadelphia Park. Two flourishing tracks, Presque Isle Downs, near Erie, and a harness track operated by Harrah's in Chester, did not exist in 2004. A mystery voucher promotion last weekend drew 16,000 people to Presque Isle.
Del Mar may have pruned the summer meeting and Churchill has reduced racing dates, but there is no shortage of horses at Pennsylvania's racetracks.
Purses for races restricted to Pennsylvania-bred are twice what they were 10 years ago and breeder awards, $2.9 million in 2008, are about three times the 1998 total.
Though revenue generated by Pennsylvania casinos has declined year over year in the current economic climate but totaled $1.6 billion in the last fiscal year. The state's casinos have also generated $1.5 billion in property taxes and resulted in the creation of 8,000 living wage jobs.
The mantra of those who supported the original movement that resulted in what has quickly become the gold standard of the "racino" industry was, "let's keep the money home," a bit of logic that has not yet been embraced in Kentucky and elsewhere.
Economic necessity may yet rule the day and save Kentucky's breeding farms and racetracks but the people in Pennsylvania appear determined to maintain an advantage. Legislation that would permit table games at the tracks is being drafted. Considering the beneficial result of slots, the next step seems likely to be warmly received.
Not all that long ago, Philadelphia Park was its own slum, an empty, brooding shell. Now, it is the centerpiece of what may well be the most prosperous racing state in the nation.
Paul Moran is a two-time winner of the Media Eclipse Award, and has received various honors from the National Association of Newspaper Editors, Society of Silurians, Long Island Press Club and Long Island Veterinary Medical Association. He has also been given the Red Smith Award for his coverage of the Kentucky Derby. Paul maintains paulmoranattheraces.blogspot.com and can be contacted at paulmoran47@hotmail.com.
