Horsemen Close to Reopening Suffolk Downs

Blood-Horse

A deal that would allow horsemen to lease Suffolk Downs and operate a live race meet in 2015 and 2016 appears to be close at hand, representatives said at a hearing of the Massachusetts Gaming Commission in Boston Feb.19.

“We’ve made good progress, but it’s a complicated agreement, because it’s not like a traditional purse agreement,” said Chip Tuttle, Suffolk’s chief operating officer. “What we’re looking at is a two-year licensing agreement. It will require legislative changes as well and there is no guarantee that those changes would happen. It’s very difficult because we’re trying to make an agreement based upon multiple contingencies.”

Suffolk Downs ownership announced in September it would end live racing as a consequence of the track’s gaming partner, Mohegan Sun, being passed over by the gaming commission for the sole Boston-area casino license. The New England Horsemen’s Benevolent and Protective Association later initiated talks to lease the track.

Suffolk Downs officials, while amenable to the idea, have insisted the deal be economically viable.

“We have come to a meeting of the minds. We are very, very close,” said Lou Raffetto, the consultant to the New England HBPA. “But we need the legislature to pass the bill.”

The required legislative changes include an extension of the track’s simulcast rights, which are set to expire March 31, and a change to the state’s 2011 expanded gambling law. The modification would allow funds from the Race Horse Development Fund, which are dedicated to purses, to be tapped to partially cover operating and administrative costs.

Without those funds, the horsemen said they are about $3 million short. Moreover, the clock is ticking. If the potential Suffolk Downs meet is to open by the beginning of June, as suggested, horsemen will need to be informed of details on the number of race days and purse structure soon so they can make plans.

At this time, the New England HBPA can only narrow down the number of race days to between one and 50.

“It all comes down to the legislature passing that bill, and quickly,” Raffetto said.

Even if the deal is struck to restore live racing at Suffolk Downs, it would only be a short-term fix, as the owners of the 80-year-old track still plan to develop the property. As a remedy, the horsemen have formed the non-profit New England Horsemen’s Agricultural and Racing Cooperative and hope to build a new state-of-the-art racetrack and equine facility in a different part of the state.

But they still would need those legislative changes, as well as approval from the gaming commission, in order to proceed.

“This is more about 2017. There is light at the end of the tunnel,” Raffeto said. “We’re going to introduce our co-op bill in the legislature in the next few days. We want to assure the long-term viability of Thoroughbred racing in New England.”

George Carney, who owns the Brockton Fairgrounds and holds two separate agricultural licenses to host live racing, has been granted licenses for two Thoroughbred fair meets of 15 days each in 2015.

At the hearing, Carney reiterated his offer to host Thoroughbred racing for a year or two until a permanent facility is available, but he said he has no intention of competing with a meet at Suffolk Downs.

In related news, Democratic New Hampshire Sen. Lou D’Allesandro introduced an expanded gambling bill Feb. 17 that calls for authorization of one large resort casino to be located in the southern tier of the state and one smaller one to be located elsewhere.

It’s similar to legislation the senator brought forward last year. It had overwhelming bipartisan support in the Republican-controlled Senate, but failed in the Democrat-controlled House by one vote. The House is now in Republican hands with a wide majority.

Millennium Gaming of Las Vegas holds the option to purchase Rockingham Park, which has not hosted live Thoroughbred racing since 2002, but only if an expanded gambling bill passes. The company must then win the competitive bidding process to develop a casino at the track.

Millennium officials have stated that the return of live racing would be part of the plans for a revitalized Rockingham Park. But a local developer has a purchase and sales agreement on 50 acres that comprise about 75% of the current stable area of the property.