PA Bill Would Lower Racing Dates Minimum
Blood-Horse
Pennsylvania lawmakers are examining legislation that would lower the minimum number of live racing days required at racetrack gaming facilities, and also allow each track to install slot machines at up to four off-track wagering parlors.
The legislation was subject to a June 9 hearing and remains in the Senate Community, Economic, and Recreational Development Committee. The bill also authorizes Internet casino gambling.
Under the Race Horse Development and Gaming Act of 2004, tracks must race at least 100 programs per year for each racing license they hold. Parx Racing and Hollywood Casino at Penn National Race Course each hold two licenses, while Presque Isle Downs & Casino holds one.
There are provisions that allow for fewer racing days if a track and its horsemen’s group agree on the schedule. Presque Isle has consistently applied for and raced 100 days a year, while Parx and Penn National traditionally offer about 200 programs per year.
The new legislation would lower the requirement for Parx and Penn National to 100 days per year. The message being sent by lawmakers is believed to be the impetus for a recent announcement by Parx and the Pennsylvania Thoroughbred Horsemen’s Association to scale back to 156 racing programs in 2016.
Up to 250 slot machines could be placed at OTW parlors under certain regional restrictions. The state tax rate on the slots-only facilities would be 54%, none of which go to support purses and breed development programs.
In a submission to the state legislature, the Pennsylvania Equine Coalition, which includes horsemen’s groups and breed associations for Thoroughbred and Standardbred racing but no racetracks, expressed concerns over the bill. The coalition said it’s “unequivocally opposed” to a statutory reduction in racing days.
“This provision would take year-round family sustaining jobs and hand them to journeymen who will come into the state for a few months and then move on, resulting in little lasting economic benefit,” the coalition said in its submission. “Changes to the number of race days will have a devastating impact to the state’s agricultural economy and the horse racing and breeding industry.”
The equine group noted that slots play at racetrack casinos is roughly 15% higher on days and nights when the tracks offer live racing, based on statistics from the Pennsylvania Gaming Control Board.
As for slots at OTW facilities, several of which have closed around the state in recent years, the coalition believes the tax rate should mirror that of racetrack casinos and non-track casinos that pay a portion of revenue to purses and breed development programs. The coalition also said the proposed tax rate of 14.5% for Internet gaming is far less than the state tax rate of 54% for slot-machine revenue and would damage business at bricks-and-mortar facilities.
The submission was signed by representatives of the Pennsylvania Horsemen’s Benevolent and Protective Association, Pennsylvania Thoroughbred Horsemen’s Association, Pennsylvania Horse Breeders Association, Pennsylvania Harness Horsemen’s Association, Meadows Standardbred Owners Association, and the Standardbred Breeders Association of Pennsylvania.
