Fair Grounds raising purses this year due to slot revenue
DiscreetCat
Moderator
from the Times-Picayune:
Horses will be off and running Friday on opening day at the Fair Grounds, and slot machines will be ringing on the opening of the track's permanent slots facility. With a boost from slots revenue, Fair Grounds purses are increasing. Many of the nation's top horses, jockeys, trainers and owners will be competing for the money this season.
To enhance the racing is the purpose of having slots at the track, say officials of the Fair Grounds and its parent company, Churchill Downs Inc.
The racing, they say, is the focus of the Fair Grounds.
"All the preparation we've made, if that doesn't tell you we're interested in racing and want to have the best, I don't know any other way to say it, " said Donnie Richardson, Churchill's senior vice president of racing. "Our emphasis is on racing. I'm not going to say they won't promote the slots parlor. If we can get great racing and great slots, we're going to have to turn people away . . ."
But some racing people are skeptical about the track's focus.
In August, veteran racing official Randy Soth unexpectedly and with little explanation departed as Fair Grounds president after almost four years on the job.
Former casino executive Austin Miller, who had been the Fair Grounds' vice president/general manager of slots and OTB operations, took over as head of the entire operation. Late last month, Churchill named Miller president of the Fair Grounds and announced the hiring of Eric Halstrom, who had been a vice president at Canterbury Park, as the Fair Grounds' vice president/general manager of racing.
The change from Soth to Miller as the man in charge at the Fair Grounds sparked concern among some in racing that the track might be emphasizing the slots over the sport.
"Slots, frankly, that's a very important part of the operation, " said Bob Wright, a member and former chairman of the Louisiana State Racing Commission. "I'm not saying they shouldn't do what's necessary to improve that side of the operation, but not at the expense of the racing side. Dismissing Randy gave me the impression, the way he was dismissed or he left, gave me the impression that they might be diminishing the racing side. But the jury's still out."
At a commission meeting in August, Wright questioned Miller about whether racing at the Fair Grounds might be taking a back seat to slots. After suggesting that the commission might be wise to consider giving the Fair Grounds a one- or two-year racing license -- a trial period to show the track's direction -- Wright joined in a unanimous vote approving the track's application for the usual 10-year license.
"My remarks should not be taken as adverse to Churchill, but to show we want to keep them in line, " Wright said. "If they need to do what they need to do to improve the racing side, that's good. I hope they continue to do a good job on the racing side, and let's give them the benefit of the doubt."
Said Miller: "I think what Mr. Wright or anybody who wonders about our direction or focus on racing is if you just focus on the top-level pieces -- that's a gaming guy, and they got rid of a racing guy. But with our current staff, there's a tremendous supporting cast. In addition, we're bringing in an additional seasoned veteran to oversee our racing operation."
Soth's departure from the Fair Grounds came shortly after Ken Dunn, who for 18 years had been president of Calder, left that Churchill-owned track. Calder, which is in Miami, has been approved to operate slot machines. In an April release announcing that Dunn would be stepping down, Churchill executive vice president Steve Sexton said: "We are transitioning Calder into a destination with horse racing and casino-style gaming and have need for management skills and leadership experience in both areas."
Soth and Dunn said they can't comment on anything related to Churchill Downs Inc.
New Orleans-born trainer Tom Amoss viewed their departures together as a possible indicator of company priorities. Last month, before Halstrom's hiring was announced, Amoss said: "The fact that they let Kenny Dunn go in Florida plus Randy Soth at the Fair Grounds, replacing him with a casino executive, makes me nervous. I will give Churchill the benefit of the doubt, but the moves that they have made with their staffing suggest just that, that they are more concerned with their casino business than their racing."
Halstrom's hiring pleased Amoss but didn't eliminate his skepticism. "I think it's an encouraging sign that Churchill has filled a strictly racing position (at the Fair Grounds), " Amoss said. "I was one of the skeptical people. We'll see. I'm still skeptical, but I see this hiring as a step in the right direction."
Wright said that his concerns remain despite Halstrom's hiring. "We'll see how it develops, " Wright said.
In an e-mail, Churchill senior vice president of communication and national public affairs Kevin Flanery expressed the company's view on the relationship between racing and slots.
"Churchill Downs Incorporated has a long history of excellence in the racing industry, " Flanery wrote. "The synergy between racing and other gaming options is important to the entire racing industry. The ability to strengthen the racing product, which is the core of our business, is exciting for our company. As we move forward, we will continue to focus on providing quality racing.
"A core component of quality racing is providing a purse structure that is attractive to horsemen. Fortunately, the Fair Grounds has been granted authority to operate slot machines and video poker machines. Revenue from both slots and video poker has enabled our racing team to make some bold changes to the upcoming meet purse structure. These changes will help position Fair Grounds as one of the top winter meets in the United States."
Last season, Fair Grounds purses averaged $342,607 per day. This season, purses will average about $375,000 per day, Miller said. Overnight purses (for races excluding stakes) will average about $300,000 per day, a 20 percent increase from last season. The track will offer 63 stakes races with purses totaling more than $6.6 million.
"The way we approached this year, we took money out of the stakes program (about $1.8 million) and put it in the day-to-day purses, " Richardson said.
Miller said: "We maintained the integrity of our marquee races."
Purses for the Louisiana Derby ($600,000), Fair Grounds Oaks ($400,000), New Orleans Handicap ($500,000) and Mervin Muniz Memorial Handicap ($500,000) -- the track's Grade II races -- haven't changed.
Purse money will be spread across a longer season. Opening this season before Thanksgiving, the traditional opening day, the Fair Grounds will run 87 days, six more than last season.
The new slots facility, which will open with 600 machines, is part of a roughly $30 million project that also includes two restaurants, a buffet area and a simulcasting area. The temporary slots facility, which was in the building originally opened for off-track betting, had 250 machines.
In the first year of slots at the Fair Grounds (from Sept. 19, 2007, through August), the machines generated about $285,000 per month to purses, according to Louisiana Gaming Control Board statistics. Purse supplements for thoroughbred races averaged about $200,000 per month. By law, 15 percent of slots revenue goes to purses, 70 percent for thoroughbreds and 30 percent to quarter horses.
Slots revenue is expected to increase sharply because of the new facility, although Miller wouldn't speculate by how much.
Money draws horses. The Fair Grounds has about 1,800 stalls in its barns, and trainers applied for stalls for about 3,500 horses, new racing secretary Jason Boulet said.
Last season, the Fair Grounds averaged 8.6 horses per race. Richardson said increasing field sizes is a goal. "I want to see nine, 10, 11 in there, " he said.
Steve Asmussen, Amoss and most of the other top-ranking trainers from recent Fair Grounds seasons will be back. Several newcomers, including such successful trainers as Doug O'Neill, Wally Dollase, Anthony Dutrow, Steve Klesaris, Dale Romans, Steve Margolis, Greg Foley and Shannon Ritter, will add depth to the ranks.
"Fair Grounds is doing a lot of good things, " said Romans, a Kentucky trainer who will have a stable in New Orleans for the first time in many years. "The purses are getting bigger. Florida (Gulfstream Park) is going in the other direction. It was time to give it a try."
Mark Casse, the leading trainer at Woodbine near Toronto, had a winter base at the Fair Grounds last season for first time. Casse sees slots, which helped increase purses at Woodbine, as nothing but a positive for the Fair Grounds. "It seems like this year they're going to have the best race meet ever, " he said. "You're going to have more money. More people want to come there than ever." Casse also said that as the racing improves, people at simulcast outlets across North America will bet more money on Fair Grounds races. "That's what happened to Woodbine, " he said.
Trainer Al Stall Jr., a New Orleans native, said he doesn't think that the Fair Grounds will emphasize slots over racing. "I think it's strictly a racetrack, " Stall said. "The demographic that Churchill has for the slots is not trying to get truckers off the interstate. The demographic is more local New Orleans types. It's definitely a racetrack, maybe more than any other track with slots."
Local trainer Andy Leggio said: "As far as I'm concerned, racetracks have turned into slots parlors instead of the other way around. The only reason we're here is they need us to run. Without us, they can't operate the slots. Churchill Downs is noted for racing. They want big-time racing (at the Fair Grounds). They had it last year. The slots will enhance all that. Hopefully, I'm around to get some of that money."
Churchill's decision to open the Fair Grounds barn area early is evidence of the company's focus on racing, Boulet said. After the Evangeline Downs meet ended in early September, several trainers who had participated in that meet were scrambling to find places to send their horses. The Fair Grounds opened as a temporary training center until the barn area officially opened in mid-October for horses assigned stalls for the meet.
"That's something that shows the commitment of Churchill, " said Boulet, who was Evangeline's racing secretary before coming to the Fair Grounds. "The horsemen were in a bind in Lafayette. We had about 200 horses that had nowhere to go."
Sean Alfortish, president of the Louisiana Horsemen's Benevolent and Protective Association, said that the early opening of the Fair Grounds meet provides more evidence of Churchill's commitment to Louisiana racing and Louisiana horsemen. "They have not given me any indication that their commitment to racing has diminished in any capacity, " Alfortish said.
Amoss raised another issue -- fan experience at the Fair Grounds -- that will shed light on whether the track and parent company are putting proper focus on racing.
"Is the Fair Grounds going to make the racing experience for the fan what it should be?" he asked. "That in the end will determine whether the Fair Grounds has a great meet or not. It won't be the horses. That's a given. My fear is the Fair Grounds will have a great meet from the standpoint of the purses, that great horses will race there, but if the fan experience is no good, the fan base will erode.
"I don't know if racetracks in general or Churchill in particular realize that if the fan experience is good, they'll get new fans and new customers. There are people who will go every day to the track no matter what. There's a larger percentage of people out there that you can capture. It's a matter of the fans being comfortable, enjoying the experience."
Miller said he's focusing on that goal. "In many ways, me being new to racing is probably a good thing, " he said. "I have no pre-conceived notion about what the experience is like. I can ask (racing) questions without people thinking I'm crazy. One of our challenges is to grow our customer base.
"I look at the opportunity with racing, there's a lot of parallels to live poker. Ten years ago, casinos were closing down live poker rooms at an alarming rate. Poker has become sexy. It's attractive to young people, attractive to women, to people of all ages. Racing, it's an entertainment experience. It's a good way to spend the day. Attractive, colorful, high energy -- it's all of those."
Horses will be off and running Friday on opening day at the Fair Grounds, and slot machines will be ringing on the opening of the track's permanent slots facility. With a boost from slots revenue, Fair Grounds purses are increasing. Many of the nation's top horses, jockeys, trainers and owners will be competing for the money this season.
To enhance the racing is the purpose of having slots at the track, say officials of the Fair Grounds and its parent company, Churchill Downs Inc.
The racing, they say, is the focus of the Fair Grounds.
"All the preparation we've made, if that doesn't tell you we're interested in racing and want to have the best, I don't know any other way to say it, " said Donnie Richardson, Churchill's senior vice president of racing. "Our emphasis is on racing. I'm not going to say they won't promote the slots parlor. If we can get great racing and great slots, we're going to have to turn people away . . ."
But some racing people are skeptical about the track's focus.
In August, veteran racing official Randy Soth unexpectedly and with little explanation departed as Fair Grounds president after almost four years on the job.
Former casino executive Austin Miller, who had been the Fair Grounds' vice president/general manager of slots and OTB operations, took over as head of the entire operation. Late last month, Churchill named Miller president of the Fair Grounds and announced the hiring of Eric Halstrom, who had been a vice president at Canterbury Park, as the Fair Grounds' vice president/general manager of racing.
The change from Soth to Miller as the man in charge at the Fair Grounds sparked concern among some in racing that the track might be emphasizing the slots over the sport.
"Slots, frankly, that's a very important part of the operation, " said Bob Wright, a member and former chairman of the Louisiana State Racing Commission. "I'm not saying they shouldn't do what's necessary to improve that side of the operation, but not at the expense of the racing side. Dismissing Randy gave me the impression, the way he was dismissed or he left, gave me the impression that they might be diminishing the racing side. But the jury's still out."
At a commission meeting in August, Wright questioned Miller about whether racing at the Fair Grounds might be taking a back seat to slots. After suggesting that the commission might be wise to consider giving the Fair Grounds a one- or two-year racing license -- a trial period to show the track's direction -- Wright joined in a unanimous vote approving the track's application for the usual 10-year license.
"My remarks should not be taken as adverse to Churchill, but to show we want to keep them in line, " Wright said. "If they need to do what they need to do to improve the racing side, that's good. I hope they continue to do a good job on the racing side, and let's give them the benefit of the doubt."
Said Miller: "I think what Mr. Wright or anybody who wonders about our direction or focus on racing is if you just focus on the top-level pieces -- that's a gaming guy, and they got rid of a racing guy. But with our current staff, there's a tremendous supporting cast. In addition, we're bringing in an additional seasoned veteran to oversee our racing operation."
Soth's departure from the Fair Grounds came shortly after Ken Dunn, who for 18 years had been president of Calder, left that Churchill-owned track. Calder, which is in Miami, has been approved to operate slot machines. In an April release announcing that Dunn would be stepping down, Churchill executive vice president Steve Sexton said: "We are transitioning Calder into a destination with horse racing and casino-style gaming and have need for management skills and leadership experience in both areas."
Soth and Dunn said they can't comment on anything related to Churchill Downs Inc.
New Orleans-born trainer Tom Amoss viewed their departures together as a possible indicator of company priorities. Last month, before Halstrom's hiring was announced, Amoss said: "The fact that they let Kenny Dunn go in Florida plus Randy Soth at the Fair Grounds, replacing him with a casino executive, makes me nervous. I will give Churchill the benefit of the doubt, but the moves that they have made with their staffing suggest just that, that they are more concerned with their casino business than their racing."
Halstrom's hiring pleased Amoss but didn't eliminate his skepticism. "I think it's an encouraging sign that Churchill has filled a strictly racing position (at the Fair Grounds), " Amoss said. "I was one of the skeptical people. We'll see. I'm still skeptical, but I see this hiring as a step in the right direction."
Wright said that his concerns remain despite Halstrom's hiring. "We'll see how it develops, " Wright said.
In an e-mail, Churchill senior vice president of communication and national public affairs Kevin Flanery expressed the company's view on the relationship between racing and slots.
"Churchill Downs Incorporated has a long history of excellence in the racing industry, " Flanery wrote. "The synergy between racing and other gaming options is important to the entire racing industry. The ability to strengthen the racing product, which is the core of our business, is exciting for our company. As we move forward, we will continue to focus on providing quality racing.
"A core component of quality racing is providing a purse structure that is attractive to horsemen. Fortunately, the Fair Grounds has been granted authority to operate slot machines and video poker machines. Revenue from both slots and video poker has enabled our racing team to make some bold changes to the upcoming meet purse structure. These changes will help position Fair Grounds as one of the top winter meets in the United States."
Last season, Fair Grounds purses averaged $342,607 per day. This season, purses will average about $375,000 per day, Miller said. Overnight purses (for races excluding stakes) will average about $300,000 per day, a 20 percent increase from last season. The track will offer 63 stakes races with purses totaling more than $6.6 million.
"The way we approached this year, we took money out of the stakes program (about $1.8 million) and put it in the day-to-day purses, " Richardson said.
Miller said: "We maintained the integrity of our marquee races."
Purses for the Louisiana Derby ($600,000), Fair Grounds Oaks ($400,000), New Orleans Handicap ($500,000) and Mervin Muniz Memorial Handicap ($500,000) -- the track's Grade II races -- haven't changed.
Purse money will be spread across a longer season. Opening this season before Thanksgiving, the traditional opening day, the Fair Grounds will run 87 days, six more than last season.
The new slots facility, which will open with 600 machines, is part of a roughly $30 million project that also includes two restaurants, a buffet area and a simulcasting area. The temporary slots facility, which was in the building originally opened for off-track betting, had 250 machines.
In the first year of slots at the Fair Grounds (from Sept. 19, 2007, through August), the machines generated about $285,000 per month to purses, according to Louisiana Gaming Control Board statistics. Purse supplements for thoroughbred races averaged about $200,000 per month. By law, 15 percent of slots revenue goes to purses, 70 percent for thoroughbreds and 30 percent to quarter horses.
Slots revenue is expected to increase sharply because of the new facility, although Miller wouldn't speculate by how much.
Money draws horses. The Fair Grounds has about 1,800 stalls in its barns, and trainers applied for stalls for about 3,500 horses, new racing secretary Jason Boulet said.
Last season, the Fair Grounds averaged 8.6 horses per race. Richardson said increasing field sizes is a goal. "I want to see nine, 10, 11 in there, " he said.
Steve Asmussen, Amoss and most of the other top-ranking trainers from recent Fair Grounds seasons will be back. Several newcomers, including such successful trainers as Doug O'Neill, Wally Dollase, Anthony Dutrow, Steve Klesaris, Dale Romans, Steve Margolis, Greg Foley and Shannon Ritter, will add depth to the ranks.
"Fair Grounds is doing a lot of good things, " said Romans, a Kentucky trainer who will have a stable in New Orleans for the first time in many years. "The purses are getting bigger. Florida (Gulfstream Park) is going in the other direction. It was time to give it a try."
Mark Casse, the leading trainer at Woodbine near Toronto, had a winter base at the Fair Grounds last season for first time. Casse sees slots, which helped increase purses at Woodbine, as nothing but a positive for the Fair Grounds. "It seems like this year they're going to have the best race meet ever, " he said. "You're going to have more money. More people want to come there than ever." Casse also said that as the racing improves, people at simulcast outlets across North America will bet more money on Fair Grounds races. "That's what happened to Woodbine, " he said.
Trainer Al Stall Jr., a New Orleans native, said he doesn't think that the Fair Grounds will emphasize slots over racing. "I think it's strictly a racetrack, " Stall said. "The demographic that Churchill has for the slots is not trying to get truckers off the interstate. The demographic is more local New Orleans types. It's definitely a racetrack, maybe more than any other track with slots."
Local trainer Andy Leggio said: "As far as I'm concerned, racetracks have turned into slots parlors instead of the other way around. The only reason we're here is they need us to run. Without us, they can't operate the slots. Churchill Downs is noted for racing. They want big-time racing (at the Fair Grounds). They had it last year. The slots will enhance all that. Hopefully, I'm around to get some of that money."
Churchill's decision to open the Fair Grounds barn area early is evidence of the company's focus on racing, Boulet said. After the Evangeline Downs meet ended in early September, several trainers who had participated in that meet were scrambling to find places to send their horses. The Fair Grounds opened as a temporary training center until the barn area officially opened in mid-October for horses assigned stalls for the meet.
"That's something that shows the commitment of Churchill, " said Boulet, who was Evangeline's racing secretary before coming to the Fair Grounds. "The horsemen were in a bind in Lafayette. We had about 200 horses that had nowhere to go."
Sean Alfortish, president of the Louisiana Horsemen's Benevolent and Protective Association, said that the early opening of the Fair Grounds meet provides more evidence of Churchill's commitment to Louisiana racing and Louisiana horsemen. "They have not given me any indication that their commitment to racing has diminished in any capacity, " Alfortish said.
Amoss raised another issue -- fan experience at the Fair Grounds -- that will shed light on whether the track and parent company are putting proper focus on racing.
"Is the Fair Grounds going to make the racing experience for the fan what it should be?" he asked. "That in the end will determine whether the Fair Grounds has a great meet or not. It won't be the horses. That's a given. My fear is the Fair Grounds will have a great meet from the standpoint of the purses, that great horses will race there, but if the fan experience is no good, the fan base will erode.
"I don't know if racetracks in general or Churchill in particular realize that if the fan experience is good, they'll get new fans and new customers. There are people who will go every day to the track no matter what. There's a larger percentage of people out there that you can capture. It's a matter of the fans being comfortable, enjoying the experience."
Miller said he's focusing on that goal. "In many ways, me being new to racing is probably a good thing, " he said. "I have no pre-conceived notion about what the experience is like. I can ask (racing) questions without people thinking I'm crazy. One of our challenges is to grow our customer base.
"I look at the opportunity with racing, there's a lot of parallels to live poker. Ten years ago, casinos were closing down live poker rooms at an alarming rate. Poker has become sexy. It's attractive to young people, attractive to women, to people of all ages. Racing, it's an entertainment experience. It's a good way to spend the day. Attractive, colorful, high energy -- it's all of those."