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Originally Posted by Indulto
NYP,
I read the pitch at the above link as well as their poll you referenced. I can’t find any third-party substantiation of their claims, and you are the only unpaid voice promoting them I’ve encountered anywhere in cyberspace.
Even if I could share your optimism that “privatization” would preserve the quality of the New York racing experience despite all indications that racing would become the VLT operator’s stepchild, what do you find so compelling about this bidder’s qualifications and motivation for implementing your vision?
I’d be interested in your opinion ...
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Quite frankly, I'm impressed with O'Farrell's group. They believe in racing, and they say they know how to rehabilitate racing's image. I think their plan is credible, at least in concept. Whether NY customers think it's pie in the sky or not, at least people have to admit that Cap Play stands ready to inject lots of cold, hard cash into the game that won't cost NY so much as a nickle.
Racing by itself just isn't all that popular, either as a sport or as a gambling entertainment. It has a negative image of being dominated by crooked, Tony Soprano types, and that racetracks are habited but a bunch of degenerate fuddy-duddies. And if you've ever doubted that, walking into Aqueduct will absolutely convince you (of the fuddy-duddies part, with a few exceptions, of course).
Contrast that with Las Vegas, and here on the East Coast, Foxwoods, and Mohegan Sun casinos. These are places where there's lots of gambling, but there's also other things to do as well, and they're places that people want go, even if they don't gamble very much. Casinos attract people that have an average spending budget as well as high rollers, and without the stigma that horseplayers are branded with. Consider that, if a person believes in his own luck and just likes to play numbers, your much more likely to get him to spend on a VLT where he can emty his wallet in 20 minutes, rather than on the races where there's one every half hour. If you don't get anything out of handicapping and watching the races, there's no utility for you.
I think the natural solution is to bring these customers together. If racetracks can sell highly profitable alternative gaming, then they can use that money to improve purses as well as the facilities, and work on creating an experience that satisfies the modern consumer. Of course, it has to be done right and every market is different (I'll have to read up on the CA situation), but I think it can be done, and MTR is one example.
As for a VLT operator not caring about racing, I think there has to be some oversight. Here's a quote from MTR's annual report:
"If we fail to maintain operative agreements with the horsemen, we will not be permitted to conduct live racing and export and import simulcasting at those racetracks, and, in West Virginia and Pennsylvania,we will not be permitted to operate our slot machines (including if we do not have in place the required proceeds agreement with the Mountaineer parimutuel clerks union) and in Minnesota we will not be able to operate our planned card room. In addition, our simulcasting agreements are subject to the horsemen’s approval. If we fail to renew or modify existing agreements on satisfactory terms, this failure could have a material adverse effect on our business, financial condition and results of operations."
There's more on the legal obligations in the report. Clearly, MTR is commited to keeing their agreements with the horsemen, and that the relationship is beneficial for both parties.
Thanks for listening.
