How to start a new racetrack

[FakeNameChanged]

Originally Posted by highnote

I love Nebraska. One of my favorites states!

One thing NE has is plenty of land. I would think the land is fairly pricey unless you go farther west beyond Omaha and near the sand hills where it is not as productive for growing crops.

What are land prices like around Lincoln? Off the top of my head I don't know how many acres you'd need for a 1 mile track. Any idea?

For a one mile oval track, with 40 foot width, you'd need 47.3 acres just for the track alone. That's assuming you'd get a rectangular piece of land that measures 2240' x 920' or 2,060,800 sq. feet. Of course, positioning, easement to boundaries, best spot for drainage, double that number at a minimum. Quadrupling it to 200 acres is probably more likely. I seem to remember that 400 acres for some of the existing tracks.

[highnote]

Originally Posted by Lemon Drop Husker

Excellent questions.

Venue/property is no longer state owned. Investments thus far own the current place. Thus, privately owned, per say.

I'm not rich enough to look into it much further, but I would if I could.

I can certainly hook you up with people if you are truly interested.

It couldn't hurt to talk to them. I am certain a lot could be learned even if a deal was not struck. Then again until you talk to them you don't know their motivations and how eager they are or are not to strike a deal.

Can you connect me with them? Send me a private message with their contact info? In the meantime I will look for the place online. I am traveling today but will look when I get home.

[highnote]

Originally Posted by Whosonfirst

For a one mile oval track, with 40 foot width, you'd need 47.3 acres just for the track alone. That's assuming you'd get a rectangular piece of land that measures 2240' x 920' or 2,060,800 sq. feet. Of course, positioning, easement to boundaries, best spot for drainage, double that number at a minimum. Quadrupling it to 200 acres is probably more likely. I seem to remember that 400 acres for some of the existing tracks.

I figured 40-50 acres is probably the minimum. I know people who race at mountaineer who bought a beautiful horse farm for $500 per acre at a bankruptcy auction. $2,000 per acre for undeveloped land might be possible. That's only $100,000 for 50 acres. $5,000 per acre is still only a quarter acre.

[highnote]

Also, if the track owned 50 or 100 acres there might be ways to generate revenue when the track is not conducting races.

[redlandb]

I think you can lease Les Bois in Boise, Idaho for $1. There are TONS of fair ground tracks that meet your needs, for free.

[Lemon Drop Husker]

Originally Posted by highnote

I figured 40-50 acres is probably the minimum. I know people who race at mountaineer who bought a beautiful horse farm for $500 per acre at a bankruptcy auction. $2,000 per acre for undeveloped land might be possible. That's only $100,000 for 50 acres. $5,000 per acre is still only a quarter acre.

1/4 mile lot at minimum. More than sure there is 300 acres of land to work with including an already established, clean and functioning simulcasting unit.

If "need" be, you could 'buy' some more land to make it a square mile .

Hell. I'm working on it. I'll get the right people your way if you are truly interested, and I'll get out there tomorrow to send you some pics.

[jimmyb]

Originally Posted by Lemon Drop Husker

1/4 mile lot at minimum. More than sure there is 300 acres of land to work with including an already established, clean and functioning simulcasting unit.

If "need" be, you could 'buy' some more land to make it a square mile .

Hell. I'm working on it. I'll get the right people your way if you are truly interested, and I'll get out there tomorrow to send you some pics.

I can see issues. From what I've read, the Winnebago Tribe of Nebraska also wants to build a track?

http://journalstar.com/news/state-an...48e4db835.html

[highnote]

Originally Posted by Lemon Drop Husker

1/4 mile lot at minimum. More than sure there is 300 acres of land to work with including an already established, clean and functioning simulcasting unit.

If "need" be, you could 'buy' some more land to make it a square mile .

Hell. I'm working on it. I'll get the right people your way if you are truly interested, and I'll get out there tomorrow to send you some pics.

Pics would be great. Big concern is trying to run the same kind of meet as every other track. Other tracks have 50 years experience and can't make it without slots. The edge BLD would have is uniqueness.

Do the Indians have deep pockets from casino revenue?

[jimmyb]

Originally Posted by highnote

Pics would be great. Big concern is trying to run the same kind of meet as every other track. Other tracks have 50 years experience and can't make it without slots. The edge BLD would have is uniqueness.

Do the Indians have deep pockets from casino revenue?

It;s my understanding unless it's tribal land they are subjesct to the same business rules and tax structure as anyone.

• Federal income taxes are not levied on income from trust lands held for them by the U.S.
• State income taxes are not paid on income earned on a federal Indian reservation.
• State sales taxes are not paid by Indians on transactions made on a federal Indian reservation.
• Local property taxes are not paid on reservation or trust land
• Native Americans are not usually inclined to include non-Natives in business endeavors

[highnote]

Originally Posted by jimmyb

I can see issues. From what I've read, the Winnebago Tribe of Nebraska also wants to build a track?

http://journalstar.com/news/state-an...48e4db835.html

Interesting article. Also interesting are the headlines for the other gambling related articles. Lots of opposition to the expansion of gambling, tribal members are calling for an indictment of some tribal leaders, and a high number of race horses are testing positive for illegal drugs.

You gotta love the gambling business.

By NOT allowing on-track gambling on the BLD races it should be easier to get the track up and running.

[MonmouthParkJoe]

Follow the current Florida model. Find the land, partner with one of the quasi horsemens groups and run two horse match races. I think you need five to be entered, but they always scratch.

Open up a casino. Short term you rake in the dough, then can fund a full scale operation. Call it "Upsand Downs"

Forgot what book I saw that in haha

[RunForTheRoses]

Originally Posted by elhelmete

You initially made it sound like you had a model and a plan for operation. I guess I was wrong.

Good luck.

I'm reminded of this:

https://www.youtube.com/watch?v=YlVDGmjz7eM

I just posted that, will delete, it is what I thought of too LOL

[highnote]

Originally Posted by MonmouthParkJoe

Follow the current Florida model. Find the land, partner with one of the quasi horsemens groups and run two horse match races. I think you need five to be entered, but they always scratch.

Open up a casino. Short term you rake in the dough, then can fund a full scale operation. Call it "Upsand Downs"

Forgot what book I saw that in haha

"Upside Downs" That's good!

I read that article about the Florida group trying to build a short track for racing and then build the casino around it. I hope it works out for them. Who loses money owning a casino?

NYC OTB was criticized by Mayor Bloomberg for the being the only bookie in the history of the world that couldn't make money, but that's a different story.

[toddbowker]

Originally Posted by Lemon Drop Husker

Excellent questions.

Venue/property is no longer state owned. Investments thus far own the current place. Thus, privately owned, per say.

I'm not rich enough to look into it much further, but I would if I could.

I can certainly hook you up with people if you are truly interested.

Would be a great way to throw away your money if you had it. Racing licenses in Nebraska have to be held by agricultural societies or not-for-profit entities that promote livestock or horse breeding.

2-1204.
Horseracing; licenses; applications.

The Nebraska State Fair Board, a county fair board, a county agricultural society for the improvement of agriculture organized under the County Agricultural Society Act, or a corporation or association of persons organized and carried on for civic purposes or which conducts a livestock exposition for the promotion of the livestock or horse-breeding industries of the state and which does not permit its members to derive personal profit from its activities by way of dividends or otherwise may apply to the State Racing Commission for a license to conduct horseracing at a designated place within the state.

The simulcast venue in Lincoln is owned by the Nebraska HBPA, which also owns Horsemen's Park.

[highnote]

Originally Posted by toddbowker

Would be a great way to throw away your money if you had it. Racing licenses in Nebraska have to be held by agricultural societies or not-for-profit entities that promote livestock or horse breeding.

Like most government agencies there are good and bad attributes.

It's really, really, really, hard to do anything innovative or even outside-the-box in racing because the organizations that run it are so deeply set in their ways. Too often, 19th century rules are being applied in the 21st century.

Rules can be changed and exceptions can be made. How much can get done depends on how much money is at stake and whose feathers get ruffled and whose get shined? How many court battles do you want to fight?

Building and running a new racetrack is not easy. If it was, there would be a new one up and running by now.

It helps to have boots on the ground in the location of the track. It's hard to live 1,000 miles away and try to make things happen. You could work 16 hours per day for the next two years and still might not get a track up and running. And then, even if you did, it could fail. This is why all the big startups happen in Silicon Valley and not in the Midwest. Silicon Valley thrives on innovation and disruption and eventually those companies gain great power and influence over the rest of the population -- apple, uber, and facebook come to mind.

I love Nebraska and I love the idea of racing in the state, but when the deck are so stacked against the small racetrack operator, why bother? The racing commission has created such a high barrier to entry that the failure for a small racetrack operator is virtually guaranteed. Hell, it's almost impossible to a new track off the ground! Who benefits from this? Follow the money, I always say.

Starting a new racetrack is kind of like betting races with high takeouts and then the track raises them even higher. It gets to the point where you ask, why bother betting? If you can't get a big rebate there is no point in trying to compete. You spin your wheels at best or knock your head against a brick wall at worst.

I don't blame the commission and those with vested interests from keeping startups out of the game. There are only so many pieces of pie to go around and the pie keeps shrinking. Eventually, it will be gone and even the racing commission won't be needed. It might be a while, but unless there are changes, I don't see a bright future. Sad.