Candybag's Medicaid idea update

[Candybag]

Patton: "If everyone is thinking alike, someone is not thinking." My idea is outside the box, not mainstream thinking for sure.

Ohio's tax receipts on casinos and sportsbooks were $187 million in 2023 per the attached article. Does the Ohio legislature have the authority to increase the amount of these funds distributed to racing regardless of any new Medicaid idea?

Should a group that brings forth a new radical solution that benefits a state be incentivize for creative thinking or just be thanked and left out in the cold?

https://www.casino.org/news/ohio-cas...evenue-climbs/

[Jeff P]

Originally Posted by castaway01

Why in the world should the horse racing industry, which couldn't successfully manage a lemonade stand in the desert, get any misallocated Medicaid money from the federal government? Anyone who would support such a horrible idea should be run out of office immediately.

In fact, only a crooked lobbyist would be able to get something like this in front of Congress. So, if you bribe the right people maybe there is hope....

You asked so I'll try to give a clear answer.

I agree with you. Horse racing has been mismanaged - and badly at that.

One thing I've noticed over the years is horse racing leadership exists in its own echo chamber.

Almost nobody in track management, state regulatory bodies, or horsemen alphabet groups will risk challenging the status quo.

As a result nobody is presenting new or innovative ideas.

Instead, they hang onto their spot on the corporate ladder.

As people at the top retire those lower down move up a rung, and junior managers are hired to occupy vacancies at the bottom.

That doesn't happen in every case. But that's the prevailing pattern I see.

The result over the years is the game loses market share to the competition (casinos, sports, fantasy sports, etc.) because there is zero innovation.

So in that light - no. Horse racing doesn't deserve any new money.


That said, one of the reasons state legislatures and governors' offices have been so willing to subsidize horse racing over the years is economic impact.

It's unfortunate this was published on April 1st (that's track management for you ) but --

Twinspires.com | April 1, 2024
Horses: $122 Billion annually to the US Economy:
https://www.twinspires.com/edge/raci...e-us-economoy/

A vital industry to the Kentucky economy

No state conjures images of horse racing more than Kentucky. The Kentucky Derby obviously comes to mind for many people, but there’s much more than just the Derby when it comes to horses in Kentucky.

An economic impact study showed the racing industry employs more than 24,000 people directly in Kentucky, with another 9,400 from indirect sources. About $1.9 billion in income is generated, and $115 million in tax revenue.

A huge part of what makes Kentucky the biggest player in the country when it comes to horses is the breeding industry.

The Kentucky bluegrass is justly famed as the premier place to breed and rear young Thoroughbreds, and the statistics bear this out. Of the total U.S. crop of Thoroughbred foals of 16,747 in 2022, 7,698 were bred in Kentucky — an astonishing 46%. No other state comes close: the next closest are New York (1,316 foals, 7.9%), California (1,303 foals, 7.8% of the crop), and Florida (1,141 foals, 6.8%).

Obviously horse racing has a bigger economic impact in states like Kentucky, Florida, and New York than it does in states like Iowa, Ohio, and Arizona. And obviously horse racing has far more political sway in states like Kentucky and Florida than it does in say California and Arizona,

But, even in Arizona, the state legislature and governor's office is well aware of the jobs and economic impact horse racing has.

More to come...


-jp
.

[Candybag]

Jeff P:

Are you from Arizona? We have a special interest in Arizona and would like to re-open the 2 closed tracks. Already talked to both owners and there is a clear path if we can just our process there.

[Jeff P]

Grew up a few miles from Turf Paradise.

Spent a boatload of days on track there from the early 1980's to the early 2000's.

Moved away in 2003.

In 2007 track management at then Yavapai downs and the AZ HBPA successfully lobbied the legislature and governor's office to pass a new state law making it a felony for both bet taker and bettor to bet on horse races from "outside the racing enclosure."

The new law turned a lot of AZ horseplayers into ex-horseplayers.

Two years later, new track management at then Yavapai Downs and the AZ HBPA asked me as president of HANA for help in reaching out to AZ horseplayers and asking for their support to join Yavapai Downs and the AZ HBPA in lobbying the legislature and governor's office to strike the old law, replace it with a new law with language not only authorizing ADW, but additional language that would allow AZ tracks to operate their own ADW if that were something a track wanted to do.

The proposal had support from Yavapai, the AZ horsemen, AZ horseplayers, leadership from the AZ Racing Commission, a handful of AZ legislators, but not Turf Paradise.

I attended a meeting where the idea was presented to the AZ Attorney General's Office so they could look at the proposal and reword it as needed so as not to violate any existing statutes and/or the AZ Constitution.

A few weeks later the AZ Attorney General's Office had done that. (I was told privately they wouldn't have if they were not on board with the idea too.)

The proposal was presented to then AZ Governor Janet Napolitano who told us -- this is not a direct quote I'm paraphrasing here:

"You guys asked me barely two years ago to make ADW wagering a felony. I did that for you. And now you want me to change the law in the exact opposite direction? I can't do that! It's too soon. You need to wait a few years. I trust you understand why."

At one time I knew a lot of people in track management, the AZ HBPA, and the AZ Racing Commission.

But that was 15 years ago. I doubt I know a single current decision maker.

The one thing I would tell anyone considering backing live racing at the old Yavapai Downs site in Prescott Valley and/or Rillito in Tucson is this:

I've been told both race meets generate negative cash flow.

The Native American Tribes operate casinos all over Arizona. They have deep pockets and an incredibly strong lobby. To date they have successfully quashed efforts by Arizona tracks to generate revenue from historical racing machines similar to what tracks in Kentucky are doing.

In 2002 Arizona Voters also turned down Prop 201 that would have allowed slots at Arizona tracks.

Something tells me the Tribes spent a lot of advertising dollars getting that result (protecting their territory.)

Before you commit significant capital you better have a serious plan not just for running successful race meets - but for engineering a complete turnaround.

You've really got your work cut out for you if you think you can take a distressed race track in that environment - and make it cash flow positive.


-jp
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[Candybag]

Jeff P:

Thank you for your response! I thought you might know Arizona racing. Mr. W who is currently residing in Florida is involved with this Arizona project. I bet you know him, everyone in Arizona does. You would know him both as a horse player and any professional involvement. Give him a call, interesting.

We have the Ritillo number, it is a 503c as you know, and no problem.

Gov Hobbs has a social worker background. The very first thing this project does is give a person with disabilities an appeal of their overlooked government benefits. That person was never notified of their turn down due to mental incapacity. The team will handle their appeal. This aspect should appeal to the Governor.

We were told by a significant person appointed by the Governor that the team would be introduced to Care Cost Containment, their Medicaid authority, so I can do my presentation. I always sell the Medicaid authorities in Ohio. I just could not get pass Larry Householder, who his friends and him are not doing well these days. Two in federal prison, two have committed suicide, the rest indicted.

The assistant Ohio House Speaker was pushing my idea, dead on arrival. Former House Speaker Larry Householder was taking the largest bribe in Ohio's history; the assistant would not play along and was the first from Statehouse to testify at trial. I always wonder why this idea never went anywhere in Ohio and so does everyone else outside the statehouse. I got there twice under two governors, but Mr. Householder was there also.

I have an old River Downs tee shirt which says, "Enjoy the ride." It has been a ride indeed.

Nice conversation. Thank you.

[Candybag]

Jeff P.:

One idea we push is the fact the takeout blend is not set is stone, neither would be the state's portion of the blend. The more the state gets in one area, the less the state needs in other. In addition, our fee is priced extremely competitively to allow horse racing wiggle room. My information technology integrator knows all the big players and what those groups would charge, he gets a lot of their Medicaid work. Our fee differential alone could make nice things happen.

We agree with you. We also want something in it for the horseplayer to grow the sport. HANA would be a great advocate in our effort.

I bet Mr. W knows you and I will ask him to touch base.