Casino at Saratoga Raceway - I'm against it

[Dick Powell]

This my column from last week on the Handicapper\'s Edge of brisnet.com. It\'s a little long but it\'s an important issue.

HANDICAPPING INSIGHTS

FEBRUARY 28, 2014

by Dick Powell

Like the people that read this column, I am always willing to take chances and admire those that do.

That said, how in the world can anyone think putting a full casino right next door Saratoga Race Course is a good idea? Who wants to take the chance of damaging the crown jewel of American racing? Not me.

When the New York casino constitutional amendment passed in 2013, it called for four casinos to be built outside of New York City. There are four regions that were carved out upstate in and around agreements with Native American gaming sites.

One such region is the Saratoga/Albany area and it will definitely have a casino with poker, blackjack, craps, roulette etc. Saratoga Raceway has a video lottery facility across Nelson Avenue with 1,782 VLTs. The VLTs have been in operation there since March of 2014 and purses for the harness horsemen have more than tripled.

One could argue that part of the decline at Saratoga Race Course the past 10 years has been due to 1,782 VLTs only a few hundred yards away. If that is true, it is a very small part. Walk through the Raceway\'s gaming floor and you will see more walkers and oxygen tanks than horse racing products. There is little crossover but logistically it had to hurt some.

In 2001, when the VLT legislation was being proposed, I was the media spokesperson and strategist. Nobody wanted VLTs at Saratoga Race Course for many reasons and we knew that the ones next door might have some impact. That was more than balanced by 5,000 VLTs downstate at Aqueduct so the net effect was going to be extremely positive.

The late Bruce Hamilton, executive director of the Harness Breeders of New York, was the driving force behind the effort to get VLTs at New York racetracks and there should be a statue of him outside of every facility. He was indefatigable.

Now, Saratoga Raceway is pushing hard for the table games to complete the transition from a \"racino\" to a \"casino.\" The problem is that table games attract an entirely different clientele. Horseplayers love to play cards and various games of skill. From the 80/20 female-to-male ratio that exists now, it will change to about 50/50 and the increase in males will be ones that also like to play horses.

In the state-wide voter referendum in November, the voters of Saratoga County voted 57 percent to 43 percent against legalizing casinos anywhere in New York. So there is no real groundswell for support to have it here.

But the way the referendum worked, there is no follow-up referendum where a community gets to vote on a specific site. Still, 57 to 43 is considered a landslide. Any elected official with 57 percent of the vote immediately says the voters have spoken and have given he/she a mandate. Well, the mandate up here was a big, fat NO! And this was a legitimate vote since there were no organized groups for or against it.

The process to decide where the casino eventually goes has begun. A committee that is part of the New York Gaming Commission has been selected and they have a few things to consider.

First is economic activity and business development. This will count towards 65 percent of the scoring and will evaluate capital investment, revenue generated, jobs, facility quality, fastest to market, financial ability, and experience in development and operation of a quality gaming facility.

Yes, Saratoga Raceway could get up and running faster than anyone else in the Albany/Saratoga region since they are the only one currently operating. While that is important for the first few years, a new facility would provide far more economic impact in terms of construction and operation.

Second, 20 percent of the scoring will be based on impact on the host municipality, gaining public support and partnering with existing businesses to avoid another Atlantic City situation where the casinos damaged the local businesses.

Third, 15 percent of the scoring will be based on workforce development, addressing problem gambling, utilizing environmentally friendly construction or renovation practices, and creating a diverse workforce.

Ironically, the casino legislation was named the Upstate NY Gaming Economic Development Act. Outside of New York City, there is no county doing better economically than Saratoga and part of that is due to the hundreds of millions of dollars that New York State has provided to help build the computer chip fabrication plant in Malta, which now employs thousands.

The impact of the host municipality and community will be the key factor and here is where the impact on Saratoga Race Course will be paramount. There are two main groups on each side of the issue.

Against the casino, mostly because of quality of life issues and the impact on downtown businesses, is a group called S.A.V.E., which stands for Saratogians Against Vegas-style Expansion. You can read about them at www.savesaratoga.org.

In favor of the casino is a group sponsored by Saratoga Raceway called Destination Saratoga. You can read about them at www.destinationsaratoga.com.

Destination Saratoga uses the image of a Thoroughbred horse on its logo and I find that disingenuous since it makes it seem that supporting them will help the Thoroughbreds. I say it will not but there is an argument that a destination casino will attract more people to the area and help all businesses.

Where there has not been enough pushback is how a casino next door will affect Saratoga Race Course, which is the economic anchor for the area and the real destination. Because of the Thoroughbred track, we have year-round, world-class food and health care because of thoroughbred horse racing at Saratoga Race Course.

Can anyone say that a full-blown casino will not hurt business at Saratoga Race Course?

Can anyone say that it is worth taking the chance?

What is the plan if it turns out to be damaging to Saratoga Race Course?

Some will say that the history of Saratoga is all about casinos and they are right. The only reason we have any racing here is that the casino patrons needed an afternoon diversion since the casinos did not open until 7 p.m. So without casinos, there wouldn\'t even be the world-class horse racing we have.

But one historical fact that many seem to ignore is that the explosive growth of Saratoga Race Course happened after the casinos left town. Today, hundreds of thousands of people visit Saratoga Springs each summer and the main draw is Saratoga Race Course. Mention Saratoga anywhere in the world and the image conjured is one of Thoroughbred horse racing.

Is anything worth the risk of damaging the real economic engine of the region? I just can\'t see it. Even if I am wrong and there is no real negative impact on Saratoga Race Course, can anyone say with any impartial authority that it was worth taking the risk? And who is to say that what a casino looks like now won\'t develop into something more insidious? Can you say on-line gaming and sports wagering?

The sitting committee for the four casinos will have a hard enough job. But nowhere will it be harder than deciding whether or not to put one in Saratoga. They will have to go against public opinion in an area with little need for economic development and already the beneficiary of over a billion dollars in state aid over the years.

In my opinion, it is not worth it. There will be a casino in this region but I just can\'t support one in this backyard. Call me what you want; I can take it.

But, what I don\'t want to do is sit around years from now and question how this happened and the crown jewel of American racing was damaged irreparably.

[richiebee]

I do not think that a traditional casino located at Saratoga Harness would
have a significant detrimental effect on Saratoga Race Course.

Casino gambling is an indoor sport. Summer thoroughbred racing at Saratoga is
still the greatest game played outdoors.

No matter how strongly we might feel about these issues, online gaming,
legalized sports wagering (and legalized medicinal and recreational
marijuana) will all be reality in New York State within 10 years.  

People travel from near and far to experience thoroughbred racing at
Saratoga; if anything, the opportunity to roll dem bones and/or play a few
hands of poker before and/or after a day at the races might draw more people
(and maybe some new people) to the Spa.

The installation of a traditional casino at Saratoga Raceway would have
absolutely no impact on the millions of dollars wagered on throughbred racing
at Saratoga at simulcast locations throughout the US.

My opinion (and I certainly respect yours) is that the irreparable damage you
mention is more likely to be caused by political interference, mismanagement
and the continued decline in the quality of thoroughbred racing at Saratoga.

[Dick Powell]

Define significant. What if it\'s 5%? I say we can\'t afford it. What if I am right? Do the table games come out? It\'s not worth the risk.

Saratoga is one of the few venues left where on-track attendance and handle is still big. You are right, it won\'t affect the player that is betting away from the track. An on-track dollar spent or wagered is twice as valuable as an off-track dollar and no operator can afford losing a percentage of it; even if it\'s small.

Sidebar: how many people on this board are from Staten Island? Seems like a lot, me included.

[FrankD.]

You will see a 5% plus decline this year in attendance solely from the idiotic Toys R US crews enhancement of the guest experience by raising grandstand admission from $3 to $5. The 50,000 plus spinner crowds on giveaway days which are in reality somewhere in the 30\'s will deflate this year from the price increase. A large % of theses folks don\'t even bet or if they do it\'s nominal and they are out the door to peddle their junk on eBay before the 3rd race.

The Spa reached it\'s saturation point in on track attendance a few years ago; it was a 30 year building crescendo that started with Affirmed/Alydar in 1978 being the first mega crowd of 50,000 real people. A mere 5 years before when Secretariat was defeated in the Whitney as the first Triple Crown winner in 25 years the crowd that day was barely 30,000 which today is an average Saturday.

Decrease in take out,  stricter drug testing and pool integrity will have a lot more impact on track handle than any Casino.

Anyone remember the place had a half dozen casino\'s around the lake back in the day!

Good luck,

Frank D.

[richiebee]

Dick Powell Wrote:
-------------------------------------------------------
> Define significant. What if it\'s 5%? I say we
> can\'t afford it. What if I am right? Do the table
> games come out? It\'s not worth the risk.

Ok, I will get a little cynical here and say that maybe NYRA will wake up if
faced with increased competition for the wagering/entertainment dollar. Again,
there is the possibility, with proper cross- marketing and co-promotion, that a
casino at Saratoga Harness might result in some new blood enjoying thoroughbred
racing at Saratoga.

I am far from a gaming expert, but I think that a traditional casino located near
Lake Placid or Lake George might be a better fit.
 
> Saratoga is one of the few venues left where
> on-track attendance and handle is still big. You
> are right, it won\'t affect the player that is
> betting away from the track. An on-track dollar
> spent or wagered is twice as valuable as an
> off-track dollar and no operator can afford losing
> a percentage of it; even if it\'s small.

I am confronted with the \"twice as valuable\" argument whenever I contend that
NYRA needs to do more to cultivate its \"remote\" fan base. Off track handle on a
daily basis is what? three or four times the size of ontrack handle? The truth is
that the improvements NYRA could make to increase their share of off track dollars
wagered (lower takeout, innovative wagers, smaller minimum wagers (such as the
newly introduced $.50 trifecta), improved audio/visual production values, and
better quality racing year round) would also likely boost on track attendance and
handle.
 
> Sidebar: how many people on this board are from
> Staten Island? Seems like a lot, me included.

I guess the most prominent Islander on the board is Miff, even though I believe
he once said he was born in Brooklyn. Trackjohn, who posts here occasionally,
remembers the good old days when SI had about 75,000 people, but has since moved
to the \"other\" Island (Long). I was born and raised here, left for awhile, but
have lived here for the last 30 years. I have made Frank D. an honorary Staten
Islander, as he would have been a character among characters at any of our five
long shuttered OTB parlors and would feel right at home at most of our \"bucket of blood\" watering holes.

[moosepalm]

I can\'t handicap the potential impact of a full blown casino on Saratoga Race Course.  Most \"seers\" thought Atlantic City and the subsequent proliferation of casinos on riverboats and reservations would take its toll on Vegas.  Many thought the return of casinos to Atlantic City would be a panacea for the surrounding areas.  Seems like the experts don\'t always have their fingers on the pulse of the ripples of casino development.

Saratoga is not the only NY community dealing with a decidedly mixed reaction to this proposed casino expansion.  A small rural area, roughly thirty miles west of Syracuse has been targeted for a possible casino as part of this new initiative.  They would represent the \"southern tier\" piece of the action, in the geographical allocation of potential sites within the state.  Since this locale is close to the NYS Thruway, it has about as much relevance to the actual southern tier of the state, and its many struggling communities, as recent geographical alignments in major college athletic conferences.  Needless to say, it would change the entire character of an agricultural area that has the population density of one person for every ten cows.  Of course, when assessing the wisdom of the NYS legislative bodies, a variation on the words of H.L. Mencken comes to mind, regarding the lucrative prospects of not underestimating intelligence.

With the same canny sense of equivocation that prompts me to push the all button, I could see the effect of a Saratoga casino going either way.  Yes, it could deflect some of the \"tourists\" from their leisurely day at the track.  On the other hand, it might bring some new curiosity seekers who are looking for a daytime diversion to complement their evening at the tables.  Frankly, I\'d be more concerned about the impact as a resident, and how it might further change the character of the town and region.  I\'ve personally felt that casinos belong in Las Vegas, period, and haven\'t seen much improvement in the quality of life wherever they\'ve landed, except for a few nice, overpriced golf courses.  Beyond that, I agree with those who say, or imply, that the bigger threat to the predicament of NY racing comes from within.

[miff]

Most of the top consultant firms have beaten this to death.The discretionary gambling pie is stagnant. Any new form of casino will divert monies from horse racing.There is no model that shows a handle increase to racing when NY casinos open,the amount is not quantifiable.

Not a casino guy but surely will go infrequently to appease slot nut wife. Whatever I lose at the casino comes out of my horse racing bankroll. Believe that to be a microcosm of most, so to speak.

Pushing uphill trying to get a simo restaurant type Favorites/Winners on Staten Island.NYRA a mess with too many layers laced with politically appointed stooges. The Cuomo agenda of marginalizing NY racing in favor of impending cash cow casinos still there.Sad,as NY in position to dominate US racing with \"monster\" type money coming from slot subsidies, though many worry that Cuomo will unilaterally reduce slot subsidies to racing.Remember,Cuomo tore up a legal and binding NYRA franchise agreement so he can try to do that with racings slot
subsidies.Doubt he can get away with it though.

[trackjohn]

Richie:

  Appreciate the \'shoutout\'!

  BTW, agree with you Re: Saratoga casinos...while it would be better for the region to have a full fledged one in Lake George the politicos would never allow it...and while Dick Powell is probable correct that there could/would be a negative impact for the Saratoga track, IMO, there already has been a negative impact..stretching the season from late July through Labor Day has resulted in a dilution of the product and general experience..As a result While it is still \"Saratoga\" it is not the Saratoga of even 10 years ago..Comments??

John

[miff]

Saratoga still the greatest place, but agree with John, not as good as \"back when\" NYRA looks to kill/tarnish their goose that lays the golden egg.Dilution of the SPA cards with garbage claimers/maidens makes the SPA not as special.

The original 24 day meet will never be matched,can understand some extension of the meet but the overall current quality an issue.

Desperate NYRA races the clock to turn a profit(sans slot subsidies included in the figs) as Cuomos\' appointed stooges wait to sit in judgement of NYRA in 2015 and decide it\'s future.

[Dick Powell]

John,
I was one of the people that was in favor of expanding the 24-day meet. My problem with the Saratoga of today is not the amount of days that are run but the length of the day. Too many races and too much time between races. Last race post times of 6:30PM. As someone that is neurotically early, I\'m ready to bail out around 4. Can watch the rest on TV. Not only do you have to plan lunch but dinner as well. If we brought a newcomer to the track and subjected them to 11 or 12 races, I guarantee they will never come back.
Dick