Threats to Horse Racing Subsidy Sends Industry People to Defend their "Turf"

Ontario Finance Minister Dwight Duncan sent a chill through the horse-racing industry early last week when he unexpectedly announced during a speech in Toronto the government is going to re-evaluate the $345-million-a-year “subsidy” the industry receives through the Ontario Lottery Gaming Corp. slots-at-racetracks program.

Racing industry officials balk at Duncan’s reference to the slots-at-racetracks program as a subsidy. Rather they see the program launched by the former government of Progressive Conservative Premier Mike Harris in 1999 as a successful revenue-sharing agreement that has helped to stabilize the racing industry and allow it to begin the process of re-inventing itself in the face of increasing competition from online gambling and casinos here in Ontario and across the border in the United States.Many breeders, trainers and race track employees clearly feel the same way. The slot revenue was brought in to help stabilize the horse-racing  industry through challenging years, now they’re talking about taking that money and putting it into the general revenue of the province to be spent on other things? It’s totally inappropriate to call it a subsidy.

Hundreds of people from across Ontario are expected at a protest this afternoon organized by Ontario's horse racing industry. At a news conference earlier today, the Ontario Harness Horse Association urged the government not to scrap their share of racetrack slot revenues, because their survival depends on that revenue. The cash-strapped government has signalled that it may withdraw the money as part of its efforts to balance the books. Race track operators and local horse farmers receive about $345 million a year, about 20 percent of the $1.7 billion Ontario slots generate annually.

OHHA general manager Brian Tropea says the increase in slot machines at casinos has taken consumers away from spending cash on horse racing. "If the government hadn't become our competitor, we would be able to look after ourselves quite well. The government put slot machines in our facilities, they expanded gaming in Ontario and negatively affected our traditional revenue streams."

The OLG revenue sharing program has offset the negative financial impact slots at racetracks would otherwise have on the racing industry’s bottom line. The ever increasing competition imposed by the slots and other expanded gaming would further erode the wagering dollar to the point that the industry’s survival would be at serious risk. The government is looking to reduce the horse racing industry’s revenue share at a time when they are looking to expand their own gaming operations in direct competition with horse racing. In addition, if the proposed changes to the Criminal Code are implemented, the provinces will be allowed to operate sports betting, once again in direct competition with the horse racing industry. By preserving the existing program, the government would continue to collect $1.3 billion dollars annually from the race horse industry while ensuring Ontario’s horse racing industry remains economically sound for those rural communities and the 60,000 families that rely on the race horse industry for employment.

Its a run for the money for Ontario Horsepeople and Horses! Its one for the money, two for the show, three to get ready now go OLG go . . .