Illinois horse racing needs approval of gaming expansion bill

by Neil Milbert, for the USTA Newsroom

Chicago, IL — Slots at the racetracks are part of a gaming expansion bill that not only would revitalize Illinois Standardbred breeding and racing but also would both save and create thousands of jobs and have a ripple effect on the state’s agribusiness.

After passing the House of Representatives on May 30 and the Senate on May 31 the legislation has been in limbo because of a motion to reconsider filed by Senate president John Cullerton. It’s a parliamentary maneuver designed to give proponents more time to make their case to Governor Pat Quinn who believes the slots at the tracks and five new casinos the bill calls for would create an inordinate number of gambling venues in the state.

The state legislature will reconvene for its fall veto session on October 25. Between now and then it’s urgent that the governor be made aware of the immediate positive impact the bill will have if he signs it and the dire consequences facing the Illinois racing industry and the state’s agri-business if he vetoes it.

The importance of this legislation goes far beyond the borders of Illinois, a state that historically has been one of the giants in American harness racing. Chicago is the nation’s third largest market area and Balmoral Park and Maywood Park give the sport a presence in this market area. The State Fairs at Springfield and Du Quoin have been important stops on the Grand Circuit.

Governor Quinn needs to be told time and again what’s at stake.

If you’re at a loss for words, the comments of racing and breeding industry leaders and the data that drives home the point they make provide some powerful food for thought.

“This bill is the only savior for horse racing in Illinois,” says Anthony Somone, executive director of the Illinois Harness Horsemen’s Association. “We have been put in a very, very difficult spot. We are at a competitive disadvantage because other states that have slots at their racetracks have the advantage of being able to offer higher purses.

“But this bill is not just about boosting purses; this is a bill that fixes the ills of horse racing past and ensures our longevity in Illinois. The bill takes care of the breeding industry and the county fairs, which are the lifeblood of our sport. The infrastructure for horse racing is here. It just needs a shot in the arm to revitalize it. Slots at the racetrack are an ongoing proven mechanism.”

One need look no further than the registered foal numbers during the last decade to see the slippage in Illinois Standardbred breeding and the dramatic rise in state’s that have slot machines at their tracks.

Let’s look at Indiana, where the number of foals shot up from 893 in 2007 to 1,520 in 2010; at New York, where the number rose from 737 in 2002 to 1,182 in 2010; at Pennsylvania, where the number increased from a healthy 1,297 in 2002 to a robust 1,888 in 2010.

Now, let’s look at Illinois: in 2003, there were 1,324 registered foals; in 2010, the number had nosedived to 623.

Dr. Kenneth Walker and his wife, Pat, have one of the best breeding farms in Illinois and their Land of Lincoln Standardbred Sales Co. has one of the top yearling auctions.

These are the words of Doc Walker:

“We’re kind of at the end of the road. If we don’t get the bill signed we are going to be more of a hobby than an industry.

“The impact slots in the other states have had on our population of good horses and good horsemen has really taken its toll. It also has taken a toll on the sale of our yearlings. In 2009 we were down 25 percent and in 2010 we were down another 24 percent. This year we had a bit of a reprieve (because purses at the tracks have increased by 50 percent through 2013 thanks to the release of impact fee surcharge money from the state’s four most profitable casinos which were being held in escrow until the casinos ceased their legal challenges). But it’s only temporary.

“In 2008 we bred 414 mares; in 2010 we bred 282. That shows the decline we’ve had.

“We used to have quite a few buyers from out of state buying Illinois-bred horses to stand in the state. That has dried up; our sire program is really hurting.”

The far reaching slot-machine legislation addresses all of the problems Walker cited.

The Illinois Standardbred Breeders Fund would be a magnet attracting stallions to the state. A sum equal to 13 percent of the gross purse earned by an Illinois conceived and foaled horse would be paid to the breeder of the horse. A bonus award program would be created to reward owners of 2-year-olds that win multiple stakes races restricted to Illinois conceived and foaled contestants. To promote the sport, grants up to $7,500 per year would go to county fairs conducting pari-mutuel racing. Purses for Illinois-bred races would be increased at the existing pari-mutuel tracks and at the state and county fairs.

“Out of this bill $5 million will go to the Department of Agriculture for the county and state fairs,” emphasizes USTA President Phil Langley, director of racing and a member of the board of directors at Balmoral and Maywood.

“It’s also important to point out that despite the fact we’ve lost many drivers and many horses to the tracks that have slots and higher purses the total handle on races at our tracks remains by far the highest of any harness track in the U.S. except the Meadowlands. We’re still one of the favorites of the betting public nationwide.”

Now, let’s look beyond Standardbred racing and breeding and consider some of the other agri-business benefits that the slots legislation will provide:

  • Funds for research on equine disease;
  • Funds for student scholarships for equine disease study at the University of Illinois College of Veterinary Medicine;
  • Funds for payment of prize money and premiums and expenses incurred in connection with the International Livestock Exposition and the Mid-Continent Livestock Exposition;
  • Funds for distribution to county fairs, vocational agricultural fairs, agricultural societies and agricultural extension clubs.

The intent of the legislators is underscored on page 99 of the 321-page bill:

  • “Support and enhance Illinois’ horse racing industry, which is a significant component within the agribusiness industry
  • “Ensure that Illinois’ horse racing industry remains competitive with neighboring states;
  • “Encourage the breeding of Thoroughbred and Standardbred horses in this state;
  • “Stimulate growth within Illinois’ horse racing industry, thereby encouraging new investment and development to produce additional tax revenues and to create additional jobs.”

Somone believes “jobs” and “revenue” may be the key words in getting the message across to Governor Quinn.

“On the campaign trail the governor’s mantra was ‘jobs, jobs, jobs,’” says the Illinois Harness Horsemen’s Association executive director. “There isn’t a bill that exists today that would maintain, create and sustain jobs like this. There isn’t a bill out there today that can create the revenue that this can.”

Pick up the phone and tell that to the governor!

Editor’s Note: Horsemen are urged to call or write Governor Quinn and ask for his support of this legislation. His phone numbers and address are as follows: Springfield office (217) 782-0244; Chicago office (312) 814-2121; The Honorable Pat Quinn, Governor, State of Illinois, Office of Constituent Affairs, 401 S. Spring St., Springfield, IL 62706

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