Michigan's horse racing industry generated more than $8.1 million in tax revenue for its equine development fund in 2021, but there isn't much to do with that windfall.
Only one pari-mutuel racetrack remains in the Great Lakes State: Standardbred venue Northville Downs, which runs a fairly limited meet. Michigan hasn't had a Thoroughbred track since Detroit-area Hazel Park was abruptly closed and sold shortly before ship-in day for the 2018 season.
Both breeds have seen multiple venues shuttered across the state over the past 25 years, as surrounding states outpaced Michigan with expanded gaming at racetracks. On the breeding side, the Michigan-bred foal crop of 2020 consisted of just 13 horses.
Though momentum has not been on the side of the state's racing industry for decades, a set of bills currently working through the state legislature aims to reverse that trend, potentially granting racetracks the ability to expand gaming, and allowing a greater range for simulcast wagering.
Senate Bills 396, 397, 398, and 399, each aiming to expand and regulate gaming tied to racing, were overwhelmingly approved in the State Senate in November 2021. They currently sit in the House Committee on Regulatory Reform, where they have remained since Nov. 2.
Bills 396 and 398, which are tie-barred together, would introduce historical horse racing at licensed racetracks and permit licensed casinos to conduct on-site simulcast wagering. SB 397 would permit video lottery terminals at the state's racetracks, while SB 399 amends sentencing guidelines to the state's existing Lottery Act for manipulating the outcomes of VLTs.
Hanging in the balance is the future of Sports Creek Raceway, a shuttered harness track near Flint that was purchased in 2018 by AmRace & Sports LLC with plans to return Thoroughbred racing to the state – but only if a form of expanded gaming was approved. Minor construction has occurred on the property since the purchase, but the state's remaining horsemen realize how close the window for a comeback is to closing.
“This is our last chance,” said breeder Steve Prain, a Michigan Thoroughbred Owners and Breeders Association board member. “If this doesn't happen, I just don't think there's any more chances. I just don't feel the inertia that we had in the past when we were running and had racetracks, and didn't want to lose them. I think a lot of people have found new homes, and they're somewhat content.”
All four bills were co-sponsored by Sen. Curtis Hertel, a Democrat representing the Lansing area. The two sets of bills – the pair for HHR and the pair for VLTs – might lead to a similar destination if passed, but Hertel said it was important to offer options in order to get to said destination.
“I'm somewhat agnostic on the path,” he said. “I just want a tool that's available. I firmly believe that in order to have horse racing in Michigan, we need at least two healthy tracks. I don't think there are many states where one works. I try to remind people that horse racing creates more jobs through every dollar bet than any other form of gaming.”
Michigan is among the country's most prolific gambling destinations, with 24 tribal casinos, three non-tribal casinos in Detroit, and one harness track. However, horse racing has been uniquely handcuffed from expansion due to a 2004 ballot initiative that required tracks to pass both local and statewide votes to implement casino gaming. The proposal also exempted the tribal and Detroit casinos from those restrictions, allowing them to expand freely without a vote.
In 2013, then-Gov. Rick Snyder pocket vetoed an HHR bill on the grounds that it could not overrule the ballot measure requiring the two votes. In 2019, another HHR bill passed the Senate, but didn't make it out of the House after current Gov. Gretchen Whitmer implied she wouldn't sign it into law, PlayMichigan.com reports.
So, what makes this time different?
Rep. Julie Alexander, a Republican representing the Jackson area, said a lot has changed since 2019.
Advance deposit wagering was signed into law by Whitmer in December 2019, service became available in June 2020, and Michigan horseplayers wagered $35.8 million in its first partial year in operation. Sports betting and online casino gaming, operated through the state's casinos, opened for business in January 2021 and handled nearly $5 billion.
The $8.1 million in tax revenue put into Michigan's Agriculture Equine Development Fund in 2021, money used to promote and regulate horse racing among other equine industries, was allocated largely from those new sources, up from $2 million in 2020.
Additionally, a pilot program was launched to introduce VLTs in the state's “Millionaire Party” charitable gaming program, which did not face legal challenges or ballot initiatives.
“We now have, through legislation that was passed last term, internet gaming, sports gaming,” Alexander said. “We have so many different additional pieces that are now at the will of the legislation and Governor to put in place. Now, it's time to do the same for the horse racing industry. For what the casinos received in the last package, now is the time to give equal and fair opportunity to another industry.”
Alexander said the bills would likely have the votes to make it through the State House, and conversations have been promising with the governor's office, should it reach her desk.
For that to happen, the bills will need to advance out of the House Committee on Regulatory Reform, which PlayMichigan.Com reports declined to advance them following a December hearing.
The committee is chaired by Rep. Roger Hauck, a Republican representing the Mount Pleasant area which is home to the Soaring Eagle Casino, Michigan's largest tribal gaming center, operated by the Saginaw Chippewa Indian Tribe. The tribe has been a longtime opponent of horse racing's expansion in the state, and Tribal Chief Tim Davis spoke out against the bills in December.
Despite a recent bipartisan, bicameral push to advance the bills, little has changed since that hearing.
“We heard testimony on this package of bills in early December, but have no plans to move it quickly because Rep. Hauck feels the legislation needs more work,” said Alex Porrett, Hauck's legislative director.
It's a clear and present setback, but Hertel remained hopeful that an agreement could be reached to get the bills out of committee and beyond.
“This is a complicated time in Michigan, where we still haven't spent a lot of [American Rescue Plan Act of 2021] dollars, and budgets are still being negotiated,” he said. “There haven't been a lot of policy bills that have gone through this session. I think last year was one of the most unproductive years in Michigan history. I wouldn't take the slowness of it being anything other than conversations happening, but just a little slow. I think we're heading in the right direction at this point.”
The post ‘This Is Our Last Chance’: Package Of Bills Aims To Revive Michigan’s Thoroughbred Industry appeared first on Horse Racing News | Paulick Report.
