The Indiana Horse Racing Commission unanimously approved the transfer of permits and licenses for Indiana Grand and Hoosier Park from Caesars Entertainment to Eldorado Resorts Inc. at a Monday morning meeting — but that approval came with a number of conditions.
A report from commission staff last week highlighted a series of concerns about Eldorado's past management of racetracks it has owned, including Pompano Park, Scioto Downs, Presque Isle Downs, and Mountaineer Park. While the report noted representatives of Eldorado had presented come exciting plans and promises to the commission about its commitment to the future of Indiana racing, there were concerns about its financial liquidity and tendency to reduce staff and other costs, to the disadvantage of racing operations.
“I will tell you, I read Executive Director Pittman's report, I've read the Reed report. I'm not going to stand in front of you and offer excuses,” said Tom Reeg, chief executive officer at Eldorado. “I know the Reed report was not acceptable to me, it's not acceptable to this commission, and you've seen us make changes immediately upon the issuance of it. But also understand you can't fix those issues in a couple of months by hiring one guy. We've seen the list of conditions in Executive Director Pittman's report; we understand that the commission, if they give us the opportunity to own these tracks, they'll hold our feet to the fire. We are ready and willing to accept all of the conditions in that report.”
One of the newer company developments highlighted by Eldorado to reassure Indiana's racing industry was the hiring of Joe Morris as its senior vide president for racing operations. Morris formerly held the title of senior vice president of West Coast operations at The Stronach Group before departing in 2017. Morris admitted that when approached for the position earlier this year, he had reservations.
“Eldorado and the tracks lacked expertise in their management,” said Morris, who said he too studied the company's racing history with concern. “The managers did lack authority, and they were mired in bureaucracy. It took too long to get a decision made.
“When I was talking with Anthony [Carano, COO of Eldorado] about taking this position, I had the same three concerns [as consultant Doug Reed]. The racing people need to be making racing decisions and we've fixed that in this case. The corporate structure actually mandates that.”
Morris pointed to increases in daily handle at Scioto Downs, which was the first North American harness track to reopen after the COVID-19 shutdown. He attributed the improvements to new wagering menus, better analysts guiding horseplayers through the track's card, and an adjustment in post times to address computer wagering. Morris also said he brought in new surface experts to Scioto and would plan to do the same in Indiana.
In addition to a $20 million to $25 million commitment to an escrow account for racing, the company plans to allot $60 million for facility improvements across racing and casino operations. Morris spoke of additional barns and dormitories at Indiana Grand, as well as a need to stimulate Indiana-based ownership across all three racing breeds.
“The future of racing is very bright here,” said Morris. “There's nothing to fix; I think we can polish it up a little bit.”
Several speakers, including horsemen and commissioners admitted that they were initially skeptical of Eldorado's ability to avoid a repeat of the mistakes outlined in last week's staff report. But many said after intense discussions with Eldorado management, they have instead become hopeful the company will boost racing in the state with careful oversight from the commission.
A couple of speakers said they were not convinced.
“I'm hearing some good stuff. I'd love to believe it,” said Nat Hill, longtime horseman in the state and one of the directors at the Indiana Standardbred Association.
“No horseman's group can afford to publicly oppose the acquisition of Caesars by Eldorado. A horseman makes his living at the track, and a track has the absolute ability to refuse entries. Over the years, horsemen and horsemen's groups have learned to go with the flow. In no circumstance will they ever likely oppose a change in ownership.
“Perhaps most disturbing to me personally is the lawsuit instituted by Eldorado to kill harness racing in Florida by replacing it with jai alai. How can it be overstated that Eldorado is using every legal means possible to kill harness racing in Florida? What will their plans be in Indiana in years to come?”
Ultimately, the commission's approval included a list of conditions, including all 22 requirements suggested by commission staff. Eldorado will therefore be committed to getting NTRA Safety and Integrity Alliance for its racetracks, required to keep ownership of both Hoosier and Indiana Grand, will be required to maintain existing staffing levels. Eldorado representatives also committed to continuing a program launched by Caesars to improve gender and racial diversity in its company's management.
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