Harness Racetracks in to become Racinos

Posted on Tuesday, March 7th, 2006

Bay State racetrack owners would walk away with hundreds of millions of dollars in added profits under a controversial proposal for Vegas-style gambling now steadily gaining support on Beacon Hill.

Lawmakers are preparing to hand over a gold mine in the form of gambling licenses to dog and horse track owners at prices that critics say amount to bargain basement deals.

Track owners could acquire a license to operate 2,000 slot machines for about $25 million under a state Senate bill that passed last year.

The return on investment: A staggering $200 million in estimated annual revenue for each track.

The proposed $25 million buy-in is but a fraction of the hundreds of millions of dollars that huge casino operators have shelled out to operate similar slot parlors in Pennsylvania, a new study shows.

The debate comes as state lawmakers prepare to vote later this month on the slot proposal, which is seen as having the best chance in years of passing. Track owners in Revere, East Boston, Taunton and Plainville - as well as their employees - are lobbying fiercely, arguing their struggling racing venues can’t survive without slot machines.

‘‘You spend a few million on lobbying and political contributions, and you get a $300 million to $400 million license,” said Jeff Hooke, a Maryland investment banker and activist who says all gaming licenses should be auctioned to the highest bidders.

But track owners and a key State House player who crafted the Senate bill contend such criticism is off base.

The tracks have committed to making big upgrades to their properties, noted state Sen. Michael Morrissey, (D-Quincy). Gary Piontkowski, head of Plainridge Racecourse near the Rhode Island border, estimates he and his partners will spend nearly $200 million in capital improvements.

And the tracks will have to turn over as much as 60 percent of their slot machine largesse to the state - one of the highest such tax rates in the country.

Bay State harness racetracks like Plainridge to become racinos for $25M license fees - Las Vegas style slot machines.

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"Harness Racetracks in to become Racinos" was posted on Tuesday, March 7th, 2006 at 7:58 am and is filed under Canada Horse Racing, Horse Racing Industry, Race Tracks News, USA Horse Racing. You can follow any responses to this entry through the RSS 2.0 feed. Leave a response, or trackback from your own site.