It is no secret that I hold the likes of Ray Paulick in contempt. Because they are seen as respectable journalists, and because they are often critical of the racing industry, Paulick, Joe Drape of The NY Times, and others have tremendous sway with the general public. These are, the thinking goes, racing’s fair and balanced arbiters. But let’s be crystal clear here: These men are horseracing fans first, and always, and do not want to see their precious pastime disappear. Thus, they will only take their criticism so far and are not above playing fast and loose with the data (like kills) – and with their words.
Last week, Paulick published an article on the tenuous state of California racing. Specifically, he says, “without ‘historical horse racing’ revenue, California horse racing is history.” But what he refuses to say, and what everyone in racing knows, is that those “historical horse racing” (HHR) machines are but garden-variety slot machines, and slot machines at racetracks are the delivery system of choice for taxpayer subsidies to the industry. So, I am recreating Paulick’s piece below – but I have substituted all mentions and deceitful descriptions of these HHR machines with “taxpayer subsides.”
(I am re-posting almost the entire article, mainly for the discussion on the utter failure of the North’s attempt to save racing there in the wake of Golden Gate Fields closing.)
“Deep within a recent NY Times article on the sad plight of horse racing in the state of California was a beacon of hope flashed by Dr. Greg Ferraro, the chairman of the California Horse Racing Board. Ferraro told author Joe Drape that he expected a request from racetracks to install [taxpayer subsidies] and that the regulatory board was likely to approve it.
“Approval of [taxpayer subsidies] likely will hinge on whether the CHRB – with guidance from legal counsel – considers the [taxpayer subsidies] to be an extension of pari-mutuel betting. That was the case when this type of gambling device was created for Oaklawn Park nearly 25 years ago and pulled the Arkansas track out of a financial crisis. Same goes for Kentucky, which faced court challenges after [taxpayer subsidies] were permitted at state racetracks. Kentucky legislators eventually codified [taxpayer subsidies], erasing any questions about its legality.
“California horse racing needs a lifeline [taxpayer subsidies]. It has been sinking steadily for more than 20 years after two of the state’s five major racetracks – Bay Meadows near San Francisco and Hollywood Park near Los Angeles – were acquired by a real estate development company. Bay Meadows ran its last race in 2008 and is now a mixed-use development. Hollywood Park closed in 2013 and is the site of an NFL football stadium.
“Earlier this year, The Stronach Group shuttered Northern California’s other major track, Golden Gate Fields, and efforts to continue racing in the region have been anything but successful. A new entity, Golden State Racing, projected it could pick up where Golden Gate left off by shifting racing dates to the Alameda County Fair track in Pleasanton….
“Through the first 11 days of an Oct-Dec meet, average daily handle for Golden State Racing has declined by 65 percent from the wagering numbers generated one year ago at Golden Gate Fields…. Golden State Racing officials had projected only a 10 percent decline, which most observers felt was unrealistic for a variety of reasons: location, lack of a turf course, higher takeout, an inferior product, and absence of the synergy Golden Gate enjoyed with The Stronach Group’s Southern California racetrack, Santa Anita.
“As a result of the wagering shortfall on live wagering, Golden State has cut purses, effective Nov. 22, and will likely have to do so again in early December. Golden State is expected to ask for a longer, winter-spring meet to run from late December until June 2025, but the request is not on the agenda for the CHRB’s next meeting Nov. 21. Larry Swartzlander, executive director of Golden State Racing and the California Authority of Racing Fairs, said the dates application will be taken up at the board’s Dec. 19 meeting – just days before that meet would typically begin. At this rate, it’s hard to project a sustainable path forward for Golden State Racing.
“If Golden State Racing does not succeed and Northern California racing is down to the summer county fair circuit, simulcasting dollars bet in the north when there is no racing there would then shift to purse accounts in the south. That would help stop the bleeding at Southern California’s two major Thoroughbred tracks, Santa Anita and Del Mar, but it would not be enough to put them on even footing with states like Kentucky, Arkansas, and New York that are offering higher purses fueled by [taxpayer subsidies].
“For example, Saturday’s Desi Arnaz Stakes at Del Mar for 2-year-old fillies, offers a purse of $100,000. A maiden race on the same program has a $54,000 purse. Last Saturday, Churchill Downs offered a pair of $300,000 stakes and a maiden special weight race carried a $120,000 purse for Kentucky-breds. Oaklawn will be carding $110,000 maiden races when its meet opens next month, and three of the Arkansas track’s Kentucky Derby prep races have purses of $1 million or higher.
“The difference? California is one of the few remaining states that depends on wagering on live racing and simulcasting for the entirety of its purse money [imagine that?]. Arkansas got the [taxpayer subsidies] ball rolling and now benefits from that and other forms of [taxpayer subsidies]. Kentucky racing has become a juggernaut on the strength of the [taxpayer subsidies] scattered throughout the state at racetracks and satellite gaming facilities. Purses at New York Racing Association tracks receive [taxpayer subsidies] from the casino at Aqueduct.
“There are obvious complications if the CHRB gives approval to [taxpayer subsidies] at California tracks and satellite wagering facilities. Native American tribes have outsized influence in the state capitol in Sacramento and enjoy a monopoly on casino gambling within the state. The tribes could file a lawsuit challenging the legality of HHR machines and seek an injunction to prevent them from being installed. Or they could, as tribes in Minnesota did earlier this year, use their sway over the legislature to pass a law expressly prohibiting the machines at racetracks. The racing industry doesn’t appear to have any leverage over the tribes.
“What other options are there? The subject of [taxpayer subsidies] in the state has been quietly discussed by industry executives for years, and the sport’s economics have only worsened as paralysis by analysis has taken hold. It’s ‘go’ time to see if this can be done. If not, horse racing in California is history.”
(Horseracing Wrongs will, of course, be contacting the tribes to see how we can help fight this potential money grab by the cruel, deadly California horseracing industry.)
I’ve seen more articles about “horse welfare” within the last two years. Any kind of event that uses horses puts the horse at risk of injuries and suffering. I’m glad that more people have become aware of the dark side of the equine industry, because there is always a dark side, and that it’s being made more known to the public. There are always going to be people who are heartless in their pursuit of fame and fortune. These cold and calculating die-hard horse abusers should be punished, NOT rewarded with corporate welfare.
Patrick, I thought for a while that Mr. Paulick respected the integrities of the Fifth Estate. However, after sending e-mails to Mr. Paulick to his personal e-mail account, I never received the courtesy of a single reply. The first attempt was to rouse Mr. Paulilck into protecting horses from criminal trainers, 2nd one concerned the glorification of horse executioner Bob Baffert, 3rd one compared the evils of medicines and leg paints that are lethal, but are used on horses without federal or state restraints, another one concerned the indifference of the Christian organization Race Track Chaplaincy of America being inactive when horses are dying and riders might actually be needing the comfort of prayers when falls happen.
The chaplains do not ride the ambulances to give the riders an opportunity to send last messages to relatives should the rider be dying! And, as far as saying prayers for the horses in their final moments – St. Francis, St Anthony actually preached sermons to the animals. Moreover every species of animals has an assigned saint to protect animals! But to the track chaplains the horses are nothing but commodities. By God’s Scriptural Laws horses and ALL ANIMALS are entitled to a day of rest. They are also entitled to loving care and attention!
Mr. Paulick obviously is not a horse person. He belongs to the mongrel tribes of humanity that believe horses are a commodity – use them, abuse them, discard them. If Clayton Moore were alive maybe Americans would pay attention to the plight of race horses and stop the carnage and the immoralities of making heroes out of horse killers!
Eliminate all subsidies of all kinds! The tribes here in Oregon as well as the state lottery have successfully overtaken horse racing as a gamboling industry. The tribes here fought against the HHR installation at Grant`s Pass through both the courts & legislature successfully. Northern California will indeed have only county fair type summer meets if they`re lucky.
California horse racing was, at one time, the creme de la creme of thoroughbred racing, it’s product only rivaled by it’s east coast counterpart, Saratoga.
To quote Inspector Clouseau from the Pink Panther movies, after accidentally destroying a “Priceless Steinway”,
“Not any more.”
But Ray Paulick is 100% correct when he states that without the HHR’s or some form of alternate income subsidies, that “horse racing in California is history.”
Too bad.
Welcome to America, Ray. I remember having to call in sometimes literally DAYS in advance to get a table on the big racing days at Santa Anita, Del Mar or Hollywood Park, when, just like every other industry or business in America, you actually had to generate your own income to sustain your product. Not beg the government for handouts. They’re (the racing industry is) drowning, and clutching at straws in a last gasp to keep their business afloat.
It’s failing Ray, and the reason it’s failing is simple. Interest in betting on horse racing is at an all-time low, and is showing no signs of improving. Expect this trend to continue. I see the Stronach group looking to dump their Santa Anita property within a year or two. The land it sits on is worth a king’s ransom, and certainly lots more than its generating through it’s racing program. Sooner or later, Stronach’s accounting team is going to ask. “what the hell are we doing here, we’re bleeding money!”
It’s only a matter of time.
-Joe
The worst cheating trainer who has gotten away with so much corruption and obviously in cahoots with the corrupt California Horse Racing Board will have to play nice in Kentucky to get those higher purses, won’t he?!