On the heels of the defeated slots bill, the horse racing industry is once again asking for help. But this time, there was a mixed message about slots and the role they should play in saving the horse racing industry in Kentucky.
Churchill Downs is one of several horse tracks, TV ventures and gambling businesses owned by Churchill Downs, Incorporated, and compared to last year, the company is making more money. But Churchill Downs says the track is not. So, once again, it is asking you to support slot machines. For most of us, Churchill Downs is entertainment. For Churchill Downs President Bob Evans, it is a business. And right now he says it's not doing very well in Kentucky. "The tracks without slots have significantly lower purses than the tracks with slots. The horses are going there. Those without are going to suffer. Simple as that," says Evans. The problem is, it's not that simple. Many in the industry say slots will help but they say the current plan for slots is not the answer. Ed Flint, past President of Kentucky and National Horseman’s Benevolent and Protective Association says, "It has to be a tool that attracts more fans to races and attracts more owners to buy horses." Even Evans admits more slots do not equal more fans. "I'm not going to make an argument that slots bring more fans to racing,” says Evans. And that's not to say Churchill Downs Incorporated really needs them, in fact, Churchill Downs is doing quite well. Net revenue for the first quarter of 2009 is up 12% and online business generated $16.8 million in the first quarter. Gaming business generated $17.3 million in net revenue. That's up 43% compared to 2008. So, why does Churchill Downs still want slots at the race track? Evans’ answer, it's a business. A business that has stockholders and right now, the racing part of Churchill Downs isn't making enough. "The day to day racing is not producing revenue growth," says Evans. In case you wonder where night racing meets fit into this, they don't. The three night meets attracted nearly 90,000 patrons. Still, Evans says those events are not going to generate real revenue growth. When WHAS11 asked Evans if are slots the only answer, he simply said, “They're the only practical answer”. So the fight for slots wages on.
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