by Tom De Martini

Finding workable commonalities and cross-marketing techniques between slot players and horse racing patrons has proven problematic for racino operators who continue to seek solutions to the vexing issue.

Representatives from three Pennsylvania racinos expressed optimism concerning the marriage of racing and casino patrons at the Pennsylvania Gaming Congress’s Mid-Atlantic Racing Forum Monday in Harrisburg.

John Finamore, senior vice president of operations for Penn National Gaming Inc., said the company is not ready to give up on cross-promotion during a session focused on the relationship between racing and casino gaming.

“It’s a struggle,” Finamore said. “A lot of the racing customers want nothing to do with slots. There is cross-over at our facilities, but just how much?”

Finamore said that research done at Charles Town Races and Slots in West Virginia indicated that 40% of customers whose first preference is slot machines also wagered on racing.

Finamore said the company took heat from horsemen and shareholders alike for taking almost two years to raze and rebuild Hollywood Casino at Penn National in Grantville, Pennsylvania, rather than install temporary casino facilities.

“We took a different approach and took some hits,” he said. “The difference is we realize we’re in for the long haul and learned lessons from mistakes we made at Charles Town, from design issues to integrating racing and slots.”

Hollywood Casino at Penn National, which opened earlier this month, sports more than 100 LCD televisions showing racing on the casino floor and offers easy access from the gaming area to the paddock and track apron.

Alternative gaming has helped bolster live racing and simulcast revenues at Harrah’s Chester Casino and Racetrack in Chester, Pennsylvania, according to Shonette Harrison, vice president of casino marketing.

Harrison said the Standardbred racino realized a 30% increase on imported simulcast signals and a 20% increase in on-track handle since the casino portion of the complex opened.

“The casino aided exposure to the racing and simulcasting,” Harrison said.

Harrison noted racing patrons are able to utilize FastBet cards to wager on self-service terminals. The cards are linked to a patron’s Total Rewards slot program, allowing them to earn comps redeemable at any Harrah’s facility.

However, she also noted demographics between racing and slot machine patrons make cross-promotion somewhat problematic.

Sal Sinatra, director of racing at Philadelphia Park in Bensalem, Pennsylvania, said the relationship between slots and racing has been excellent on event days such as the Breeders’ Cup, the Kentucky Derby Presented by Yum! Brands (G1) and the Pennsylvania Derby (G2).

Sinatra said track operators should take advantage of slot-enriched purses in the Mid-Atlantic and Northeast to keep wagering money in the region.

“A lot of New York shippers are coming to Philadelphia Park as an alternative and that gets the attention of New York bettors,” Sinatra said. “Gulfstream Park is not an attractive signal to wager on, in my opinion, and players are looking to us.”

Dan Tufano, chief administrative officer of the Pennsylvania State Horse Racing Commission, said it is too early to report on whether slots are a panacea to the state’s racing industry.

“We have to nurture and sustain this industry,” Tufano said. “If history is any indication, horse racing will derive a great benefit from slots.”

Tom De Martini is a New Jersey-based Thoroughbred Times correspondent