NEWS
Study shows racing boosts slots at Prairie Meadows
Posted: Thursday, August 28, 2008 5:17 PM
by Todd Lieber
A study by Lexington-based consultant Richard Thalheimer estimates that horse racing at Prairie Meadows Racetrack contributes approximately $25-million annually to the facility’s slot machine revenue.
The study was commissioned by the Iowa Horsemen’s Benevolent and Protective Association in response to a report Prairie Meadows issued last winter claiming that it had lost $29-million on racing in 2006.
The Thalheimer report is part of a broader study of the economic impact of the horse racing and breeding industry in Iowa on the state’s economy, the remainder of which has not yet been completed.
Thalheimer estimated that live racing generates $7-million in casino revenue and simulcasting patrons contribute $18-million. He suggested that the presence of slot machines and table games at Prairie Meadows has accounted for a 33% reduction in wagering on racing.
Thalheimer completed a similar study of the impact of racing on casino gaming at Mountaineer Park, concluding that live racing there increased slot machine revenue by 22%. He said he used the same methods of research and analysis at Prairie Meadows.
The Racing Association of Central Iowa, Prairie Meadows’s governing board, received the Thalheimer report on August 27, and some members expressed skepticism about the figures.
“It’s [the racing contribution] 15% [of slot machine revenue],” board member Tom Whitney said. “That seems astronomically high.”
Whitney also said that he believes racing can be the unique attraction that distinguishes Prairie Meadows from other central Iowa casinos as a regional destination.
“It’s the Prairie Meadows plus,” he said.
Todd Lieber is an Iowa-based Thoroughbred Times correspondent
