NEWS
Miami-Dade vote paves way for slot machines at Calder
Posted: Wednesday, January 30, 2008 11:13 AM
by Jeff Lowe
Calder Race Course will be allowed to install up to 2,000 slot machines after voters in Miami-Dade County approved a referendum by a wide margin on Tuesday.
Voters gave their approval by 63%. They rejected a similar measure by 52% in 2005, the same year voters said yes to slot machines in nearby Broward County, where Gulfstream Park is located.
The Miami-Dade vote also will allow slot machines at Flagler Dog Track and Miami Jai-Lai. Gulfstream, Isle of Capri Harness Track, and Mardi Gras Greyhound Track all have slot machines in Broward County.
“To be in this marketplace and not have similar tools to the competitors put us at a big disadvantage this past year,” Calder President Ken Dunn said. “We have an opportunity now to offer another form of gaming, another form of entertainment, and it puts us in a much more competitive position in this environment and gives us an opportunity to increase the effectiveness and the quality of the racing program.”
Calder is the second facility owned by Churchill Downs Inc. to receive approval for slots, joining Fair Grounds, which began operating 245 machines in September. Churchill stock opened at $49.74 on Wednesday, up from a closing price of $45.97 on Tuesday.
"Thoroughbred racetracks without slot-machine gaming are at a significant disadvantage when it comes to providing the competitive purse programs that attract the number of horses required to conduct high-quality racing," said Bob Evans, the chief executive officer of Churchill Downs Inc. "We believe the new revenues generated through slot-machine gaming at Calder will help fund important state programs, put more people to work, and benefit horsemen and horse breeders through higher purses."
Dunn said plans for a slots facility probably would be announced in late March.
“We’ve got a lot of work to do,” Dunn said. “This is something that will certainly be done in conjunction with the corporate offices. Churchill has been working on plans, and I can tell you that we will build a very competitive racino in this marketplace.”
The state will impose a 50% tax on slot machine revenue at Calder, the same rate as Gulfstream.
“We have had an advantage to a certain extent of seeing three facilities open and operating, and they are all distinctly different from one another,” Dunn said. “While I would have preferred to have won back in 2005, trying to look at things, we might have had the best of both worlds. It took us a little bit longer, but we did have an opportunity to see the exact results that have occurred in Broward County and to take a look at what each company built and how they operate.”
Jeff Lowe is a Thoroughbred Times staff writer
