NEWS
Track owner Penn National sees little pari-mutuel future
Posted: Thursday, February 03, 2011 5:57 PM
PETER CARLINO
Courtesy of Penn National
by Frank Angst
While the company’s name still references a racetrack, Penn National Gaming Chairman Peter Carlino made it clear on Thursday that he believes pari-mutuel wagering has dried up, even at tracks with added gaming.
In a conference call with investors and analysts, Carlino said his company no longer will argue that adding slot machines at tracks is a way to improve pari-mutuel handle. He said that when the company lobbies for slots at tracks, it will move to new arguments—including the ability of racetrack slots to promote agri-business—because he believes increased purses do not improve the quality of racing or increase pari-mutuel handle.
“There aren’t sufficient numbers of racing customers in the world anymore because they died,” Carlino said.
Carlino said everyone realizes Penn National’s approach has been to buy tracks that have added gaming or have a chance to add gaming. In Maryland, where Penn National owns a 49% interest in Laurel Park and Pimlico Race Course, a percentage of gaming revenues supports purses. Carlino expressed frustration that tracks currently are left out of that equation.
“A huge mistake in Maryland—that’s never happened anywhere else anywhere in the country before—was to allocate slots proceeds to purses,” Carlino said. “I’m glad that horses are going to be eating well, but they’re not going to be running well if there’s no racetracks where they can run. The legislature completely ignored the people who have the real investment in the state, the racetracks.”
Carlino said Pennsylvania’s model for racinos, which he said included large licensing fees upfront and low taxes going forward, is the best. He encouraged Ohio Gov. John Kasich to consider a similar model.
“There is reasonable hope, if not an expectation, that [Governor Kasich] may recognize the advantage of protecting the racing industry in Ohio--which has a long history and needs help--and using that opportunity--since it’s already keyed up and ready to go--to generate revenue perhaps with license fees up front and a reasonable tax rate,” Carlino said.
Carlino said his company has begun to lobby in Texas with the hope that legislators will consider taking action this year. Penn National owns a half-interest in Sam Houston Race Park.
In Ohio, where Penn National owns Beulah Park near Columbus, Carlino speculated the state could allow racing licenses to be moved to areas that will not compete with the state’s planned free-standing casinos in Cleveland, Columbus, Cincinnati, and Toledo. Carlino said Penn National is emphasizing that with racetrack slots sustaining racing, states pick up important, environmentally friendly agri-business.
Penn National tracks without added gaming will face cutbacks.
“Operating these tracks at a loss is not in our long-term plan,” Carlino said. “We will ratchet down costs in Texas. We will ratchet down costs in Maryland. We’ll do whatever it takes. We’ll be tough and brutal about that because we have to. We’re not running a public charity.”
Frank Angst is senior writer for Thoroughbred Times
READER COMMENTS
|
|
|
Posted by: KATHLEEN MCDEVITT, LEE'S SUMMIT, MO on January 25, 2012 at 02:42 PM
THE PEOPLE THAT HAVE POSTED NEGATIVE WORDING ABOUT PETER CARLINO HAVE NO IDEA WHO THIS MAN REALLY IS, AND WHAT HE STANDS FOR. I WORKED FOR PETER, AND AM NOW RELATED TO HIM. HE IS AN HONEST, WARM, CARING, AND EXTREMELY GIVING MAN. GROW UP AND NOTICE THE GOOD IN PEOPLE-JUST BECAUSE HE HAS MORE THEN YOU HAVE, DOESN'T MAKE HIM A BAD PERSON. HE HAS WORKED HARD HIS WHOLE LIFE FOR WHAT HE HAS DEVELOPED. TRY IT SOMETIME...
Report Abuse 
|
|
|
|
|
|
Posted by: Kate, Harpers Ferry, WV on February 15, 2011 at 01:14 AM
What kind of name is Carlion anyway? It sounds Fascist to me, from looking at his picture you can tell he is a cold bastard.
Report Abuse
|
|
|
|
|
|
Posted by: Steve, Tampa, FL on February 14, 2011 at 01:05 PM
Penn Gaming is another example of "bean counters" hi-jacking pari-mutuel wagering in america - All the jobs directly and indirectly tied to all raciing make a huge revenue paymentto their respective states.Penn
Gaming and other so called racing entepruners would't know a hoof pick
if they sat on one. Walk a mile in the shoes of those who really "Put
On the Show" and gain some respect for the industry you have chosen to
Abondoned.
Report Abuse
|
|
|
|
|
|
Posted by: Sandy, Charles Town, WV on February 13, 2011 at 11:27 AM
Charles Town is a perfect example of bait and switch. Often called Penn's "cash cow" rumor has it there will be a cut from 210 live racing days to 180. This from the people that said they were a horseracing family and wouldn't change anything, esp. the wonderful paddock which is now housing slots. They speak out of the sides of their mouths!
Report Abuse
|
|
|
|
|
|
Posted by: Jeanne, Laurel, MD on February 07, 2011 at 04:40 PM
Penn National Gaming issued a report a few months ago saying that it earns 8% more money from slots on days with live racing than on days without live racing. Is Carlino now saying that information was wrong?
Report Abuse
|
|
|
|
|
|
