Racetracks unite in push for slot machines

Posted: 1/10/08

Racetracks unite in push for slot machines

By John Hall

Texas Baptist Communications

AUSTIN—Pari-mutuel racetrack owners have come together to make another push for being able to install slot machines at their sites.

Texans for Economic Development, which represents track owners, breeders and others in the racing industry has $1 million set aside for campaign contributions in the 2008 legislative races. Another $2 million is set aside for lobbying effort.

Track owners have said that the inclusion of slot machines will produce the revenue necessary for pari-mutuel racetracks to survive. Presently 14 racetracks have been licensed, but only eight of them are operational. The Corpus Christi Greyhound Racetrack recently decided to shut down for at least a year.

Rob Kohler, a consultant on gambling issues for the Baptist General Convention of Texas Christian Life Commission, said if racetracks need to create revenue with slot machines, they are working on a flawed business model.

Racetracks need to focus on improving their product, not expanding gambling options to bring in more money, he said. If slot machines were installed, revenue would increase, Kohler believes, but it would be people coming to the casino, not bet on horses.

“They advertise it as this is all about horse racing, but it’s really not,” Kohler said.

Kohler noted that the inclusion of slot machines—called video lottery terminals by gambling proponents—at pari-mutuel racetracks would put money in track owners’ pockets but pull it out of the local economy. Ninety percent of people who spend money at casinos live within 30 miles of the facility.

“There’s a set amount of money out there,” Kohler said. “When you have something like this out there, which is basically like a vacuum cleaner for local dollars, it’s going to hurt you in the pocketbook.”