by DAVE PINK
Of the 15 harness racing tracks now operating in the province, Brian Tropea of the Ontario Harness Horse Association says he doesn’t expect any of them will survive a future without slot machines.
“I would be surprised if any of them make it through,” Tropea said Thursday after Ontario Agriculture Minister Ted McMeekin announced the provincial government will spend up to $50 million over the next three years to help ease the horse-racing industry into a future without slots.
As well, McMeekin announced that a panel of three former Ontario cabinet ministers — Elmer Buchanan, John Snobelen and John Wilkinson — will work with representatives from the racing industry to map out its future and determine where the money will be spent.
“I don’t think that will be enough to sustain the industry,” said Tropea. “Obviously, we will have to meet with this panel and express our very serious concerns.”
The panel is to report its findings by the end of the summer.
Ontario Lottery and Gaming (OLG) announced in March it would end its 14-year partnership with the province’s horse tracks and relocate its slot machines into urban centres — a move that could potentially put 60,000 full-and part-time horse industry jobs in jeopardy.
At the time, Sue Leslie, president of the Toronto-based Ontario Horse Racing Industry Association, said the decision made no economic sense, and also predicted the possible end of horse racing in Ontario.
Under an arrangement set in the late 1998, when the slot machines started moving into the tracks, a deal was struck that allowed the province to receive 75 per cent of the profits — or about $1 billion a year — while 20 per cent went to the track and the remaining five per cent went to the host municipality.
OLG has since paid out $3.7 billion to the racetracks and the horse industry. The racing industry is expected to receive a payment of $340 million from OLG this year.
Leslie said that in 2010 Ontario’s horse tracks paid $382 million in taxes to the federal government, $261 million to the province and $138 million to the municipalities. “On the basis of value for the money, they won’t find a better deal.”
Meanwhile, it was announced this week that Fort Erie's 115-year-old thoroughbred racetrack will close Dec. 31. The track's board voted Tuesday night to close the facility, concluding it can’t go on after the government pulled the plug on the OLG slots at the track in April.
"It should come as no surprise to anyone," Jim Thibert was quoted in a St. Catharines Standard news story. Thibert is Fort Erie's economic development and tourism corporation general manager, and chief executive of the racing consortium board.
The slots provided $6 million in annual funding through a revenue sharing agreement with the province
McMeekin said in a news release Thursday that the provincial government wants to help direct the racing industry toward a sustainable, self-sufficient future.
He said the panel will work with the industry to help develop that vision for the future, would provide recommendations to the government on how to allocate transition funding, and would advise on the modernization of the industry.
“It is important for the horse racing industry to develop a new vision for its future. I look forward to hearing the panel’s recommendations on how we can provide transitional support for the industry,” McMeekin said in the release.
“Our government understands that ending the Slots-at-Racetracks program and responding to market demands poses a challenge for everyone involved in the horse racing industry. That’s why we are committed to helping the industry move toward greater self-sufficiency without government support,” said Ontario Finance Minister Dwight Duncan, also in a news release.
As well, it was announced that Employment Ontario will help displaced horse industry find jobs and training.
In 2011, the horse racing industry received $415 million — $345 million through the Slots-At-Racetrack-Program and the remainder from the pari-mutuel tax, the Ontario Ministry of Agriculture, Food and Rural Affairs announced. In addition to revenue from OLG slots, since 1996, the province has allowed the horse racing industry to keep approximately $70 million generated annually through a provincial government arrangement involving the pari-mutuel tax on wagering.
Members of the panel represent each of Ontario’s three major political parties.
Buchanan was the minister of agriculture in Bob Rae’s NDP government from 1990 to 1995 and represented the riding of Hastings- Peterborough. He is currently a vice-chair of the Ontario Farm Products Marketing Commission and raises alpacas and angora goats on a farm near Havelock.
John Snobelen is an internationally renowned horseman and was inducted into the National Reining Horse Association Hall of Fame in 1994. He was the minister of education and minister of natural resources in the Mike Harris Progressive Conservative government and was the MPP from Mississauga North and later Mississauga West from 1995 to 2003. Snobelen is president of Beyond Consensus Inc., a firm specializing in conflict resolution.
John Wilkinson was at various times the environment minister, the revenue minister and the minister of research and innovation in the Dalton McGuinty Liberal government, and the MPP from Perth County He’s a financial planner and is president and chief operating officer of Wilkinson Insight Incorporated of Stratford. BF
See also
Horse racing study panel welcomed says OHRIA president
Comments
Everyone on the receiving end of $415 million of public money annually, whether received directly, or through legislative entitlement, should always be ready to live without it. Admittedly it's going to be tough to get by on $16.66 million each year instead of almost $400 million more than that, but why should the race horse industry be treated any differently than any other facet of what is effectively an entertainment industry?
Stephen Thompson, Clinton ON
As a property owner in Fort Erie, born and raised, I am astounded by the gall of Jim Thibert. Even if you can get past the conflict of him being both with the Development Corporation and being the head of Live Racing .. Wake up people! The Province funds his consortium and the Race Track $5 million a year directly and the slot money that the papers say the slots makes the town, goes back to keep the the track open. Look it up, the handle at the slots in FE when it started was over $120 million, now it is a bit over $25 million. OLG's webside will not even give you any year by year info.
Ken Harber
Fort Erie
Comment modified by Editor
It is time that the horse racing industry take a realistic look at their future,instead of complaining on a regular basis they should put together a plan to become self sustaining.Money from the slots would be more wisely spent on health care and education.
Seriously? Yes, waste it on hospitals that overcharge people. Waste it on teachers who can not get fired. Raise taxes if you want both of these frills.
Bet you wouldn,t be taking about the doctors and such if you were dying or in pain siting in the office being looked after. The CEO,s and drug companies are screwing the working people out of their money so they can live a great life doing nothing. Teachers are another group of people that are raking us over the coals so they too can have a big paycheck and pension look at what the teachers make down south and compare, they make less than half what they do up hear.
Yep. Just another greedy move from the Ontario government. If this is to happen they need to make appropriate arrangements for those horses!!!! Slaughter house is NOT an option. These government decisions are made on cash in Pocket only. 20%???!!! Really. You couldn't give that up!!!! Maybe hydro one could offer some subsidizing. God knows we've been paying off their debts. I'm sick of this wasteful mind set. End result of this the horse will pay. Bolted through the head dropped harvest and sen out for meat!!!! Good choice people. Very proud of you all.
ontario race tracks are a form of gambling and so are the slots . that being said why cant the race tracks apply for a gaming licence and put in there own slot machines .with the 50 million that is being directed there way .that would sure put them on solid ground . I would hope that the answer to my question is not the government holds exclusive rights to this licence .if so we the people need to send a clear message to our government to stop the bullshit and open the doors to free enterprise there greed is crippling our country .
What a joke,these fools are.they take the horsemens money,then pay a third party to do there jobs.suspend the best drivers,play favorites.spend so much they have to fine the participants 99% more than before.all for what themselves its not about u jerks its about the horsemen and horses.the downfall of harness racing is a lot in part to them
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