New Hampshire Dog Tracks Fight Competition

14 March 2005

NEW HAMPSHIRE – As reported by the Concord Monitor: "When managers of the Belmont greyhound park started helping people bet overseas for hefty commissions, they were looking for an edge in an industry that has been losing money for more than 15 years. Bets have dwindled enough at New Hampshire's tracks to reduce the state's take by 16 percent in 1997 from the previous year and by 7.25 percent last year.

"That side venture created by the Belmont crew, called International Players Association, is now being investigated by federal and state authorities for alleged illegal gambling activity. But regardless of where that inquiry goes, there remains the debate track owners, gambling critics and state lawmakers have waged for more than a decade: How can the state's five racetracks fend off mounting competition from New England casinos, Internet betting and tracks elsewhere that are permitted to offer video gambling and slot machines?

"Track owners and state racing officials say the solutions tried so far - paying rebates to big-time bettors, adding televised races to the live events and allowing bets by phone -aren't enough. They maintain that racing won't survive here without slot machines. Without them, they warn, tracks won't draw today's younger bettors, and without bettors, tracks won't draw good horses.

"When the Belmont track opened in 1975, under previous owners, 96,000 people placed about $3.3 million in bets. That year, it sent $211,000 to the state in taxes. Seabrook saw 1 million people place $85.4 million in bets that year, generating $6.7 million in revenue for the state.

"…Last year, the Pari-Mutuel Commission reported that 90 percent of the money made from races in New Hampshire came from simulcast events while 10 percent came from live racing. Belmont has lost about 10 of its simulcast contracts as a result of the criminal investigation against its managers, Richard Hart and Jonathan Broome. Newman said that contributed to track's $2.1 million loss in the last year, but Belmont's simulcast events continue to be the track's main source of income. In fact, the track comes close to losing money on its required live racing, he said, because it's expensive to keep the dogs.

"…State lawmakers have tried to help. They have lowered taxes on the state's tracks and contributed to the money offered to winning horse owners in exchange for the tracks selling lottery tickets. They've also made bigger changes.

"…None of these changes, however, have stopped track owners and the state Pari-Mutuel Commission from continuing to lobby lawmakers for slot machines at their tracks. In its 2004 annual report, the state Pari-Mutuel Commission renewed its request - rather pointedly. "(Slots) will provide stability to an industry that has been a part of New Hampshire since 1933 and is responsible for employing hundreds of New Hampshire people," wrote commission Chairman Timothy Connors in his report to Benson. "The racetracks by law . . . are required to employ 85 percent residents from the state." The state's track owners and managers keep close track of their competitors in neighboring states and know which legislatures have recently granted permission for slots machines. A track in Bangor, Maine, is expected to add slot machines by year's end. A track in New York that is close to the Vermont border has it now. And Pennsylvania is close, they said. Lawmakers have debated adding slot machines and video gambling but consistently rejected it. Critics have warned that it would increase crime and societal ills. Others have argued against it as an inappropriate venture for the state. Gov. John Lynch has said that he'd like to see more information before he gives his opinion. "We are trying to make racing successful again," said Callaghan of the Rockingham horse track. "We helped promote the first (expanded gambling) legislation back in 1994 because we saw what was coming. And I think you can look at what has happened since in states like Connecticut that have done it. There is a huge horse breeding business there that never existed versus us who are handling half the money we used to handle."