Tag Archives: racetracks

Racetracks Struggling to Survive – Part 2


Article started from previous post Racetracks Struggling to Survive – Part 1
 

Another solution that racetrack owners are contemplating is to bring slots onto their gaming floors. Slots offer a lot of power to any business they are involved in.
 

Just look at how well they do for casinos. Slots are by far the number one money- generating games in casinos. They bring in consistent dollars all day long.
 

This kind of power is something that racetracks would love to harness. The hybrid gambling location that combines slots and racing is called the "racino." The fact is that if racetracks could get slots added to their businesses, they could relatively easily raise the cash needed to turn themselves around.
 

This is something that most racetracks are thinking about. This is coming up against some opposition though. The bottom line is that other casinos are not happy about their own businesses being threatened by another location having access to slots. It would seriously thin out the market if they were allowed to bring slots to every racetrack around the different states.
 

Sure it would increase tax revenue dollars that the states bring in, but it also would cut back on individual casinos' revenue streams. This is something that legislators are thinking hard on. Should they allow racetracks to thin out the market that much?
 

Finally, another solution would be for racetracks to get money from other gambling centers. Some racetrack owners are suggesting that casinos divert part of their own revenue and contribute it to a fund they could then draw from. This is probably the most unlikely option because other gambling centers do now want to save racetracks with their own funding. They aren't excited about saving another market. It isn't a priority when they themselves are first coming out of their own harrowing financial times.
 

Overall though, racetrack owners have to continue to develop. Of course their number one priority is to generate more cash, and there are few ways of doing it. Some are more likely than others but it will take time to see which ones work and which ones don't.
 

Something has to be done though for racing to continue to grow and not get shut out of the market entirely.

Racetracks Struggling to Survive – Part 1

If you want to bet at a racetrack, you may have some problems right now. The racing market is one that is struggling greatly. Racing used to be big-dollar business. All you had to do was visit a racetrack and you could feel the excitement. Horses ran and people put big wagers for the purpose of winning the huge purses.
 

This was something that millions of people did to win. They loved the fun of the races and the fun of building their odds with various wagers. Once back in the early 2008 he recession happened though, it changed everything. Not only was gambling threatened by people's lack of funds, but so was racing.
 

The difference though is that racing is not recovering as easily. Gambling is seeing better days right now. As people work their ways out of the aftermath of the recession, they are once again returning to the casinos. They are slowly moving into the market due to recovery. The racetracks aren't fairing as well though.
 

It seems that racing is not returning to normal and racetrack owners are concerned. They are looking for ways to turn themselves around, but it isn't an easy solution.
 

One of the things that racetrack owners are considering is requesting state aid. One of the biggest headlines the market had a few years ago was the bailouts that banks received.
 

Because banks were lending at outrageous rates, when the credit bubble hit they were the first to fall. They suddenly didn't have the collateral to make it through their lending. This is where the federal government came in and gave stimulus help to them. The money was to saturate their own coffers and help them manage.
 

Racetracks are looking for the same kind of help now. They are requesting some funding from the state so as not to shut down. This is on the table, but likely not going to happen.
 

The reality is that few voters are going to support fueling money into the racetracks when so many other elements of the market are hampered. They are going to want prioritization in other areas. Racetracks are just not perceived as important enough to offer a stimulus to.
 

Part two coming next.