Kawartha track abandons horse racing

Wednesday, March 13, 2013

by SUSAN MANN

The fallout from the cancellation of the provincial government’s slot revenue sharing program continues with this week’s announcement that Kawartha Downs isn’t signing an agreement to offer live horse racing this year.

It is the second track to discontinue horse racing in the province since the government announced in February 2012 it was cancelling the program. Windsor Raceway ended its racing activity last fall.

Progressive Conservative MPP Laurie Scott, Haliburton-Kawartha Lakes-Brock, says the loss of harness racing at Kawartha Downs is on top of the “tons” of job losses already occurring in the industry due to the uncertainty created by the program’s cancellation. The track near Peterborough is in her riding.

Agriculture ministry spokesperson Gabrielle Gallant says by email the Kawartha Downs owner was offered race dates and transition funding but “we were unable to reach an agreement.” She says talks continue with a number of track owners and “the government is open to other agreements which would keep Kawartha Downs racing.”

Brian Tropea, general manager for the Ontario Harness Horse Association says eleven tracks don’t have agreements with the Ontario government to run live horse racing this year. That figure includes two tracks (Fort Erie and Hiawatha Horse Park in Sarnia) that had slot machines pulled out in April 2012 as well as the already shut down Windsor track, which also had its slot machines pulled. There are eight tracks that still have their slot machines but haven’t signed agreements for racing; six tracks have signed; all 14 have reached agreements in principle with the Ontario Lottery and Gaming Corporation to continue hosting slots.

The situation is becoming critical because the government’s slot revenue sharing program ends in two weeks on March 31. The new model for setting racing dates and purse levels takes effect April 1 but for this year’s racing season “we have no idea how much purse money is going to be available or how many race days we’re going to have in the province,” Tropea says.

Last year, there were 1,500 days of racing in the province over 12 months. Tropea says there will be race dates set for this year “but it’s going to be significantly reduced from what it has been in the past.” This year Tropea says there could be just 600 to 700 days of racing. “But we don’t know which tracks are going to be racing after April 1.”

Wendy Hoogeveen, Ontario Racing Commission’s director of industry development and support, says the 2013 race dates for the first three months were established in December 2012. Normally dates are set annually at the same time the track operators’ licenses are issued. “Race dates are approved going forward and they don’t change year over year unless you make an application for changes,” she says.

Tropea notes he gets daily phone calls from members asking how the government can cancel the revenue sharing program and how it can be stopped. The government is moving full steam ahead with its gaming modernization plans to build 29 casinos across Ontario “and replace horse racing with casinos,” he says.

Tropea’s words contradict what Premier and Agriculture Minister Kathleen Wynne said last week when she announced agreements with four tracks to hold live racing this year.

Wynne said the government has always maintained it wants to have a sustainable industry and that’s why it established the all party horse racing transition panel. The panel has already submitted a final report with recommendations and Wynne said it would continue helping with the transition.

Scott and fellow PC, MPP Monte McNaughton, Lambton-Kent-Middlesex, are critical of the Liberal government’s handling of the transition.

Scott says the government failed to consult with people in the industry before announcing the cancellation of the program.

McNaughton says at the same time the government is building the new casinos it’s “gutting the horse racing industry and everything is being done under a veil of secrecy.” The uncertainty makes it impossible for industry participants to plan for this year and beyond, he says.

Wynne said last Friday the government will ensure there are race dates for the 2013 season. She also said the government plans to integrate horse racing with the provincial gaming strategy.

Scott slammed the government for its lack of transparency as it switches to leasing slots space at tracks from revenue sharing (the previous program shared slot revenue between the tracks, horse racing purses, the province and municipalities). “Six (tracks) have signed but we don’t know what the deals are” for the leases, Scott says.

The previous program provided tracks with about $345 million “and we think (but have not confirmed) there’s roughly $200 million they’re giving for the transition,” she says.

Tropea says “the only thing we do know is there’s no money going to the horse people.” BF