OMAFRA and Woodbine Entertainment Group strike deal for 2013 racing season
Friday, January 25, 2013
by DIANNE FETTERLY
The Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) has announced plans to provide transition funding to the Woodbine Entertainment Group, the province’s “largest provider of horse racing.”
The group operates the Woodbine Racetrack in Toronto and the Mohawk Racetrack in Campbellville.
“The transition funding provides much-needed stability for the industry,” stated Nick Eaves, the group’s CEO in a release on Wednesday following the provincial announcement. “We look forward to working in partnership with the government as we discuss the long-term future of a sustainable horse racing industry.”
Amber Anderson, press secretary to the Ontario Minister of Agriculture, says a dollar figure for the transition funding will be released at a later date.
In October 2012, a horse racing industry transition panel struck by Ted McMeekin, the province’s agriculture minister, released recommendations for how to help the industry adjust to the end of the Slots at Racetracks program. The provincial government had announced plans to wind up the program as part of a strategy to increase gaming revenue.
Under the 14-year-old program, 10 per cent of revenue from slots went to the racetracks that housed them, while another 10 per cent went to increasing horse racing purses. The municipalities where tracks were located received five per cent, while the Ontario government received the other 75 per cent. Ontario’s horse racing industry claimed that removing the program would destroy the industry.
The panel’s recommendations included making the industry more customer-driven by deriving purses solely from the pari-mutuel handle (based on wagering) – rather than from slots revenue or other sources unrelated to racing, and providing opportunities for the industry to replace public funding with new revenue-generating opportunities.
In a statement, the Ontario Horse Racing Industry Association applauded the deal between Woodbine Entertainment and the government, saying the deal will allow the group to continue to host thoroughbred and standardbred racing in 2013 and 2014 “while a more sustainable and long term racing model is negotiated between WEG and the province.”
The horse racing association added that while this is a positive step, it will “remain vigilant in pursuing an agreement with the new Premier of Ontario and OMAFRA to ensure a sustainable horse racing and breeding industry for the long term.”
“While this announcement ensures racing for the next two years at WEG, it does not deal with the five year breeding cycle and the investments made by breeders, horse owners and race track operators all across the province,” noted Sue Leslie, the association’s president, in the release. Horse racing must be integrated in the OLG’s (Ontario Lottery and Gaming Corporation’s) overall gaming strategy in order for the industry to remain sustainable,” she added.
In the meantime, the OLG has reached lease agreements in principle for locating its slots operations with 10 racetracks including: Woodbine, Mohawk, Rideau Carleton, Hanover, Dresden, Sudbury Downs, Clinton, Western Fair District and Kawartha Downs raceways.
The corporation plans to have lease arrangements finalized by the end of February. BF