Track Executives Look to Future of Racing

A panel of racetrack executives took the stage Dec. 7 at the University of Arizona's Race Track Industry Program's Global Symposium on Racing and were tasked with discussing their plans and hopes for the future in the horse racing industry. 

Titled "Charting a Path Forward—Industry Leaders Share Their Three-Year Plan," the panel consisted of Craig Fravel, CEO of 1/ST Racing; Shannon Arvin, president and CEO of Keeneland; Josh Rubinstein, president of the Del Mar Thoroughbred Club; and David O'Rourke, president and CEO of the New York Racing Association. It was moderated by Charlie Hayward, president and publisher of Thoroughbred Racing Commentary.

Track leaders continued to circle back to equine and track safety and the Horseracing Integrity and Safety Act. They also noted the cultural changes that have called for improved safety and transparency to protect the horses.

Fravel said going forward, he expects to see more veterinary involvement in horse racing.

"I think the veterinarians on the backstretch in California are particularly pleased with the fact that many of them are now practicing veterinary medicine again. They're being asked to consult, to observe, to examine horses before works and before starts as opposed to simply dispensing medication," Fravel said.

Keeneland added Dr. Stuart Brown as its equine safety director in June 2020 and named him the track's vice president of equine safety this past July. Arvin shared a discussion she had with Brown, who told her the line of communication between horsemen and veterinarians had opened up.

"Dr. Brown has said to me before one of the most rewarding parts that he's seen this year is that trainers are actually talking to him instead of feeling like it's a 'gotcha' environment," she said. "They know that we're just trying to make sure that all the horses are as safe as they can possibly be." 

Rubinstein said that safety improvements at Del Mar, as well as throughout the state of California, have brought the catastrophic injury rate down.

"Over the last two years catastrophic injuries in California have decreased by 50%, so that's very important to note," he said.  

Fravel also noted that all the tracks represented in the panel participate in The Jockey Club's Equine Injury Database.

"The public is no longer willing to accept lack of transparency," Fravel said. "Spin doesn't work like it used to. Let's face it, you can't paint dead in a good color; it doesn't exist. So we've got to do everything we possibly can to make our racetrack as safe as possible, make our game have as much integrity as possible, and make sure that it's policed by people who have an independent perspective on how that should be done."

Facility Improvements

Gulfstream Park, operated by 1/ST Racing, debuted a synthetic track this year in addition to its dirt and turf courses. After their lease ended last year at the Churchill Downs Inc.-owned Calder Race Course, where they conducted the Gulfstream Park West meet, the track had to accommodate extra racing on its surfaces. In addition to the Tapeta installation being a third course to card races on, it allows turf races to run over it instead of dirt in unfavorable weather conditions and, Fravel said, could possibly do the same for dirt races in poor weather in the future. 

Fravel said between now and 2026, 1/ST Racing, which operates the Maryland Jockey Club, will have a Tapeta track at Laurel Park (with either new or upgraded dirt and turf surfaces) as well and that both Laurel and Pimlico Race Course will both have new clubhouses.

1/ST Racing COO Aidan Butler was originally scheduled to be on the panel but Fravel took his place with Butler at the Maryland Racing Commission meeting held earlier Tuesday, at which Laurel's main track was discussed after the track recently canceled racing following a spike in equine fatalities. 

KING: Racing at Laurel Remains on Hold, Could Resume Dec. 16

O'Rourke added that Belmont Park, operated by NYRA, has a project to build a tunnel into the infield while a 1 1/16-mile synthetic track is still in the planning phase but, if approved, could be used primarily in the winter and for off-turf races throughout the year.

Eye on Sports Wagering

On attracting new customers to the game, O'Rourke said that horse racing was once a dominant sport but perhaps had been complacent. He added that the game now needs to be aggressive to compete with other forms of entertainment. 

"There's opportunities in front of us, specifically in sports betting, that offer us what I would term probably a once-in-a-generation opportunity," O'Rourke said, also noting NYRA's growth in television hours with FOX Sports. 

With the rise in sportsbooks, O'Rourke hopes to see horse racing become another offering for those who enjoy sports wagering. 

"Our content isn't on those platforms yet and we have the opportunity to actually do that. There's a lot of hurdles to get there. I know there's a panel on fixed odds and that's a debate, but in the end I believe, and I think our company believes, you have to give the customers what they want," O'Rourke said. "We do have a great product—pari-mutuel is excellent, it's great specifically in the exotics, but there is room I believe for proposition bets and for this content to live side by side. And I think as these sportsbooks grow and acquire customers, that's just a huge distribution channel for us."

Rubinstein agreed with O'Rourke that horse racing has an opportunity to grow its audience as sports wagering becomes more mainstream, but was not as quick to embrace fixed odds.

"David and I may disagree a little bit between fixed odds and pari-mutuel," Rubinstein said. "I think it's essential that horse racing is offered pari-mutuely through sports wagering. Certainly look forward to hearing the discussion on fixed odds and how it can benefit the industry."

In further discussing fixed odds and pari-mutuel wagering, O'Rourke said with fixed odds "one of the upsides compared to pari-mutuel is the odds aren't moving so you know what price you have. It's obviously the dominant form of wagering in sports betting and it's familiar to a lot of customers. Our view is that it offers another product to put alongside pari-mutuel."

O'Rouke did agree with Rubinstein in that racing needs to be cautious with fixed odds with racing having an established market in pari-mutuel wagering, but fixed odds can draw in new bettors.

"We're certainly open-minded to fixed odds," Rubinstein said. "We just haven't seen a model yet that is additive to pari-mutuel wagering. From Del Mar's perspective, 100% of our purses, track commissions, funding for backstretch health and welfare, our regulator, stabling, all comes from the pari-mutuel system, and that's a very sensitive dynamic."

Del Mar is hoping to open the market to more sports bettors through a one-wallet system, which creates a single account for funds that can be used for both pari-mutuel wagering and other sports wagering instead of separate accounts.

"We're working very closely with TVG on implementing a one-wallet solution in California by mid 2022, so on the FanDuel platform you'll be able to access one wallet for pari-mutuel horse racing and sports wagering and we think that is potentially a game changer in opening our sport to a significant new audience," Rubinstein said.

Looking Ahead

Arvin, who became the head of Keeneland in the midst of the COVID-19 pandemic, said that "that's the way we've always done it" can no longer be a reason for the industry to not change. She noted that sales began to offer online bidding during the pandemic and buyers used the platform, despite previous arguments that buyers needed to be present on the grounds. 

Even while the world is still living with COVID-19 and the Omicron variant has started to be of concern, Arvin said the demand for horses is clear with record auction results across the world.

"I think what we're really seeing is a pent-up demand for fun, good experiences," Arvin said. "People want to be with their family and friends. There's this vitality and energy and zest for living. Sports bring people together. We saw that through the pandemic and we continue to, so we've got to seize this opportunity."