WV Taking Industry Approach on Racing Dates

The West Virginia Racing Commission is moving forward with a plan to fashion legislation that would allow flexibility on racing dates and perhaps new gambling offerings to generate revenue for the industry.

A resolution to that effect was adopted by the WVRC Oct. 15 after it solicited comments from industry stakeholders. The resolution was offered by racing commissioner Bill Phillips, who said the status quo won't suffice in the wake of continued reductions in video lottery terminal revenue because of economic factors and legislative action.

"This industry is in transition," Phillips said. "Like or not, adjustments are necessary. The operative word here is flexibility. We should all work together toward that goal."

The WVRC is scheduling what could be the first of several meetings in advance of the 2015 legislative session. Senior deputy attorney general Kelli Talbott will call together stakeholders in a manner similar to a group that meets to discuss and reach consensus on Thoroughbred racing rules.

It is believed West Virginia is the first gaming state in which stakeholders are collectively addressing the issue of racing dates in an environment of declines in revenue and horse population because of smaller foal crops.

Under current statute Hollywood Casino at Charles Town Races must apply for at least 220 live racing days a year, and Mountaineer Casino, Racetrack & Resort 210 days. Neither track will meet their minimums this year because of WVRC-approved reductions, primarily because the state Legislature this summer took 10% of the horsemen's VLT revenue and shifted it to other programs.

Phillips has floated advance deposit wagering, which isn't legal in the state, wagering on historical races, and pursuit of EquiLottery, a proposed lottery game tied to the results of pari-mutuel races, as means to increase revenue for horse and dog racing in West Virginia.

"We need to replace the revenue we've lost," Phillips said. "We cannot miss the opportunity of the 2015 legislative session."

Phillips also called for a fiscal analysis of live racing revenue and creation of a marketing and promotional plan for racing in the state.

Shadowing the legislative proposals are continued friction between the racing industry and the West Virginia Lottery, which oversees racetrack VLTs and table games; and a quiet push to legislatively "decouple" Greyhound racing from gaming. The law currently ties live horse and dog racing to VLT licenses at four facilities.

Horsemen also plan to push for restoration of VLT revenue that was shifted to other state programs. The largest cut, which went to workers' compensation in the mid-2000s, was supposed to sunset but never did.

The WVRC resolution states that the required minimum number of racing days be changed, but its key objective is to allow the industry flexibility each year depending on purse revenue and horse and dog availability. A suggested number has been 185 days a year.

Stakeholder reaction has been mixed.

"The board of directors of the Charles Town HBPA is committed to the preservation of year-round Thoroughbred and Greyhound racing and breeding in the state of West Virginia," Charles Town HBPA president Randy Funkhouser said in his comments to the WVRC. "The board believes that in order to resolve the crisis at hand and to respond to the WVRC draft resolution regarding the proposed reduction of racing days, we need maximum flexibility in determining the number of required annual racing days and, in all instances, a sufficient number of racing days to sustain year-round racing."

Mountaineer HBPA president John Baird suggested a range of racing days so the number can be changed depending on market needs and desires, but he also called for protection for horsemen.

"We would further suggest that there must be a written agreement between the licensee and its local Horsemen's Benevolent and Protective Association regarding the number of live racing dates and any changes to the approved schedule," Baird said.

On the racetrack side, the view is a bit different. Mountaineer director of racing Rose Mary Williams, in her comments to the WVRC, said a legislated minimum of 185 racing days could be problematic. She said the opening of Hollywood Gaming at Mahoning Valley Race Course in neighboring Ohio calls for regionalization.

"It would only make sense for Mountaineer to run opposite of that meet," Williams said. "This would mean a racing meet at Mountaineer from May through November around 150 days. With limited purse funds, the fewer days of racing allows for better purses, which in turn provides for quality racing."

Mountaineer, which used to race year-round, has condensed its 210 days to 10 months a year, with January and February dark. However, this year it will drop December, making for three consecutive months of down time.

Charles Town said it believes a floor of 185 days is "reasonable and appropriate," according to Erich Zimny, vice president of racing operations. He said any changes in the number should come only if the track and horsemen's group agree, and the racing commission approves.

"All the parties involved should have the flexibility to adapt to changes to best suit their needs," Zimny said. "It is very difficult to do that given the current state of the law. The enumeration of a finite set of conditions by which racing days can be reduced hamstrings all parties.

"We have had many discussions with the Charles Town HBPA about these issues, and believe we are on the same page when it comes to this need for flexibility."