[clevfan]

Sun, May. 28, 2006



Horse racing industry tries to keep up
Lawmakers consider bills to help maintain state's preeminence, while Indian casinos, online betting steals customers

By Judy Lin and Debbie Arrington
SACRAMENTO BEE

SACRAMENTO - Blending his sister's birthday and historical race statistics, Arturo de la Cruz accurately picked the trifecta on the Kentucky Derby and turned $1 into $4,282.

"That's why I never go into casinos," said the 51-year-old mechanic from Sacramento. "It's hard to make money. The money goes too fast."

The horse racing industry cherishes loyal fans like de la Cruz but officials are still concerned about maintaining California's preeminence in the sport.

In the aftermath of a failed initiative to put slot machines at racetracks, the horse racing industry is trying to figure out new ways to protect and bolster the state's $5 billion horse racing industry, which some argue is losing both people and horses to Indian gambling, online wagering and more than a dozen states that have approved slot machines to augment their racing programs.

"In the horse racing industry, we're losing out," said state Sen. Edward Vincent, D-Inglewood, whose district includes Hollywood Park. "We used to be the top in the nation. Because of our going to sleep in the industry, when we wake up, nothing will be here."

The California Legislature is weighing several bills, ranging from a requirement for synthetic sand at thoroughbred race tracks to an expansion of bets at the tracks.

But some lawmakers believe these bills do not necessarily tackle the industry's long-term challenges. State Sen. Bob Margett, R-Arcadia, whose district includes Santa Anita, said there's a lack of organization within the industry, which is made up of many interests, such as breeders, tracks and associations.

"I think that they need to go into a comprehensive marketing program to really sell the sport," Margett said, noting the success of the Triple Crown.

One bill, Senate Bill 1464, would require California's five major thoroughbred tracks to install a polymer-type racing surface by the end of 2007.

Since its debut in September 2005 at Turfway Park in Kentucky, observers coast to coast have marveled at how horses respond to the rubberized sand.

"I'd say it's the most promising thing I've seen in the future of racetrack surfaces," Hall of Fame trainer Richard Mandella said of his first impression of "Polytrack," the name of one brand of the new track material. "Horses get over it easy, and I think that would decrease the percentage of injuries."

Mandella, whose stable is based in Southern California, has been a vocal proponent for bringing the new surfaces to California.

Del Mar, located just north of San Diego, plans to install a synthetic racing surface by next year. Hollywood Park in Inglewood also is studying the new track. Other tracks that would be effected by the legislation include Santa Anita, Golden Gates Fields in Albany and Bay Meadows in San Mateo.

But the tracks do not come cheap: Installation ranges from $6 million to $9 million per race track.

A companion bill from state Sen. Dean Florez, D-Shafter, proposes to help pay for the conversion by using leftover workers' compensation insurance funds. Currently a portion of wagers goes toward defraying the costs of workers' compensation insurance for owners and trainers of thoroughbred horses.

John Harris, commissioner of the California Horse Racing Board, likes the idea of synthetic racing surfaces, but has concerns about making it law.

"I don't know if legislation mandating Polytrack right now is the right approach to this problem," Harris said. "It might be better to leave it to the CHRB. With the legislature, there's less flexibility."

"What if Bay Meadows closed, and we wanted to race at Pleasanton, but we couldn't because it doesn't have Polytrack? The CHRB couldn't react without changing the law."

Two years ago, card rooms and racetracks bankrolled Proposition 68 in an effort to get slot machines into racetracks. Casinos fought back, and the initiative was rejected by 84 percent of voters.

Vincent, who has unsuccessfully tried to increase wagering for the horse racing industry, is again championing legislation that would allow types of wagering designed to attract new customers.

Richard Shapiro, chairman of the racing board, said the industry should offer easy bets because not everybody understands handicapping.

"Trifectas, exactas, superfectas, Pick Fours, Pick Sixes, Place Nines -- that's all pretty intimidating," Shapiro said. "We have to look at ways to let people tip their toes into the wagering water with something simple like odd or even."

David Elliott, Cal Expo's racing director, has seen the impact of Indian gambling and advance deposit wagering -- betting by computer from home -- on his business at the Sacramento simulcast facility.

"Those dollars walked right out of my door," he said. "What we need to do is offer as wide a buffet of wagering as possible for our customers and let them pick and choose what they want."