Saturday, Sep. 26, 2009

Fairmount gets 52 dates for next season, bets on Internet gambling to boost wagering

COLLINSVILLE -- A decision to reduce the number of races next year at Fairmount Park may not be as detrimental to the track, considering online betting could infuse millions into Illinois horse tracks.

The Illinois Racing Board announced Thursday that the state's only downstate horse racing track can have 52 race dates -- from April 27 and Aug. 24 --if two conditions are met: The track's tax is increased and the track promises 130 work days for union members.

The racing board has determined that if these provisions are not satisfied, Fairmount Park will see its 2010 racing scheduled chopped down to just three dates: April 27, April 30 and May 1. This year, the track had 57 days of racing.

One of the two provisions calls for the General Assembly to raise Fairmount Park's "privilege tax" from 0.25 percent to 0.75 percent during the upcoming veto session. This would increase the track's tax from $156,000 to $313,000. The board has stated that the privilege tax is necessary to help with a projected $1.7 million shortfall in its operating budget next year.

The other provision is that members of the American Federation of State, County and Municipal Employees Local 1805 union employed at the track must work 130 days, per an arbitrator's recent decision.

Aside from shoring up the budget, Illinois Racing Board projects manager Mickey Ezzo said Fairmount Park's tax rate was raised because the state's other four tracks, which are all located in the Chicago area, all pay a higher tax rate of 1.5 percent.

"At Fairmount Park, they have an extremely low privilege tax," Ezzo said. "So the board felt with the increase in the privilege tax to 0.75 percent that would generate additional income and assist in the board's ability to regulate the industry."

Fairmount Park President Brian Zander said he understood the move because the racing board only receives what each horse track generates from its privilege tax to support the board's operating budget. But he was still disappointed with the decision.

"It's hard for me to believe that the legislature and governor would really allow this to happen," Zander said.

Lanny Brooks, executive director of the Illinois Horseman's Benevolent and Protective Association in Collinsville, said he's just happy to have race dates.

"I'm glad we walked away with race dates," Brooks said. "Had we not been given racing dates, we would not have been given ADW."

"ADW" is the horse racing industry's shop talk for advance deposit wagering: a network of Internet gambling sites that accepts wagers on horse races online once the bettor's account has been funded. Last month, Gov. Pat Quinn signed a bill that legalized online wagering on horse races to allow bettors in Illinois to set up accounts to wager from their personal computers and hand-held devices.

Brooks said that in order for Fairmount Park to qualify, it had to be licensed to host live racing and receive race dates for another season, no matter how many races. As of Thursday, the track has met both requirements.

"I'm tickled to the death that we have advance deposit wagering," Brooks said. "The future of Fairmount Park is going to be colossal."

Brooks also said Fairmount Park has established an affiliation with online wagering site TVG, which would bring money to the track through advance deposit wagering within Illinois regardless of where or when the race is run.

When the racing board meets Oct. 13, it will decide whether to certify advance deposit wagering for Illinois horse track racing. Brooks said that if this is approved, bettors will be able to establish accounts online and begin placing their bets by the next day. This will bring money generated from any online bets placed in Illinois over www.tvg.com to Fairmount Park.