COLUMBUS:
Wearing ball caps and blue jeans, several hundred horse trainers, owners, breeders, stable hands and others in the racing industry stood today in the warm sun on the south side of the Statehouse.
They were there to support a proposal to build purses at Ohio's seven tracks with profits from 14,000 video lottery terminals or slot machines.
Many had come from the farms they own or work at. They listened to speakers and then went to directly lobby lawmakers.
They represent yet another dying breed in the Buckeye State. And as speaker after speaker told them, it is not their fault.
The amount of money wagered overall at Ohio's three thoroughbred and four standardbred or harness tracks is down significantly. (I wonder why?)
According to the Ohio State Racing Commission, the horse industry overall is $2.1 billion annually. There are 12,300 full-time jobs directly or indirectly related to the $460 million horse racing industry in the state.
As every gambler knows, the house always wins so purses are set at races based on the amount of money wagered. When fewer people go to tracks and bet fewer dollars, the dollars that flow to the people who breed and feed horses dwindles.
In 2005, the total purse at Ohio's seven tracks was $47 million. Three years later, the figure dropped to $34 million.
Like every industry, the decline ripples across the state's economy.
Purses are smaller in Ohio because surrounding states have found other ways to boost attendance and payouts at their tracks, primarily through slot machines and other forms of casino gambling.
The tack and saddle crowd wants to even the playing field, and they are clinging to recommendations made by the state racing commission and the hope that lawmakers, now facing a projected $3 billion budget deficit in the next two years, will move to place slot machines at the horse tracks.
Under the state racing commission proposal, each track would have to pay a one-time fee of $50 million — or $25,000 per slot machine — to the state to become a licensed agent for the VLTs. They would spend an additional $80 million renovating their facilities. (If they are BROKE where dies this money come from, I wonder?)
In return, the agents would receive 5 percent of all money bet in 2,000 slot machines at each of the tracks.
The tracks would get a nickel for every dollar inserted in the slot. The state would get a nickel. The other 90 cents would be paid out in winnings to the gamblers.
Keep in mind, when someone hits a jackpot, they often gamble their winnings. The state and the tracks make a nickel each on every real and recycled gambling dollar.
The house and Ohio will always win.
Tom Zaino, a former state tax commissioner for Gov. Bob Taft and one of the five racing commissioners, estimates enactment this year would mean by fiscal year 2013 — which begins July 1, 2012, and runs through June 20, 2013 — the state and tracks would split $1.3 billion.
So to get enough nickels for $1.3 billion, gamblers would have to insert $13 billion in wages and winnings into Ohio's 14,000 slot machines.
This is not the first time the horse tracks have asked for help, and it is not clear whether there is support for the proposal in the legislature.
A number of lawmakers, primarily from districts with horse racing tracks, spoke at the rally today.
