Redevelop, Revitalize and Revise

Words - Bill Heller

Gulfstream Park

Can racetracks prosper or even survive without redevelopment and/or revitalization? Must they become year-round attractions or even destination venues? Tracks have tried adding casinos, concerts, hotels, retail stores and even a village—all with a hope of increasing the handle that generates purses.

Yet several of North America’s most storied racetracks have closed their doors forever: Hollywood Park, Arlington Park, Calder Race Course, and, in the not-too-distant future, Aqueduct Racetrack.

“I think the product has to evolve,” David O’Rourke, CEO and president of the New York Racing Association, said. “Every situation is unique.”

His sure is. He’s taken on razing and rebuilding Belmont Park and closing Aqueduct. He’s also carefully tinkered with the historic Saratoga Race Course.

Woodbine, which launched a 25-year ambitious project in Toronto in March 2022, is already showing dramatic increases.

Churchill Downs has already spent millions improving its facility, so has Oaklawn Park and Kentucky Downs.

Frank Stronach was first, envisioning a very different Gulfstream Park more than 20 years ago. His 1/ST also operates Santa Anita, Laurel Park, Pimlico Racetrack, Golden Gate Fields and Rosecroft, a harness track in Maryland. 1/ST acquired Gulfstream Park in September 1999, for $95 million.

It didn’t take Stronach long to reach a conclusion about Gulfstream.

“We don’t get enough customers,” Stronach told Andy Beyer in his Washington Post column on February 7, 2001. “We don’t get a lot of young people. Something isn’t right. That’s why you’ve got to change. I like horses a lot—really a lot. But even I get bored sitting a whole afternoon. If I’m interested in the second race and the seventh race, maybe between them, I want to get a haircut or do some shopping.”

Beyer concluded 22 years ago: “Of course, it’s easy to find fault with any new ideas. But at the very least, Stronach deserves credit for trying hard (and investing confidently) to resuscitate the game he loves. If he fails, he will fail because the world has changed and there is no possible way to bring back the old days of grandeur and glory. But all racing fans would love to see him succeed, to see a day when Gulfstream is packed with young patrons sipping cappuccino by the paddock.”

Has that happened?

Gulfstream Park’s Carousel Club.

Actually, yes. Patrons at the adjacent Yard House, one of the dozens of restaurants in the Gulfstream Park Villages, can dine just outside the paddock. Whether they have come from the racetrack or will go to the racetrack after they dine is hard to tell, but at least that part of Stronach’s vision has come true.

Stronach used the mythological Pegasus to stamp Gulfstream Park with a new signature race, the Pegasus World Cup, and an enormous statue of Pegasus vanquishing a dragon is nothing less than stunning, At 110 feet, Pegasus is the second tallest statue in the continental U.S., topped only by the Statue of Liberty. The statue, which was pre-cast and shipped from China in 23 packing containers and steel beams shipped from Germany, cost $30 million.

Located adjacent to multiple parking lots separating the track and the backstretch, Pegasus guards the track. Inside the track, there is a casino on two floors, a large splashy simulcast room, two restaurants and offices. Outside, the village of retail stores is separated by the paddock and a normal-size statue of Cigar.

The Gulfstream Park Villages, which formally opened on February 11, 2000, consists of nine one- and two-story buildings spread over 400,000 square feet. offering shopping, dining, live events and booked events. There are seven fashion shops, three specialty stores, three art galleries, 11 home furnishing and houseware outlets, and four health and beauty salons. There are 36 dining options including fine dining, casual dining, quick bites, trackside eats, bars and lounges. Events occur every Friday, Saturday and Sunday. Marquis events include concerts. Events for the public include weddings, parties, meetings, suites and boxes, film setting and concert rentals.

All that’s lovely, but has it enhanced Gulfstream Park’s horse race meet, now year-round with the closing of Calder Race Course? It’s tough to tell if the vast amenities have created new racing fans. “There is no way to tell,” Gulfstream Park Executive Director and Vice President Billy Badgett said.

Handle numbers, which are tough to evaluate because of the two-year pandemic, have changed little the past year and a half.

Oaklawn Park is the shining example of racetracks changing, growing and increasing handle since it completed a $100 million expansion in 2021.

In its 2022–2023 68-day meet from December to May, Oaklawn’s average daily handle was $6.67 million, up from $6.23 million for its 66-day meet when December dates were first added last year. Purses averaged more than $700,000 daily.

Those weren’t the only good numbers. “Everything was up,” said Oaklawn Park President Lou Cella, whose family has owned Oaklawn for some 120 years. Both on-track and off-track handle were up. And it’s allowed Oaklawn Park to raise purses for its 2023–2024 meet beginning in December. Cella said maiden special weights will go for $115,000, allowance races for $140,000, and stakes race minimum $150,000. 

Oaklawn Park held four Kentucky Derby point-standing stakes races topped by the $1.25 million Arkansas Derby. “We’re going to raise every one of our three-year-old stakes, and the 2024 Arkansas Derby will go for $1.5 million,” Cella revealed.

Though Oaklawn Park stopped issuing attendance figures when it stopped charging for admission some 15 years ago, attendance on Saturdays during the meet ranged from 25,000 to 35,000 despite many rainy Saturday afternoons. The Arkansas Derby drew an estimated 65,000. “Once we got into gaming, it was hard to charge for racing because we weren’t charging for gaming,” Oaklawn Park Senior Vice President Eric Jackson said.

Business was also booming in the claim box as 556 claims were made for a cumulative $10.6 million.

Continuing to experiment, Oaklawn Park held its second annual Hall of Fame Day, featuring 19 members of the Hall. Donations of $2,500 were given to each Hall of Famer’s favorite charity.

Oaklawn Park gained momentum through its highly popular instant racing slot-like machines and kept adding amenities, including a hotel with a dynamic view of the entire stretch. Several restaurants are also available to patrons.

“We feel like we’re pioneers getting racing and casinos working together,” Jackson said. “The numbers are terrific. The model is working.”   

To be sure, Oaklawn Park is sweetening the deal for trainers and owners that began last year. Trainers and owners who have a starter during the final two weeks of the meet will receive daily bonuses of $200 a day and $400 a day, respectively. “They were designed to help the smaller trainer,” Cella said. “Last year, our average number of starters the final two weeks were 9 to 9.5.”

The Woodbine community plan

Woodbine’s numbers have rocketed up since the inception of its bold 25-year Woodbine Community Plan last year to literally become part of the Toronto community. Initial returns have been huge. Woodbine set a record for handle for the 2022 Thoroughbred meeting at $621 million, a dramatic increase from the previous record: $533 million in 2018. Last year was  the first year since 2019 that Woodbine held its complete Thoroughbred season after the pandemic.

Woodbine’s surge came after CEO Jim Lawson helped secure a historic funding agreement with the Ontario government in 2019 that allots up to $105 million annually to breeders, owners and trainers through 2038. 

Lawson said in a Woodbine statement in late December, “At the start of the pandemic, I felt that through determination and resiliency, which is the trademark of this industry, we would emerge stronger; and this record is evidence we are on the right track.”

That track includes railroad tracks. A train station is one of the many aspects of the Woodbine Community Plan. “We don’t have a good rail service here,” Lawson said in June, 2023. “We want to bring in a train station.”

Woodbine can do that because it encompasses 683 acres. “Only 240 is for the track,” Lawson said. “That leaves about 400 acres developmentable. We will make two large residential units with 30,000 housing units on this site. We will be able to make a lot of those people fans of horse racing.”

What Woodbine is doing is changing the game. Instead of bringing fans to the racetrack, these people will already be a short walk away from the track. “It will be a really cool place,” Lawson said. “It will take 10 to 15 years. This is my vision. It’ll be a vibrant community. There’ll be so much going on here. They can walk to places. The sky’s the limit. We’re talking about 12 to 14 million visitors to this site by 2025. That’s about double what we have now.

Woodbine CEO Jim Lawson

“We’ve got a 5,000-seat music auditorium opening in August that can be used for conferences as well. We hope to open a retail sports book later this year overlooking the track. It’s up to us to make sure they’re also betting on horse racing. We hope to have a FIFA World Cup in 2026.”

Woodbine already has The Stella Artois Terrace, a 300-seat patio and live music at the finish line that opened last summer. “It’s been successful,” Lawson said. “It’s hard to get a reservation there. We boast our food is as good as a restaurant. It’s bringing out new fans. There’s no admission charge. No parking charge. We want people to just watch racing.”

Woodbine will open a multi-story hotel trackside on its stretch in August.

Lawson—who also co-owns the Hamilton Tiger-Cats in the Canadian Football League, the same team his father led to the 1945 Grey Cup and the Canadian equivalent of the Super Bowl when they were the Hamilton Wildcats—believes in the sport of horse racing: “I’m a firm believer that you need to get people out to the racetrack to experience the horses, experiences the jockeys. It is important for horse racing to sell that game-day experience to get people out here to see the sport.”

To that end, Lawson is proud of Woodbine’s broadcast team of 54 people. “We have 2,000 people working here and another 3,000 on the backstretch,” Lawson said.

They will be direct beneficiaries of Woodbine’s brave new world. “It’ll be a vibrant community,” Lawson said. “It’ll be a cool place. It will take 10 to 15 years with horse racing sitting in the center of it all. It’s a major transformation of the site. It will take a few years, but it will sustain horse racing for generations.”

Belmont Park has already started a major transformation of its site. That happened when the New York Islanders decided to build a new, 17,500-seat, multi-purpose arena on the Belmont Park grounds. Opened in 2021, the USB Arena has been aptly nicknamed by fans and writers as “The Stable.”

That was an appetizer. On April 30 this year, New York State Governor Kathy Hochull and the State Senate and Assembly passed The Revenue Article VII Bill, which authorized NYRA to utilize a $450 million loan to build new facilities. 

The redevelopment, the first major one at Belmont Park since 1968, will ultimately allow NYRA to end racing at Aqueduct and finally bring the Breeders’ Cup back to New York for the first time since 2005. Last November, the Breeders’ Cup announced a commitment to include Belmont Park as part of its rotation of host tracks, which include Santa Anita, Del Mar, Churchill Downs and Keeneland.

Belmont’s 28-day 2023 fall meet will be held at Aqueduct from September 14 through October 29. Following the Aqueduct winter meet, Belmont will run its 2024 spring/summer meet. The grandstand/clubhouse will be demolished after that meet. NYRA plans and hopes to have the new Belmont Park ready to hold the 2026 Belmont Stakes.

The backdrop for that historic return of the Breeders’ Cup will be completely foreign to fans accustomed to seeing Belmont’s enormous grandstand. The current grandstand and clubhouse will be razed and replaced by one a quarter of its size. “To have a healthy market, the building is a component,” O’Rourke said.

In recent years, the look of few people at the enormous facility isn’t a healthy one. O’Brien is hoping to fix that.

NYRA CEO David O’ROUrKE

O’Rourke will forever be known as the man who changed or saved Belmont Park. His background is in finance, not horses. Growing up in New Jersey, two miles from The Meadowlands, he occasionally visited that track and Monmouth Park. “It would be generous to call me a casual fan,” he said. “My first real exposure to racing was at Aqueduct.”

O’Rourke graduated from Richard Stockton College and got an MBA at Tulane University. He worked for Zolfo Cooper and Capstone Advisory Group Corporate Restructuring Practices and was vice-president of operations at Datek Online.

O’Rourke, now 49, joined NYRA as director of financial planning in 2008. Two years later, he became vice president for corporate development. In 2013, he was appointed chief revenue officer and senior vice president. NYRA  named him interim CEO on January 23, 2019, and appointed CEO and President on March 26, 2019.

“I was on the building development side,” O’Rourke said. “When I came in, another executive came in, Glenn Kozak. He’s the track guy. For me, it was business.”

He began his NYRA career at a challenging time. “We had just come out of bankruptcy in ’08,” he said. He believed his lack of experience in racing was an asset: “It gave me an advantage. It was my first look at it. It was fresh. I noticed how fractured horse racing is. The one thing that stood out to me was you could wager on-line in 2008. It was only chance to wager on-line.”

Subsequently, he has been pivotal in developing NYRA Bets, NYRA’s national advance deposit wagering (ADW) platform and expanding NYRA’s national television coverage, which resulted in daily coverage of Belmont Park and Saratoga’s meets via Fox Sports. He is proud of both: “I just saw the potential. We launched NYRA Bets nationally and worked out a deal with Fox. We self-produce 1,000 hours for Fox. We fixed the business, and that gave us credibility.”

He also came to a conclusion about NYRA racing: “NYRA had an extreme challenge downstate operating two tracks. It was obvious to NYRA to reconsolidate. How do you do that? In 2019, we began work analyzing Belmont. Then COVID hit.”

That didn’t alter O’Rourke’s conclusion. Belmont Park needed a facelift, especially if it was to operate year-round with Aqueduct closing. “Belmont itself was a massive warehouse,” O’Rourke said. “Right after it was renovated, OTB opened.”

Yet Belmont Park staged a tremendous Belmont Stakes in 2004, when 120,000 fans—the most to ever see a sporting event in New York State’s history—witnessed Birdstone’s late-running victory to deny undefeated Smarty Jones the Triple Crown. 

“The building is impressive in scale but didn’t have the amenities people wanted,” O’Rourke said. “People are looking for clubs, more intimate settings. It’s changing from 1.3 million square feet with zero suites to 275,000 square feet with suites, dining and hospitality at a very high level. We’re going to shrink the building and open up acres of green space on the track side, bring the park back to Belmont and allow families to come in. What’s special about Belmont are the trees, the iconic arches. We have a lot of freedom, a lot of land. I think Belmont is going to look different, more New York City than a country fair like Saratoga.”

Specifically, Belmont is adding a one-mile synthetic track inside the inner turf course due to open at the start of the 2024 meet and a tunnel to the infield allowing fans to watch races from there. Eventually, there will be a second tunnel for horses. “We will also redo the inner turf course and redo the main track,” O’Rourke said. “I think it will be a destination place. It’s going to be iconic. I think Belmont is going to be iconic.”

Saratoga Race Course has been iconic for more than 150 years. NYRA has already created new facilities there including the 1863 Club, a new building on the clubhouse turn. “With Saratoga, you’ve got to be very careful,” O’Rourke said. “We have worked with the local community, with the Saratoga Preservation Society and local architects. It’s like you’re playing with a jewel. You just want to polish it.”

They best be careful. Other pricy amenities like 1863 Club are targeting upper-scale customers. Meanwhile, Saratoga has raised its admission price to $10, which includes neither a seat for you or your car in a parking lot. Stopping the extremely popular Open House, which drew more than 10,000 fans the Sunday before Opening Day and benefitted local charities, was a bad decision. Countless fans brought their families to Open House, and the smiles on their children’s faces as they did pony rides, kids’ rides and watched non-betting races suggested NYRA had the solution to making children racing fans for life. Stopping that was a mistake. 

Belmont’s reconstruction will mandate a new location for the 2025 Belmont Stakes, and there is considerable interest from NYRA to stage that race at Saratoga as part of a three- or four-day mini-meet. “Part of me would love to try it at Saratoga,” O’Rourke told David Grening in his June 10th, 2023, story in the Daily Racing Form. “I think it would drive a lot of activity up there. It might set some benchmark that would be tough to ever beat. It would be such a cool event. Everybody I know would want to be there.”

That decision has yet to be made by O’Rourke and the NYRA Board of Trustees. O’Rourke welcomes the input of his Board, which boasts several extremely successful business executives. “I’ve got a lot of people involved in this,” O’Rourke said. “We have a deep Board of Trustees who work to our benefit with their expertise, guys who have worked on billion-dollar projects. Belmont is a half-billion.”

Belmont is scheduled to begin destruction of the grandstand to begin a new grandstand that will start after the 2024 Belmont summer meet. “The goal coming in is having Belmont ready for 2026,” O’Rourke said. “That might be aggressive.”

Maybe aggressive is what Belmont needed. Maybe not. But it sure will be interesting to follow. 

Horsemen and fans got to see part of the new First Turn Club at this year’s Kentucky Derby, part of Churchill Downs’ $200 million, multi-year renovation. Situated about an eighth of a mile past the finish line, the new building, which cost $90 million, drew raves. “The scope of this complex is stunning,” Churchill Downs CEO Bill Carstanjen told Frank Angst of Blood-Horse. “It forever changes the personality of this portion of our venue, which historically had been dominated by a series of temporary structures and back-of-house infrastructure.”

The First Turn Club features 2,000 seats and is climate controlled. It features high ceilings, lounge spaces and large glass windows overlooking the track. Above the indoor area are 5,100 padded stadium seats on two levels. There is a 360-degree, wrap-around LED screen.

The Paddock Project design for Churchill Downs Racetrack.

The Churchill open-air paddock with an oval walking ring and grass center has been replaced with a three-story white brick building located between the track’s iconic twin spires.

Churchill Downs expects the renovations to be completed before the 2024 Kentucky Derby.

Churchill Downs Inc. also spent $148 million renovating Turfway Park, the track it purchased in October, 2019. It tore down its old grandstand, replaced its racing surface and constructed a new grandstand, gaming floor, clubhouse, simulcast area and event center. It also increased its number of historical horse racing machines to 850, a number which could grow to 1,200 if warranted. 

Also in Kentucky, Kentucky Downs—the unique track with a seven-day, all-turf racing meet—began a $25 million renovation project in 2019. Business has been booming ever since, allowing the track to up the purse of its signature race, The Mint Million, from $1 million to $2 million, making the race the second biggest purse for three-year-olds in Kentucky after the Kentucky Derby.

“It’s been a fun ride,” Ted Nicholson, Kentucky Downs’ vice president of racing told Amanda Duckworth, in her August 28, 2022, story in ThoroughbredRacing.com. “I have been doing this for almost eight years now, and it has been amazing to be part of the continued growth. I have an all-star team that helps me pull off the meet, and we have been trying to take care of the horsemen as best as we possibly can.”

No lie there. The purses at Kentucky Downs and its kidney-shaped turf course are off the charts, thanks to the continued success from its historical horse racing slot-like machines. Last year, a maiden race went for $150,000 and an allowance race for $170,000.

Despite the enormous impact of COVID, Kentucky Downs expanded its open-air Finish Line Pavilion, paved roads, added 40 new stalls and installed fiber internet throughout the facility. Diners have five options: the Irons Steak House, Diner’s Choice, the Corner Café, the Center Bar and the Oasis Sidebar.  

 A lot of tracks are spending a lot of money trying to renovate, experiment and stay with the times. Their futures hang in the balance.

Cella put it this way: “The only reason we’ve been successful and open for 120 years is because we evolved. We’ve taken the pulse of our fans to see how to enhance racing.”

Asked if he believed tracks must redevelop, revitalize and revise, Cella said, “One thousand percent.”         

Betting on racing's future - innovations to grow handle

Article by Bill Heller

Fueled by new technology, there’s an ever-changing, brave new world of wagering domestically and internationally. North American horsemen and racetracks are doing their best to be part of it, finding innovative ways to increase handle—the lifeblood of horsemen.

Sports gambling, fixed odds and international commingled pools are already operating in North American racing. Figuring out their roles in racing’s future is a difficult exercise because of the ever-changing landscape, one which includes illegal off-shore wagering operations stealing races from tracks and returning nothing to their horsemen.

Just when it seemed like sports gambling was sweeping the nation, California voters last November rejected two propositions for sports gambling by a wide margin.

Five and a half months later, sports gambling was passed in Kentucky.

On March 22, the FanDuel Group, which includes FanDuel Sportsbook, FanDuel Racing, FanDuel TV and TVG.com and the Breeders’ Cup Limited announced a multi-year agreement to extend FanDuel’s status as the Official Wagering Partner of the Breeders’ Cup World Championships. FanDuel will continue as a title partner for both the Breeders’ Cup Juvenile and the Breeders’ Cup Mile.

The Breeders’ Cup Betting Challenge on Breeders’ Cup World Championships Saturday at Churchill Downs.

“FanDuel has been a great partner for the Breeders’ Cup because horse racing is in their DNA,” Breeders’ Cup CEO and President Drew Fleming said. “FanDuel has an aggregate app which combines sports betting and horse wagering. The Breeders’ Cup believes sports wagering is racing’s biggest marketing opportunity. Our product will be on the bookshelf with leagues like the NBA, the NFL and Major League Baseball. Our product is great, and we’re looking forward to having that product before millions of new eyes. It’s a concentrated group. They like sports. And they like betting. It’s a great opportunity for us.”

Just nine days later after the Breeders’ Cup announcement, on the final day of the 2023 legislative session, Kentucky approved sports betting, becoming the 38th state to do so, according to the Louisville Courier-Journal. Sports betting in the Commonwealth will begin in late June.

“Kentucky had been an island, sports-wagering-wise,” FanDuel Group Racing General Manager Andrew Moore said. “I think they have seen a lot of people driving out of their state to wager on sports.” FanDuel Group is a subsidiary of Flutter Entertainment, which also runs Betfair in England.

Pat Cummings, the executive director of the Thoroughbred Idea Foundation and founder and president of Global Racing Solutions, said, “I live in Lexington, and I will have an account for sports wagering. It’s real. It’s here. It’s growing.”

Not in California. Millions of dollars were spent in California to support two sports gambling propositions, and California voters rejected them. “Both were defeated,” Thoroughbred Owners of California President and CEO Bill Nader said. “We would relish the opportunity to have access to a secondary stream of income to help purse structure. If sports gambling does come to California, we need to be part of it.”

Nader, whose previous race career included six years at the New York Racing Association as senior vice-president and chief operating officer and 15 years in various senior positions for the Hong Kong Jockey Club, is well aware of the problem of unlicensed off-shore wagering companies. “Anything that’s legal is fine,” Nader said. “It’s the unlicensed off-shore operations that are a real threat for the industry. It’s a serious threat. Effectively, it’s siphoning money from the industry with no return to the industry.”

Asked how wide-spread illegal off-shore wagering is, Nader said, “It’s more than you think.”

Nader said Martin Pubrick, Chairman of the Council of Anti-illegal Betting and Related Financial Crime of the Asian Racing Foundation, is one of the world’s most knowledgeable racing officials on illegal offshore operations. He said, “Illegal betting operators have an increase in customers visiting their websites that is almost twice as high a growth race as legal licensed operators. Illegal betting is a major threat to racing and sports integrity, and if not combatted, can completely undermine public confidence in racing and sports. As betting on horse racing and other sports continue to globalize, it is increasingly difficult to differentiate between online legal and illegal betting operators.”

Meanwhile, sports gambling continues to grow. According to Moore, racing handle in the United States last year was more than $11 billion, and sports betting in January 2023, was $10 billion—a number which will only grow when Kentucky adds it.

“This is an important opportunity for racing,” Moore said. “It’s very important for racing not to miss that opportunity. My fear is that if this chance is missed, sports bettors will find different things to bet than horse racing. This is where the new audience is. This is where the next generation of bettors is. I’m really excited about getting horse racing in front of them.”

How will they respond? FanDuel started its new horse wagering/sports wagering app in December. “We’re seeing a strong takeoff,” Moore said. “We have had tens of thousands of people betting on horse racing for the first time. We’re very excited for the Kentucky Derby to come.”

Asked if there’s a risk horse racing bettors will switch to sports betting, Moore said, “They already are. That doesn’t mean they’re going to abandon horse racing. Racing as a stand-alone product can’t compete with sports betting. It needs to be available in that world.”

Asked the same question about losing racing bettors to sports betting, Fleming said, “Sports betting far outweighs the risk.”  

Will that new audience demand a different form of wagering more in tune with their experience betting on sports? “I think that fixed odds is a huge opportunity in the United States,” Moore said. “I think it would be a game-changer. I love pari-mutuel, but pari-mutuel is dated. There are a lot of important considerations with fixed odds. Horsemen and tracks are very wary. But pari-mutuel is already fading out. Opportunities to innovate would be worth the risks.”

Monmouth Park has already taken that risk. The New Jersey track began offering fixed odds last August. “Five years from now, fixed odds will be 50 percent of the handle on horse racing in New Jersey,” Monmouth Park’s Chairman and CEO Dennis Drazin told John Brennan on August 4 in his online story (njonlinegambling.com), “younger people love it because they are used to a sports betting mentality. A lot of older bettors—they are more reluctant to try something new. We need something to attract a lot of new customers, and the idea of fixed odds has always appealed to me.”

It’s appealing to lots of people around the globe. At the National Horsemen’s Benevolent & Protective Association and Association of Racing Commissioners Conference March 6–10 in New Orleans, Michele Fischer, vice-president of SIS Content Services, said that $44.3 billion globally was wagered worldwide through fixed odds on horse racing last year—led by Australia ($19.1 billion) and the UK ($12.9 billion). “We’ve really had a mantra to educate our members on what’s coming,” National HBPA CEO Eric Hamelback told Jennie Rees in her story about the conference. “I believe sports wagering and fixed odds are in our future. But it’s up to us to continue to educate everyone properly on the pros, the cons and the nuances of what’s going on.”

Moore is certainly doing his part. “We have a lot of skin in the game,” Moore said. “We have a lot of long-standing partnerships. Whatever we do, we’ll be in consultation. Over the next few years, we’re going to push it hard. You can bring a lot of new customers into the sport. We all know the frustration of going to the window, placing a bet and thinking you’re getting 5-1, and getting much lower odds. Try to explain that to a new customer. When you bring someone new into racing, it’s hard to hold on to new bettors in the age of instant gratification.”

Cummings says he’s a “huge fan” of fixed odds, with a twist: “We need it. We don’t need it to replace pari-mutuel wagering. We need it to complement pari-mutuel wagering.”

Pari-mutuel wagering suffers when huge bets are sent electronically in the final seconds before post time. They skew odds and screw winning bettors with dramatically less return.

In his March 23, 2023, story in The Financial Times, Oliver Roeder wrote that computer-assisted wagers (CAWs) made by four very large bettors generate as much as one-third of the national handle for the year.

He also said that research from Cummings showed CAW handle has increased 150 percent in the past 20 years, while betting from the general public decreased 63 percent.

“The current trend is that the one or two biggest players are having a deleterious effect on mainstream players for sure,” Cummings said. “It causes higher takeout, less churn and really makes it difficult for your average player. Mandatory payout days are feeding days for the CAWs. They kill it on mandatory payout days.” 

Fixed odds eliminate that problem.

Racing’s inherent nature could be a powerful inducement to sports bettors who want instant gratification. Sports bettors must suffer through two or three hours of changing scores, momentum shifts and possibly meaningless scores at the end of a game that can cost them their wager. Horse races are over in two minutes or less. And simulcasting allows bettors either on-track or off-track to switch racetracks in seconds.

Racetracks from different countries working together can keep all bettors busy. With commingled pools, odds can be more attractive. “For the Breeders’ Cup, we started with international combined pools in 1996,” Fleming said. “We are very proud we had 26 countries mingle into our common, global pool last year. Then we had seven other countries with separate pari-mutuel pools. To the Breeders’ Cup, we put our international participation as one of our pillars. We seek the best horses and also work with our global partners to promote the sport internationally and have strong international wagering.”

Of course, the Breeders’ Cup isn’t the only entity already working internationally. On September 22, last fall, the New York Racing Association Current Management Solutions (CMS), a subsidiary of NYRA, and 1/ST Content announced a 10-year partnership to expand distribution of North American racing internationally. Part of the agreement calls for NYRA CMS to acquire a significant equity position in TSG Global Wagering Solution, a 1/ST subsidiary company. 

“This agreement assures that North American horse racing’s stakeholders are the primary beneficiaries of revenues generated through international wagering, further strengthening the domestic industry for the next generation of fan and bettor,” according to 1/ST Content’s CEO Gregg Colvin. NYRA’s Chief Revenue Officer Tony Allevaro said, “Sports fans and bettors around the world can look forward to more coverage of top-quality racing than ever before.”

1/ST Content’s distribution network stretches to the United Kingdom, Ireland, Europe, Australia, New Zealand and Africa, as well as serving 1/ST Racing’s Gulfstream Park, Santa Anita, Golden Gate Fields, Laurel and Pimlico, NYRA’s Belmont Park, Saratoga and Aqueduct, Del Mar, Keeneland, Tampa Bay Downs and Woodbine.

On April 4, it was announced that from May 1, BetMakers’ Global Racing Network’s (GRN) race meetings will be available for inclusion in 1/ST Content’s broadcast schedule. This will result in signals from tracks such as Kentucky Downs, Charles Town, Mahoning Valley, Penn National, Sam Houston, Zia Park and Monmouth Park benefiting from increased global exposure.

BetMakers’ Chief Executive Officer Jake Henson said, “The partnership with 1/ST Content is designed to be an important addition to BetMakers’ Global Racing Network, further broadening our global racing distribution base with a strong and credible partner in expansive markets, which can deliver enhanced returns to our racetrack partners.”

Founded in 2000, Betfair has been offering international wagering for more than 20 years. With its headquarters in Hammersmith in London (England) and overseas hubs in Malta and Ceuta, Spain, Betfair offers horse racing, sports betting and online casino, poker and bingo.

In November 2009, Betfair announced a deal with the New York Racing Association to start wagering immediately on Aqueduct. TVG Network, which is now FanDuel TV, was acquired in 2009 for $50 million. In February 2016, Betfair merged with Paddy Power to create Flutter Entertainment. Two years later, Betfair offered live-betting customers fixed odds. 

Another European company, XBGlobal.com, based in Germany, offers customers wagers, which are “directly commingled into host track pools, giving you access to the world’s most lucrative wagers,” and offers marquis Thoroughbred tracks in the United States, simulcasting from Chile and greyhound racing. XBGlobal.com is an affiliate of Xpressbet, LLC, on file with the Oregon Racing Commission—a site chosen because of tax advantages.

There is a worldwide racing stage, and North American tracks have yet to be involved. The World Pool offers international, commingling pools with top racing events operated through the Hong Kong Jockey Club. The first World Pool event was at Royal Ascot in 2019. Since then, it has been expanded to cover the Dubai World Cup in Meydan, the 2000 Guineas at Newmarket, The Oaks and The Derby (both run at Epsom Downs in the United Kingdom), Gold Cup Day in South Africa and Irish Champions Day at Leopardstown in Ireland. 

This year, the World Pool has been expanded to include the Lightning Stakes Day in Australia, the Saudi Cup and the Irish Derby. That gives the World Pool 25 dates, up four from last year, including Melbourne Cup Day in Australia.

Asked about the World Pool, Breeders’ Cup’s Fleming said, “We have continued dialogue with Hong Kong and other jurisdictions. Hong Kong did the Breeders’ Cup last year. Anything is possible. We already operate our own global pool since 1996. We want to grow the pie.”

FanDuel’s Moore said, “It will be interesting to see how it works out.”

The same can be said for new wagering innovations in a continually changing global landscape. Racing’s future depends on it.

“We need to modernize and give our customers confidence that we can compete for the wagering dollar,” Cummings said. “We’re really not trying today. We’re existing. There are a lot of reasons to be pessimistic about horse racing, but there’s one key positive. We have not tried to grow the betting. We need to modernize and give our customers confidence that we can compete for the wagering dollar.”

The competition has never been greater. Technology waits for no one.   

Marketing racing - the efforts being made by tracks across North America

By Ken Synder

At some point in time—70 years or so ago in the 1950s—the decision was made by the “powers that were” in horse racing to not broadcast races on the burgeoning medium of television. There was a fear that it would keep fans home watching racing on TV rather than at the racetrack. The decision, of course, backfired. On-track attendance diminished in a sport that had historically been part of a “Big Three,” which included baseball and boxing.   

In one of those strange twists of history, the decision also succeeded many years later in driving the biggest part of racing’s fan base to… guess what? Television. Today, TV networks like TVG broadcast racing from around the country, and even the world, to viewers at home with Advance Deposit Wagering accounts. 

Things, obviously, have changed and changed hugely. But some things haven’t. The following newspaper headline, provided by Aidan Butler, chief operating officer of 1/ST Racing and president of 1/ST Content, is as true then as it is now: “No young people come racing anymore.” When was it written? The 1930s.

Young people and equally, if not more importantly, new owners don’t “come racing anymore.”  

Ironically, television is the lifeline for the sport and perhaps the “tip of the spear” for bringing in those missing young people and new owners.

In 2019, at one of the sport’s major venues, Santa Anita, there were 13 racing fatalities on the dirt surface. This may have been the nadir for horse racing, threatening the very existence of the sport in California with potential effects rippling to racetracks across America and those involved in breeding and sales in Kentucky and Florida. But in a state with the most virulent cancel culture, Santa Anita—specifically the Stronach Group and 1/ST Racing—“canceled the cancelers.” In 2020, there were zero racing fatalities on the dirt surface.

What do animal welfare and safety have to do with marketing? It’s elementary: Marketing begins with a product. “The best thing we’ve got is the horses above anything else,” said Butler. 

“The world is changing. Do people want to be involved or watch a sport that involves animals? There’s not one group now that doesn’t have an outlook toward the animal welfare and the care of the animals to make it safer.” 

He offers a brutal assessment of the past, which may account for racing’s journey to some kind of abyss in 2019. “We’ve inherited an old-fashioned model where maybe it [safety] once wasn’t the core focus.” 

“The culture now in California, particularly at Santa Anita, is one that, if anything goes wrong, everybody is horrified. Everybody sees that there’s not going to be a future. For years, when something went wrong, it was an accepted thing.”

The safety of horse and rider is part of a big jigsaw puzzle, he said, but perhaps it is the most important piece in marketing a sport perceived negatively by many. He recalled a dinner in California with someone who visibly winced when informed Butler was part of the racing industry. “He said, ‘You’ve been having a lot of injured horses, right?’” Butler conceded that yes, that was the case in 2019 but then went through changes that produced dramatic improvements—most critically vet inspections during training hours—to get across that positive animal welfare, born out statistically at Santa Anita, has never been higher.  

“In 30 minutes, he couldn’t wait to come out to the track,” said Butler, adding with a laugh, “It’s going to take a long time to go through everybody in California over dinner.”

Of course, that’s where marketing in the traditional sense takes over, but not all in the traditional mediums of radio, TV and newspaper. For younger potential fans, “the first touchpoint these days is digital,” said David Wilson 1/ST’s chief marketing officer. “It’s on the iPhone or smartphone. Having strong social media is really our opportunity to cultivate our community, connect with them and inspire them to come to our tracks. 

“It’s about the convergence of sports, entertainment and technology.” Wilson believes the task is creating narratives and stories that will capture the imagination of potential younger fans who have had  little or no exposure to horse racing.  

Part of that too, according to Wilson, is marketing to younger fans in audiences not previously targeted. “We need to look at how we are addressing women in the sport. How are we addressing African-American and Latino communities? How are we making sure that any minorities have opportunities not only to work within our companies but to feel represented? We make very conscious efforts that if we want to be a modern company, we want to address all of our customers, and all of our customers are diverse. Our marketing and our social platforms and the inspiration between the sport and entertainment all need to reflect that.”

Traditional markets as well are being looked at in new ways. “Your owners bring other people. These are potentially new owners and it’s grassroots, but it is something that’s been overlooked.” 

To show appreciation to owners, all 1/ST race tracks make “best turned-out” awards every day—something routine in the UK and Ireland but novel in the U.S., except for major race days.  Champagne toasts after every win are also standard at tracks.   

“It’s so difficult, especially during some of the big meets, to get a winner; and you have to try and bend over backward to show the owners that you are really thankful for their participation,” said Butler.

For bettors and others who love horses or simply want a day at the races, one task for racing marketers is how do you add to weekday attendance on, say, a Wednesday afternoon at Gulfstream Park in the blazing summer heat? “There is really no easy answer,” Butler admits, but there is effort. Gulfstream is attracting people to the track for business lunches with food and beverages on par with the best restaurants and a backdrop the restaurants, of course, can’t offer: horses.  

Gulfstream is also exploring the engineering for lighting the racetrack for night racing, which should boost on-track attendance on those days that normally don’t draw a lot of fans while also beating the Florida heat.  

1/ST is not the only racetrack seeking enhanced owner-engagement and new fans, especially in the wake of COVID-19. Some tracks are also doing things to combat unique obstacles.

Canada’s Woodbine Racetrack in Toronto—the premier racing venue in Canada—is challenged by a dearth of owners. “We don’t have tax benefits for owners like you get in the States,” said Martha Wakeley, who manages horsemen concierge services and is also manager of Racing Operations. The biggest hindrance, however, is a population base generally without a family background in racing unlike the U.S., where racing is bequeathed to succeeding generations in places like Kentucky.

COVID, oddly enough, offered Woodbine an opportunity to evaluate the owner experience. Because COVID allowed only owners on track during lockdowns, management was able to see and define needs in hospitality and customer service that had, perhaps, gone unnoticed before. Wakely called it a “silver lining” that came out of the pandemic. “We opened an exclusive lounge just for owners and trainers and their guests,” she said, noting that most trainers at Woodbine are also owners.  

The goal with owners is to recognize their importance and to make them feel special. Part of that, too, is for guests of owners to see that their hosts and hostesses are very important to Woodbine. Wakely stated something that is obvious but still often overlooked: “Without the owners, we don’t have a job.” 

The track has invested much time and travel in marketing to owners as well as everyday race fans.  Hospitality teams from Woodbine have visited Santa Anita, Saratoga, Keeneland and Churchill Downs to study and replicate what works at U.S. tracks.

Woodbine may, however, exceed the U.S. customer experience with concierge services beyond the racetrack. “We have looked at groups coming in for stakes races and being available to book golf tee times and tickets to the theater,” said Wakely. “We want to be able to offer all that to make it a whole weekend experience.”

The experience at Keeneland Race Course in Lexington, Kentucky is well-known; it is the “Fenway Park” of American racing—the required destination for “racing as it was meant to be,” to quote a marketing theme from years back. It is arguably the most picturesque and bucolic in the world. It is also not lacking for patrons. In the last pre-COVID year, 2019, Keeneland’s daily attendance average was just over 15,000 for the spring/April meet and was slightly higher in the fall/October meet.

So what do you do when you don’t lack for owners and, most critically, racing fans? In the case of Keeneland, they have written the proverbial book on corporate sponsorships. Two sponsors, Toyota and Maker’s Mark bourbon, have surpassed 25 years with Keeneland. Two other sponsors—Rood & Riddle Equine Hospital and Darley—will reach the 20-year mark with Keeneland this year.

“Sponsorships are incredibly valuable to Keeneland, as they provide important funding for our racing purses, our investments in fan education, advancements in safety and integrity initiatives, philanthropic initiatives for our sport and the central Kentucky community…and the list goes on and on,” said Christa Marillia, Keeneland vice-president and chief marketing officer.

In Lexington, local horse farms like Claiborne Farm, Coolmore, and the aforementioned Darley also sponsor premier stakes races, essentially investing in their own industry. “They buy and sell horses at our auctions, compete on our racetrack, and understand and appreciate the full circle of Keeneland’s business model,” Marillia said.

NYRA & Fox Sports host and paddock analyst Maggue Wolfendale (L) with host and reporter Acacia Courtney (R)

In an irony of ironies, racing beyond Triple Crown races and the TVG network catering to ADW accountholders has made its way to national telecasts regularly.  “America’s Day at the Races,” produced by NYRA and airing on Fox network channels FS1 and FS2, features live racing on Saturdays and Sundays.  The impetus for NYRA was entry into the ADW market, a revenue stream already flowing for Twin Spires, Express Bet and TVG. “We really were playing catchup so we thought we needed a TV strategy,” said Tony Allevato, chief revenue officer for NYRA and president of NYRA Bets.

“Our original concept was we would pick up selected dates during the year and put them on Fox regional networks—Fox Sports West, Fox Sports Ohio. We put together a pilot and showed it to Fox. They loved it,” said Allevato. Instead of a regional strategy, however, the pilot spurred Fox to suggest a show on FS2, broadcasting nationally.  

The first production was a daily show from Saratoga, two hours a day and produced by NYRA’s TV department with input from Fox that amounted to 80 hours the first year.

“We got a fantastic reaction from the industry,” said Allevato. Broadcast hours were added, and Fox acquired equity with NYRA, which gave the network a slice of the ADW wagering. “We’ve provided an extra revenue stream for the telecast. Not only is there the traditional advertising and sponsorship revenue, but you also have wagering dollars coming in; and it’s become a win-win for both of us. For Fox, they’re incentivized to give us the most distribution possible.”

Distribution included the recent Arkansas Derby, broadcast on FS1 as part of “America’s Day.” “We have a couple of shows that will be on Fox [the main network] this year, which will be over a million viewers for each one of those. That’s more eyeballs watching horse racing, more wagering, more account signups, more fans. It’s really almost like we’re creating a new ecosystem to help grow the sport,” said Allevato.  

Growth is aimed at more than just ADW accounts, he added. “Even though the sport has really gone to online betting, our goal is to get people to come to the track. That’s our number-one goal. We believe once you come to the track, you will become a fan for life.”

“America’s Day” content is aimed at driving live attendance at racetracks. “The stories are all there:  Within every race, there’s an owner, there’s a trainer, there’s a jockey, there’s a groom, there’s the pace of the race, there’s the favorite.”

NYRA doesn’t forget marketing to owners either, according to Allevato. “One of the rules for our show is we must interview one owner at a minimum, and that doesn’t mean just for a million-dollar race; it can be for a ten-thousand dollar race. 

Allevato, too, points with pride to production values that rival, if not surpass, that of other sports. “When we’re covering a race in New York, we’ll have 35 cameras on a certain select day, compared to a college basketball game with seven cameras. That is a real big-time production.  

NYRA & Fox Sports TV analysts Andy Serling (L) and Anthony Stabile (R)

“With the Arkansas Derby, we had three people at Aqueduct contributing remotely and six announcers at Oaklawn Park.  

“We believe horse racing is our sport. We want people flipping through the channels, land on a Fox Sports 2 or FS1, see “America’s Day at the Races,” and go, ‘Wow, this is major league!’ We don’t ever want to come across as a second-tier product.”

Can all of this be “the start of something big,” to borrow from the song title? Combined with the Horseracing Integrity and Safety Act potentially providing central governance, successful marketing aimed at improving on-track owner-trainer-fan experiences, and NYRA’s venture into national television the impact, are promising. Can it take racing back to its preeminent days in the first half of the 20th century, when it was one of the three biggest sports in the land? There is more competition for sports fans than in the ‘50s.  

If “something big” isn’t starting, however, there’s a better-than-average chance racing may be in store for something bigger at least.