Casinos give horses a run for their money

Friday, Oct. 2, 1998 | 10:03 a.m.

Horse racing once was a $1.2 billion industry that provided 42,000 jobs at seven tracks across Michigan. It survived challenges from economic recessions, the state lottery and Indian gambling resorts.

Attendance at Michigan tracks peaked in 1971 with nearly 4 million fans, but dipped to 1.7 million 1995, the year after Casino Windsor opened in Ontario.

"We're down to our hard-core fans," Deputy Michigan Racing Commissioner Tom Dorsey told The Detroit News in a report Friday. "We took our biggest hit when we lost 35 percent of our handle in 1994 to the opening of Casino Windsor. But I think horse racing, with a little help, will survive in Michigan."

Besides racing itself, Dorsey said, other options for horse tracks could include the addition of slot machines and betting by telephone.

But any new proposals to increase wagering would need approval from legislators and Gov. John Engler, a staunch opponent of increased gambling in the state.

Officials in Hazel Park are exploring the idea of bringing Indian gaming to the harness track there. A Meijer Inc. outlet is being considered to recover some of the $825,000 in annual revenues Livonia will lose when Ladbroke DRC, the state's only thoroughbred track, closes at year's end.

"The racetrack was an eyesore and the revenues fluctuated greatly," Livonia Councilman Brian Duggan said. "This project will give us a more stable tax base for our budget."

Northville Downs, now a harness track, might pick up the Ladbroke slack. "We'll go after (DRC) customers," general manager David Karoub said.

With a decreasing fan base in Hazel Park, nearby land earmarked for expansion is being considered for other projects, such as a public ice arena.

"The track revenue represents about 10 percent of our general fund budget," City Manager Jospeh Young said. "If the track closed, we'd have a serious problem delivering basic city services such as police and fire protection."

Another proposal calls for opening a full-blown casino at Hazel Park Raceway.

"With the inevitable approach of casinos into Detroit, we're looking for ways to compete," Hazel Park Mayor Ben Colley said. "Were looking at a variety of options, including petitioning the state Legislature as well as bringing in Indian gaming."