Cool reception for off-track betting bills

Malcolm Johnson

Monday, May 1, 2000 | 10:27 a.m.

LANSING, Mich. - A proposal to permit off-track betting on horse racing in Michigan is being touted as badly needed help for the state's beleaguered horse-racing industry.

But it's hardly a hands-down winner, and may be lucky to get out of the starting gate.

Michigan's horse-racing industry is solidly behind the idea, and a Republican lawmaker has introduced legislation in the GOP-run Senate to permit it.

But the early odds are not with horse-race fans who want to place their bets in an off-track betting parlor.

Among the idea's hurdles are skeptical lawmakers, coolness on the part of Gov. John Engler, the opposition of antigambling groups and the addition of casinos in Detroit and elsewhere that is testing the public's acceptance of gambling.

"I generally am not in favor of off-track betting myself, but I want to see where the committee is," said Sen. Glenn Steil, R-Grand Rapids and chairman of the Senate Gaming & Casino Oversight Committee, which will review the legislation.

"We have enough trouble with horse racing without off-track betting," he said. "I don't plan to call for a vote anytime soon."

That lukewarm response won't be much comfort to Sen. George McManus, R-Traverse City, who introduced the bills to permit off-track betting on thoroughbred and harness racing, as well as off-track simulcasting. Now, simulcasting is permitted only at the race itself.

Already, he has planned to narrow the bills to eliminate wagering by telephone. Allowing slot machines at tracks, another item on racetrack owners' wish list, is not being discussed.

McManus said allowing off-track betting and simulcasting isn't a partisan issue and could win the Senate's support.

"It would assist keeping purses so we have an active horse-racing industry, and that means we keep an agriculture industry alive," McManus said.

"Before we had casinos, it (horse racing) was an important part of recreation. Then casinos came along and the gambling set headed in that direction. There could be a renewed interest in horse racing if it becomes that thing to do; it could make a comeback."

Engler spokesman John Truscott said the governor supports the horse-racing industry, but is opposed to a big expansion of gambling. "There are some things in the McManus legislation we can agree to; if it's narrowed down I think they have a good chance," Truscott said.

Poised to fight the bills is the Michigan Interfaith Council on Alcohol Problems, which along with other groups opposes any expansion of gambling.

"We opposed the lottery when it was proposed," said the Rev. Allen Rice, a Methodist minister and executive director of MICAP. "We said that's not the way to go. ... Michigan is paying a heavy burden for the gambling that's underway."

Backing the legislation is the state racing commissioner and the horse-racing industry, which argue that off-track betting could revive interest in horse racing and help Michigan's seven race tracks.

"We think it's a positive step to expand the horse-racing audience," said Racing Commissioner Annette Bacola. "Off-track betting will be a big boost."

She acknowledges, however, that more will be needed to revive interest at the tracks.

"I don't see any magic pill," including off-track betting and simulcasting, that will be the only solution needed to pump up the attraction of horse racing, she said.

Deputy Racing Commissioner James Bowes said horse racing in Michigan "is in dire need of other opportunities for citizens of this state to participate" in wagering.

Under the McManus proposal, he said, the state would have off-track betting facilities where people could wager on races occurring in Michigan and around the country.

"We are trying to patchwork this to keep racing alive," he said, adding that pushing off-track betting through the Legislature won't be easy. "The political arena is supercharged by opposition to gambling," he said.

Bacola told McManus in an April 19 memo that off-track betting could produce $225 million annually in wagering. Citing experience in Illinois, she said, that would represent "a significant increase" in the amount bet on horse racing.

The possible $225 million from off-track betting would increase annual wagering again by half. In 1999, $416.6 million was wagered on horse racing. Combine the two, and Michigan could see a total of $641.6 million or more wagered, according to figures from the state Office of Racing Commissioner.

Bacola said Illinois saw a drop in wagering at its tracks when it began off-track betting, but an increase in total wagering. She warned that actual wagering in Michigan "may vary widely" from her estimates.

Jack Kubik, executive director for the Illinois Racing Board, said Illinois has seen a shift in how dollars are bet, but not a huge increase in wagers.

"A lot of it has been a matter of convenience" for bettors, he said. "The jury is still out."

Last year, Michigan race tracks attracted more than 1.7 million people to 2,218 races, producing $13.2 million in state revenue from the $416.6 million bet at the tracks. The state gets 3.5 percent of the money wagered, said Kenneth Christopher, executive secretary of the state Racing Commissioner's office.

Like Bacola, Michigan track executives don't see off-track betting as a magic bullet. But it's better than doing nothing, they say.

"We're having a difficult time right now. We're surrounded by states that support their industry," said Daniel Rakieten, general manager of Jackson Harness Raceway.

"Without this legislation, Jackson (Harness Raceway) is in jeopardy of closing. I can't compete with a casino without additional tools. ... They're taking our customers away."