The horse racing industry, which has a strong presence in this part of Ontario, is in a race against time. Wellington County Warden Chris White says the county has only about a month to push its message using a short video it has created in defence of the industry and the subsidy it has been getting since 1998 through the province’s Slots at Racetracks program. Next month is the annual sale of yearlings destined for racing, and, unless the provincial government makes concessions, people in the industry are worried there won’t be much interest in these young horses among buyers.
As things stand now the Slots at Racetracks program, introduced in 1998, is to end next spring, according to Ontario’s approved 2012 budget. The budget also contains a $50-million transitional fund to help people in the horse racing industry start new careers.
The move by the Liberals to end the Slots at Racetracks program, in favour of a different approach that includes more emphasis on casinos, followed economist Don Drummond’s report in February on ways to bring down Ontario’s deficit. Drummond criticized the subsidies to the horse racing industry. “Over the past 12 years,” he wrote, “approximately $4 billion has flowed through 17 racetracks to support purses, racetrack capital improvement and operating costs. Ontario’s support is 10 times that of British Columbia, which has six racetracks, and 17 times that of Alberta, with five racetracks. Ontario’s approach is unsustainable, and it is time for the industry to rationalize its presence in the gaming marketplace.”
Ontario Lottery and Gaming Corp. “would make much more money if slots were permitted elsewhere” in “more convenient” locations than at racetracks, Drummond said.
Drummond probably makes a good point. However, pulling the rug out from under the horse racing industry by ending the slots program so quickly seems a bit drastic. Politicians in Wellington County, where the Grand River Raceway is located at Elora, are warning of job losses and a hit on county finances.
It’s too much to turn off the tap cold turkey and leave affected parties scrambling. The province should find a way to wean the industry off this lucrative cash flow in a more gradual way. A compromise needs to be found.