Racing and Slots Combination Still Up for Debate
Friday, December 31st, 2010The creation of racinos is causing some controversy in the market. A racino is a combination of race track and slots parlor. Race tracks these days are suffering. More and more are having problems. Since the recession, race tracks have had steadily declining numbers and it seems that nothing can revive them. They have tried building bigger races and bringing in more scheduled races, but nothing is working. As a last ditch effort, many are petitioning their home states in an effort to get approval for bringing slot gaming in. It is no secret that slots gaming is highly lucrative and that it is one of the final ways for economies, and race tracks, to try to save themselves. Slots are credited with bringing in 60% of the revenue that Las Vegas casinos have right now. They are the games that single handedly are allowing the casino market to continue to hold on. That is no small feat. This is why now race track owners are looking to the games as a means of building their own businesses up. There is a problem though.
Legislators are pushing for race tracks to get their slots, but not without an added cost to the public. Sure they can expand slots gaming, but it could threaten the markets for local gaming companies. For example, a land based casino is no doubt going to suffer some losses once slots are offered at race tracks throughout the states too. Plus, with the rise in the online market this too is thinning down the market. Though gaming companies are entering the market, there aren’t as many new gamers entering to support them at the past levels of performance. In addition, some states are hoping to put millions into the racing industry as a way to save it. They are taking a lot of criticism from anti-gambling activists. They maintain that race tracks are the last things legislators should be putting their money into…especially since the recessionary aftermath is still alive and well. Nothing is back to normal just yet and businesses are stressed financially. Is this the right time for legislators to earmark millions to a steadily-dying market like race tracks?

