Warden Chris White isn’t holding out much hope for any reversal by the provincial government on its decision to end the Slots at Racetrack Program (SARP).
The Liberal government has announced a halt to the program, which was expected to provide an estimated $345 million to the horse racing industry from profits derived from slot revenues.
“In terms of the horse racing industry itself, it’s over,” White said.
A provincially-appointed transition panel, set up to study the impact of the government’s budget decision to end the funding, released its interim report last week.
Minister of Agriculture Ted McMeekin said the panel, made up of former Ontario cabinet ministers Elmer Buchanan, John Snobelen and John Wilkinson, is expected to submit its final report to the government by the end of September.
“The panel believes it would be a mistake to reinstate SARP, as many stakeholders advocated,” the panel’s interim report states.
“The program has provided far more money than was needed to stabilize the industry – its original purpose – and has done so without compelling the industry to invest in a better consumer experience. Slots revenue enabled the industry to avoid facing up to the challenges of today’s intensely competitive gaming and entertainment marketplace.”
Industry supporters were planning to attend Queen’s Park on Thursday to lobby the government to reverse its decision. Wellington-Halton Hills MPP Ted Arnott was also expected to introduce a private member’s bill calling on the Liberal government to reconsider.
“I’m going to be talking about this report in the house (Aug. 30),” Arnott said.
Dr. Ted Clarke, general manager of the Grand River Raceway, said the horse industry is assessing the content of the interim report. The raceway, according to Clarke, will lose some $4 million in revenue annually when the program is dropped.
“A great deal of money was invested in this program,” he said.
He added the panel’s report does open up possibilities the industry should explore, including a better working relationship with the government and potential new revenue sources at the track.
“We’re looking at a means of changing what is a strong negative,” said Clarke.
Like other supporters of the SARP, he was hoping the Aug. 30 rally and private member’s bill will persuade the government to reverse its decision.
Clarke agreed the industry should have been looking at alternative revenue sources to the program, knowing government programs seldom last.
The government’s transition panel also had a mandate to determine whether funding to assist the industry when the SARP ends was adequate.
“The panel concluded the $50 million allocated over three years to support the transition is insufficient to build a bridge to sustainability,” the interim report states. “Overall, the horse racing industry now derives 63.6 per cent of its purse revenue from SARP. Few, if any, industries could survive such a sharp financial loss.”
The panel concluded a viable, world-class industry requires public support to sustain its core elements, including an adequate number of races, competitive purses, state-of-the-art tracks, quality breeding programs, skilled personnel and a growing pari-mutuel wagering pool.
“However, any future investment of public dollars should be based on clear public interest principles, including, accountability, transparency, a renewed focus on the consumer and a business case showing that each public dollar invested is returned to the government through tax revenues.”
The panel is calling for further research and analysis to plan and implement a new partnership between the industry and the government.
White said the issue was raised at the recent Association of Municipalities of Ontario (AMO) convention held in Ottawa last week with supporters of SARP unable to convince provincial ministers of its viability.
The government has maintained the funding will be transferred to education and health care, as the cash-strapped Liberals try to get a handle on a $15 billion deficit.
With two coming provincial by-elections, the government, according to White, is in a “holding pattern.”
The county produced a $4,000 video on the impact the government decision will have on the local horse racing industry. The documentary focused on concerns from those connected directly and indirectly with the industry and was sent to each MPP in a bid to persuade the government to reverse its decision.
White, like others, is waiting to see what the final transition panel report will conclude.
