Ontario Premier Kathleen Wynne announced transition funding for the Grand River Raceway at a press conference here on March 8.
“We’re committed to a sustainable industry, not just today but in the future,” Wynne told those attending the press conference at the track.
“It’s about the jobs, it’s about tourism, it’s about the vibrant industry that has been in this province evolving so it can be sustainable.”
The premier announced transition funding for Grand River Raceway, along with tracks at Western Fair, Clinton and Hanover, but she did not release financial details of the three-year agreements.
Similar agreements have been reached with Woodbine and Mohawk racetracks, while talks continue with the remaining tracks in Ontario.
Transition funding for the horse racing industry was recommended by a transition team looking at ways to support the industry after the Liberal government announced late last year it would end its Slots at Racetracks program that allocated a portion of slot profits for the horse racing industry.
The program, which annually generated about $345 million for the industry, is set to end on March 31.
It’s estimated by the Ontario Horse Racing and Breeding Association that slot machines at the province’s 14 racetracks generated $1.1 billion for the government each year.
The association has warned halting the slots program would put 60,000 jobs at risk and decimate the industry. It estimates slot revenue accounted for 64 per cent of the annual income for the horse racing industry and more than 60% of purse money.
Former premier Dalton McGuinty ended the program in a bid to free up money earmarked by the cash-strapped government for education and health care.
Wynne declined direct comment on whether the latest efforts to work with the horse racing industry were a turnaround from the policy brought in by the former government.
“There was an arrangement in place. That arrangement is changing, the industry is evolving and we (the government) are going to work with them,” said Wynne. “There’s a full range of jobs supported by this industry and I recognize that.”
The government has been looking at alternatives in a rebuilding of the industry that would integrate new gaming options with horse racing under a new model supported by the transition team.
“Over the past few months there’s been work done to try and come up with a plan. The owners and operators are going to have to make a decision if they want to be part of the model,” Wynne said, referring to transition fund agreements yet to be reached.
The transition funding agreement announced by the premier last Friday will ensure a 2013 race season at Grand River.
The premier declined to comment on how much money is involved in the agreement, claiming public disclosure could “jeopardize” further negotiations.
“The panel made clear there needs to be different revenue sources,” the premier added, referring to the loss of the slots program.
“A sustainable horse racing industry is going to be smaller.”
Track general manager Dr. Ted Clarke said the announcement coincides with a tentative lease arrangement reached at the track.
“I feel significantly more confident,” Clarke told reporters after the announcement. “We have a future.”
“The key to what she said was integrating of racing and gaming,” Clarke added, referring to the new model. “Therein lies great opportunity for racing and this facility.”
The announcement of the end of the slots program left the industry in a quandary, Clarke acknowledged.
“I think we’ve been operating under a bit of a cloud in the last year and this lifts some of the cloud.
“We have a lot of plans to do,” he said of the upcoming race schedule at Grand River.
Wellington County Warden Chris White was also confident the announcement will assist the industry in re-establishing its position.
“This transitional funding announcement suggests that the horse racing industry in Ontario will continue, but it will definitely be a downsized model of the former industry,” said White.
The county has been involved in efforts to assist the industry since the province announced it would end the slots program, including hosting a rally and putting together a six-minute video in support of the local industry that was sent out to all MPPs.
“It’s a positive deal,” White added.
Paul Lindsey, treasurer with the Ontario Harness Horse Association and a local association representative, said the announcement included nothing about industry breeders.
“It looks like for the breeding industry there’s very little care for the people,” he said. “We’ve got to rethink our whole scenario here.”
He sees the announcement as a deal strictly between the government, the tracks and the Ontario Lottery and Gaming Corporation, which is charged with the casinos at tracks.
