Protectionism Doesn't Halt Kentucky Track Gambling Disadvantage
Governor Steve Beshear's rabid attack against online casinos has not prevented Kentucky racetracks from suffering at the hands of competition. Although Beshear's ongoing move to force forfeiture of 141 Internet casino domain names has caused some online gambling venues to withdraw from Kentucky in particular and the U.S. in general, horse tracks are still losing revenue. While some of the damage may be in direct response to Beshear, as calls to boycott Kentucky gambling have echoed around the Internet, more is related to strict Kentucky gambling laws that prevent tracks from achieving an even playing field.
States that use video poker and slots at their racinos to help fund purses are drawing horsemen away from Kentucky. Louisiana and Pennsylvania have become meccas for the racing industry, as good track management has combined with well-reasoned law to devise systems that help horse racing grow, while allowing patrons other forms of gambling.
Churchill Downs has dropped purses in its current meet. Tough economic times, plus the lingering boycott of unhappy Internet gamblers, and the nearby availability of racinos in Indiana and Pennsylvania, have led to diminished crowds. Meanwhile, Pennsylvania purses have more than doubled since slots and other gambling was brought to tracks.
Sherman Bradley, the Online Casino Advisory gaming analyst who originated the boycott, says, "Beshear would better serve his state by pushing to fulfill his campaign promise to bring casinos to Kentucky, rather than worry about blocking online casinos. Gamblers find ways to gamble, and they will discover a new Internet method, or drive across state boundaries, to play as they choose.
"The best way to increase state revenue and support the tracks would be to improve the gambling environment there, by adding slots and video poker. Of course, if the Governor follows his past thinking, he'll next try to prevent cars from driving over state lines."
