Monday, August 13, 2012

So Who Do We Get to Run NYRA?


NYRA

There was a commentary in the Thoroughbred Times this weekend calling for Governor Cuomo to appoint a “cold-hearted” CEO of NYRA.  The author wants the fans to be put first.

There is some real merit to the article, but I think the author wants to take this in the wrong direction.

NYRA has always been run by horse racing people.  People who know and love the business.  I think the flaw in the business model may lie there.  NYRA has a long and storied history of running NYRA, as a business, into the ground, and then screaming for the tax payers to bail it out.

What New York State needs is a cold hearted CEO, who can run NYRA like a business.  With the baskets full of cash coming from the VLT’s this can be done.  NYRA can succeed.  NYRA can be profitable (or at least not lose its’ shorts).   But it is going to have to be run like a business.  There are people in the private sector in the associated fields of gaming and horse racing who have experience doing this.

NYRA should not be run just to make the fans happy.  NYRA should be run to work for all of New York, including the tax payers.  These matters do not have to be mutually exclusive.  A successful business will produce something that their customers will want to spend money on and not run at a loss.

I think it is time that NYRA was run by an Accountant who knows gaming and horse racing.  Someone who will make the hard cuts that others cannot or will not.

Rant over.

Cuomo can install a good, coldhearted CEO at NYRA with marching orders to put fans first. (Not a COO. Not a CFO, but an experienced CEO.) Fans want the modern sports model, so the direction is clear.

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A coldhearted CEO at NYRA can say to the other racing jurisdictions, "We need for Thoroughbred racing to have a strong national presence in all of our major markets to have growing public support and to maximize our off-track wagering."

Where does Cuomo find this individual who is going to change the face of Thoroughbred racing in the media capital of the world?

Once a business plan and preliminary projections are in black and white, I don't think he will have to look very far. You know, if a coldhearted CEO can make it there, they can make it anywhere.



The Economic Engine of Indian Gaming
I cite below two news reports from California and Oklahoma describing the enormous economic impact of Indian Gaming in those States.  So the Indian Nations in California and Oklahoma have commissioned economic studies to point of to the state political leaders.  This is a lesson that should not to be lost on New York’s political leadership. 

States have a tendency to see Indian gaming enterprises as taking money away from the State and in the best of circumstances as a direct form of revenue generation for the State.  This tends to put the Indian nations and the States in an adversarial position.  However, the larger picture of the economic contribution must not be dismissed.  The message of the California and Oklahoma tribes to their State governments is “Hey, the indirect benefit you will get from us being open way surpasses what you are trying to squeeze out of us directly.”

I am just sayin’.

Indian casinos in California generate $7.5 billion in economic activity every year and have helped to create 52,000 jobs, according to a report released Wednesday.

The study, conducted for the California Nations Indian Gaming Association by research firm Beacon Economics, put the overall income collected by the employees at about $2.7 billion. The study found that of the $7.5 billion in annual economic activity tied to the Indian gaming industry, about $3.5 billion is generated directly from spending at casinos.



A recent report by Casino City Press, a leading comprehensive annual survey of gaming in the United States, showed that in 2010 alone, gaming across the state had grown to nearly 2.33 percent of Oklahoma's economy. Tribal gaming is the most significant portion of that growth. In fact, of the $210 million in revenue generated from gaming in 2010, $99.8 million came from casinos while the remainder resulted from the Oklahoma lottery and the state's racetracks.

http://newsok.com/oklahoma-indian-gaming-boosts-revenue-creates-jobs/article/3699805#ixzz23RAKpLAZ



Saratoga Casino and Raceway has applied to Kentucky state racing regulators to buy an interest in Ellis Park, a thoroughbred racetrack in Henderson, Kentucky.  The track was designed after the Saratoga Race Course in Saratoga Springs, New York, and features a 1.125 mile dirt track.
The documents don't indicate how much of an ownership stake Saratoga Casino and Raceway is seeking at Ellis.

But Ellis Park owner Ron Geary has said that he has been seeking a minority partner to invest $3 million to help pay for remodeling a portion of the Henderson thoroughbred track's clubhouse into a casino-style facility and accommodate Instant Racing gambling machines.

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