Although betting on horse racing declined in the state last year, the addition of slot machines to race tracks has been a boon to the industry, according to a report from the Pennsylvania Gaming Control Board.
The study, released yesterday, crunched parimutuel betting and other racetrack numbers from 2006 and 07, the first year slots were brought to Pennsylvania tracks. The six race tracks with casinos saw an increase in purses, race days and total number of races in 2007, despite a drop in horse betting overall.
In 2007, the six tracks in the study paid out $117 million in purses, nearly double the $62 million paid the previous year. Combined, they experienced a 10 percent increase in days of racing and a 15 percent jump in total number of races.
John Marshall, general manager of The Meadows Casino and Racetrack in North Strabane, said the average purse at his harness-racing track was $45,000 per day in April 2007, before slots were introduced. Now, the average purse is $160,000 per day.
Better purses bring in better horses and harness drivers, Mr. Marshall said, which will drive fan interest.
But statewide, the amount wagered at racetracks dipped slightly from $41.3 million to $40.9 million. It's a signal that bettors' dollars aren't simply shifting from horses to slots, but also that the droves of slot players coming to the track aren't necessarily checking out the ponies as well.
The Meadows has seen a drop in parimutuel wagering, Mr. Marshall said, but only because it has been going through a massive construction project, and the temporary facilities can hold far fewer racing fans -- though the track has maintained a full racing schedule.
Construction should be completed by April, and Mr. Marshall said he was confident that racetrack betting would rise after that. The report noted that declines in on-track betting could be attributed to construction projects at some of the tracks.
The vast majority of horse gambling is made away from the track at off-track betting parlors, which is where the steeper declines were. Overall horse wagering in the state dropped 4.39 percent, to about $932 million.
The report said those decreases follow a trend from the past several years -- well before the introduction of slots.
"As the gaming market stabilizes and interest builds in the racing industry, the amount wagered on races should begin to increase," the report states.
The report also noted that the slots themselves bagged better than $1 billion in revenue in 2007. Of that total, more than $128 million was earmarked for the Pennsylvania Race Horse Development Fund, which goes toward increasing purses, funding breeding operations and augmenting the pensions and health benefits for members of horsemen's organizations.
The report, the first of its kind, will serve as a benchmark to measure future gambling revenues in the state.
