The following is a joint statement by the Maine Harness Horsemen’s Association and the Maine Standardbred Breeders & Owners Association in response to the memo issued by Scarborough Downs to the horsemen regarding purses and their financial operating concerns:

The declines in revenues from the Hollywood Casino in Bangor have led Scarborough Downs and Bangor Raceway to implement across the board purse cuts starting off the 2013 racing season. Scarborough Downs has released a reduced purse structure of 10% and Bangor Raceway is expected to follow with similar purse cuts. Gross revenue from slot machine play at Hollywood Casino in Bangor was down 26.2% in the first two months of this year. This marked the ninth straight month with monthly slots revenue being down from the year before. The additional revenue from the Oxford Casino to supplement overnight purses has not compensated for the decline in revenues from the Bangor Casino.

In a recent memo issued by Scarborough Downs to the horsemen on March 15th, track management spelled out their financial operating concerns. To date, Scarborough Downs is at an impasse in negotiations with the MHHA on a new contract for 2013. The issues giving rise to the breakdown in negotiations is Scarborough Down’s request of the MHHA and MSBOA to support two bills submitted on behalf of Scarborough Downs at the Maine Legislature. One of which would reduce the amount of percentages that Scarborough has to pay based on the gross handle and another that amends the definition of “commercial track” by changing the number of race days from 100 to 50. LD 471- An Act to Preserve and Ensure Equitable Funding of Maine’s Commercial Racetracks is a bill that would allow Scarborough to reduce the amount of required race days from 100 to 50. Due to our lobbying efforts, this bill was killed on the House floor and never reached a public hearing. The bill that allows a reduction in the Down’s taxes would give Scarborough some financial relief in upwards of $400,000 at the expense of the purse account, the sire stakes, and the purse supplement fund. This bill is titled, An Act to Enhance Equity and Efficiency in the Simulcast and Racing Industries has not been printed yet.

In regards to Scarborough Downs remarks in their memo concerning the overnight purse money used to supplement betting sire stake races, we felt compelled to respond. Since 2006, the MHHA and the MSBOA have had a mutual agreement to add the minimum base purse of $1,200 to supplement the betting sire stake races. Our leaders in the past and today recognized the importance of the sire stakes program and its contributions to both attendance and bet handle. So, in these times of increasing costs to operate breeding farms and the decreasing mares bred numbers, it would be shortsighted and detrimental to Maine harness racing to remove the minimum purse from the sire stakes held at Scarborough Downs. This sends the wrong message to both breeders and owners who must make a three year commitment when breeding decisions are made.

While we fully understand the concerns facing the Downs in declining revenues, we couldn’t support a reduction in the amount of race days and a reduction in your purse account. Any track in the country that does not have slots revenue added to handle is struggling. While it’s true that purse money has been up since 2005, the increase in purses has not kept up with the continual increase in expenses for the owners and trainers. Four percent of the net slot machine income from the Hollywood Casino goes to the fund to encourage racing at Maine’s commercial tracks.

At a time when we are all facing a decline in our revenues to operate within the industry, we cannot support any legislation that would further lower our purse funds. The MHHA and MSBOA did testify in favor of two industry bills in the VLA committee on March 13th. The first bill, LD 702, An Act to Strengthen the Law Prohibiting Black Market Wagering on Harness Horse Races, amends the current law on illegal wagering. This bill stipulates that a person may not place a bet on a harness horse race with any person, firm or entity that is not licenses by the State Harness Racing Commission. The other bill, LD 519, An Act to Establish Advance Deposit Wagering for Harness Racing, will allow the two commercial tracks to conduct advance deposit wagering.

While the MHHA has opposed several provisions requested by Scarborough Down’s during our contract negotiations, we hope that we will be able to work towards an agreement in the near future. We should be spending our time and efforts attracting fans and owners to the harness racing industry.