Ten years ago this month the first legal wager on horse racing was made in Texas, launching the Texas racing industry. It is appropriate that this milestone occurs as the Texas Legislature meets in special session to determine the future of the state's education financing system. Both have reached a cross roads that must be addressed by legislative action.
When the Sam Houston Race Park opened 10 years ago, the potential for Texas racing industry appeared limitless. But with Video Lottery Terminals (VLTs) at neighboring facilities contributing to higher purses and therefore attracting the best horse talent, Texas race parks simply cannot compete. And a sure thing to succeed has instead become a long shot.
But like Seabiscuit, that long shot has the potential to become a Triple Crown champion.
In Texas' case, our Triple Crown would include billions of dollars earmarked for public education, the creation of thousands of jobs in both urban and rural Texas and a vibrant industry that would finally take its rightful place as the premier destination for championship racing.
According to a report by Harrah's Inc., Texas ranks No. 7 among all states in residents traveling to other states to gamble. It has been estimated that Texans generate 75 percent of Louisiana's gaming revenues. Put simply, Texans are interested in gaming. With ever increasing frequency they are crossing state lines to do it.
But gaming in neighboring states is having an enormous negative impact on Texas and its racing industry, which currently accounts for $6 billion in annual spending and 52,000 Texas jobs. Texas Racing Commission Executive Secretary Paula Flowerday best summarized the condition of the industry in a January letter to Gov. Rick Perry:
"The total amount wagered in Texas over the past year (2003) has again declined. The expansion of wagering opportunities in our neighboring states of Louisiana, New Mexico and Oklahoma continues to adversely affect the industry's potential. Sadly, the ongoing viability of some of the Texas race tracks is uncertain."
Economist Ray Perryman estimates lost racing activity caused by Louisiana alone costs Texas more than $762 million annually.
Perryman concluded that the operation of VLTs in Texas would produce more than $1 billion in annual tax revenue. Though it would not solve all of Texas' education financing problems, this revenue would help provide badly needed funds to educate our children.
The discussions in the Legislature over the past few weeks have run the gamut from VLTs at existing dog and horse tracks to the opening of full-scale casino gambling. The proposal to add VLTs to existing facilities would simply add another on-track wagering option to race track patrons; the physical footprint would remain unchanged. Moreover, the addition of VLTs at the few existing, legal and strictly regulated gaming businesses would provide immediate revenue to the state to fund schools versus an open bid process that could take years to implement.
Our neighbor states are well aware that Texans crossing state borders to wager on VLTs is a lucrative market. That is why at least four national gaming companies have hired lobbyists in Austin to discourage passage of legislation allowing VLTs at Texas race tracks.
We're not surprised by these tactics or the criticism from companies that stand to lose hundreds of millions of dollars if Texans no longer go to these states. But we should not sit back and allow our Texas dollars and top racehorses to leave the state.
According to a May poll by Baselice & Associates, a majority of Texas voters want the opportunity to voice their opinion. A reported 73 percent of those surveyed would support VLTs at horse and dog tracks when the revenue from the gaming machines is dedicated to public schools.
The Legislature holds the power to make this Triple Crown a reality. It should not miss this historic opportunity to act. The stakes are too high to allow Louisiana, Oklahoma and New Mexico to continue to gallop off with money that should be applied to help Texas taxpayers, schoolchildren and agricultural community.
http://www.chron.com
When the Sam Houston Race Park opened 10 years ago, the potential for Texas racing industry appeared limitless. But with Video Lottery Terminals (VLTs) at neighboring facilities contributing to higher purses and therefore attracting the best horse talent, Texas race parks simply cannot compete. And a sure thing to succeed has instead become a long shot.
But like Seabiscuit, that long shot has the potential to become a Triple Crown champion.
In Texas' case, our Triple Crown would include billions of dollars earmarked for public education, the creation of thousands of jobs in both urban and rural Texas and a vibrant industry that would finally take its rightful place as the premier destination for championship racing.
According to a report by Harrah's Inc., Texas ranks No. 7 among all states in residents traveling to other states to gamble. It has been estimated that Texans generate 75 percent of Louisiana's gaming revenues. Put simply, Texans are interested in gaming. With ever increasing frequency they are crossing state lines to do it.
But gaming in neighboring states is having an enormous negative impact on Texas and its racing industry, which currently accounts for $6 billion in annual spending and 52,000 Texas jobs. Texas Racing Commission Executive Secretary Paula Flowerday best summarized the condition of the industry in a January letter to Gov. Rick Perry:
"The total amount wagered in Texas over the past year (2003) has again declined. The expansion of wagering opportunities in our neighboring states of Louisiana, New Mexico and Oklahoma continues to adversely affect the industry's potential. Sadly, the ongoing viability of some of the Texas race tracks is uncertain."
Economist Ray Perryman estimates lost racing activity caused by Louisiana alone costs Texas more than $762 million annually.
Perryman concluded that the operation of VLTs in Texas would produce more than $1 billion in annual tax revenue. Though it would not solve all of Texas' education financing problems, this revenue would help provide badly needed funds to educate our children.
The discussions in the Legislature over the past few weeks have run the gamut from VLTs at existing dog and horse tracks to the opening of full-scale casino gambling. The proposal to add VLTs to existing facilities would simply add another on-track wagering option to race track patrons; the physical footprint would remain unchanged. Moreover, the addition of VLTs at the few existing, legal and strictly regulated gaming businesses would provide immediate revenue to the state to fund schools versus an open bid process that could take years to implement.
Our neighbor states are well aware that Texans crossing state borders to wager on VLTs is a lucrative market. That is why at least four national gaming companies have hired lobbyists in Austin to discourage passage of legislation allowing VLTs at Texas race tracks.
We're not surprised by these tactics or the criticism from companies that stand to lose hundreds of millions of dollars if Texans no longer go to these states. But we should not sit back and allow our Texas dollars and top racehorses to leave the state.
According to a May poll by Baselice & Associates, a majority of Texas voters want the opportunity to voice their opinion. A reported 73 percent of those surveyed would support VLTs at horse and dog tracks when the revenue from the gaming machines is dedicated to public schools.
The Legislature holds the power to make this Triple Crown a reality. It should not miss this historic opportunity to act. The stakes are too high to allow Louisiana, Oklahoma and New Mexico to continue to gallop off with money that should be applied to help Texas taxpayers, schoolchildren and agricultural community.
http://www.chron.com
