Q: What is a Racino?

A:     A racino is a racetrack that also offers casino games for the purpose of increasing live racing purses and generating gaming tax revenue for local and state government.   Ten states have already approved Racinos, and they have been proven to be an effective gaming model because of the enormous benefits they generate beyond the new tax revenues.  

        For example, Iowa authorized its first Racino in 1994.   According to an Iowa State University study, between 1994 and 1999 the amount spent on the care and maintenance of horses in the state more than doubled, providing needed growth for the state's rural economy.

Iowa is only one of many states reaping the vast benefits of racinos.   A 2003 survey of New Mexico Horse Breeders reports that since New Mexico authorized Racinos in 1998, it has witnessed:

•  216% growth in the amount spent on alfalfa and grain.

•  324% growth in the amount spent on veterinarian care.

•  413% growth in the amount spent on horse trailers.

Based on the success of racinos in states across the country, many others are now considering legislation to add slot gaming at their racetracks, including: Florida, Kansas, Kentucky, Maryland, and Ohio.

Q:     Why is an equestrian center part of the Racino proposal?

A:     The vision of the Racino is to transform Canterbury Park into the centerpiece for Minnesota's race and show horse industries.   As part of the Racino proposal, Canterbury Park is planning to build a world-class equestrian park capable of hosting local, regional and national show events.  

Despite having a large show horse community, Minnesota lacks a premier national equestrian park.   While the equestrian center does not require legislative approval, passage of the Racino would provide Canterbury Park with the revenue necessary to construct the facility, allowing Minnesota to draw shows and the accompanying tourism dollars from around the country.  

Q:     Will horse racing suffer if slot machines are introduced at Canterbury Park?

A:     No.   To the contrary, slot machines at Canterbury Park will provide an additional boost to live racing and Minnesota's horse industry:

•  Purses at Canterbury Park will increase nearly $18 million each year with the addition of slot machines, nearly tripling the amount of current purses.   Of this amount, approximately $3.6 million will go to the Minnesota Breeders' Fund, which promotes Minnesota's racing and breeding industry.

•  Based on the experience in other states, growing racing purses will fuel the investment in breeding and foaling in Minnesota.   As the number of horses bred in Minnesota grows, positive effects will ripple through the rest of Minnesota's agricultural industry.

Q:     Can the Racino meet Governor Pawlenty's gaming revenue goals?

A:     When fully operational, the Racino will generate more than $200 million every biennium in new state gaming tax revenues, according to recent estimates by GVA Marquette Advisors.  

Q: Why do other gaming proposals anticipate greater revenues for the state?

A:   There are a few reasons.   Canterbury Park's estimates reflect a more modest gaming proposal with 3,000 slot machines and 40 table games, while most other proposals project 4,000 or more slots.

        In addition, Canterbury Park has chosen to be more conservative in our win estimates, forecasting $212 - $246 per machine each day compared to $295 in the Governor's proposal.   However, the Racino bill proposes providing a higher percentage of the revenue to state and local governments than other gaming proposals before the legislature.

Q:  The Governor's proposal has a $200 million up front fee.   Why is the Racino's proposed fee only $100 million?

A:     The Racino at Canterbury Park proposal provides 47% of the net gaming revenues to state and local government, one of the largest percentages in the country.   Based on the financial projections for the Racino, a $100 million up-front fee is prudent if the State is to receive $200 million each biennium in new state gaming tax revenues once the Racino is fully operational.

Q:     Will the Racino generate revenue for the state in the coming biennium?

A:     Yes.   The Racino proposal includes a $100 million up front fee.   Additionally, Canterbury Park could have a temporary facility operational and generating revenue for the state within 7-9 months of passage of the bill.   If the legislature approves this proposal in May, the Racino could generate over $175 million in new state gaming tax revenues for the state in the coming biennium.

Q:     How much support does the Racino have statewide?

A:     The Racino is the gaming proposal with the broadest public support because of the wide range of benefits extending to the horse and agriculture industry.   Numerous statewide polls confirm that 70% of Minnesotans support the Racino.   Support among the public stretches across ideological lines and to all regions of the state.  

Q:     Can the Racino meet the Governor's requirement for local support?

A:     The Racino at Canterbury Park already enjoys strong local support.

•  The Racino is endorsed by both the City of Shakopee and Scott County

•  According to a 2004 poll by Decision Resources Ltd., the Racino is supported by 74% of Scott County residents

Q: The Governor says that Canterbury Park may become the site of the state-tribal partnership casino.   How does Canterbury Park feel about that scenario?

A: Canterbury Park will consider any proposal that can help grow the horse industry in Minnesota.   However, at this point Canterbury Park is advocating for the Racino proposal, which would nearly triple live racing purses and allow for the construction of a world-class equestrian park at Canterbury.  

Q:     Is gambling a good way to raise money for needed state services?

A:     Currently 87% of Minnesotans participate in some form of gambling.   Gambling has already been used in Minnesota to raise funds for a variety of local and state needs, and racinos have proven to be a tremendously effective way for other states to raise new gaming tax revenues.   For example, according to the Iowa Racing and Gaming Commission, Iowa has raised well over $650 million in revenue from racino gaming over the past 10 years that has been used for needed services and programs - in a much smaller market!

Q:     Would passing the Racino mean breaking the existing tribal compacts?

A:     No.   The existing tribal compacts allow the state to authorize gaming outside of tribal casinos if the legislature deems fit.   While the tribal casinos have enjoyed a monopoly on some casino gaming since they opened, exclusivity was not guaranteed in the agreement.

Q:     Will the Racino proposal automatically authorize slot machines at the newly licensed harness track in Anoka County?

A:     No. The Racino bill deals only with currently operating racetracks.

Q:     Won't the Racino ultimately hurt business at existing tribal casinos?

A:     That's very unlikely.   Business at tribal casinos has exploded in recent years as more and more Minnesotans and tourists are looking for gaming options.   Since 1996, the number of slot machines at Minnesota's tribal casinos has increased over 50 percent, according to annual surveys by the Business Journal .   There is no reason to believe that trend will end soon.

The Shakopee Valley News , the local newspaper in the area which is home to both Canterbury Park and Mystic Lake Casino, concluded in an editorial that the demand for gaming and entertainment in Minnesota has reached a point that Mystic Lake would not be harmed by the presence of a Racino at Canterbury Park.

Q:     Would passing the Racino bring “Las Vegas” to Minnesota like opponents keep saying?

A:     According to popular estimates, Minnesota already has 21,000 slot machines at its 18 casinos owned by tribal governments.   Canterbury Park is proposing to add an additional 3,000 slot machines in a location that already offers horse racing, simulcast racing and a 24-hour card club.  

Ten other states have passed Racinos to generate needed revenue and improve their agricultural economies, and they have succeeded. That's exactly what a Racino would do for Minnesota.  

Besides, when was the last time you heard anyone say “what happens in Altoona stays in Altoona?”