Symposium: Track Closures Expected to Continue

Speaking Dec. 5 during a panel of the University of Arizona Race Track Industry Program's Global Symposium on Racing, horse racing executives said they anticipate more racetrack closures within 10 years. The panel—Land For Sale. How Will Race Track Closures Impact the Industry's Long-Term Sustainability?—sought to address how the industry is approaching a declining foal crop, short fields, and, in some states, no source of gaming revenue to supplement pari-mutuel wagering. The announced mid-2024 closure of Golden Gate Fields in Northern California was among the topics discussed during the panel moderated by Mike Tanner, executive vice president and CEO of the United States Trotting Association. 1/ST Racing executive vice chair Craig Fravel acknowledged the "downer" of the topic. 1/ST Racing owns and operates Golden Gate and, with its closure, intends to consolidate its racing operations to Southern California, where its Santa Anita Park property is located. "I do think it's important that we as an industry come to grips with exactly what we talked about—the economics of this business. It's an incredibly expensive business to operate on a day-to-day basis," he said. He said California is disadvantaged relative to tracks in Kentucky and New York, states with gaming, and operators must improve "through technology and adaptation." Fravel was joined on the panel by Bill Nader, president and CEO of the Thoroughbred Owners of California, who emphasized the importance California plays in the industry. He said he "can't get my head around" an active horse population of approximately 2,000 horses in Southern California capable of supporting racing only three days a week. Dan Metzger, president of the Thoroughbred Owners and Breeders Association, noted that horse inventory is down in many states. According to The Jockey Club, the national foal crop dropped from about 35,000 in 2005 to approximately 18,000 today. Kentucky-breds now account for 45% of the foal crop, per TJC statistics, and "It's just tougher and tougher for everybody in those regional markets," Metzger said. Phil Ziegler, president of Emerald Downs, believes the on-track experience is vital to the industry's success, pointing to the high attendance at Del Mar and Saratoga Race Course. "They'll become your owners of tomorrow; they'll become your breeders of tomorrow," he said of fans in attendance. Chris McErlean, vice president of racing for Penn Entertainment, noted a track's economic challenges when it does not have gaming revenue. Sam Houston Race Park in Texas is one Thoroughbred track it owns without it. "The problem is how long you stay in the game before you say it's not going to happen anymore," he said. "And the state of Texas, we're obviously optimistic that something will happen eventually there." He said tracks could benefit from coordinating race dates and taking other measures to address a declining horse population, "But at the end of the day, we run our individual businesses," not as a league, he said. Fravel emphasized the need for the industry to be more "adaptable to change" given the harsh realities. "Less racing may not be the worst thing if we can improve the product and make it better for the people who bet on the races because that triggers the handle, that drives the engine," Nader added toward the end of the discussion.