Racino
Encyclopedia
Race track
A race track is a purpose-built facility for racing of animals , automobiles, motorcycles or athletes. A race track may also feature grandstands or concourses. Some motorsport tracks are called speedways.A racetrack is a permanent facility or building...
and casino
Casino
In modern English, a casino is a facility which houses and accommodates certain types of gambling activities. Casinos are most commonly built near or combined with hotels, restaurants, retail shopping, cruise ships or other tourist attractions...
. In some cases, the gambling is limited to slot machine
Slot machine
A slot machine , informally fruit machine , the slots , poker machine or "pokies" or simply slot is a casino gambling machine with three or more reels which spin when a button is pushed...
s, but many locations are beginning to include table games
Casino game
Games available in most casinos are commonly called casino games. In a casino game, the players gamble casino chips on various possible random outcomes or combinations of outcomes. Casino games are available in online casinos, where permitted by law...
such as blackjack
Blackjack
Blackjack, also known as Twenty-one or Vingt-et-un , is the most widely played casino banking game in the world...
, poker
Poker
Poker is a family of card games that share betting rules and usually hand rankings. Poker games differ in how the cards are dealt, how hands may be formed, whether the high or low hand wins the pot in a showdown , limits on bet sizes, and how many rounds of betting are allowed.In most modern poker...
, and roulette
Roulette
Roulette is a casino game named after a French diminutive for little wheel. In the game, players may choose to place bets on either a single number or a range of numbers, the colors red or black, or whether the number is odd or even....
.
In 2003, Joe Bob Briggs
Joe Bob Briggs
John Irving Bloom , who uses the pseudonym Joe Bob Briggs, is a syndicated American film critic, writer and comic performer.-Early years:...
described the economic motivation of race track
Race track
A race track is a purpose-built facility for racing of animals , automobiles, motorcycles or athletes. A race track may also feature grandstands or concourses. Some motorsport tracks are called speedways.A racetrack is a permanent facility or building...
owners to convert into racinos:
- Horse racingHorse racingHorse racing is an equestrian sport that has a long history. Archaeological records indicate that horse racing occurred in ancient Babylon, Syria, and Egypt. Both chariot and mounted horse racing were events in the ancient Greek Olympics by 648 BC...
and dog racingGreyhound racingGreyhound racing is the sport of racing greyhounds. The dogs chase a lure on a track until they arrive at the finish line. The one that arrives first is the winner....
have been in a slow decline for almost 20 years now....the only tracks that have really thrived are the ones that have slot machines. In many cases their live handle (the daily amount bet at the track by live customers) has continued to decline, but their revenues have shot up so fast that they're able to offer the biggest purses and thereby attract the best horses. Tracks like Delaware ParkDelaware Park (race track)Delaware Park is an American horse racing track, casino, and golf course in Stanton, Delaware. It is located just outside the city of Wilmington, and about thirty miles from Philadelphia.-Thoroughbred racing:...
and West Virginia's Mountaineer ParkMountaineer Race Track & Gaming ResortMountaineer Casino, Racetrack and Resort is a thoroughbred racetrack and casino resort located southwest of Chester, West Virginia , and owned by MTR Gaming Group.-History and information:...
, once considered places where local degenerates bet on broken-down nags in claiming races, are now among the wealthiest tracks around, with the best races. Fabled tracks like PimlicoPimlico Race CoursePimlico Race Course is a horse racetrack in Baltimore, Maryland, most famous for hosting the Preakness Stakes. Its name is derived from the 1660s when English settlers named the area where the facility currently stands in honor of Olde Ben Pimlico's Tavern in London...
, on the other hand, sometimes have trouble making ends meet.
USA Today
USA Today
USA Today is a national American daily newspaper published by the Gannett Company. It was founded by Al Neuharth. The newspaper vies with The Wall Street Journal for the position of having the widest circulation of any newspaper in the United States, something it previously held since 2003...
noted in a June 2003 article that receipts from slot machines are divided about evenly in four ways:
- Payment of the operating costs and payouts to lucky gamblers,
- State taxes,
- Prize money (the pursePurse distributionIn horse racing, the term purse distribution may refer to the total amount of money paid out to the owners of horses racing at a particular track over a given period of time, or to the percentages of a race's total purse that are awarded to each of the highest finishers...
) offered to jockeyJockeyA jockey is an athlete who rides horses in horse racing or steeplechase racing, primarily as a profession. The word also applies to camel riders in camel racing.-Etymology:...
s and horse owners, and - Profit for the racino operator.
As of 2006, racinos are legal in nine states: Delaware
Delaware Lottery
The Delaware Lottery is run by the government of Delaware. Unlike most US lotteries, Delaware offers video lottery; its other games include Mega Millions, Powerball, Cash 5, Play 3, and Play 4....
, Louisiana
Louisiana
Louisiana is a state located in the southern region of the United States of America. Its capital is Baton Rouge and largest city is New Orleans. Louisiana is the only state in the U.S. with political subdivisions termed parishes, which are local governments equivalent to counties...
, Maine
Maine
Maine is a state in the New England region of the northeastern United States, bordered by the Atlantic Ocean to the east and south, New Hampshire to the west, and the Canadian provinces of Quebec to the northwest and New Brunswick to the northeast. Maine is both the northernmost and easternmost...
, New Mexico
New Mexico Lottery
The New Mexico Lottery is run by the government of New Mexico. It is a member of the Multi-State Lottery Association . Its games include Mega Millions, Powerball, Pick3, and Roadrunner Cash. ....
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, Oklahoma
Oklahoma Lottery
The Oklahoma Lottery, which began on October 12, 2005, is operated by the government of Oklahoma. The Oklahoma Lottery is a member of the Multi-State Lottery Association .As with most US lotteries, the minimum age to purchase a ticket is 18.-History:...
, Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
, Rhode Island
Rhode Island Lottery
The Rhode Island Lottery is run by the government of Rhode Island. It is a charter member of the Multi-State Lottery Association . Rhode Island Lottery games include Mega Millions, Powerball, Wild Money, keno, and numerous scratch tickets...
, and West Virginia
West Virginia Lottery
The West Virginia Lottery is run by the government of West Virginia. It is a charter member of the Multi-State Lottery Association . It offers games such as Powerball, Mega Millions, and scratch tickets...
. The first racino in Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
opened in November 2006. West Virginia pioneered the concept when MTR Gaming Group
MTR Gaming Group
MTR Gaming Group Inc. is a hospitality company based in Chester, West Virginia. The company holds, mostly through several subsidiaries, hotels, casinos and sports facilities...
was allowed to introduce video lottery terminal
Video Lottery Terminal
A Video Lottery Terminal or VLT is a gaming machine that allows gamblers to bet on the outcome of a video game.A VLT is similar to a slot machine, in that each terminal is a stand-alone device containing a random-number generator...
s (VLTs) to Mountaineer Race Track & Gaming Resort
Mountaineer Race Track & Gaming Resort
Mountaineer Casino, Racetrack and Resort is a thoroughbred racetrack and casino resort located southwest of Chester, West Virginia , and owned by MTR Gaming Group.-History and information:...
in Chester
Chester, West Virginia
Chester is a city in Hancock County, West Virginia, United States, along the Ohio River. It is part of the Weirton–Steubenville, WV-OH Metropolitan Statistical Area. The population was 2,592 at the 2000 census. Chester was established in 1896, but not incorporated until 1907. The city is...
. Delaware, Rhode Island, and West Virginia
West Virginia Lottery
The West Virginia Lottery is run by the government of West Virginia. It is a charter member of the Multi-State Lottery Association . It offers games such as Powerball, Mega Millions, and scratch tickets...
, three of the members of the Multi-State Lottery Association
Multi-State Lottery Association
The Multi-State Lottery Association is a non-profit, government-benefit association owned and operated by agreement of its 33 member lotteries MUSL was created to facilitate the operation of multi-jurisdictional lottery games, including Powerball, Mega Millions), video lottery, and instant ...
(MUSL), jointly ran a progressive VLT game, Ca$hola
Cashola
Ca$hola, a video lottery game, is a former Multi-State Lottery Association game. Ca$hola was, to date, the only US multi-jurisdictional video lottery game. It began in July 2006; Ca$hola ended upon its final jackpot win on May 15, 2011...
, from 2006 to July 2011; the three lotteries also will offer Ca$hola's successor, MegaHits
MegaHits
MegaHits is a video lottery terminal multiple-progressive jackpot game that began on July 15, 2011. MegaHits replaced Cashola, which was offered from July 2006 to May 15, 2011. Cashola was offered at lottery-run casinos in Delaware, Rhode Island, and West Virginia; the same three lotteries take...
, beginning July 15, 2011.
While VLTs were somewhat successful, a November 2003 article from the Global Gaming Insider noted the real financial success story was the introduction of reel spinning slot machines in Iowa:
- In 1994, Iowa voters authorized reel spinning slot machines at Iowa racetracks (including Greyhound tracks). Polk CountyPolk County, IowaPolk County is a county located in the U.S. state of Iowa. The population was 430,640 in the 2010 census, an increase from 374,601 in the 2000 census. The county seat is Des Moines, which is also the capital city of Iowa...
, the owner of a brand new, bankrupt horse track, Prairie MeadowsPrairie MeadowsPrairie Meadows is a Thoroughbred and Quarter Horse racetrack and racino in Altoona, Iowa.-History and information:In 1984, Prairie Meadows received a license from the Iowa Racing and Gaming commission to operate a horse racing facility after parimutuel betting was legalized by the state the...
, spent $26 million to convert the clubhouse into a casino and install 1,100 slot machines. The racino opened for business on April 1, 1995. Reel-spinning slots proved to be much more popular than video pokerVideo pokerVideo poker is a casino game based on five-card draw poker. It is played on a computerized console similar in size to a slot machine.-History:...
. In the twelve months ended March 31, 1996 machine revenues totaled $119.3 million, enabling Polk County to pay off the $27 million bond issue that paid for the clubhouse casino conversion and retire the track's initial $38.8 million bond issue 17 years early. - With Prairie Meadows the racino came of age. The rapid transformation of a failed Iowa horse track into a highly profitable horse racing/slot gaming business was the defining moment in the marriage of pari-mutuel betting and machine gaming. For racing returned to Prairie Meadows in reinvigorated form. Purses, subsidized by revenues from slot machines, increased by a factor of six, from about $20,000 per day prior to slots to a planned $126,000 per day over the 1997 racing season. Higher purses attracted higher quality horses. This higher-quality racing was in turn exported by Prairie Meadows to other racetracks and simulcast facilities throughout North America, a high margin, profitable business. Less visibly, slot machines had a positive impact on Iowa horse breeding, a development with long-term consequences for the evolution of Iowa gambling law.
The Global Gaming Insider article also noted that the creation of the racino has led to consolidation in the ownership of racetracks, with Magna Entertainment Corporation and Churchill Downs Incorporated the largest.
In November 2004, Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
voters amended their state constitution to allow slot machines at parimutuel
Parimutuel betting
Parimutuel betting is a betting system in which all bets of a particular type are placed together in a pool; taxes and the "house-take" or "vig" is removed, and payoff odds are calculated by sharing the pool among all winning bets...
facilities.
In Bangor, Maine
Bangor, Maine
Bangor is a city in and the county seat of Penobscot County, Maine, United States, and the major commercial and cultural center for eastern and northern Maine...
, a $131 million complex is under construction that will house, among other things, a gaming floor featuring up to 1,500 slot machines, a seven-story hotel, and a four-level parking garage. The new racino is slated to open in the summer of 2008. In Biddeford, Maine on November 2, 2010 by a vote of 59%-41% approved a referendum to relocate Scarborough Downs to Biddeford with a new Harness Racing Track/Racino Complex with Slot Machines, an Entertainment Complex and a 200 room Hotel. The plan is to have most if not all of the complex open sometime in 2012. Maine voters also approved the Oxford County Maine casino on Nov 2, 2010 also, the indications are that the Bangor Maine Racino and the possibly relocated Scarborough Downs Racino facility could also have table games as well.
There are two racino-like facilities in Arkansas
Arkansas
Arkansas is a state located in the southern region of the United States. Its name is an Algonquian name of the Quapaw Indians. Arkansas shares borders with six states , and its eastern border is largely defined by the Mississippi River...
. The Oaklawn Jockey Club Racing Track, a horse track, is in Hot Springs. Southland Park, a greyhound track, is in West Memphis.
External links
- Dictionary entry tracing the term back to 1995
- Gambling drives passion for ponies, A June 2003 article from USA TodayUSA TodayUSA Today is a national American daily newspaper published by the Gannett Company. It was founded by Al Neuharth. The newspaper vies with The Wall Street Journal for the position of having the widest circulation of any newspaper in the United States, something it previously held since 2003...
- Argument Over VLTs at Tracks Heats Up, a December 2003 article from the Detroit News