Effects of Slot Machine Installation on Thoroughbred Racecourses
It is a general belief that thoroughbred racetracks that have slot machines receive more subsidies than racecourses without slot machines.
However certain estimated present an entirely different picture. In 2010, an unofficial survey showed that racetracks without slot machines make 60% of the annual profit, which all the racetracks combined make around the country.
In 2010, Gulfstream Park, which has slot machines installed in it, made approximately seven million dollars annually. Calder Racecourse had a profit of two million dollars roughly. However, when the average of yearly profits of all the racecourses with slot
machines was calculated it was forty percent short of the average of yearly profits of race courses without slot machines.
Another reason which could attribute to racecourses, without slot machines, making less money could be that there were more race days at racecourses with slot machines (2,803 days) than race courses without slot machines (2,187 days).
Management at the racecourses with slot machines feel threatened with the fact that their profits lag behind the profits of race course without slot machines. The reason for their worry is that the government and the industry might close down such tracks
except for a paltry number who enjoy wide popularity with public like Gulfstream Park or Fair Grounds Racecourse.
There are certain race courses which consider slot machine installation very beneficial. The management at Kentucky Downs Racecourse has installed about two hundred machines at the race course. The president of the Kentucky Downs Racecourse is optimistic
that this step would be very fruitful for the business. His expectations have turned out to be true as 500 people applied to work at the race course for the 85 openings advertised in the newspaper.
There are plans at Kentucky Downs Racecourse to increase the number of slot machines from two hundred to five hundred in the near future.
This fact reflects that while in some regions slot machines might not be that popular certain racecourses consider it a wise business practice to install slot machines at their respective race courses.
Another such race course is ‘Parx Racing and Casino’. In 2006, a small number of slot machines was installed at the race course. But the last fours years have brought such phenomenal success to the racecourse that the number of slot machines has increased
to 3300.
There are two sides to every story and while some race tacks have suffered financially due to the slot machines installed the race tracks certain racetracks have earned millions in profit owing to the slot machines installed at the racetracks.
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