[ELA]

Originally Posted by eurobounce

Do you really think the VLTs is the cure for the financial problems the NYRA has? There is much more to the puzzle than the VLT issue. Certainly there are politcal issues taking place. But, I have asked this question 100x--why and how does the NYRA continue to lose money? If they cannot operate within their financial means now, what makes you think they will be able to operate within the financial means once VLTs are in place? Until the NYRA changes their business model they are going to continue to have financial problems with or without VLTs.

Yes, there is so much more to the puzzle. However, it is a piece of that puzzle. Interestingly enough, one piece of the puzzle does not complete or solve the puzzle, so no it's not the answer in and of itself. I do not view the business model as a problem. I view the inability to operate within the current legislation, tax laws, agreements, etc. as a problem. Of course it's not that simple either.

While VLT's may not be the end all/cure all cure for NYRA's financial problems -- what is the cure is a global solution. The first part of that solution is "alternative revenue" or income. This is what Keeneland has with the sales company. The VLT revenue will act, early on, as a subsidy for racing operations, purses, backstretch improvement, etc. As long as you don't have a Finger Lakes situation -- where management opts to spend money on the VLT side of the facility as opposed to the racing side of the facility, primarily because they are making a ROI/ROR decision. Keep in mind that Finger Lakes and the ownership is a for-profit model and structure -- this will hopefully be beneficial to the racing game. This is from "the outside in".

The second part is a wide reaching change in legislation, tax rates and various other aspects of the laws and agreements that impinge upon the sport and business of racing -- OTB's, simulcasting revenue/sharing, etc. This too is from "the outside in".

The third component is changing the industry mindset. Changing how the industry and racetracks are run, how the sport is marketed, how the product and the sport is positioned, etc. There is competition for dollars today that quite possibly could have never been imaginesd. The industry must act and react to that, yet they have never really done so. This portion is looking from "the inside out" so to speak.

The sport has changed. The business has changed. Everything in and around it has changed. So must the approach and mindset.

Eric