House Subcommittee Hearings

[Cannon Shell]

Originally Posted by Travis Stone

Would you call an industry who needs slots to save it a "steady business?"

Check handle trends the last 10 years. They look pretty steady to me.

Slots are competition that has huge tax advantages that are relatively recent additions to the gambling landscape. Racing was doing fine even as it's taxes were increased because of the lack of competition. When casino's started to spread throughout the country racing was at a big disadvantage because it was already heavily taxed and regulated. The only gambling game in town now had a competitor that had huge built in advantages and racing's hands were tied. Racing's problem is that were slow to adopt slots and casinos to add to their gaming menu. The problem wasnt racing, it was the addition to the market of a competitor with a huge advantage. It is the same reason why Wal Marts eat up other businesses. It isnt necessarily the fault of the other businesses but unless they morph into something other than the same old business model they will disappear. I tend to think of it more in tose terms. You know Mc Donalds sells more than hamburgers now