Tracks Call for State Assistance

By The Desert Sun
SACRAMENTO,Calif. (Mar. 14, 2007) - Saying their survival is on the line, horse racing advocates Tuesday called for state help to overcome losses they blame on tribal casinos.

The legislative help is necessary to enable California tracks tocompete with other states.

At a Capitol press conference with more than two dozen breeders, track operators and workers, racing industry advocates said that until they get help they'll continue to oppose five amended compacts pending in the Legislature, including one by the Palm Springs-based Agua Caliente Band of Cahuilla Indians.

"Let's be clear about something," said Rick Baedeker, senior vice president of Hollywood Park and Bay Meadows racetracks. "We are not opposed to tribal gaming."

But he and others argued that the compacts give gaming tribes exclusive rights that make it hard for the 48,000-employee track industry to offer purses competitive with tracks in other states that have slot machines.

"On behalf of my fellow industry employees, we are asking the Legislature not to approve any more tribal gaming compacts without financial help for our industry," said Vincent Sanchez, an assistant starter for Bay Meadows and Golden Gate Fields tracks.

No one outlined specific help sought by the racing industry, but Baedeker said that said that one day tracks again may ask voters to allow tracks to offer slot machines.

"Yes, we are interested in that," he said. "We understand at the current time the political climate is not conducive, but we don't want to rule that out for the future."

The Agua Caliente tribe declined to comment on the racing industry statements.

"We don't believe this is an Agua Caliente issue," said tribal spokeswoman Nancy Conrad.

Anthony Miranda, chairman of the California Nations Indian Gaming Association, said the track industry faces a growing California gaming industry that includes new games like Internet poker.

"I think there are other issues there than just the tribes and the particular games they offer," Miranda said.

Aaron McLear, spokesman for Gov. Arnold Schwarzenegger, added that the governor supports the racing industry and wants to help but not as part of the tribal gambling debate.

"The view from the governor's office is that the tribal compacts are not the appropriate forum to help the horse racing industry be successful," McLear said.

Schwarzenegger negotiated the revised compacts and is counting on them to provide $500 million in the next fiscal year to help balance the state budget.

The horse racing industry joined with unions to block approval of the revised compacts in the 2006 session of the Legislatures and since then has been explaining its needs to lawmakers.

The revised compacts allow tribes to operate more slot machines in return for making payments into the state treasury for the first time. Through special funds gambling tribes currently fund non-gambling tribes and certain activities such as public safety costs in communities near casinos.

The Agua Caliente would be able to increase the maximum number of slot machines in their casinos from 2,000 to 5,000 under its revised compact. The Morongo Band of Mission Indians, which also has a revised compact pending, would go from 2,000 slot machines to 7,500.

Some participants in the press conference Tuesday wore red shirts emblazoned with UNITE HERE, the name of the union that has led the opposition to the compacts without changes to the collective bargaining provisions.

The horse racing industry unsuccessfully offered Proposition 68 in 2004 to allow tracks to operate slot machines.