Dog track boss hopes slots will help business
Greyhound owners fear profit squeeze
By Jamie Malernee
South Florida Sun-Sentinel
Copyright © 2006, South Florida Sun-Sentinel
Saturday, September 16, 2006
If slot machines don't bring renewed interest to the dying sport of greyhound racing, the head of Broward County's only dog track says he would consider ending live racing.
These comments confirm the fears of greyhound owners, some of whom have recently accused Dan Adkins -- who oversees Mardi Gras Race Track & Gaming Center, formerly known as the Hollywood Dog Track -- of trying to squeeze them out of business now that he can make money with slot machines. Adkins contends he is trying to make everyone profitable.
"I really do hope I can increase interest in greyhound racing" with slots, said Adkins, who led the campaign to legalize them through a constitutional amendment. "[But] if that doesn't hold, and I've invested hundreds of millions of dollars, I may change my tune. The constitutional amendment doesn't say a word about continuing live racing."
But the rules legislators wrote last year do.
Adkins plans to open with slots in late October. So far, he has invested more than $25 million in renovations and doubled his employees to 200.
Mark Adams -- a California-based dog owner who runs Mesa Racing, a Florida corporation that breeds, sells and races greyhounds -- said he's long predicted the demise of racing at Mardi Gras.
"This guy is costing jobs and futures," Adams said. "He's not a businessman. He's a moneygrubber."
Interest in dog racing is waning nationwide. At Mardi Gras, the amount bet on live races has plummeted from $60.3 million in 1994-95 to $9.6 million in 2004-05.
In other states, slots have offered a reprieve. The machines have brought in loads of cash not only to gambling venues, but also to dog and horse owners, who earn a portion of slot revenue when their animals win. These slot subsidies can translate into tens of millions of dollars a year per venue, and in some states, they are mandated to keep racing jobs alive.
"It's a win-win because people are working and people are paying taxes," said Joseph Cuomo, director of racing for West Virginia, where about 14 percent of net slot income goes to winning dogs and horses.
Yet animal rights activists question why an industry they call cruel should be propped up.
"It's crazy. For years, they have been given special favors from politicians," said Carey Theil, executive director for Grey2K USA, a national greyhound protection group. "Why do other businesses have to live in a free market, where consumer decisions decide what fails and what doesn't, and dog racing doesn't?"
Florida greyhound owners had hoped for subsidy riches after voters approved slots at four Broward pari-mutuels.
Those hopes have dimmed.
The biggest blow came last year, when Florida legislators did not mandate a subsidy. That means Adkins doesn't have to share a penny with kennels or dog owners.
The Florida Horsemen's Benevolent and Protective Association salvaged the situation by successfully lobbying legislators to require track owners to negotiate some agreement with thoroughbred horse owners if they want slots, although no number was set.
Horse owners then banded together and negotiated with Gulfstream Park in Hallandale Beach. They'll receive a 7.5 percent subsidy once the first 500 machines come online. As profits rise, so will the cut, up to 12.5 percent.
Jai-alai players weren't as successful. Riki Lasa, president of the International Jai-Alai Players Association, said each player negotiated an extra $15,000 to $20,000 per year at Dania Jai-Alai, which is being bought by Boyd Gaming.
Greyhound owners didn't have much luck, either. Instead of banding together, they split after Adkins got rid of four kennels that raced dogs at his tracks. The elimination intimidated the remaining ones into accepting a tiny subsidy, said greyhound lobbyist Jack Cory.