Racing Through Change: The Alberta Perspective

Racing Through Change:
The Alberta Perspective
Presented by:
Scott Sinclair – Northlands Park Racetrack & Casino
Geoff Smith – Century Downs Racetrack - Casino
Government in Alberta
• 41 year reign for the Progressive
Conservative Party
• Formation of Horse Racing Alberta
(HRA) with the government’s
proclamation of the Racing
Corporation Act in 1996
• May 5, 2015 - NDP wins 54 of 87
seats to form a majority
government for the first time in
Alberta
• Future of MOU in question
Memorandum of Understanding
(MOU)
• In 1996, the government established Horse
Racing Alberta (formally the Alberta Racing
Corporation)
• Independent non-profit organization to
govern and promote horse racing in
Alberta
• Have had two 10 year MOU’s
• Expires March 31, 2016
• Current MOU provides 51.7% of gross
gaming commissions to HRA
• Seeking extension on existing terms
Economic Impact of Alberta
Racing
• 259 race dates
• 7,100 horses from 400 farms and ranches
• Produces $399 million in Economic
Benefits
• $254 million in rural economic impact
• 7,000 people are employed by horse racing
in the province
• Generated $137,086,788 in handle in 2014
Industry Trends
• Veracious drop in breeding
• Decrease in race dates
throughout the West
eventually causing a
contraction of race tracks
• Greater emphasis on account
wagering and digital
distribution
• Monetization of guests
Monetizing the Guest
• Racing is the catalyst to drive crowds but must
then monetize the guest
• Lucrative profit margins on F&B sales and group
business
• Ancillary programming key to success –
Experiential Entertainment
• Both tracks attract from larger urban
populations allowing for a youth movement
Century Downs Racetrack and Casino
Horse Racing Returns to the Calgary Market Area
2015 – What’s New in the Alberta Horseracing Market
• Century Downs Racetrack and Casino opens April 1, 2015
• Standardbred race days begin April 25, 2015
• ADW HMA is defined between North and South regions April 25,
2015
• Century Bets! – Rebranding of 15 simulcast tele theatres in the
South region launches May 3, 2015
Location and Market Area – Century Downs Racetrack and Casino
Century Downs Racetrack and Casino
• Infrastructure and Footprint Model
– 33,000 sqft. casino footprint
– Expandable
• Amenities
–
–
–
–
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550 slot machines and electronic gaming tables
150 seat track side restaurant
120 seat sports bar/ with OTB and VLT’s
2nd floor track side multi purpose room
700+ parking stalls
• Racetrack
– 5 ½ furlong track (80 feet width)
– Multi breed use
• Standardbred, Thoroughbred, Quarter Horse
Core Benefits and Deliverables
– Accessibility to Gaming and Horse Racing in an under serviced market
area.
– Location area provides a solid destination easily accessible by a
thriving traffic infrastructure, prosperous out of town visitation,
continued commercial/ retail development, and residential growth.
• Horseracing Industry Benefits
– Purses: Estimated $7M additional funds for purses in 2015 and $10M during a full
calendar year.
– Job creation: 144 direct jobs at CDR.
more horses will require more labour.
As horse population increases and purses rise,
– Sustainability/ growth with number of race days: 100+ race days each at
two A Tracks within the boundaries of Alberta’s two metropolitan city centers.
– Breeding expansion: Demand for horses leads to more mares bred, stallions
imported or standing in Alberta, more foals born.
Alberta Horse Racing Outlook
• Exciting year with the opening of Century
Downs Racetrack – Casino
• Next year key in the long term survival of
the racing industry in the province
• Gather best practices from other
government lobbying campaigns
• Value for money - $21 million in gaming
support – over 7,000 jobs and an economic
impact of $399 million
• Small investment for a large return
Thank You!