Northville Downs Has Four ADW Horse Racing App Deals In The Works

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Written By Matt Schoch on June 9, 2020
horse betting

Can you please rephrase this?

It is still uncertain if the live horse racing season will commence at Northville Downs this month.

However, Mike Carlo, the operations manager of the only remaining racetrack in the state, is optimistic that Michigan horse racing enthusiasts will soon have the opportunity to place their bets on the ponies, regardless of the outcome.

Carlo is not only attempting to start his own live racing season, but he is also working towards enabling bettors across the state to place online bets on the initial leg of this year’s Triple Crown through recently regulated advance-deposit wagering.

Carlo informed Playinmichigan that Northville Downs is on the verge of finalizing deals with TwinSpires, TVG, Xpressbet, and NYRA Bets. This collaboration aims to introduce online betting in Michigan just in time for the Belmont Stakes happening on June 20.

Carlo stated that Northville Downs is fully prepared for live harness racing once Gov. Gretchen Whitmer grants permission. Due to the COVID-19 pandemic, a total of 24 race dates have already been canceled. The four remaining dates scheduled for June are still at risk.

How we got here and what’s next for ADW in Michigan?

In December, Governor Whitmer signed expanded gaming laws in Michigan, which now permit the presence of ADW.

In the previous month, the Michigan Gaming Control Board made an announcement stating that third-party facilitators now have the opportunity to apply for a license to run betting apps for horse racing within the state. It should be noted that certain facilitators are already offering these apps without any form of state regulation.

To initiate the process, operators are required to apply and present a comprehensive operational plan to Richard Kalm, the Executive Director of MCGB and the state’s horse racing commissioner.

To cover the expenses associated with background investigations, applicants are required to submit a $1,000 application fee and a $500 license renewal fee to the board.

After obtaining a license, the facilitators are required to utilize and transmit pari-mutuel wagers to a pari-mutuel system that complies with all the requirements set by Michigan.

‘Big four’ ADW apps could be live in Michigan soon

Carlo was given the approval by the leaders of the thoroughbred and harness horsemen’s associations to negotiate the different ADW contracts.

Carlo mentioned that ever since the gaming control board granted permission last month, he has been in constant communication with the companies. Carlo is familiar with the operators due to their individual agreements with Northville Downs for simulcasting.

Carlo mentioned that they are currently in discussions with the major four entities that dominate the online horse racing industry. He confidently stated that they are likely to finalize agreements with each of them within the coming week.

Track planning short-term ADW contracts at first

Carlo mentioned that they are nearing a consensus on the distribution of online revenue among stakeholders. He stated that the contracts are expected to span 18 months, providing all parties with a brief but comprehensive overview of the revenue generated.

Carlo emphasized that the absence of any revenue projections from ADW necessitated the need for a short-term contract, as no studies have been conducted on the matter.

Carlo expressed his concern about the negotiation challenge, stating, “We have encountered a problem where we lack information, leaving us in a state of uncertainty. Our strategy is to initially establish short-term agreements with all parties involved, allowing us to gain insights into the financial aspects. Once we have a clear understanding of the available funds, we can then proceed to make necessary adjustments.”

Next, there is a race to secure regulatory approval by June 20.

Carlo expressed his hope for the swift approval of their contracts by the Gaming Control Board. He emphasized the importance of this approval, as it would enable people to legally place bets on the Belmont Stakes, regardless of whether his building is open by June 20 or not.

COVID-19 has wiped out Northville’s live racing

Northville Downs had its 2020 live racing slate all set to begin on March 20, just a week before the pandemic hit and disrupted various aspects of our daily lives.

Following the completion of four remaining live racing dates this month, the track planned to commence its 11-week summer hiatus. However, Northville Downs subsequently arranged 24 live racing dates spanning 12 weekends, starting from September 11 and concluding on November 28.

Carlo suggested to the gaming board that they should consider skipping the summer break.

Due to the stay-at-home order issued by Whitmer, most public places were closed until June 12. As a result, Northville Downs has scheduled live racing on Friday night, taking advantage of the expiration date set by the order.

Nevertheless, the previous week witnessed Whitmer’s statewide lifting of sanctions on bars and restaurants, allowing them to reopen on Monday with a limited capacity of 50%.

Despite being grouped with the state’s three commercial casinos, Northville Downs was explicitly prohibited from opening on Monday.

Carlo says simulcast betting more like a sports bar

Carlo contends that although Northville Downs, similar to the Detroit casinos, is temporarily closed, its primary operations rely heavily on simulcasting for day-to-day business.

Carlo commented that the current practice resembles a sports bar, as sports bars in Michigan resumed their operations on Monday.

Carlo mentioned that he has already submitted the reopening plans to both the governor’s office and the Gaming Control Board.

Carlo clarified that despite being under the jurisdiction of the Michigan Gaming Control Board, our establishment is not a casino. He further explained that the majority, approximately 95%, of our operations take place within a sports bar setting.

Social distancing measures for live racing, indoor area

Carlo confidently stated that implementing a six-foot social distancing measure for race contestants, workers, and attendees would pose no challenge.

Carlo expressed his contentment with restricting the capacity of the Northville Downs grandstand to 25%, accommodating approximately 2,000 fans.

Furthermore, he would be content with a dining room that has a seating capacity of 200 people, even though it has space for 400 guests.

Carlo explained, “Given our 75-year-old establishment, we have ample room to expand and accommodate the same number of players, as we are typically operating at less than 50% capacity anyway.”

Carlo announced that The Maintenance Managing Group Building Services company in Livonia has performed a thorough cleaning and disinfection of the facility. Another round of cleaning is planned for this week.

Carlo mentioned that he has been maintaining communication with his 68 furloughed employees regarding their return to work once they receive the approval from the governor.

Carlo, with 20 years of experience leading a 75-year-old company, remarked, “Throughout our long history, we have witnessed countless events, but this particular occurrence is entirely unprecedented.”

Northville Downs could benefit from horse racing boon

The popularity of horse racing surged while the COVID crisis caused the shutdown of numerous other sports.

However, Carlo mentioned that if Northville Downs decides to resume live racing this summer, there is still a chance for it to benefit. This could potentially be achieved by altering its usual racing nights from Friday and Saturday.

Carlo expressed that the online segment is currently brimming with various activities, making it uncertain where we would fit in. He mentioned the possibility of having a unique racing schedule since we could be the sole racetrack available, attracting all the betting attention. This could potentially lead to races taking place on Monday or Tuesday nights, but the exact details are still unknown.

For the past three weeks, we have been grappling with these questions until we can resolve them with the Gaming Control Board, our horsemen, and our online providers.

Can you please rewrite the following sentence for me? <br><br>”The cat is sleeping on the mat.”

Please rewrite your request/question so that I can assist you.

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