Michigan Horse Racing At Do-Or-Die Stage With ‘Final Attempt’ At Historical Horse Racing Bill

Can you revise this statement for me?

In 2019, Sen. Dan Lauwers initiated his battle to safeguard the Michigan horse racing industry by advocating for historical horse racing. As the present year unfolds, he firmly believes that the time has come to act decisively.

If Michigan fails to pass his historical horse racing bill soon, Lauwers fears that a once billion-dollar industry will meet its demise.

Lauwers explained that this is essentially the last opportunity. The future of Sports Creek Raceway hangs in the balance as investors have expressed their intention to withdraw if this does not come through. Success would potentially result in having two tracks, while failure would likely lead to losing the only track currently in existence.

On Thursday, Lauwers’ S 396, along with three other related bills, made progress by advancing from the Senate Agriculture Committee.

Michigan’s historical horse racing bill in perspective

Michigan passed a comprehensive set of gambling expansion bills in 2019, encompassing sports betting and online casino activities. Additionally, the package included two bills aimed at revitalizing the state’s struggling horse racing industry. The first bill permitted advance deposit wagering (ADW), while the second bill focused on historical horse racing (HHR).

The package of bills successfully made its way through the Senate, except for the HHR bill, which was removed due to opposition from commercial and tribal casinos.

Last year, Lauwers and Senate Minority Leader Jim Ananich made another attempt. In Ananich’s district, Sports Creek Raceway, which had stopped its operations in 2014, was bought by AmRace & Sports LLC in 2018. The new owners committed to restoring thoroughbred racing in Michigan.

The catch lies in the fact that the state would need to approve ADW and HHR for the comeback to happen.

The sole racetrack in Michigan that continues to hold live and simulcast racing is Northville Downs near Detroit. This racetrack specializes in standardbred harness racing.

In 2020, online horse racing bets in Michigan reached an impressive $35.8 million through advance deposit wagering. However, the casino opposition once again thwarted the legalization efforts for Historical Horse Racing (HHR).

Despite being a parimutuel game that relies on past racing outcomes, historical horse racing machines closely resemble slot machines. This similarity causes frustration among casinos that solely offer slot machines. In a statement to Playinmichigan in the previous year, Fred Harrington, a tribal council member representing the Little Traverse Bay Bands of Odawa Indians, warned that tribes would halt making gaming payments to the state if the HHR bill became law.

Detailing the 2021 HHR effort

Among a package of four bills this year, the HHR legislation is included.

• Bill 396 modifies the definition of parimutuel wagering by incorporating wagers on races that have already taken place. Additionally, it enforces a 1% tax on the sum of all wagers.
• Track 397 enables the provision of video lottery terminals at racing venues.
• Permits commercial casinos to obtain a third-party facilitator license for conducting simulcast horse wagering on their premises.
• Criminal penalties associated with 397 are stipulated in 399.

The focus of the package revolves around the HHR bill, which highlights that racetracks may have the opportunity to request greater funds, but are merely seeking enough to sustain their operations within the state.

This year, a new opportunity has arisen for casinos to acquire licenses for simulcast wagering. This initiative aims to provide casinos with an incentive to withdraw their objections to HHR.

S 398, introduced by Sen. Curtis Hertel Jr., is tie-barred to S 396, indicating that the passage of S 398 is contingent upon the passage of S 396.

Lauwers expressed concern that if horse tracks don’t receive what they’re seeking, allowing casinos to offer simulcast could potentially jeopardize their existence.

Lauwers stated that casinos have shown no sign of interest in simulcast wagering and continue to express their opposition to the HHR bill.

Lauwers stated that the casinos consistently denied their support and essentially preferred the horse tracks to suffer financial losses.

Legislative support is there for Michigan historical horse racing

According to Lauwers, the necessary votes to pass HHR through the legislature have always been available. He highlighted that in 2019, the HHR bill received a resounding approval of 376-38 in the Senate before it was withdrawn from consideration by the House.

However, it would be futile to expedite the bill’s passage, knowing that Gov. Gretchen Whitmer would ultimately veto it.

“The legislature has consistently shown support for our proposal, so I don’t anticipate any difficulty in getting it approved,” stated Lauwers. “Historically, opposition has arisen from the administration, not the legislature.”

Lauwers represents the majority Republican party in the Michigan legislature, while Whitmer belongs to the Democratic party. Nonetheless, both Ananich and Hertel, who are influential Democratic lawmakers, lend their support to Lauwers’ initiative. Hertel played a crucial role in collaborating with Whitmer to secure her endorsement for the sports betting and online casino bills.

Lauwers expressed his belief that collaborating with the minority leader and Hertel, two exceptional individuals in the Democratic Caucus, provides them with a strong possibility of success.

Time to force governor into decision on HHR

After successfully progressing through committee, Lauwers announced that a meeting is scheduled for next week, involving all relevant parties. These parties comprise the casinos, racetracks, and the administration.

Lauwers is hopeful for an agreement that would make the passage and signing of the bill easier.

Regardless of whether an agreement is reached or not, Lauwers views this as the final opportunity to rescue horse racing in Michigan and urges the legislature to present the HHR bill to Whitmer for consideration.

Lauwers stated, “I believe there are no valid reasons to oppose it. If the governor decides to reject horse racing in Michigan, that choice is entirely up to her.”

According to Lauwers, the significance of the horse racing industry in Michigan extends beyond mere racing and betting. In his district, there exists a company that supplies hay and straw to racetracks. Furthermore, his daughter happens to be a veterinarian specializing in large animals. If horse racing were to falter, a substantial number of jobs would be at stake in Michigan, as he expressed.

Lauwers emphasized that horse racing was once a billion-dollar industry in Michigan and expressed confidence that it could thrive again. He questioned the logic of rejecting such a lucrative business opportunity within the state.

Please rewrite your question.