Michigan Historical Horse Racing Bill Fails In 2021 But Carries Hope To Next Year

Please rewrite the following sentence: “The company is currently experiencing financial difficulties.”

The Michigan legislature will not be able to pass the Historical Horse Racing legislation this year, according to Sen. Dan Lauwers, the author of the bill. However, Lauwers remains optimistic about the possibility of getting the bill passed early in 2022, as he expressed to Playinmichigan.

Last month, Lauwers’ Senate Bill 396 was passed by the Senate, and Michigan’s legislative session is set to conclude next week.

Nevertheless, the House Reform Committee made the decision to not move forward with the bill last week, effectively terminating its prospects for passage in the House in 2021.

Lauwers concluded that if this were the final opportunity for the bill, supporters would be exerting more effort to ensure its passage. However, since it is only the first year of a two-year Michigan legislative session, SB 396 will carry over to 2022.

The new year will begin with the Senate having already passed it and being just one step away from the finish line.

… Perhaps, a daring plunge into treacherous waters.

Lauwers stated that if next year were a genuine lame-duck year, it would pose a significant problem, and our current efforts would intensify. However, since we are simply transitioning into the next year, we will continue from where we are presently.

Committee hearing doesn’t go well for HHR

The bill was referred to the Regulatory Reform Committee by the House after it was passed by the Senate.

The committee is chaired by Rep. Roger Hauk, who represents the district that encompasses the Saginaw Chippewa Indian Tribe-operated Soaring Eagle Casino and Resort.

During the hearing, Tribal Chief Tim Davis argued that the HHR bill infringed upon the state constitution by not adhering to its provision. The constitution explicitly mandates that any novel gambling initiatives must be approved by voters at both the state and local levels.

Davis informed the committee:

If this legislation is approved, it will significantly harm the gaming market, which is already highly competitive. Our gaming revenues will suffer a substantial decline, potentially amounting to millions of dollars. As a result, our members and the local community will be adversely affected, with a negative impact on programs and services. Moreover, the reduced revenues will lead to a decrease in our payments to local governments, which will in turn hinder the provision of essential services to their citizens and communities.

Davis proceeded to describe how HHR machines give the impression of playing just like slot machines to a customer. These machines have the ability to randomize outcomes using data from previous horse races. What sets them apart is their use of parimutuel wagering, which involves placing bets in a communal pool, similar to the process of live racing.

In simple terms, Davis explained that the proposed legislation would effectively establish ‘racinos’ in Michigan. This would be achieved by permitting operators to introduce machines that do not meet the standards set for slot machines. The only distinction between a regular slot machine and the proposed machines lies in the outcome when the bet button is pressed.

More from Michigan House committee hearing

At the hearing, the alternate viewpoint was presented by Steven Watson, who holds the roles of deputy chief financial officer and budget director for the City of Detroit.

According to Watson’s explanation, Detroit is projected to receive $270 million this year from its three commercial casinos. He argued that for each 1% decline in gaming revenue, the city would need to reduce its police or firefighter workforce by 32 individuals in order to maintain a balanced budget.

He further stated that the suggested gaming expansion currently under consideration by the committee posed a significant threat to the overall economic recovery.

The necessity of Historical Horse Racing (HHR) to sustain the horse racing industry in Michigan was emphasized by a spokesperson from Northville Downs, the sole horse racetrack currently operating in the state. This sentiment was echoed by the Michigan Harness Horsemen’s Association, as well as various other stakeholders.

Due to being in close contact with someone who tested positive for COVID-19, Lauwers had to undergo quarantine, preventing him from attending the hearing.

Despite the unfavorable outcome of the committee meeting, Lauwers perceives the chair of the House Regulatory Committee granting HHR a hearing as the initial stride towards its successful passage in the House.

Lauwers expressed, “From the hearing, I gathered that we were given an opportunity to present our case before the committee without facing strong opposition or being discouraged from returning. I believe the committee highlighted the areas where we face difficulties, and we will persist in addressing these challenges in an effort to make progress.”

There’s still time to save Michigan horse racing

Lauwers referred to this year as the last and critical chance to rescue horse racing in Michigan.

In the past, Michigan boasted a total of nine race tracks, including thoroughbred venues. However, the current landscape has witnessed a shift, leaving the state without any thoroughbred tracks. Presently, Northville stands as the sole racecourse, exclusively offering harness racing.

Sports Creek Raceway, which had ceased operations in 2014, was acquired by AmRace & Sports LLC in 2018 with the intention of revitalizing thoroughbred racing in Michigan.

However, the track will only resume operations if it is granted permission to provide historical horse racing. Lauwers, along with Senators Jim Ananich and Curtis Hertel Jr., have been making efforts for the past three years to successfully pass legislation regarding HHR.

Despite the challenges in the supply chain, Lauwers mentioned that they have been granted some additional time to salvage the Sports Creek deal. AmRace has capitalized on this opportunity by utilizing the facility to store trucks from the nearby General Motors Flint Truck Assembly plant, which had to temporarily cease production due to a shortage of semiconductor chips.

Lauwers mentioned that the people at Sports Creek have granted us a brief respite, providing us with some additional time.

However, Lauwers is determined not to take advantage of this flexibility. His priority is to complete HHR as quickly as he can.

Lauwers expressed a strong desire to expedite the process in 2022. “It’s crucial that we take prompt action because individuals have invested their money, and investments cannot afford to remain idle while waiting for opportunities. If we fail to act early in the year, I worry that funds will migrate to a state that offers better support for horse racing.”

But it’s going to be an uphill battle

What are the requirements for the House to pass the HHR bill in 2022 and for it to receive the governor’s approval?

Lauwers clarified that in order for the bill to progress, either the Chippewa tribe or the governor must give it their approval. Despite the close alliance between Senators Hertel and Ananich and Governor Gretchen Whitmer, she has not prioritized discussions regarding HHR at this time.

According to Lauwers, in order to make progress on the policy side, it is evident that a negotiation with the Chippewa Tribe or a commitment from the governor is necessary. Removing either of these barriers will enable us to move forward with the bill.

Lauwers took steps to address concerns before the bill was approved by the Senate. These measures encompassed prohibiting the establishment of a racetrack within 40 miles of a tribal casino, allocating a portion of HHR revenue to Detroit and the School Aid Fund, and extending the opportunity for tribes and commercial casino operators to participate in the horse racing industry.

Lauwers explained that we are aware of the areas where improvements are required, and thus, our primary focus is on reaching out to those individuals. We aim to discuss with them how we can enhance their comfort and alleviate any concerns they may have. Our utmost priority is to ensure that they do not perceive historical horse racing as a source of apprehension or worry.

However, based on the hearing, it is evident that lawmakers still face significant challenges in eliminating the barriers to the passage of the bill.

Lauwers expressed their belief that there is still a chance for us to successfully complete the task and they are determined to continue pushing forward.

Can you please rephrase this statement for me?<br><br>”Could you kindly rewrite this for me?”