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Rendell pushes for racetrack slots |
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Governor Ed Rendell aims to revitalize the struggling industry and increase state revenue
By MARUJA ROSARIO Reporting Spring 2004 |
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HARRISBURG, Pa. - West Virginia started it back in 1990. Delaware followed shortly behind in 1995. Now, Pennsylvania wants to follow in their hoof prints and enter the gambling race as well. Governor Ed Rendell is adamantly pushing for slot machines to be located at eight of Pennsylvanias racetracks in order to help boost the lagging economy and offer relief to Pennsylvanians in the form of lower property taxes. Tom Kauffman, president of the Pennsylvania Horse Racing Association (PHRA), agrees that the slots will do nothing but positive things for Pennsylvania. The fact of the matter is we can now clearly see after ten years of research and observation that adding slots to tracks improve local communities, he said. The slots will help save the struggling $1.2 billion racing industry as portions of the slots go towards increasing the racing purses. Better purses attract more owners, which in turn improve the quality of racing, increasing tourism to the tracks. More tourism generates more revenue to the state. Slots at the tracks are the only new source of revenue other than raising taxes. I dont know anyone who wants their taxes raised, said Kauffman. Kauffman said that the addition of slots would create 17,000 new jobs with a $1 billion job income. Property tax would be reduced by hundreds of millions. Even the agricultural community would benefit from slots at the tracks. Better racing increases the amount of horse farms that establish themselves around good tracks. Delaware saw this to be true shortly after they added slots, seeing an increase in horse farms and the businesses that support horse farms, though it is difficult to gather data on the horse industry. In Kauffmans view, everyone wins the purse including the gamblers. Millions of Pennsylvanians gamble billions of dollars every year. However, it is not Pennsylvania that gets to reap the rewards of that money, but its neighboring states, Delaware, West Virginia, and New Jersey. Driving the distance to gamble in other states can be burdensome, which is why many eager thrill seekers are excited at the prospect of only having to go as far as Penn National or Pocono Downs to have a fun Saturday afternoon at the slots. Luz M. Delgado, Pennsylvania gambler who frequents Delawares slots said, It would be close to home and that would make it easier. That attitude is what the tracks are hoping to capitalize on, keeping Pennsylvanians gambling in Pennsylvania. Not everyone sees slots in the state as a good move. There are concerns that gambling addictions will skyrocket. West Virginia saw an increase in gambling addiction when the slots were added to Charles Town Races. Rev. Michael D. Withen of First Baptist church of Rnson stated, We never had a Gamblers Anonymous chapter until we got slot machines. Rivas did not share a similar opinion. She said, People who have a problem are going to gamble no matter what, whether here in Pennsylvania or down in Delaware. It shouldnt stop the slots from coming here. Another concern deals with the potential for an increase in crime activity. Charles Town Races saw crime rise, at least according to Withem. Ranson Police Chief William Roper disagreed. We had heard about them [crime] coming along in other areas, and we were concerned about it, but we have not seen an increase in it in this area, he said. Charles Town Races owes its success in keeping crime activity down to Robert R. Ramey, vice president of public affairs for Charles Town Races, and Penn National Gaming Inc., the owners of the track who own Penn National Racetrack and Pocono Downs, as well as many other tracks in the state. Penn National promised to improve the track and followed through with their promise. The fact that the same company owns so many tracks in Pennsylvania adds hope that those tracks will not suffer an increase in crime either. Delaware has seen the results of adding slots to tracks as it saved their horse racing industry of being completely eliminated. The purses, only a meager $500 before slots, increased to $10,000 and completely revolutionized their industry and its community. The revenue from slots earned Delaware $14.9 million, and that was back in 1995. Of that figure, the state of Delaware got to keep $5.3 million, which Delaware used to improve education, among other things. The state-regulated slots are virtually scandal-free, with every penny going where it is supposed to go. If we can mirror what they did in Delaware and West Virginia, well be in good shape, said Kauffman. He also stated that people should see for themselves how well these tracks are doing. Its as clear as driving a car across the state line and taking a look. All stories in this magazine are the intellectual property of the individual authors. You may email comments about this story to: mxr300@psu.edu
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