horseracing
...racing.com/index.html) Expanding racetracks to include slot machines, casino facilities and constructing on-site hotels is gaining in popularity. Delta Downs racetrack in Louisiana said their casino has generated $180-million in revenue since opening February 2003, which has added $26-million to purses at the track. (http://www.thoroughbredtimes.com) Economic Effect U.S. The horse industry, as a whole, contributions more to the U.S. GDP than the motion picture services, railroad transportation, furniture and fixtures manufacturing and tobacco product manufacturing industries. The industry directly employs more people than railroads, radio and television broadcasting, petroleum and coal products manufacturing and tobacco product manufacturing. The horse industry has a total impact of $112.1 billion on U.S. Gross Domestic Product (GDP) of which horse racing contributes more than 25% of that figure. There is an active racehorse breeding and training business in all 50 states. In many states, the economic contribution of the racing and breeding industry to state and local economies is substantial and the industry ranks among the state’s most significant economic entities. For example: Florida racing involves 37,000 horses, has a $2.1 billion economic impact and supports 27,300 FTE jobs Illinois racing involves 52,000 horses, has a $2 billion economic impact and supports 30,700 FTE jobs; Ohio racing involves 40,000 horses, has a $1.3 billion economic impact and supports 17,000 FTE jobs Racing and breeding are labor-intensive. Hundreds of thousands of people work full- or part-time in the industry, including owners, trainers, grooms, jockeys, drivers and riders, veterinarians, van operators, racetrack employees and for supporting industries that depend on it. Some of these jobs involve unskilled or semi-skilled workers, who might be unemployable outside the horse industry. Racing and racehorse horse breeding depend on other industries for services and supplies and those other industries and their employees depend on it. U.S. Horse Racing Statistics: Number of Horses 725,000 Number of Participants 941,000 Impact on U.S. Economy $34.03 Billion Total Full-Time Jobs 472,800 U.S. tracks and off-track facilities had an economic impact on the U.S. economy of $9.89 billion and generated 131,600 full-time equivalent jobs. Racing and maintaining competing horses had an economic effect on the U.S. economy of $16.71 billion and generated 214,300 full-time jobs. The U.S. breeding industry had an economic effect of $7.42 billion and generated 126,900 full-time jobs (The Barents Group). Economic Effect WA State While there are 5 recognized horseracing tracks in Washington State, Emerald Downs is the only one with a season longer than 10 days. The remaining tracks are associated with particular community celebrations in Easter Washington such as Dayton and Walla Walla. Total economic impacts for Emerald Downs totaled $80.4 million in output, employment of 1943 people and labor income of $23.36 million. The vast majority of these impacts were seen in non-manufacturing sectors of the economy such as wholesale and retail trade, agriculture, finance, insurance and real estate and business and health services. The total annual investment in Washington State by the thoroughbred industry is estimated at over $280 million. The state of Washington is one of 48 states or which have legalized pari-mutuel wagering on Thoroughbred horses and has become one of the nation’s leading states in both the racing and breeding aspects of the industry. In 2001, Washington state ranked 11th in the United States in both the number and percentage of Thoroughbred foals registered for racing and Washington ranks high in the number of stakes (highest quality races) winners produced. The amount of revenue collected by Washington’s local and state governments as a result of taxation from Thoroughbred horse racing in 2001 was $1,867,106. Further, a lucrative awards program is offered to owners and breeders of Washington Thoroughbreds (Washington State Horse Racing Commission (WHRC) Annual Report 2002). Contrast of horse racing economics versus Major League sports economics Racing generates over $421 million directly to states and local governments in the form of pari-mutuel taxes, track licenses, occupational licenses, admission taxes and miscellaneous fees. In addition to the state’s share of the betting handle (states receive a portion of the pari-mutuel handle, or take, of the betting done at tracks), tracks, horse owners and breeders and others in the industry also pay state and federal taxes and fees. U.S. racetracks paid $511 million in such taxes and fees in 1995. Racehorse owners pay about $1.38 billion in taxes each year. In California alone, racing provides more than 50,000 jobs and contributes $3 billion to the state’s economy – nearly 3 times that of any other professional sport (The Barents Group). In contract, Major League Baseball (MLB) and National Football League (NFL) owners “blackmail local governments and their taxpayers for $200 million or more in public subsidies to construct new stadiums”. (Chong). They then demand the right to sell and keep the proceeds from millions of dollars worth of seat licenses as well as all the revenue from the stadium including concessions, parking, and advertising. Another device for team owners to squeeze even more bang out of the taxpayer's buck is the sale of naming rights to the stadium. In June, 1998 naming rights for the Seattle Mariner’s new stadium were sold to the Safeco Corporation for $1.8 million per year for 20 years adjust annually for inflation. One month later, a citizens’ group fails in their effort to change the name of new ballpark to something more reflective of the role of taxpayers. In April 1999, Safeco Field cost overruns top $100 million and the cost of the new stadium now $517 million. That makes the new stadium the most expensive new baseball park in North America. (http://seattlepi.nwsource.com/safeco/stadium/timesafe.shtml) In 2001, MLB reported an average loss per team of $7,741,000 with total operating losses of $232 million. (http://www.usatoday.com/sports/baseball/stories/2001-12-05-focus-expenses.htm) Nationally, subsidies to professional sports facilities are costing taxpayers approximately $500 million a year. There isn’t a single county anywhere in the U.S. where professional sports accounts for more than ½ of 1% of that county’s private-sector payroll. Further analysis finds no evidence of greater job creation or income creation in communities that invest in sports stadiums versus tho...