Who would’ve predicted a Mexican jockey could turn around the fortunes of struggling Hastings Racecourse?
Mario Gutierrez, who raced in Vancouver from 2006 to 2011, is aiming to be the first Triple Crown winner since 1978 when he rides Canadian-owned, Kentucky-bred I’ll Have Another at New York’s Belmont Stakes on June 9.
The resulting international profile and increase in business for the five-furlong East Vancouver track that has come with I’ll Have Another’s Kentucky Derby and Preakness victories couldn’t have come at a better time. Great Canadian Gaming Corp.’s (TSX:GC) lease with City of Vancouver expires November 9. Meanwhile, the horse racing industry is mulling its future in British Columbia.
Great Canadian has balked at building a new parkade and renovating the aging backstretch buildings and wrote off $51.2 million of investments at the track in the last two years. The company’s horse racing revenue continues to fall. In 2008, it reported $31.2 million in revenue from Hastings and four standardbred tracks. By 2011, that had dwindled to $19.5 million.
Live wagering at Hastings was $17.35 million in 2009 but fell to $12.15 million in 2011. Total wagering in B.C., both live and simulcast, was $198.27 million in 2009 but $171.62 million in 2011.
The sport, Great Canadian CEO Rod Baker told analysts in March, is sunsetting across North America. The 2004-approved Hastings casino has not performed to expectations. Annual payments to city hall were originally forecast at $6.5 million, but last year only $1.2 million was passed on.
“There’s going to be thoroughbred racing in the future. As to who’ll be the operator, that’ll be the question mark,” said David Milburn, a trial lawyer, horse owner and trainer and president-elect of the Horsemen’s Benevolent and Protective Association of BC.
A 2008 report for the Gaming Policy and Enforcement Branch (GPEB) on the scope of horse racing in B.C. estimated 3,600 jobs and an economic impact of $350 million.
The BC Horse Racing Industry Revitalization Initiative management committee was struck in November 2009. Meetings were held in May with stakeholders and a report recommending plans for the future is imminent. The consolidation of Lower Mainland thoroughbred and standardbred dates into one track has been floated. GCG also operates the Fraser Downs harness racing track and casino in Cloverdale.
“For us to go out to Fraser would be a mistake,” Milburn said.
The first of 11 Friday Night Live racing cards was June 1. The June 9 card will begin an hour earlier at 12:50 p.m. to accommodate viewing of the Belmont on a 40-foot screen in the Hastings infield.
Milburn said the Vancouver Canucks’ early playoff exit might have benefited Hastings, as the handle (the amount bet) was trending upward before Gutierrez became a household name. On the Kentucky Derby weekend alone, the on-track handle was 47% better than the previous weekend and 75% higher than the same period in 2011.
Total handle for May 5 was $685,579, made up of $226,351 in live handle and $459,228 in simulcast handle for all tracks.
Before the season, however, Milburn said GCG made costs cuts throughout the operation.
“I’m sure the pressure is coming from above [track management],” Milburn said. “They’re doing the best job they can, but they’re not getting the resources they need.”
GCG vice-president Howard Blank declined to comment.
Milburn said it costs $22,500 a year to keep a horse, which includes training, grooming, bedding and feed.
“It’s a wonderful adventure, racing horses,” he said. “It’s the combination of a business investment and a sporting event.” •
