By Patrick Blennerhassett
American Pharoah’s June 6 Triple Crown win drew the third-highest television rating for the Belmont Stakes ever.
But the massive viewership pull was an anomaly because horse racing’s ratings and attendance have been on the decline in North America for years.
Attendance numbers across the continent have dropped almost 50% over the past 20 years.
Chuck Keeling, vice-president of stakeholder relations and responsible gaming for the Great Canadian Gaming Corp., said he’s trying to help the industry reposition itself.
“Looking at British Columbia, what we’ve tried to do as the operator of both horse race tracks in the province now for many years – Hastings Racecourse in Vancouver and Fraser Downs in Surrey – is drive that appeal of racing as an event. And that’s made for some very challenging decisions. And not unlike other jurisdictions where we have tried to concentrate the race seasons to shorter time frames and fewer race days rather than diluting the product and diluting the marketplace.”
(Image: Chuck Keeling, vice-president of stakeholder relations and responsible gaming for Great Canadian Gaming (left), and Michael Kim, director of operations for Fraser Downs, in front of the refurbished casino | Photo: Chung Chow)
In 2012, Fraser Downs held horse racing on 79 days for an average total handle of $116,156 per day. In 2014, Fraser Downs held races for only 34 days but the average handle was $152,603 per day. Keeling said this condensed racing season has presented both challenges and opportunities.
“Our partners at Harness Racing BC, who supply the horses and the jockeys, they’re not happy about it. It means less racing opportunities, but it’s been the right thing for the marketplace.”
Fraser Downs is also undergoing an $11 million upgrade. Rebranded as Elements, the racetrack and casino will add more than 550 slot machines along with table games such as baccarat, blackjack, roulette and poker.
It will also have new restaurant options, including a live entertainment venue, all of which is expected to be completed this winter.
Keeling said the idea is to play into shifting demographics in which casinos have become all-purpose entertainment facilities, much like downtown Vancouver’s Parq entertainment resort beside BC Place, which is under construction.
“It’s become more than just gambling. You can come in for a drink or a meal or watch a bit of a live show. And maybe you just put $10 into a slot machine and that would be the aspirational guest that we’re going for. So for us it’s about expanding that demographic rather than going after one particular demographic.”
He added that in the past few years Hastings Racecourse has tapped into a younger audience with events like the Deighton Cup. The July 25 event has an upscale Kentucky Derby feel to it with lavish fashion wear alongside horse racing.
Fraser Downs’ suburban location might make it more difficult to attract that crowd to Elements, Keeling said.
Anita Huberman, the Surrey Board of Trade’s chief executive officer, said the new Elements redevelopment at Fraser Downs is a step in the right direction.
“Their revenue management approach needs to be customer focused. Customers in Surrey and the South Fraser are looking for new experiences, especially through generational changes. The modern casino needs to build customer lifetime value into its revenue management and price optimization processes. Casinos need an array of entertainment options whose goal is to attract guests to the vicinity and keep them entertained. The longer you stay, the more you play and pay and eat.”
Keeling said horse racing can still be a part of the entertainment package, so long as it is properly marketed as part of an overall experience.
“My personal and professional background is in horse racing, so I have seen the trials and tribulations of this industry literally for 25 years. So the highly simplified answer on this one is that so long as racing continues to be positioned and profiled as an event, there is still a marketplace for it.” •
