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Miga - Racino Myth Vs Fact
Miga - Racino Myth Vs Fact
Miga - Racino Myth Vs Fact
FACT
REVENUE
MYTH: The state will get $100 million in new revenue from the racinos, based
on an estimated $365 million net win after payouts.
FACT: The state will see little or no net gain in revenue. In a saturated gaming
market like Minnesota’s, racino revenues will have to come from existing forms
of gambling:
MYTH: The racinos will generate an estimated $365 million net win after
payouts, with about $100 million going to the state, while wealthy track owners
get a whopping $213 million.
FACT: In order to generate a net win of $365 million from 3,000 machines, as
Racino Now claims, each machine would have to generate $333 per day net
win. Even Wynn Resorts in Las Vegas doesn’t achieve that, with an average
daily win per slot machine of $251.
JOBS
MYTH: Racinos at Canterbury Park and Running Aces Harness track will create
thousands of new permanent jobs.
FACT: Tribal casinos will be forced to lay off as many as 6,500 people
working in gaming and government if the racino bill passes, so there will be no
net job gain. Jobs will simply shift from rural Minnesota to the metro area,
causing rural county tax revenues to decline and social service costs to rise.
HORSE INDUSTRY
FACT: There is no such study. The economic impact estimate came from a
PowerPoint presentation delivered at a 2004 meeting of horse owners, and
was based on Pennsylvania numbers, not Minnesota numbers. The presentation
claimed that Minnesota has 150,000 horses, but the MN Department of
Agriculture reports that there are only about 90,000 horses in the state. Only
about 2% of them ever set foot at the state’s racetracks.
This could change if the racino bill passes. In Iowa, Harrah’s has offered the
state $7 million dollars per year FOREVER if the state will allow the track to
end live racing, which loses money (Omaha World Herald, March 18, 2010).
Iowa currently requires that racinos operate live racing in order to qualify for
casino licensure.
OTHER STATES
MYTH: Expanding gambling has solved the budget problems of other states.
Pennsylvania has been forced to cut $161 million out of state programs
because of a shortfall in projected slot machine revenues (January 8,
2010 Pittsburgh Post Gazette).