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Harrah's offers millions to end Iowa dog racing | desmoinesregister.com | The Des Moines Register

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Harrah's offers millions to end Iowa dog racing

By JASON CLAYWORTH • jclayworth@dmreg.com • March 18, 2010

Iowa would indefinitely receive at least $7 million a year if lawmakers agree to end live greyhound racing, representatives of the world's biggest casino chain said Wednesday.

"This is a tremendous solution for Iowa," said Dan Real, assistant general manager at Horseshoe Casino in Council Bluffs.

The offer from Harrah's Entertainment could be substantially more than an offer made earlier this session in which Council Bluffs and Dubuque casinos would pay a total of $10 million a year for seven years.


The casinos want to dump dog racing because it's expensive to maintain and draws few gamblers. The Dubuque and Council Bluffs tracks are required by the state to have dog races as part of an agreement lawmakers made in 1994 to save the state's dog racing industry. In order for the casinos to have slot machines, dog racing must take place.

The two dog tracks together spend about $12 million a year in profits from slots and other gaming to supplement the prize money, or purses, that dog owners and kennels win, according to a report.

House File 2493 would have granted casinos the right to end dog racing, but the bill failed to meet various legislative hurdles and was declared dead by Democratic leadership, specifically Senate Majority Leader Michael Gronstal, D-Council Bluffs.

Harrah's, which owns Horseshoe Casino, said Wednesday in a news conference that it would be willing to pay its $7 million share annually for as long as the casino holds a gambling license in the state.

"That is $7 million a year that can be spent by the state for real issues that affect Iowans like education, jobs and health care as compared to spending this money on a few breeders and owners, many of whom are out of state," Real said.



Dubuque Greyhound Park and Casino, now known as Mystique Casino, did not participate in Wednesday's lobbying efforts. Jesus Aviles, the chief executive officer of the casino, said a contract with the nonprofit Dubuque Greyhound Association, which manages the track, prevents the casino from such activities. However, he said the casino believes the study by Christiansen Capital Advisors, a New York firm paid by Harrah's, is accurate.

Harrah's Entertainment, which owns 50 casinos worldwide and purchased the Council Bluffs greyhound racetrack-casino in 2001, commissioned the study of the greyhound industry and gave copies to Gov. Chet Culver and key lawmakers in January.

The report shows consumer interest in betting on dogs has dwindled drastically, and it's expensive for the casinos to subsidize greyhound racing.

Gronstal, on Friday, told Iowa Public Television's "Iowa Press" that it's doubtful such a bill would pass this year.

Some of the opposition is from lawmakers who believe it's wrong to accept cash to allow casinos out of their obligations.

"What we're talking about is paying a fee of a re-licensure of a facility," said Jim Carney, a lobbyist for Harrah's. "We don't think it's correct to characterize it as buying our way out of anything."

Officials from the greyhound industry have expressed concern that ending the racing would create a huge economic blow to the state and its 62 kennels and 146 breeders and owners.

Harrah's on Wednesday said it also would allocate $4 million to $10 million to help professionals in the dog industry prepare for new careers.



Alan Hill of Radcliffe, who raises greyhounds that are sold and leased for racing at tracks in Dubuque and Council Bluffs, said Wednesday he was strongly opposed to Harrah's plan. He said he views Harrah's proposal as nothing but an effort to bribe state legislators to vote against people who rely on Iowa's greyhound industry to make a living.

"This is something I have done for 25 years, and I have raised a family doing it. My son lives in Minnesota and now he wants to come home and help me on the farm," Hill said.

He said it's important to recognize that about 1,300 people are involved in Iowa greyhound racing, and that the industry spends millions of dollars annually in rural Iowa. He estimates he spends about $200,000 annually in the Radcliffe area on farm supplies, veterinary services and other expenses.

Rep. Doug Struyk, R-Council Bluffs, who has worked on various gambling issues this legislative session, said Wednesday's offer will likely push some lawmakers to reconsider. Lawmakers have wrestled about allocations as little as $1,500 this year. The money is badly needed, he said.

It's possible that the idea could be attached as an amendment to future budget bills even though Struyk said he isn't currently planning to introduce such a provision.

"I think, more important than anything, today certainly educated more people about the issue and lets people know that this is an option that's out there," Struyk said.

Register staff writer William Petroski contributed to this article.


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