By KEVIN WALKER
Michigan Correspondent

LANSING, Mich. — The issue of lottery gambling at horse racing tracks is being looked at again as a possible revenue raiser for Michigan.

It’s also believed that the placement of new gaming opportunities at horse racing tracks in Michigan could revive this venue, which has been suffering from declining attendance for years.

Late last month Michigan state Rep. Mike Simpson (D-Jackson) appeared on a local public television program to promote the idea of introducing lottery pull tab machines at the tracks, stating the industry and other stakeholders are looking at it. He said if modernized pull tabs were placed at all the horse racing tracks in the state it would bring in $500 million in new revenue, some of which would go back into the industry.

If the state were to allow this, however, it would draw a lawsuit from Detroit’s three casinos and the Native American, or Indian, gaming establishments charging that the venues were being made into casinos.

The legal problem for advocates of more gaming opportunities at horse racing tracks is that in 1996 voters statewide voted for a measure that allowed for three non-Indian casinos, all in Detroit.
A 2004 measure voted on by the electorate specifically prohibits non-Indian gaming elsewhere, which killed a bill that would have made the placement of video lottery machines at horse racing tracks legal. But, Simpson said legal experts in and outside the state believe the placement of modernized pull tab machines at horse racing tracks would be legal.

Gary Tinkle, executive director of the Michigan Horsemen’s Benevolent and Protective Assoc., didn’t sound excited about the modernized pull tab machine concept, but said he would welcome anything that helps the troubled industry.

“These tracks should be able to offer any gaming that’s offered in the state,” he said.

Tinkle went on to complain about the monopoly the Indian and Detroit casinos have over gambling in the state. He said Gov. Jennifer Granholm appears to be unconcerned about the horse racing industry and is overly protective of Indian gambling interests.

Tinkle said there are Keno lottery machines at some of the horse racing tracks, but they haven’t generated much interest. He seemed skeptical that modernized pull tab machines would do any better. He said the really big opportunity for the state would be in online gambling on horse racing, which he said is one form of Internet gambling that could be legal with the state’s approval.
“Internet gaming is illegal in Michigan, but that isn’t stopping anybody,” Tinkle said, adding that $60 million was wagered over the Internet in Michigan last year on horse racing.

The benefit of new gaming opportunities at horse racing tracks seems to be well established. Several neighboring states have either slot machines or video lottery machines at horse racing tracks and the practice has worked well for those venues.
Richard McGarvey, a spokesman for the Pennsylvania Gaming Control Board, said slot machines have brought in an additional $455 million since November 2006 when slots were first put into one of the state’s horse racing tracks.

“Those ‘racinos’ have generated a tremendous amount of tax dollars,” McGarvey said. “It’s been said that the slots have saved the horse racing industry in Pennsylvania.”

Pennsylvania passed a law in 2004 that allowed this practice. The state doesn’t have a legal problem with racinos. Between July 2008-June 2009 $210 million has gone for purses and breeders at horse racing tracks in the state.