Not only was it a long meeting when the Minnesota Racing Commission approved historical horse race betting earlier this month, but it has been a long-time coming, according to Running Aces Casino & Racetrack President and CEO Taro Ito.
“We have been working on this for 10 years. We have been cultivating this, and tailoring this application and waiting for the right time,” Ito said.
The approval from the commission on Monday, April 1, in a 5-1 vote, will allow Running Aces and other similar gambling locations, such as Canterbury Park in Shakopee, to install 500 historical horse racing games – if it is unsuccessfully contested by legislators. The historical horse racing games simulate pari-mutuel wagering (people placing bets on horse races) based on races that took place in the past, hence the term “historical.” Supporters of this game argue it requires skill to place a bet utilizing information on how well a horse may perform.
Even though this vote is an exciting step for business at the racetrack, Ito knows there will be some hurdles to this actually being implemented on Tuesday, May 21, as there’s already opposition being discussed at the legislature.
During the House Commerce Finance and Policy Committee meetings, the committee considered an amendment to house bill 5274, which would reject MRC’s decision and prevent betting on horse races that happened in the past via these games. The bill is related to how horse racing bets and card playing can be conducted.
At the Tuesday, April 9 committee meeting, the committee voted to refer it back to the state and local government finance and policy committee.
Regardless, Ito thinks the proposed games that would be played on the devices proposed would abide by all current laws, hold up in court and would have a positive impact on the horse-racing industry.
“Everybody is sort of jumping to the conclusion without really looking at the detail and taking the time, and that’s what’s frustrating, … to really look at our application and understand what we’re really asking for,” Ito said, later adding: “We felt like our product was iron tight. We turned over literally a million stones. ... I mean, we addressed each potential roadblock or challenge, and I think we finally got the product that we think will be successful in a court of law.”
Ito explained that the machines Running Aces plans to use can be personalized to offer specific games that abide by Minnesota laws.
“Everything that is currently in the law in Minnesota, this complies with. So the MRC didn’t have to make one change. They didn’t have to make an exemption, a rule change, a policy change, and that’s why, I think, they felt comfortable with their decision,” Ito said.
He thinks opposition to the machines are based on thinking it’ll offer games that Kentucky, Wyoming, Arkansas, Kansas or Virginia offer, which don’t abide by Minnesota laws.
“This is not the same product that is being utilized in Kentucky or any of the other … states that are offering this now. This is, again, a tailored product that we developed and worked on for the last 10 years,” he explained.
Whether it looks or feels like a slot machine is immaterial, since the machines are based on skill of knowing who might win a race, not by the chance of winning a prize by hitting a button.
“Patrons exercise skill. They’re allowed to see and can access handicapping information, actual handicapping information for these races. People who understand handicapping information will do better,” said Evan Nelson, a Maslon LLP legal partner representing Running Aces, at the April commission meeting.
Ito feels confident that even if this is contested in the courts, this approval of the machines will hold up based on current laws.
The financial gain the historical horse racing games would offer Running Aces would be a helpful boost for it to continue being a positive business in not only Columbus but Anoka County.
Even though Running Aces has seen a few good years due to its location away from other competitors, it won’t be immune if it’s excluded from another piece of legislation, the Minnesota Sports Betting Act 2.0, on the table at the Legislature now.
“We’ve been able to hold our own and be successful — for that we’re thankful for. But if we’re not included in the sports betting bill, then we’re anticipating significant reductions to our revenue,” Ito said.
Most Popular
Comments / 0