Be a Part of Bringing Racing Back to Kansas

In early January, Senator Bob Marshall and Senator Terrie Huntington were invited to
Flying D training stables operated by Shane Stout. During their visit they were able to see
first hand the investment in machinery, land, buildings, labor, professional expertise,
livestock, etc. involved in training racehorses. It was quite an eye opening experience for
someone that had never seen the "backside" of horse racing. The message was clear
without many words. We are an important source of jobs and investment in the Kansas agri-
economy.

If each of us would make a point to set up a similar visit to the farm with our legislators,
there is little doubt the value this would have for our future. Step up and do you share!
RUTLAND RANCH  
    The 2011 legislative session has begun and we feel confident enough things have changed within
    the state capitol that will allow us to pass a gaming bill that would be favorable to the horse racing
    industry. It is very important that we keep an optimistic outlook to pull this off. It will take an effort
    with everyone involved, not just a handful. We must convince our legislators we can have a valuable
    position in the state's agricultural economy. A study was done by the Racing Resource Group in
    1990 that stated the horse and greyhound racing industry has an economic impact of slightly over
    $222 million each year. With the decline in racing opportunities and ultimately the closing of our
    state's racetracks, this number is somewhat less today due to no fault of our own. Kansas is
    currently ranked 9th in the nation for states that people are moving away from. Horse and greyhound
    breeders have been forced to move to other states in order to survive. Bringing these owners and
    breeders back to Kansas, as well as attracting new investment in our industry, is imminent once we
    get the gaming bill fixed that will allow the tracks to operate slot machines profitably. Be ready, when
    called on, to take a message to your legislator about the importance of our industry ... jobs,
    agriculture and revenue to the state. Have your own personal story ready to explain the value we
    really do have.             
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LEGISLATIVE UPDATES
                         
To contact your legislators in the House of Representatives or the Senate
and find Kansas Legislative information
click here

    HB 2002 was introduced on Jan. 12 by Representatives Gatewood and Grant from the Pittsburg area. This bill, as
    written, WILL NOT help the horse racing industry. It offers changes to the existing gaming law that would affect
    only the southeast Kansas gaming zone. It would do nothing to help get The Woodlands or Wichita Greyhound Park
    back up and running.
    Look for another bill to be introduced later that the breed groups and racetracks have agreed on that will give our
    industry the support it needs.
                         
     Direct Loss of State Tax Revenue
    Without a Vibrant Racing Industry in Kansas

    Individual State Income Tax   4000 jobs - $36,000/yr. @ 3.5% tax  = $5 million/yr.             or  $13,800/day

    Property Tax         600 horse facilities @ $5,000 tax/yr. = $3 million/yr.                              or    $8,800/day

    Gasoline Tax       4000 drive 15,000 miles/yr. - 4 million gallons @ .25/gal. = $1 mil./yr.   or    $2,750/day

    Sales Tax              $2,000 tax per capita - 4000 participants = $2 mil./yr.                            or   $22,000/day

    Pari-mutuel Tax      State's 6% share - $4 million/yr. at 5 tracks                                          or   $11,000/day

    Slot Machine Tax     2800 machines - $150 NMI/day @ 22% to state                                   or  $92,400/day
                                                                                                                                                            ___________

    Total State Tax from the DIRECT result of 4000 employed by the state's racing industry     $151,000/day
    (This does not include property tax paid on track facilities.)

Annual Tax Revenue generated from the DIRECT result of the Racing Industry of Kansas  $55.1million
                          
    Some people still think they should “shelter” us from gambling. With the financial situation our
    state is in, a good source of income for Kansas is being ignored to the tune of over $151,000
    per day. Our legislators should fix our laws that would allow a large sector of our Kansas
    agriculture survive while at the same time collecting income from slot machines that citizens of
    our state are going to play, whether they are in Kansas or another state! It's time we kept
    Kansas money in Kansas!
                         
Intended Legislation for 2011
  • Should ensure that reopening racetrack facilities will have a positive impact on rural communities all across Kansas.
  • Allow the voters in Sedgwick County to decide whether to reopen Wichita Greyhound Park. A previous ballot question
    failed by 244 votes in an election where more than 100,000 votes were cast. SB 401 requires a petition signed by 5,000
    registered voters in Sedgwick County before the question can be placed on the ballot.
  • Adjust the state tax structure for pari-mutuel facilities to allow the tracks to be financially viable, and make the
    investments required to reopen the facilities.
  • Fix technical problems affecting the availability of slot machines at all gamine facilities in Kansas
  • Reduce the minimum investment, and privilege fee for the development of a Southeast Kansas destination casino to
    make that project financial feasible.

    In Kansas, passage of legislation would
  • Create 1,000 -1,500 permanent new jobs at the track
  • Create 3,000 new jobs in horse and greyhound breeding operations across the state
  • Generate more $40 million in new “non-tax” revenues for the state of Kansas in the first 12 months of operation, and
    $50+ million per year in the following years. (not including increased income taxes, sales taxes and property taxes)
  • Reopen 5 pari-mutuel racetrack facilities (Woodlands, Camptown, Wichita Greyhound Park, Eureka Downs and Anthony
    Downs)
  • Create opportunity for a new Southeast Kansas Destination Casino.
  • Inject more than $15 million per year in the rural Kansas economy through breed purses for greyhound and horse
    operators throughout the state of Kansas.

        Impact on Sedgwick County
  • Would allow the voters of Sedgwick County to decide whether Wichita Greyhound Park could be allowed to reopen, with
    the placement of slot machines at the facility.
  • A tribal casino is inevitable in Sedgwick County (according to their developers), and could well be less than 12 months
    from opening. It makes good sense for the state and county to move forward with Wichita Greyhound Park (if the voters
    approve), to maximize the state’s revenues from gaming.  
  • Sedgwick County needs the jobs. 500 jobs and a $50 million dollar construction project can bring an immediate boost to
    the local economy in the short term and economic expansion in the long term.
  • With declining revenues, an additional $2 million to Sedgwick County (the county’s share of slot revenue) in direct
    payments can ease the pain of the current fiscal crisis. This would not include the increase in sales and property taxes
    that would be realized.
  • Failure to act now closes the door for future opportunities. The development of a tribal casino will likely end any further
    opportunity for additional jobs and revenues.
  • Wichita Greyhound Park will spur significant expansion of both the Horse and Greyhound Industry all across Kansas and
    inject new economic opportunity in many small communities across the state.

        Impact on Wyandotte County
  • Would reopen the Woodlands with the placement of slot machines at the facility.
  • Create 300-500 permanent new jobs at the track
  • Add Temporary Construction Jobs associated with a $50+ Million dollar construction project.
  • Add 1.5-2 Million dollars in direct ANNUAL payments to Wyandotte County for distribution pursuant to the local revenue
    sharing agreement(not including increased sales tax and property taxes that would be collected in the county)

Both the KQHRA and the KTA have held their annual membership meetings and conventions for 2011. Both
horsemens organizations agree on the possibility of getting legislation passed that would benefit the racing
industry and in turn carry huge economic benefits for Kansas.
While a specific piece of legislation we intend to support has not been introduced yet, it is important for everyone
to organize an effort in their home area of people that racing has some effect on their business. Each should
contact their legislators, both senator and representative, and briefly explain how money from the racing industry
filters through their operation. Ask them to help keep the racing industry in a position to add the economic impact
to the state's economy as it is able to do.