Our sport clearly needs an expansion of its owner and fan base and we recognize this is a tremendous challenge due to our lack of a governance structure and overall unity. The expansion of gaming has been a boon in the short term for purse accounts, breeders awards and racetracks, but when we look back and evaluate, how well did we do with these additional financial resources to rebuild and strengthen the sport? In 2003, total handle was nearly $15.2 billion and purses were $1.055 billion. Twelve years later, handle decreased to $10.675 billion and purses inched up to just under $1.1 billion. The total number of races decreased from 53,503 to 38,941, but when gaming revenues are subtracted, the total purses earned from pari-mutuel handle are estimated to be only $700 million. The long-term commitment of gaming revenues to purses is fragile at best and we need to address this now, rather than later, as we have lost approximately 30 percent of our wagering handle in the last 12 years. The industry stakeholders need to come together as organizations, owners, breeders, racetracks and sales companies, among others, and confront the sport’s most pressing issues and define and implement a sustainable growth strategy. The competition for the sports and entertainment dollar is as fierce today as ever before, but we have an exciting product to sell to both prospective owners and racing fans. Our marquee events, the Triple Crown and Breeders’ Cup Championship, as well as successful race meets like Saratoga, Keeneland, Del Mar, Santa Anita, Gulfstream Park and Oaklawn, continue to stimulate great excitement in the sport by attracting record attendance and strong wagering handle. But the sport cannot prosper on these races and meets alone. The fan base from these events and race meets are a solid foundation to build upon, but we must find ways to make the one- or two-day-a-year racing fan become a three- or four-day-a-year racing fan and maybe even an occasional ADW player. We must be determined to unite around our common interests, which are many and leverage our strengths to achieve optimal success. The starting point to solve our problems would be for the industry’s stakeholders to address the economic issues together and resolve to adopt a long-term sustainable growth plan, starting with retaining our existing owner and fan base, which will hopefully lead to economic success not only for tomorrow, but for generations to come.

Simply, that we’re losing fans at a much faster rate than we can afford and the sport has not adapted to the quickly changing times.