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The way I see it is two-fold. One, call it welfare, a handout, subsidy, whatever. If a state determines that to have a casino you need to have racing, that's the law. Like it or not. Now you are in business and racing is a necessary evil. You don't like it? Well, it was your choice. OTOH, if you partner with the racing, then that's totally different. That's not welfare, that's business.
Two, and here lies the problem.....the racing industry blew it. They screwed up. Time and time again. You get this income and you squandered it. After 5 years, 10, or 20, you don't get to stand up and say we want, we need, we demand. You had it and you blew it. Either you are viable and have a sound business model or you don't. The racing industry has no one to blame but themselves.