More stuff that's too long to write out here:
https://www.in.gov/hrc/files/PUBLIC%20REDACTED%20ExecDirectorRpt.pdfSome track observations:
Below are additional excerpts from Reed’s visit to Scioto Downs:Upon leaving the rear of the casino you discover one of two entrances to the simulcast area closed due to
an escalator shutdown and to my left a fenced off closed grandstand that I was told was condemned due
to an unsafe roof. The grandstand was closed prior to the 2017 racing season and remains fenced off.
(Reed’s Second Report, p.
.
. . .
There were some horsemen that raced and have participated at both Scioto Downs and Hoosier Park and
they felt there was no comparison and did not like how the property at Scioto had become more “run
down” since Eldorado took over. The relationship with the horsemen association was challenging but
perhaps not as adversarial as observed at the other two properties visited. (Reed’s Second Report, p.9).
. . .
For the most part (at this track and others visited) there were only a few [horsemen] that had problems
with the racing management, but most [horsemen] said their “hands were tied” by upper management
and therefore local racing management couldn’t do much. (Reed’s Second Report, p. 9).
. . .
There were a number of people interviewed that reported marketing as an area of deficiency. However,
many did say the races attract good crowds on Friday and Saturday nights. Of course, the large grandstand
has been closed so the crowds are now shifted to either the clubhouse or a small bleacher type
grandstand. (Reed’s Second Report, p. 9).
Reed also noted a number of issues at Pompano Park:Not having been to that property for decades, I did park on the wrong side and was greeted again by a
closed grandstand and clubhouse (pictures of the facility Appendix B). Like Scioto, there was a much
smaller bleacher type grandstand placed at the rear of the casino, with a much less desirable viewing area
of the live races.
. . .
It was clear when I spoke to stakeholders the first issue on their mind was that lawsuits were in progress
and Eldorado was aggressively seeking to “decouple” racing from the casino by replacing the pari-mutuel
license with a Jai Alai license.
9
. . .
When Eldorado took over the management and ownership of Pompano the efforts to “decouple”
escalated. There were a number of cuts made in personnel and hardly any capital was spent on racing.
. . .
A number of mid-level managers were eliminated and several stated that on many race nights top racing
management are not present. There was deferred maintenance, a few dorms (rent is charged for dorm
rooms – a policy in place before Eldorado owned the property) were closed rather than fixed, and a few
barns had a transformer that needed repair, but those barns were closed instead. (Racing managers said
the barn area will not be full this year and those barns would not be needed.)
. . .
Negotiations with horsemen went from bad to worse according to many when the property changed
hands from Isle of Capri to Eldorado. (Reed’s Second Report, p.10).
. . .
Most horsemen felt there was little if any marketing on the racing side. Others interviewed that could
make reasonable comparisons felt racing marketing was better elsewhere. (Reed’s Second Report, p.11).
some tbred tracks they own:
Finally, Reed made the following observations during his time at Mountaineer racetrack which
Eldorado owned beginning in 2014 and sold at the end of 2019:
It is a very large facility by today’s standards and with the exception of the lower level of the grandstand,
the remaining grandstand and entire clubhouse are closed on regular days of racing. With the exception
of the horsemen, there appeared to be very few racing customers.
. . .
It was very clear that any spending now that a sale was pending had been cut to bare bones. However,
it’s a case of going from bad to worse. It seems evident that cuts were made pre-sale, perhaps to make
the bottom line look better, but this is just speculation. In multiple interviews “bottom line” and “cuts”
were often mentioned. (Reed’s Second Report, p.11).
. . .
Mountaineer does not offer wages similar to other tracks and has difficulty hiring qualified racing officials.
Two examples are Mountaineer has been months without a track superintendent (and allegedly has a
very short-handed track crew) and do not have enough assistant starters on the gate crew. Horsemen
have had to pressure management to get more hands in the starting gate and management has even used
temp help that are not familiar with horses. (Reed’s Second Report, p.12).
Despite not visiting Presque Isle Downs (“PID”), Reed conducted some due diligence and noted
the following: 10
Unlike the other racing properties acquired by Eldorado, this property was very new, in fact newer than
the Indiana properties.
. . .
In 2017, the director of racing retired and the position was filled by the director of finance as an additional
title/duty. Also similar to some of the properties visited, I was left with the impression that Eldorado
needed encouragement or requirements to get things done for racing at this property versus just asking
or expecting it to be part of the expense of running a horse racing facility. (Reed’s Second Report, p.13).
As discussed above, Eldorado has certainly made encouraging statements and taken important
actions, such as the hiring of Joe Morris for the newly-created Senior Vice President of Racing
position. However, all of Eldorado’s commitments to Indiana horsemen and the IHRC must be
evaluated against the backdrop presented in Reed’s Second Report.
Unfortunately, it’s very difficult for Commission Staff to read through Reed’s Second Report
and come away with any optimism about ERI’s history of managing racing properties. ERI’s
management style to this point has been the antithesis of the management style that has been
encouraged, expected, and largely received, from Centaur and Caesars. Rather, it raises
significant concern about whether handing ERI the “keys to the kingdom” by granting them both
racing permits in Indiana is truly in the best interest of Indiana racing.
