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well actually harness racing is allowed some sort of payment based on what they gave the casinos
This is not true. That was how it was done to get it done quickly but slots and casino gambling have proliferated because the people wanted it. Racetrack were just a fast way to get started. It would have happened anyway. The big mistake racing made was not keeping control of the casinos. If racing interests owned the casinos they could make a conscious decision to subsidize racing. You can bet the bean counters at the casino companies put out regular reports showing the red ink generated by racing.