Horse breeders in British Columbia are concerned that the future of horse racing in the province may be in jeopardy following an announcement from the government indicating the cessation of revenue sharing from slot machines at two casinos adjacent to racetracks starting next year.
Solicitor General Nina Krieger informed representatives of the horse racing industry in a letter dated November 25 that the portion of slots revenue from Hastings Casino in Vancouver and Elements Casino in Surrey would no longer be allocated to them.
Both casinos are located near racecourses, with Hastings Racecourse being operational and Fraser Downs in Surrey having closed earlier this year for redevelopment.
The decision to cut funding was made after a review revealed that the industry was not sustainable without significant additional government funding, which the province could not commit to due to facing a substantial deficit.
Upon receiving the news during a virtual meeting, Gary Johnson, Chair of Thoroughbred Racing B.C., expressed the shock felt by industry representatives. He mentioned that the move is estimated to cost the industry approximately $8 million, with the revenue stream set to cease by January 31, 2026.
Thoroughbred Racing B.C., already facing financial challenges due to the pandemic and rising costs, has been in deficit. Discussions are ongoing with Great Canadian Entertainment, the current owner of Hastings Racecourse, to reduce the number of racing days due to declining slot machine revenues.
Great Canadian Entertainment stated that they are reviewing the government’s decision and will engage with industry partners soon.
Tory MLA’s Criticism
In addressing the media, Solicitor General Nina Krieger acknowledged the tough decision taken by the government, considering the rich history of horse racing in British Columbia. She highlighted the industry’s long-standing sustainability concerns due to dwindling revenues and attendance.
The Ministry of the Solicitor General explained that post-January 31, the funding will contribute to the B.C. Lottery Corporation’s general revenue, supporting essential public programs such as education and healthcare.
Ian Paton, a farmer and Conservative MLA for Delta South, criticized the government’s decision, warning that the equine industry in British Columbia is at risk of decline due to track closures.
Concerns Over Sustainability
The closure of Fraser Downs racetrack in Surrey dealt a significant blow to the standardbred horse breeding community in British Columbia, leaving Hastings Racecourse as the sole operational track. Industry representatives are now grappling with uncertainties about their future.
According to Johnson, the horse racing industry in British Columbia, encompassing jockeys, barn workers, and related jobs, faces the risk of losing family farms and relocating horses elsewhere.
He urged the province to offer the industry an exit strategy if alternative plans cannot be devised.