Province deal stabilizes Fort Erie

[Kasept]

Three-year deal made to run Fort Erie
By Bud Williams

http://www.drf.com/news/article/109596.html

A group known as the Fort Erie Racing Consortium has reached a three-year lease agreement with the track's owners, Nordic Gaming, the group announced Thursday.

The consortium is comprised of the Economic Development and Tourism Corporation, the Town of Fort Erie, and the Ontario Horsemen's Benevolent and Protective Association. The agreement will run from 2010 through 2012.

Gaming revenue from Fort Erie's casino has dropped considerably in recent years, and Jim Thibert, general manager of the tourism group, said that Nordic Gaming lost approximately $4 million in 2008 even with a reduction in race days and a lower purse structure. In 2009, the consortium provided track ownership with $2.25 million to ensure a racing season while searching for a long-term solution to the track's financial problems.

Negotiations with the province of Ontario will guarantee the lessee of the track $5.6 million annually for operations rather than a percentage of gaming revenue. Fort Erie purses will continue to be funded by 10 percent of the slot revenues.

Sue Leslie, current president of the Ontario chapter of the horsemen's association, said that the schedule for the upcoming season would mirror the 2009 slate of 78 days held generally generally on a Sunday-through-Tuesday schedule. The Fort Erie season will begin on May 1, Kentucky Derby Day.

A transition of management will begin in March, with Nordic Gaming holding the reins to midsummer and then transferring the complete operation over to the consortium.

The consortium, together with the Ontario Racing Commission, is considering running Quarter Horse races at Fort Erie. Those races would be added to the regular Thoroughbred daily schedule.

[ironprospect]

This is a huge step in the right direction for the future of this track but success will hinge on getting Nordic Gaming out completely and forever.

Another source states...A new management team is to be implemented (approved by Nordic Gaming) as of July 1st, 2010.

As the track is to be leased from Nordic Gaming, not purchased.

Nordic has always and only been in this for lining the pockets of its absentee landlord.

That other source states..... The new owner's (Nordic Gaming) share of slot revenues peaked at $17 million in 2001.

It ran close to that for a least a few years I would guess until slots machines
became available on the American side of the border at Indian casinos and Buffalo and Batavia Downs.


I was there everyday racing horses from 1999 to 2004 and Nordic did not put one dime into the place not mandated by the Ontario Racing Commission.

There was no marketing to the US side of the border, except the slots.

So if Nordics expenses aren't covered by there 4 million a year share now, and now run a negative 3 million dollar balance on up keep alone, remember purses come from handle and a seperate 4 million from the slots.


for 4-5 years Nordic was taking ten million a year out and putting nothing back in. The slot machines are run by the province of Ontario.

As for the on location management, they had no interest in furthering the racing product. They also seem to have no idea and this astounds me that a bet placed on track, is so much more valuable to the bottom line than one brought in through simulcasting.

So the success of Fort Erie will not be assured until Nordic is out completely