Calder Casino & Race Course and Gulfstream Park in Florida have reached a six-year agreement that will end their competing, overlapping schedules. Calder, owned and operated by Churchill Downs Inc., will race in October and November, and Gulfstream, owned and operated by the Stronach Group, will run the remaining months for a minimum of 190 race days each year. Florida law requires Calder to offer 40 days of live racing to retain its casino license; Gulfstream will operate those 40 days. Financial details of the arrangement were not disclosed.
As a result of the agreement, Gulfstream will have a virtual, year-round monopoly on thoroughbred racing in South Florida. The Stronach Group’s 25 percent share of the $11 billion national wagering market is expected to expand.
Tim Ritvo, the Stronach Group’s chief operating officer, said, “Gulfstream and the Stronach Group believe we will now be able to create a stronger Thoroughbred industry through a more innovative racing schedule and premier stakes events while increasing purses, as well as owners’ and breeders’ awards. Gulfstream is not only committed to making its state-of-the-art facility in Hallandale Beach one of the world’s most unique entertainment destinations, but we are committed to making our 40-day meet at Calder a memorable experience for those attending the races and those viewing the races online and at simulcast sites throughout the world.”
An undetermined number of people will lose their jobs at Calder, but some employees there could continue working. “We’re not in it for charity. We’re racing to make money, and we think we do a good job of it. We have different thoughts about the racing industry. We think the game is still alive. We think if you invest in it, there’s a big enough market down here to keep us healthy and viable,” Ritvo said.
Changes already have begun. At Calder, simulcast operations in the grandstand and casino buildings ended on July 1, and officials announced the track canceled live racing for July 4. Gulfstream will take over the operation of Calder’s stable area, where 1,800 stalls reportedly are half occupied.
In recent years, Stronach Group had made several offers to Churchill Downs to either buy or lease Calder. In February, Churchill Downs reportedly rejected a Stronach Group purchase offer of $100 million, which observers said was because Churchill Downs wanted to continue to own and operate Calder’s casino, which opened in 2010. Under Florida law, a parimutuel operator must keep its racing or jai-alai business in order to obtain and keep a casino license.
Phil Combest, president of the Florida Horsemen’s Benevolent and Protective Association, noted, “This is a new era for Florida racing. The horsemen are looking forward to a much brighter future here in South Florida.” Combest added, “Churchill Downs has long made it clear that horseracing is only a means to an end for them. They’re a casino company now. On the other hand, the Stronach Group and Gulfstream Park have demonstrated time and time again that their focus is on horseracing. On raising purses. On improving their facilities. On making it a better experience for all concerned. The horsemen are excited to be their partners and look forward to the journey ahead.”
Lonny Powell, chief executive officer of the Florida Thoroughbred Breeders and Owners Association, called the deal “groundbreaking.” He said, “We can now finally and sincerely work together, hand-in-hand as a united Florida Thoroughbred industry, and begin addressing the real opportunities and challenges that were not possible to deal with in the past with the two tracks in constant conflict”.
Gulfstream-based trainer and breeder Carlo Vaccarezza said, “Churchill Downs wants to have horseracing just two days a year–the Kentucky Derby and Kentucky Oaks. Today, we are free at last from Churchill Downs in racing in Florida. We should be shooting off fireworks in honor of what Mr. Frank Stronach and Tim Ritvo are doing for racing.” Vaccarezza added he expects Gulfstream’s new schedule will lead more trainers who spend winters in South Florida to keep some horses at Gulfstream year-round.
In addition to Gulfstream, the Stronach Group also owns Santa Anita outside Los Angeles, Pimlico Race Course in Maryland and several other racetracks, as well as the racing cable network HRTV and the online horse wagering system Xpressbet.
