In 2012, Canterbury Park in Shakopee, Minnesota and the Shakopee Mdewakanton Sioux Community signed a 10-year agreement that provided the racetrack with $68.5 million in additional funds. The deal will expire December 31.
Canterbury Park Chairman and Chief Executive Officer Randy Sampson said the tribe and the racetrack must reach an agreement by the fall if the partnership is to continue, as the track has to submit its 2023 racing season plans to the Minnesota Racing Commission in November. Sampson said, “At this point, it’s difficult to predict what the outcome is going to be. Both parties have an interest in moving forward. We continue to have very positive discussions.”
In a statement, the Shakopee Mdewakanton Sioux Community business council said SMSC “has enjoyed our relationship with Canterbury Park over the past decade,” adding the council is engaged in “active conversations about the future” of the agreement.
However, Joe Scurto, president of the Minnesota Thoroughbred Racing Alliance, said, “From a breeding standpoint, the damage has already been done. You can see what’s happened to the foal crop.” He said breeders are pulling back; only 105 thoroughbred foals have been registered as Minnesota-breds this year, a 60 percent drop since 2014 and the lowest total since 2014.
Scurto said he believes Canterbury can continue to offer high quality racing, “but purse money is a big driver of the sport. And if there’s less of it, we could be looking at fewer racing dates and fewer horses coming to Minnesota.”
Thanks to the 2012 agreement, Canterbury went from a struggling track with declining purses to a nationally acclaimed venue. Prior to the contract, Canterbury’s purses were in a 5-year downturn, falling to $6.4 million in 2011. They rose to $12.5 million in the second year of the deal and increased by 134 percent since 2011.
Last year’s handle reached a record $90.9 million, more than four times the amount wagered in 2011. During this summer’s 65-day season, the track expects to pay total purses of $15 million, with $7.28 million coming from the SMSC deal.
In the current season, the largest single-day handle in Canterbury Park history was $4.7 million wagered on June 22. “That day would not have been possible without the SMSC agreement. It’s allowed us to keep field sizes better than other tracks. The marketing dollars helped us build an audience for racing. We’ve been able to bring in new trainers and new jockeys. There’s no question it’s been transformational,” Sampson said.
If the agreement ends, Canterbury could generate purse money by offering sports betting. The SMSC contract bars the track from promoting or lobbying for expanded gaming in Minnesota and from participating in any expansion of gambling enacted into law. According to another clause, Canterbury must, along with the tribe, oppose legalizing gaming not currently allowed at the venue, “to the extent that SMSC reasonably requests.”
This past spring, the state Senate attempted to include Canterbury and Running Aces harness track in Columbus in proposed sports wagering legislation. But Minnesota tribes opposed it and the session ended without lawmakers taking any action.
There are several other ways Canterbury could continue to offer attractive purses if the SMSC agreement ends. It could shorten its season, which would limit the impact on daily purses. Currently, Canterbury is required to run at least 50 days of live racing per year; recent seasons have run 65 to 70 days.
In addition, horsemen could request a larger cut of card club revenue, which accounts for about 25 percent of purses. However, that wouldn’t increase purses by much.
Regardless of whether the agreement is extended or not, Sampson said Canterbury will continue to build on the opportunities the deal has offered. For example, the track recently announced plans for a multimillion-dollar renovation of the stable area, including new barns and dormitories, beginning this fall. He said, “In these 10 years of the agreement, there’s been incredible progress. We’re continuing to invest in horse racing for the long term.”
If Canterbury and SMSC agree to an extension, horsemen’s groups and the Minnesota Racing Commission would have to approve the terms.
