Six of Oregon’s gaming tribes criticize the Flying Lark at Grant’s Pass for being a casino off of reservation land, and therefore illegal.
They have complained to Governor Kate Brown and asked her to investigate the legality of the gaming entertainment center that Dutch Bros. founder Travis Boersma plans. They fear it will compete with their tribal casinos and the Oregon State Lottery—and predict it will lead to more such facilities at racetracks.
The nouveau riche Boersma entered the ranks of billionaires when his company went public in October. He plans to submit plans to the Oregon Racing Commission to build an entertainment center with 250 historical racing (HHR) machines, where wagers are placed on races of years past where the names, locations and dates have been stripped from the available data. The building will be adjacent to his racetrack.
Boersma’s goal includes giving a strong shot in the arm to the Oregon horseracing industry. It is an industry on life support. Portland Meadows, at the time the only operating racetrack in the state, closed in 2019. Racetracks that are doing well usually are supplemented by amenities like historical horse racing machines. The coffee magnate insists his Flying Lark needs the machines to pencil out.
On the other hand, with the machines at Grants Pass Downs and the Flying Lark, Boersma estimates generating more than $10.7 billion in economic activity in the state over 30 years.
Critics of historical racing machines insist that they are little different from a traditional slot machine. Robert Whelan, an economist who authored a study for the tribes. He told Indian Country Today: “For all intents and purposes, an HHR is a video slot machine.” He added, “Gamblers insert money, select an amount to bet, press a button, and watch a brief animated display. Once the display stops, the gambler learns if they won or lost their bet.”
Justin Martin, a lobbyist and member of the Confederated Tribes of Grand Ronde told Indian Country Today: “All of a sudden it’s like, has the state’s prohibition on casinos been waived?” He added, “We played under one set of rules. We invested in our facilities in rural Oregon based on those rules. And now it looks like the rules are changing.”
While casino gaming is limited by the state constitution to gaming tribes—an exception is made for racetracks, which predate tribal casinos by many years.
Organizations that combat gambling disorders and the Oregon Restaurant and Lodging Association, representing restaurants and retailers who deploy lottery machines, are supporting the tribes in their efforts to get the state to review state gaming policies that they claim are too permissive.
The tribes also sent a letter to the Racing Commission, demanding if it was “adequately equipped and qualified” to regulate the new industry being created by the historical racing terminals.
Although the commission is small, it is now issuing licenses to large gaming companies, such as Twin Spires, an off-track-betting operation owned by Churchill Downs.
Governor Brown continues to defer to the commission regarding the Flying Lark application. Her spokesman said recently, “As with all licensing bodies, we expect the Oregon Racing Commission to fulfill their regulatory function and follow Oregon statutes and regulations.”
