Revenue at Northville Downs, the last existing live horse racetrack in Michigan, has increased since Hazel Park suddenly closed on April 5. As a result, to avoid a break in the season, the Michigan Gaming Control Board announced it approved moving 24 of the track’s 60 live race dates to run through September 22. Prior to the Hazel Park closure, Northville was set to stop live racing June 10 through September 1 and restart September 7 through December 15. Live racing began March 2.
Michigan Gaming Control Board Executive Director Richard Kalm said, “The MGCB supports Northville Downs and the Michigan Harness Horsemen’s Association as they look for ways to keep live racing viable in Michigan. They believe the live racing calendar changes are in the best interests of the industry.” MHHA President Tom Barrett added, “We’re trying to leverage the momentum and race right on through. Northville Downs has experienced a significant uptick in revenue.”
Northville Downs Co-owner and Operations Manager Mike Carlo confirmed since Hazel Park closed, “Business is up about 40 percent so far. We are optimistic that number will rise, especially with the new racing schedule in the summer.” Barrett said most of the revenue increase comes from simulcast wagering at the racetrack, which makes up about 80 percent of the money for the live racing purse pool at Northville Downs. The rest comes from wagers on live races at the track.
Barrett stated this year, weekend live race purses total about $85,000 but that figure could increase by 40 percent or more if the Hazel Park bettors keep gambling at Northville Downs. The 400-member horseman’s association has a contract with the track that determines purse size for each night of racing; the purses are based on the previous years’ wagers.
Michigan’s horseracing industry has radically declined since the state legalized commercial and tribal casinos in the 1990s, the state lottery expanded and illegal online betting exploded. Michigan racetracks do not attract horses from out of state, and horses from Michigan are being taken to racinos in neighboring states. Commercial and tribal casinos have helped block slots or other forms of gambling at the horse racetracks.
Carlo said Northville Downs has been in the black the past three years. He said he plans to purchase equipment from Hazel Park and add staff to accommodate the increase in gamblers. However, the Carlo family has a deal to sell the 48-acre Northville Downs property to a housing developer, and to race only through 2020. Carlo said the family will build a replacement track but he hasn’t indicated if that depends on the state approving other forms of gambling at the track. “My family hasn’t decided to sell anything other than land. We will maintain the business for many, many years to come. We are exploring all opportunities for building a new facility,” Carlo said.
Eight Michigan horse tracks have closed since 1998 and wagers on live horseraces have decreased 81 percent, from $22.1 million at seven tracks in 2006 to $4.2 million at two tracks in 2016, according to state figures. Over Combined live and simulcast betting in Michigan fell from $281.1 million in 2006 to $103.2 million in 2016.
