Online Gambling Affects Race Tracks: 2

Can a lowly race track in Toronto compete with the online casino industry? Well that is what the Woodbine Race Track in Toronto, Ontario, Canada is trying to figure out. Their race track has not been able to make a profit for the past couple of years. It seems like it is a hopeless fight to try to get people to bet at the race track instead of at their favorite online casinos. The race track has done virtually everything that it can to cut costs in the general operation of the race track but there are just some costs that can not be changed. The fact is that it costs more to run a race track than it does to operate an internet gambling website. That means that the online casino will always be able to offer higher pay outs than the race track based on basic accounting alone.

That is not the only factor that is keeping them from lowering their costs. If the Woodbine race track actually wanted to really compete with online casinos they would have to lower their costs so much that it would endanger their racing license status. The slump for the year 2009 is supposed to be at 2 percent for the race track as estimated by The Greater Toronto Area. Last year the income of the Woodbine area was at $866,230 million and with that high of a number 2 percent actually is a lot of money. The Woodbine race track is trying to reach out to their community so then the locals will come and visit the track instead of betting at an online casino.

The loss of this race track could potentially affect the entire Greater Toronto Area. Jane Holmes said: "Fifty percent of the commissions we make is put back into purses. If you start losing handle and wagering, it affects the purses and the revenues the owners make and it has a spin-off effect on the jockeys and everyone else right back to the agricultural community." This should definitely give the online casino users in Toronto some food for thought. In June the Woodbine race track will be celebrating the 150th running of the Queen’s Plate so there is plenty of time for the locals to contemplate where they will be spending their wagering dollars at.