A proposed off-track betting parlor in Clarksville could receive final approval from Indiana officials this week, paving the way for head-to-head competition with a similar operation in Louisville by the end of the year.
The Indiana Horse Racing Commission is expected to decide on the Clarksville parlor Friday at a meeting in Indianapolis.
Assuming there are no problems with the proposal — by the Shelbyville-based Indiana Downs racetrack — approval is considered all but certain.
Under the company's plan, $1.2million would be pumped into the renovation of the old Drug Emporium, a vacant 22,500-square-foot building at 700 Eastern Blvd.
The betting parlor and its restaurant would provide 70 full- and part-time jobs and enough space for 450 to 500 bettors at a time.
However, several questions remain. Among them is the impact on Churchill Downs' Trackside, which right now is the only off-track betting parlor in the Louisville metro area.
John Long, chief operating officer for Churchill Downs Inc., said his company has no plans to contest the Clarksville project. But he said Kentucky's parimutuel racing industry is under pressure as it tries to compete with riverboat gambling in Indiana, and a second betting parlor in the area won't help.
"There's enough competition in the marketplace already," Long said. "This just adds another level of competition, which makes it more difficult for everybody."
Some Trackside customers said Monday that they wouldn't mind having another off-track betting option.
Robert Smith, who visits Trackside once or twice a week, said he would "more than likely" go to a betting parlor in Clarksville. He said it takes 30 minutes to drive from his home on the western edge of Louisville to Trackside, on Poplar Level Road near the Watterson Expressway. Clarksville would be about the same distance, he said.
THE DRIVE would be greater for Allen Ellingsworth of Jeffersontown, Ky., but he said that wouldn't deter him from crossing the bridge to Indiana. Trackside is open six days a week from noon to about 11:30p.m., and it is closed during live races at Churchill Downs. Ellingsworth said those hours don't always fit his schedule, and he sometimes drives to Cincinnati to place bets.
Indiana Downs officials have said the Clarksville site would be open from 11a.m. until midnight seven days a week.
Jon Schuster, general manager of Indiana Downs, said there should be more than enough room for two off-track parlors in the Louisville area.
Indiana Downs has long been interested in the metro Louisville area of Southern Indiana for a betting parlor, in part because of its large population and the region's interest in horse racing. Track officials have said they believe Clark County would be perhaps the strongest off-track site in the state.
Another potential concern is whether Clarksville will be able to receive telecasts of Kentucky races. Indiana Downs has tried unsuccessfully since January to receive the Kentucky simulcast signal in Evansville, Ind., its only other off-track parlor.
THE MAIN obstacle has been from the Kentucky Thoroughbred Horsemen, a group of owners and trainers who have argued that allowing the signal near the Kentucky border threatens racing interests in that state.
Indiana's three other off-track betting parlors receive the Kentucky signal. Those sites — in Indianapolis, Merrillville and Fort Wayne — are operated by the Anderson-based Hoosier Park, whose majority owner is Churchill Downs Inc.
Schuster said the key argument against using the Kentucky signal in Evansville was that it would hurt business at nearby Ellis Park, in Henderson, Ky. He said that argument "won't hold water in the Clarksville market" because Churchill Downs is so firmly established.
"Evansville is a smaller metro area, and we're making money there," Schuster said. "I think it's pretty clear that we're not putting Churchill Downs out of business with an OTB in Clarksville."
Joe Gorajec, executive director of the racing commission, said the simulcasting issue is separate from the question of the Clarksville license for Indiana Downs. If it becomes an issue in Clarksville, he said, it likely will be discussed closer to the parlor's opening date.
FIVE PERCENT of the money bet at the parlors goes to increasing purses at the state's two tracks, Indiana Downs and Hoosier Park, and for that reason the racing commission has encouraged the opening of the parlors.
Hoosier Park itself briefly considered an off-track site in Clark County in 1994. But Tom Bannon, the company's vice president of communications, said the idea has not been pursued because of uncertainty over the lucrative Kentucky signal.
Bannon said his company had not taken a formal position on the Clarksville project.
Earlier this year Hoosier Park blocked a plan by Indiana Downs to open an off-track site in Indianapolis on the grounds that it would jeopardize the existing parlor, which is operated by Hoosier Park.
Indiana Downs has said it plans to have the Clarksville site operating within 60 to 90 days after gaining state approval. In addition to the restaurant, the operation would require installation of big-screen televisions, a bar and betting carrels.
Clark County would receive 0.25percent of the estimated yearly handle of $30million.
Worth about $75,000 annually, the deal would be the first of its kind in Indiana between a track and a local government.
John Minta, president of the Clarksville Town Council, said he planned to testify in favor of the project at Friday's meeting.
THE CLARK County Council already has approved the plan, and racing commission officials said the paperwork filed for the license is complete.
"It's not that we're after gambling," he said. "The town wants to fill buildings, and this is one company that wants to fill it."
Various groups have protested the off-track betting project at public hearings, and at least one local church group is expected to testify against the plan Friday.
Joan David, the chief of staff to Evansville Mayor Russell G. Lloyd Jr., said that city's betting parlor has caused no problems since it opened early this year.
"If there's any adverse activity because of gambling," David said, "we haven't heard of it."
Schuster, of Indiana Downs, said he expects few problems once the parlor opens. He said security staff members and renovations to the building will ensure a smooth operation.
Assuming the facility wins approval on Friday, he said construction could begin as soon as next week.
http://www.courier-journal.com/localnews/2003/09/24in/wir-front-otb0924-7954.html
The Indiana Horse Racing Commission is expected to decide on the Clarksville parlor Friday at a meeting in Indianapolis.
Assuming there are no problems with the proposal — by the Shelbyville-based Indiana Downs racetrack — approval is considered all but certain.
Under the company's plan, $1.2million would be pumped into the renovation of the old Drug Emporium, a vacant 22,500-square-foot building at 700 Eastern Blvd.
The betting parlor and its restaurant would provide 70 full- and part-time jobs and enough space for 450 to 500 bettors at a time.
However, several questions remain. Among them is the impact on Churchill Downs' Trackside, which right now is the only off-track betting parlor in the Louisville metro area.
John Long, chief operating officer for Churchill Downs Inc., said his company has no plans to contest the Clarksville project. But he said Kentucky's parimutuel racing industry is under pressure as it tries to compete with riverboat gambling in Indiana, and a second betting parlor in the area won't help.
"There's enough competition in the marketplace already," Long said. "This just adds another level of competition, which makes it more difficult for everybody."
Some Trackside customers said Monday that they wouldn't mind having another off-track betting option.
Robert Smith, who visits Trackside once or twice a week, said he would "more than likely" go to a betting parlor in Clarksville. He said it takes 30 minutes to drive from his home on the western edge of Louisville to Trackside, on Poplar Level Road near the Watterson Expressway. Clarksville would be about the same distance, he said.
THE DRIVE would be greater for Allen Ellingsworth of Jeffersontown, Ky., but he said that wouldn't deter him from crossing the bridge to Indiana. Trackside is open six days a week from noon to about 11:30p.m., and it is closed during live races at Churchill Downs. Ellingsworth said those hours don't always fit his schedule, and he sometimes drives to Cincinnati to place bets.
Indiana Downs officials have said the Clarksville site would be open from 11a.m. until midnight seven days a week.
Jon Schuster, general manager of Indiana Downs, said there should be more than enough room for two off-track parlors in the Louisville area.
Indiana Downs has long been interested in the metro Louisville area of Southern Indiana for a betting parlor, in part because of its large population and the region's interest in horse racing. Track officials have said they believe Clark County would be perhaps the strongest off-track site in the state.
Another potential concern is whether Clarksville will be able to receive telecasts of Kentucky races. Indiana Downs has tried unsuccessfully since January to receive the Kentucky simulcast signal in Evansville, Ind., its only other off-track parlor.
THE MAIN obstacle has been from the Kentucky Thoroughbred Horsemen, a group of owners and trainers who have argued that allowing the signal near the Kentucky border threatens racing interests in that state.
Indiana's three other off-track betting parlors receive the Kentucky signal. Those sites — in Indianapolis, Merrillville and Fort Wayne — are operated by the Anderson-based Hoosier Park, whose majority owner is Churchill Downs Inc.
Schuster said the key argument against using the Kentucky signal in Evansville was that it would hurt business at nearby Ellis Park, in Henderson, Ky. He said that argument "won't hold water in the Clarksville market" because Churchill Downs is so firmly established.
"Evansville is a smaller metro area, and we're making money there," Schuster said. "I think it's pretty clear that we're not putting Churchill Downs out of business with an OTB in Clarksville."
Joe Gorajec, executive director of the racing commission, said the simulcasting issue is separate from the question of the Clarksville license for Indiana Downs. If it becomes an issue in Clarksville, he said, it likely will be discussed closer to the parlor's opening date.
FIVE PERCENT of the money bet at the parlors goes to increasing purses at the state's two tracks, Indiana Downs and Hoosier Park, and for that reason the racing commission has encouraged the opening of the parlors.
Hoosier Park itself briefly considered an off-track site in Clark County in 1994. But Tom Bannon, the company's vice president of communications, said the idea has not been pursued because of uncertainty over the lucrative Kentucky signal.
Bannon said his company had not taken a formal position on the Clarksville project.
Earlier this year Hoosier Park blocked a plan by Indiana Downs to open an off-track site in Indianapolis on the grounds that it would jeopardize the existing parlor, which is operated by Hoosier Park.
Indiana Downs has said it plans to have the Clarksville site operating within 60 to 90 days after gaining state approval. In addition to the restaurant, the operation would require installation of big-screen televisions, a bar and betting carrels.
Clark County would receive 0.25percent of the estimated yearly handle of $30million.
Worth about $75,000 annually, the deal would be the first of its kind in Indiana between a track and a local government.
John Minta, president of the Clarksville Town Council, said he planned to testify in favor of the project at Friday's meeting.
THE CLARK County Council already has approved the plan, and racing commission officials said the paperwork filed for the license is complete.
"It's not that we're after gambling," he said. "The town wants to fill buildings, and this is one company that wants to fill it."
Various groups have protested the off-track betting project at public hearings, and at least one local church group is expected to testify against the plan Friday.
Joan David, the chief of staff to Evansville Mayor Russell G. Lloyd Jr., said that city's betting parlor has caused no problems since it opened early this year.
"If there's any adverse activity because of gambling," David said, "we haven't heard of it."
Schuster, of Indiana Downs, said he expects few problems once the parlor opens. He said security staff members and renovations to the building will ensure a smooth operation.
Assuming the facility wins approval on Friday, he said construction could begin as soon as next week.
http://www.courier-journal.com/localnews/2003/09/24in/wir-front-otb0924-7954.html
