12:59 PM PST on Thursday, February 24, 2005

Associated Press

The Magna Entertainment Corp., which recently ended greyhound racing in Oregon, says horse racing may be next sport to see the finish line if legislators don't provide some relief.

File Photo

Portland Meadows race track.

Magna representatives say live racing is hurt by competition from the Oregon Lottery, tribal casinos and online wagering.

"We're seeing the same problems that faced the dog track," said Chris Dragone, general manager at the Portland Meadows race track.

Magna wants legislation that would allow it to capture revenue from simulcast wagering at times when horse races aren't being run at Portland Meadows. The track's season runs from October through April.

Senate Bill 929 was introduced by Sen. Ginny Burdick, D-Portland, at Magna's request. Dave Nelson, a Magna lobbyist, said this week that the early response from legislators had been positive.

Oregon law now requires tracks to hold live races when they also are importing the simulcast signal of races elsewhere.

Simulcasting works like this: As a race is run at Portland Meadows, it is televised at as many as 20 off-track betting sites in Oregon and to tracks or gambling sites out of state. At the same time, signals from other tracks are beamed to Portland Meadows and to the state's off-track parlors.

Someone attending Portland Meadows or one of the betting sites could then wager on the eight or 10 races happening live in Portland on a given day, plus 40 to 50 races beamed in from elsewhere.

The state's off-track network has become the biggest generator of money wagered in Oregon on horse and dog racing. In 2004, off-track betting accounted for nearly 60 percent of the $63.2 million wagered.

Magna took over the dog and horse tracks in 2001 but concluded it couldn't support both. In December, Magna announced it would not renew its lease at Multnomah Greyhound Park in Wood Village, effectively ending 71 years of dog racing in Oregon.

Based outside of Toronto, Magna owns or operates 13 major horse- and harness-racing tracks, including Santa Anita near Los Angeles and the Pimlico Race Course in Baltimore. For 2004, Magna on Tuesday reported a net loss of $95 million, down from the $105 million net loss it reported in 2003.

In Oregon, Magna has been hurt by the expansion of the state lottery, video poker and casino gambling, said Bob Whelan, senior economist at ECO Northwest, an independent economic consulting firm in Portland.

"The latest thing is, you can bet on races from your home over the Internet," Whelan said. "There's no reason to go to the track."

He said tracks shot themselves in the foot by introducing simulcasting, which dilutes the gambling dollar and damages the social setting because people are betting on races that aren't happening in front of them.

"You take the Damon Runyon characters out of the mix," Whelan said. "You go to Portland Meadows, and no one's cheering."