SHAKOPEE, MN – Canterbury Park closing night was an eventful one, with the card being cancelled after three races due to unsafe track conditions. That was an unceremonious end to a meet that saw broad declines year over year across several indices.
The most impactful was off-track handle, off 55% year over year. Even with increased on track attendance (up 16%), local handle was off 20% year over year. Canterbury did run eleven fewer racing days in 2023 and a total of 167 fewer races. When looking at per race handle, the numbers are less daunting: on track per race handle increased 11% while off track handle declined by 38% for a blended reduction of 33%.
Claiming activity also declined sharply with the number of horses claimed dropped from 185 last year to 56 this season, though the average claiming price was up slightly to $10,799 from $10,426.
The most obvious reason for the wagering decline was field size. In 2022, field size averaged 7.28 horses per race. In 2023 this number dropped to 6.53. Fewer wagering interests leads to more winning favorites and that, in turn, showed bettors that there was not money to be won.
Nothing illustrated the effect of field size more than the penultimate day of racing Wednesday, September 13, when field size averaged 9.6 horses per thoroughbred race, the average win mutuel payoff was $24.15 and total handle was $2,367,847. Festival of Champions night on September 9, handled $1,431,366, the sixth largest in the 30-year history of the event.
“We lost a lot of our big betters from around the country this year, due to small fields, but on the good days when we had larger fields, we showed that that the betters are willing to come back,” said Justin Revak, President of the Minnesota HBPA. “We were on track for a massive handle on closing day, before track conditions forced the cancellation of the card after just three races. People want to bet on Canterbury, we have loyal fans who pack the grandstand, the area around the racetrack is thriving with exciting development; we just need to have a purse structure and schedule that brings more horses, and we will be the best track in the Midwest next summer and beyond.”
Off season recruitment is going to be a challenge for the upper Midwest tracks with Hawthorne, Prairie Meadows and Canterbury all competing for barns. To help compete, Canterbury is looking at making significant changes in its condition book for next year.
“We will be cutting our conditions back,” said Senior Director of Racing Chris Merz. “In order to get the field sizes back, we need to limit the choices. When I was in Maryland we did a similar thing and it resulted in larger field sizes and betting pools. The more we can promote consistency in the condition book, the more trainers can point horses for races with confidence.”
One trainer once put it this way, “If you offer a buffet with a lot of choices, there will be a lot of leftovers. If you limit the choices, the more likely what is offered will be used.”
Another aspect of the business that will receive attention is the possibility of alternative gambling at the state’s racetracks. The ability to offer higher purses will help to draw more barns to Shakopee for the summer.
“Racing in Minnesota is a half-billion dollar industry,” Merz pointed out. Merz promises a renewed and vigorous lobbying effort in St. Paul to make legislators aware of this impact on the state’s economy.
‘The reality of the situation is purse levels play a huge role when horsemen decide where to send their horses,” said Revak. “Even though Canterbury has a great facility, an amazing atmosphere on the front side, and a tight-knit backside community, many horsemen made the tough decision not to come back this summer because of reduced purses and fewer racing days. Others split their stables between Canterbury and other tracks. The result was not enough horses to fill races, small fields, and downward trends in almost all categories.”
The ripple effect of the end of the joint marketing deal with the Shakopee Mdewakanton Sioux Community and Canterbury can also be seen in the breeding numbers. The number of Minnesota bred foals the past few years has been in decline with only 78 foals registered so far this year.
“We’ve never been below 100 foals,” said one breeder. “Most are usually registered by now so all we’re likely to get before the end of the year is another handful. It’s a difficult time.”
“Unfortunately, the national trend in foal crop size has hit close to home,” said Minneosta Thoroughbred Association President Cameron Mahlum. “We continue to be impressed with the quality of the Minnesota bred horses and very proud how they compete in open races here and across the country.”
Canterbury has had the reputation of having better cooperation between management and horsemen than most tracks, but the 2023/24 off-season could test that relationship.
“In 2024 the horsemen and Canterbury need to work together to make the meet look more like the 2022 meet than the 2023 meet,” said Revak, “We need to give our current and past horsemen a reason to come back and we need to recruit new stables. The best way to do that is to put together a schedule and purse structure that resembles what we had in 2022.”
Finding the source of those additional funds to push purses back up 20% over 2023 levels is going to be a challenge with the addition of slot machines being unlikely and the legislature split on whether the tracks should be involved in sports betting.
Revak acknowledges that finding that additional revenue is a challenge.
“The hard part is figuring out where that extra purse money comes from,” he said. “Unfortunately, we weren’t successful in procuring favorable legislation for expanded gambling last year, but hopefully that will happen in the future.”
One sports betting proposal had the tracks specifically excluded and granting a monopoly to the state’s Native properties while another would have opened up sports betting to the track and existing casinos. A compromise that gained some traction at the end of the 2023 legislative session was for sports gambling to be given to the Tribes, but a percentage of the state’s take be redirected to the racetracks.
“We face hurdles but let us hope a path is unveiled where the horse, the breeders, the owners, the horse players and those that love our sport continue to experience the magic of these equine athletes,” added Mahlum. “Solutions come when people see the big picture and not driven by one perspective or benefit. We all win if we can find a way to protect and promote our industry.”
It’s going to be a busy winter for Merz and the Canterbury Park team, which he’d like to see augmented by fans and horsemen.
“It would be really helpful if our patrons, owners and breeders made their voice heard in the legislature,” said Merz. “Call or write your legislators and let them know you support the future of racing in Minnesota to try and push them forward.”
