| The contraction in handle and revenue for the pari-mutuel racing industry has encouraged some states to allow casino gaming at racetracks. Slot machines at racetracks contribute by acting as a subsidy to their operations. According to the racing industry agents, the main reason to permit other forms of gaming at racetracks is to increase the demand for racing and hence protect and promote the pari-mutuel sports. Handle, Purses, and contributions to purses were analyzed in five states with racinos including Delaware, Iowa, New York, Pennsylvania and West Virginia, as well four states with race tracks with no other forms of casino games including Arizona, California, Illinois, and Kentucky.;This study found that as of 2009, for the states of Delaware, Iowa, Pennsylvania, and West Virginia, slot contributions exceeded the spending on pari-mutuel wagering which indicates that the subsidy is inefficient. Also, this research found that regardless total purses have increased in size in those states with racinos, handle has continued to decrease, and thus higher purses have not impacted the demand for racing in these states with racinos. |
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