Posted: Wednesday, February 3, 2010

HAZEL PARK — Hazel Park Raceway CEO Dan Adkins has launched a petition through Racing to Save Michigan to allow casino gambling at five horse racetracks in Michigan and to allow three more independent casinos not affiliated with racetracks.

Casino supporters were given 180 days to gather 400,000 signatures needed to bring the concept to voters in November as an amendment to Michigan's constitution. If passed, existing Michigan horse raceways, including Hazel Park Raceway in Hazel Park, Northville Downs in Northville, Pinnacle Race Course in New Boston, Sports Creek Raceway in Swartz Creek and Mount Pleasant Meadows in Mount Pleasant could each establish casinos, dubbed "racinos."

A recent Michigan racino impact study estimated the initiative could bring as much as $472.5 million to the state's coffers annually. That's from a 75 percent tax on the $578.3 million estimated annual gross average. Michigan counties would split a 20 percent tax to the tune of $126 million. Oakland County would get 3 percent, about $18.9 million, and Hazel Park would see 2 percent, about $12.6 million annually.

"Detroit casinos provide 8.25 percent tax to the city, but the state sees little financial benefit," Adkins said. "Native American casinos in Michigan provide no tax revenue to the state. We want to even the playing field in Michigan while helping to revitalize our industry and bring in much-needed tax revenue to our city, county and state."

In April 2004, Hazel Park Raceway, which has stood for about 60 years, started construction on a 65,000-square-foot casino next to its grandstand after the House and Senate approved the use of slot machines in its facility.

But Gov. Jennifer Granholm didn't sign the measure into law, and now the building sits unfinished and empty. Several sections of the existing buildings also are closed off. There has been a steady decline in harness racing since casinos in Detroit opened for business.

Adkins said he hopes this latest petition will prompt voters to allow the casinos, which he said would help save the harness racing industry in Michigan.

"We built the casino as a sign of good faith," said Ladd Biro, racing director at Hazel Park Raceway. "We took it on the chin in 2004, but we have a chance now to create and retain many jobs here. Area businesses would see an increase in revenue, too. While it's not an answer to the economic problems, it's a short-term solution to a long-term problem."

Hazel Park Raceway represents about 10 percent of the city's geographical area. Revenues from the raceway to the city have steadily declined from $900,000 in 1999 to about $300,000 now, said City Manager Edward Klobucher.

"The city supports this initiative," he said. "This is a common sense approach, which is critically important for saving this industry (harness racing) and will add hundreds of new, well-paying jobs. It would go a long way in plugging the whole in Michigan's economy.

"It's not just Hazel Park that will benefit, but other cities, the county and the state as well. It will keep Michigan's gaming money in Michigan."