ANDERSON – Caesars Entertainment has cleared its first of two regulatory hurdles leading to a transfer of ownership with Centaur Gaming.
The Indiana Horse Racing Commission voted unanimously Wednesday to allow the transfer of all of Centaur Gaming’s holdings, including Hoosier Park Racing & Casino, Indiana Grand and three Winner’s Circle off-track betting locations.
However, the IHRC included several restrictions on the gambling juggernaut, which were outlined in a report by Racing, Gaming & Entertainment LLC presented to the commission.
First, Caesars Entertainment Corp. should present a detailed operation plan each year that must be approved by the commission before each year’s race dates are finalized. If changes are necessary, Caesars would need to seek approval from the commission for those changes.
The second would require safeguards be put in place to ensure the racing management is knowledgeable of all aspects of racing, in order to foster relationships with key stakeholders in the racing communities.
In addition, the report recommends Caesars create a fund for backstretch improvements and marketing, in lieu of requirements in the operational plan. These funds would support improvement efforts each year.
Throughout the presentation at the quarterly meeting Wednesday, Caesars executives touted the largest incentive the company will bring to the two Hoosier horse tracks: the inclusion of Caesars’ Total Rewards program.
Daniel Nita, regional president of Caesars Entertainment Corp., said the program will attract racing and gaming fans from across the state, nation and world, who will be able to utilize the same points card at the two racinos.
“They will be able to use the same players card, with the same caliber of guests level at this property and any other Caesars property,” Nite told the commission.
Nita also touted a $41 million IT infrastructure boost the company plans to use to bring the two properties directly in line with the Total Rewards program, allowing visitors to move seamlessly from casino gaming to horse track betting, all while earning points toward rewards including food vouchers, concert tickets or hotel stays.
Caesars’ casinos in other markets that have implemented Total Rewards have seen first-year increases in gross gambling revenue ranging from 6 percent at Harrah’s Gulf Coast to 49 percent at Planet Hollywood, said Eric Hession, chief financial officer of Caesars Entertainment Corp.
Hoosier horse racing gamblers are set to win big with the program, according to testimony. Gamblers at Hoosier Park, Indiana Grand and Centaur’s three off-track betting locations will receive one point for every $3 wagered on an out-of-state race and one point for every $1.50 bet on a race at the two tracks.
That’s nearly three times as many points up for grabs at Harrah’s current Philadelphia and Louisiana Downs locations, where gamblers get one point for every $4 gambled.
Two representatives for the horse racing community spoke at the meeting, leveling their concern that Caesars, as a multinational corporation, won’t offer the same access as Centaur Gaming, based in Indianapolis, offered.
“The big thing is, we are trading (Centaur Gaming executives) for a corporation, we are trading them for an ROI (return on investment) corporation,” said Dwayne Rhule, chairman of the Indiana Standardbred Advisory Board. “Now we are becoming one of 40 operations, and I do have concerns for the long range.”
Mike Smith, executive director of the IHRC, tried to assuage any concerns.
“It’s hard sometimes to not get a little emotional about this … being sold to a corporation that we don’t know as well,” Smith said. “But I think this can be a good marriage and I have every confidence that Caesars fully wants to make that happen.”
Now that the IHRC has approved the measure, it moves to the Indiana Gaming Commission, which is set to vote Thursday.