Wind Creek Hospitality, the Alabama company in the process of ponying up $1.3 billion for Sands Casino Resort Bethlehem, operates a greyhound racing track in Pensacola, Fla.
But, after voters hit the polls Tuesday, its racing operation in the Sunshine State is on its last legs.
That’s because Florida voters earlier this week decided to phase out greyhound racing in the state over the next two years. More specifically, the state voted 69 to 31 percent Tuesday to pass Amendment 13, which bans the sport beginning on Jan. 1, 2021. It is an overwhelming defeat for an industry already in decline, with 50 tracks closing nationally over the past 30 years because of shrinking crowds and accusations that dogs are mistreated.
For some of Florida’s 11 dog tracks, losing live racing might actually increase profits. Under current Florida law, greyhound tracks must offer live racing to operate poker rooms and accept wagers on simulcast horse racing from tracks across the country. Amendment 13 allows them to keep those side businesses without live racing, even if they drop it immediately.
Three days after the vote, Wind Creek wasn’t revealing too much about its plans moving forward for its Pensacola Greyhound Track & Poker Room, a facility that currently offers live greyhound racing, simulcast racing and a variety of table games.
“Pensacola Greyhound Track will comply with all applicable laws,” Daniel R. Wilson, the track’s assistant general manager, said in an emailed statement. “As to any specifics at this time, review of all options is ongoing. We will make public our final decision once it has been determined.”
But, according to the person who authored the ballot language, Pensacola Greyhound Track may have already held its last race.
Christine A. Dorchak, president and general counsel of GREY2K USA, one of the groups pushing for a nationwide ban, said her organization’s knowledge of conversations between greyhound breeders indicates multiple tracks, including Pensacola, will not reopen for live racing next year.
“As we understand it, Pensacola has made that decision,” she said. “They will not reopen for live racing.”
Wind Creek spokeswoman Magi Thomley Williams declined to comment on that.
In the 2016 fiscal year, the most recent data set available from the Florida Department of Business and Professional Regulation, Pensacola Greyhound Track held 1,598 live races over 128 days.
Over a roughly five-year period, from May 2013 to July 2018, Dorchak said state data shows 493 dogs died racing in Florida, including 28 at the Pensacola track.
For Wind Creek, which is the gaming and hospitality entity for the Poarch Band of Creek Indians in Alabama, Pensacola is its only remaining facility that offers live greyhound racing. In 2009, PCI Gaming Authority announced it would purchase a majority interest in the Pensacola facility and Mobile Greyhound Park.
But last summer, Wind Creek announced Mobile Greyhound Park would host its last day of live greyhound racing Aug. 19, 2017.
“In response to declining market demand, Mobile Greyhound Park will eliminate live races at our park at the end of August,” the company said in a news release at the time. “We will continue to offer simulcast of races originating from other locations.”
But, Dorchak said, a ban of greyhound racing in Florida could motivate the remaining states where the sport is allowed to follow suit. And, she noted, without Florida — long the hotbed of dog racing — there won’t be as much racing to simulcast.
Florida’s 11 dog tracks constitute almost two-thirds of those remaining nationally. Two tracks remain in West Virginia and one each in Alabama, Arkansas and Iowa. In Texas, three tracks rotate an annual meet.
“They will not be able to survive very long without Florida,” Dorchak said. “Florida is not only the hub in the United States, it’s the hub of dog racing worldwide.”
Deal update
The Pensacola track is one of nine properties that Wind Creek has interests in, a portfolio that — in addition to the Mobile and Pensacola facilities — includes three Alabama casinos; two resort casinos in the Caribbean; a Gretna, Fla., facility that offers simulcast racing and a poker room; and a partnership in the Wa She Shu Casino in Gardnerville, Nev.
Its latest pending addition is Sands Bethlehem, a definitive agreement that was announced March 8 and continues to work its way through the approvals process.
For current owner Las Vegas Sands Corp., the deal would allow it to unload its smallest property that no longer fits into the company’s portfolio of mega-resorts. By comparison, Sands Bethlehem would become Wind Creek’s largest casino property.
While a change-of-control petition has not yet been filed with the Pennsylvania Gaming Control Board, board spokesman Doug Harbach said the state is vetting the Wind Creek executives who have filed applications with the state.
At a Oct. 3 gaming control board meeting, in which the interactive gaming hearing for Sands was held, a Wind Creek representative gave the board an overview of company’s background and said the deal’s closing was not imminent.
“Poarch Creek is not the current owner, but we are in the process of concentrating on closing the land-based transaction and doing everything we can to push that process forward,” Lynne Kaufman, a partner with Cooper Levenson in Atlantic City, said at the meeting on behalf of Wind Creek.
Bethlehem Mayor Robert Donchez said he spoke to Wind Creek representatives two weeks ago for about 40 minutes. Donchez said they told him the deal is on track to close in March or April next year. In addition, Donchez noted, Wind Creek doesn’t plan to make any public comments about Sands Bethlehem until the transaction clears all regulatory hurdles.
“My meetings with them have been really productive,” said Donchez, noting how he would like to see Wind Creek push forward further redevelopment plans on the former Bethlehem Steel site and take up Sands’ role as a solid community partner. “I certainly am impressed with the people who have been here and who I’ve spoken with on the phone.”
Neither Wind Creek nor Las Vegas Sands immediately responded to a request seeking comment on the deal’s status.
