Melbourne's dog racing fades as gambling issues get hot

MELBOURNE – It's the middle of live dog racing season at Melbourne Greyhound Park and Club 52 off Sarno Road in Melbourne and new general manager, Jim O'Brien, looks at the calendar thinking April 18 can't arrive soon enough.

That's the day Melbourne Greyhound Park is done with live dog races for the season.

O'Brien, who took over as president and general manager at Melbourne Greyhound Park and Club 52 from Pat Biddix, who retired in December, is like many Florida parimutuel track operators. They pinch their noses at live dog races; it's a declining industry and the races cost a considerable amount of money to operate — about $320,000 annually in the case of Melbourne Greyhound Park.

Poker rooms, like Club 52, are what generates income, but state regulations mandate they must also offer dog races.

It's one reason why O'Brien and others are pushing state lawmakers in Tallahassee this session to pass "de-coupling" legislation, a measure that would end the requirement that that greyhound dog tracks hold on-site races if they want to keep card games. Many hoped "de-coupling" legislation would happen last year but the measure stalled in committee hearings.

"De-coupling makes sense for most of the pari-mutuel operations," said O'Brien, who started his duties as general manager at the first of the year. "The greyhound business is declining across the industry and it's a loss leader for us. From an economic point of view, there's no reason for us to really continue it."

De-coupling is one of a number of key gambling questions that are on the table this legislative session for state lawmakers to consider.

A sweeping proposal by House Republican Leader Dana Young, R-Tampa, would overhaul the state's gaming laws, mostly to the benefit of South Florida, by allowing slot machines at some tracks in South Florida, as well as two Las Vegas style casinos in the Miami area.

Many of Young's proposals are no doubt controversial, particularly when one considers a still-to-be-resolved agreement with the Seminole Indians, operators of most of the state's legalized gambling operations.

In the past, a pact between the Seminoles and Florida gave the tribe nearly exclusive rights to hold casino-style gambling in Florida but so far there is no agreement to renew that relationship.

Seminole's gambling operations include slots, roulette, black jack and other games of chance. Sports betting isn't allowed in Florida.

One of Young's proposals also includes "de-coupling." If just that passes, it would benefit Melbourne Greyhound.

According to figures provided by Florida's Division of Pari-Mutuel Wagering, revenues from live dog racing in Melbourne fell more than 36 percent, $141,729 to $90,559, between the 2012-2011 and 2013-2014 fiscal years.

Statewide, live dog racing revenues fell 11.2 percent, from $105.4 million to $93.6 million, in that period.

The live-racing mandate was established in 1996 when the state authorized card rooms at greyhound tracks. To continue their card rooms, the tracks are required to conduct at least 90 percent of the performances they did in 1996 when they applied for their initial card room license.

O' Brien is confident de-coupling will pass this year.

"Everybody is behind, except for the kennel owners and I understand their position," he said. "That's their business and has been their livelihood for years. But it doesn't make sense for anybody except for the kennel owners."

Mostly true, said David Bishop, spokesman for the Florida Greyhound Association.

"The reason we don't support de-coupling is because, quite frankly, it will mean the end of greyhound racing in Florida," Bishop said. "That will result in the loss of 3,000 jobs and the conversion of 13 pari-mutuel facilities into casinos, without a referendum"

Bishop predicted a legislative battle over de-coupling and the other proposed gambling measures.

"It will be trench warfare," Bishop said. "We're just trying to preserve a form of entertainment that has been around for about a century in Florida."

If there is a loosening of pari-mutuel requirements in Florida, the next step for Melbourne Greyhound is to get slots.

That's where Biddix, a well-respected local businessman with strong ties throughout the state comes in. Though he retired in December, the 68-year-old Biddix is serving as a government affairs consultant for Melbourne Greyhound.

"I really didn't want to do the every day stuff," Biddix said. "I do enjoy going to Tallahassee and keeping up the government relations here in the county."

About three years ago, O'Brien moved here from San Antonio, Texas, and he and Biddix put together a successful referendum on slots in Brevard. In 2012, Brevard County voters approved the measure with 52.7 percent of those casting ballots essentially saying they were OK with slot machines in Brevard.

Even with that local thumbs-up, getting slots into Melbourne Greyhound Park will require legislative action and a signature from the governor. That will be a tough road when powerful forces like theme park operators such as Walt Disney World, the Florida Chamber of Commerce and others are strongly against any expansion of gambling operations in the Sunshine State.

In the meantime, O'Brien is trying to beef up Melbourne Greyhound so hospitality plays a larger role than maybe it has in the past at the facility. That strategy includes capital improvements, menu changes and reaching out to various groups — like local chambers of commerce — to hold special card-playing events at Melbourne Greyhound.

And like many other businessmen focused on attracting young consumers, he's looking for younger poker players.

Revenues from Club 52 have risen from about $4 million two years ago to $4.3 million last year. But O'Brien acknowledges the need for increased growth.

"We're reacting to the market and trying to give what people want at all times," O'Brien said. "But we need to attract a younger clientele."

Contact Price at 321-242-3658 or wprice@floridatoday.com You can also follow him on Twitter @Fla2dayBiz.