Canterbury Park, Mdewakanton Make Deal to End Racino Push

In what officials are calling a strong win-win for both  and the , the two organizations announced an agreement they say will put Canterbury in the top 25 racetracks for purses and end Canterbury's attempt to put slot machines in its facility.

Under the agreement, the tribe has agreed to pay $75 million in the next 10 years, starting with $2.7 million to enrich purses at the track this summer. They will contribute nearly $6 million next year, and the amounts will increase over the 10-year period. 

"It's certainly a monumental day, after occasional fights at the legislature (over racino), Edward Stevenson said a press conference Monday afternoon at Canterbury. Stevenson is president and chief executive officer of the SMSC Gaming Enterprise, which operates .

The pact halts the efforts of Canterbury to put slot machines in at their facility, which will ensure the preservation of the tribe's monopoly on that form of gambling, at least in the immediate vacinity.

Canterbury Park President Randy Sampson said although Canterbury has lobbied for years to have slot machines put in, the goal was always to raise revenue for larger purses, which, in turn, would uplift a declining horse breeding industry in Minnesota.

"The key issue was the health of horse racing," Sampson said.

Once the two organizations realized that was the goal, that allowed talks to begin to find a solution that would benefit them both, Stevenson said, adding that talks have been under way for about a month after legislators and Gov. Mark Dayton encouraged it.

The increase in purse winnings will also mean Canterbury can compete with with Arlington racetrack in Chicago and Prairie Meadows in Des Moines, Iowa, Sampson said.

"It will be night and day for us for competitiveness," he said.

This agreement will also allow for new joint marketing opportunities between Canterbury Park and SMSC’s Mystic Lake Casino Hotel, taking advantage of their proximity to one another in the southwest corner of the Twin Cities metropolitan area, including annual payments to Canterbury Park for joint marketing totaling $8.5 million over the ten years.

The agreement is subject to approval by the Minnesota Racing Commission which is expected to take up consideration of the matter later this month. Until the agreement is endorsed by the nine-member commission, the parties will have limited engagement at the staff level for planning purposes.

Canterbury officials and local legislators had been pushing  for years, without success. At one point in the session this year,  – as a funding source. Pull tabs were embraced instead.

Sampson said he would call off local legislators, which would include Rep. Mike Beard, R-Shakopee, who have supported racino in the past. 

Racino efforts will likely not be dead at the legislature, however, because horse racing track Running Aces in Columbus, MN, is not involved in the agreement. Sampson said there's nothing that would prevent them from working with other tribes to formulate a similar agreement.

"There will be some who might not agree that this is the right solution," Sampson said, "but it certainly is the right solution for Canterbury."

If the agreement is approved, officials said at the end of the 10 years, provisions allow for a 5-year extension and/or renegotiation.

In May, Gov. Mark Dayton  at Canterbury, which was also born out of a deal with the tribe. 

Specifically, it allows expanding the number of tables from 50 to 80 and increasing the poker bet limit from $60 to $100. It also removes limits on the number of poker tournaments that can be conducted, as well as limits on the number of tables used in poker tournaments, among other amendments.

Shakopee Mayor Brad Tabke expressed his support for the deal Monday morning, tweeting, "Great news for @CanterburyPark and @smsc_news!! Deal struck to end Racino push!"

President Angie Whitcomb on Facebook called the deal "fantastic." "Congratulations to all involved!," she wrote.

Rep. Pat Garofalo, R-Farmington, also tweeted in support of the deal:

"WOW! Great news for Canterbury, horse racing, and private sector jobs in Minnesota!"

Another tweeter had a different take:

Jeff Hamilton ‏@JeMiHamilton

"@Ron_Rosenbaum: The deal between Canterbury and The Shakopee Mdewakanton Sioux is a two-way deal with the devil. Shame on both parties!"

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