Oaklawn Park had a total economic impact of nearly $220 million in 2012, according to a study financed by Oaklawn and Southland Park Racing and Gaming in West Memphis in cooperation with the Arkansas State Chamber of Commerce/Associated Industries in Arkansas.
The study by BaxStarr Consulting Group LLC, which was released Friday, said Oaklawn had a total attendance of 1.85 million in 2012, which generated $88.6 million in total revenues. Factoring in indirect and "induced impacts," the direct total economic impact was $219.8 million.
"I think the main thing that I take away from it is the racing and gaming industry in Arkansas has gotten to be very significant. It's a major industry. It's certainly a major catalyst here in Hot Springs," said Eric Jackson, Oaklawn's general manager.
Jackson said that BaxStarr found that the total economic impact from Oaklawn and from out-of-state visitors to Oaklawn was $339.8 million in 2012.
A joint news release from Oaklawn and Southland said the combined economic impact of the racing and gaming programs at the two tracks was $895.5 million in 2012, creating 2,868 jobs, and generating $74.3 million in wages in Arkansas.
BaxStarr's study, conducted over an 18-month period and completed in March, outlines gross economic impacts generated by racing and gaming, and the overall economic impact on Arkansas' economy, employment, tourism and horse and greyhound racing and breeding industries, the release said.
Jackson said the study also "validates all of the things that we projected and talked about when we were in the Legislature 10 years ago," seeking approval for electronic games of skill.
"They have transpired, and then some," Jackson said. "Every aspect of our industry is in a better shape today than it was 10 years ago, and that's consistent with what we said we thought would happen, and that is a rising tide will lift all ships, whether it's tourism or employment or taxation or horse farms."
"I am not surprised at all with the report's findings. Oaklawn has been the foundation of our tourism industry in Hot Springs for over 100 years. They employ hundreds of employees annually with that number increasing once again with their latest expansion," Steve Arrison, CEO of Visit Hot Springs, said Friday.
"Oaklawn many years ago was just a January to April attraction for our community. Now they are a 365-day-a-year contributor to our local economy. We are very fortunate to have this economic engine located in Garland County and in Hot Springs National Park, Arkansas," Arrison said.
"Oaklawn's and Southland's continued growth in racing and gaming generates substantial investment and job growth in Arkansas," Randy Zook, president and CEO of the Arkansas State Chamber/AIA, said in the news release.
"This study shows we have an opportunity to not only stimulate job growth, but to draw economic activity from other states and increase collected taxes both directly and indirectly from the racing and gaming industry," Zook said.
The study found that about 2,000 horses raced at Oaklawn during the 2012 live meet, involving about 180 trainers. "Most stay in Arkansas from mid-November to the end of April, and bring staff with them for the ongoing care and training of the horses," the study said.
"All of this business activity is separate from the operations of Oaklawn as a business and would translate into economic activity of about $25.65 million," the study said.
Jackson said Oaklawn had exceeded all of the projections it had made when the tracks talked to former Gov. Mike Huckabee and legislators 10 years ago about the addition of electronic games of skill.
The tracks projected that, if they could have electronic games of skill, the two could generate $20 million a year.
"I think it's more than doubled that now," Jackson said.
"Our purses are just about doubled what they were 10 years ago. So, it's wonderful to draw up a plan and kind of see it come together like that, but it's particularly good that all of the projections that we made to legislators and other officials and opinion leaders ... have come true."
Local on 05/31/2014