Eager for racing fans to boost business, sports bars from Manchester to New London are lining up to add off-track betting parlors to lure hungry and thirsty gamblers.
Ready to accommodate is Autotote Enterprises Inc. Looking to expand its dwindling fan base, the New Haven company that runs off-track betting (OTB) sites in the state is negotiating leases with bar-restaurant owners to open at least three small betting parlors — outfitted with wager counters and TV screens — in their establishments.
Autotote’s sales pitch is simple: It picks up the tab to refurbish the establishments and pays a monthly rent, with the understanding that new customers drawn to the parlor should increase food and beverage sales.
Dave Landry turned his J.D. Coopers sports pub in Putnam into an Autotote off-track betting parlor last year. He couldn’t be happier.
Landry won’t disclose how much Autotote pays him in monthly rent, but says he profits selling burgers and fries to patrons waiting for post time.
“It’s increased my day business and it’s been very profitable,” he said.
But one expert doubts whether Autotote’s push into eateries can attract enough fans to a sport for years on the downslope, hurt by other forms of legalized gambling like state lotteries and online wagering.
In 1993, Autotote purchased the OTB franchise from the state for about $20 million, becoming the only company authorized to operate betting facilities in Connecticut. It runs 12 OTB parlors, six shy of its state-imposed limit. All betting parlors need state and local approval.
In 2001, Autotote merged with Scientific Games Corp., a New York supplier of instant lottery tickets, simulcasting systems for off-track betting parlors, and other wagering equipment.
Autotote is regulated by the state Division of Special Revenue and the Connecticut Gaming Policy Board and is mandated to share 1.6 percent of the handle (the total amount wagered), with each town that hosts a parlor. The state gets 1.9 another percent of the handle.
Autotote promises those towns $60,000 to $70,000 in revenue each year, based on the $4 million handle estimate per parlor.
The town of Putnam took in $60,000 from Landry’s parlor last year, said Putnam Mayor Bob Viens, who hopes his town will take in the same amount this year.
“I haven’t heard anything bad at all about the place. It has a nice clientele. The days of the old OTBs are gone,” said Viens, referring to the smoke-filled parlors the state ran in the 1970s and ‘80s where people hung out on the sidewalk waiting to place their bets.
Last year, New London town officials approved a betting parlor inside a sports bar and restaurant yet to be built on Eugene O’Neill Drive.
Willimantic officials recently approved a parlor at the Thirsty Frog, a restaurant and nightclub. The New London and Willimantic sites are scheduled to open this year, pending approval from state gaming and liquor.
In Manchester, officials are considering Autotote’s application to open a parlor inside Shea’s American Bar & Grill on Tolland Turnpike.
Paul Young, executive director of state’s Division of Special Revenue, said towns and businesses are encouraged by the success of the Putnam OTB.
“It’s conceivable that if J.D. Coopers continues to do well, we’ll see more proposals,” Young said.
Autotote spokesperson Thomas Hodgkins said in an e-mail that the restaurant parlors will give people another reason to patronize the business and are economic generators for towns.
“This concept appeals to core racing fans and as well as casual enthusiasts. It creates more excitement and helps drive food and beverage revenue, primarily in the day time, when these restaurants are traditionally slow,” Hodgkins wrote.
Bill Eadington director the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada Reno, doubts OTB parlors in restaurants and bars will broaden horse racing’s appeal.
“The horse-racing demographic of old males hasn’t been replaced for 20 years,” Eadington said. “It’s going to take a lot more than setting up betting sites in bars and restaurants to attract new fans.”
The crowds at Autotote’s bigger betting sites, like Sports Haven in New Haven and the Bradley Teletheater, near the airport, have been dwindling for years.
Statewide, the money wagered at OTBs has fallen steadily since 2004, according to the state Department of Special Revenue. That year, $279 million in bets were placed at OTB parlors. By last year, the number was down to $205 million, according to state figures.
Nationwide the pari-mutuel handle on thoroughbred racing is also down. The industry took in $10.9 billion in 2008 down from $13 billion in 2006, according to The Jockey Club, which tracks the horse racing industry.
Hodgkins said Autotote’s small venues will attract a young audience and increase it wagers in Connecticut. He said betting has declined because of the sluggish economy and competititon from casino wagers and the state lottery.
“Racing is a great game and we believe by presenting it in a fun, exciting sports bar atmosphere it will attract a new audience who will discover the excitement of thoroughbred racing,” he wrote.
Jack Maloney, a co-owner of Shea’s American Bar & Grill in Manchester, hopes off-track betting can revive his daytime business.
Before Autotote approached him four months ago about converting 900 square feet of his restaurant into a betting parlor, he considered closing his restaurant during the daytime hours.
He won’t disclose what Autotote will pay to lease the space, but he estimates he’ll make an extra $500 a month selling food and beverages to bettors.
Autotote said Manchester stands to make $64,000 a year from the proposed site. Town officials are scheduled to vote on the proposal later this month.
Maloney said Autotote’s offer is a sure winner.
“We need it, the town needs it, everybody needs the revenue,” he said.
