"A big part of what we've been able to accomplish with as little as we've had is that we've really focused on giving our bettors what they want
. And I think if more tracks focused on what the bettors want, and create an exciting experience when you watch and bet on horse racing, I think that's as important if not more important than the dollars that are actually spent on outside advertising and marketing."
As Ohio gears up to be the latest state to partner VLTs with racetracks, one particular track has worked tirelessly to position itself as attractive for the horseplayers: Northfield Park. The Cleveland, Ohio-area half-miler handles more than tracks with significantly larger purses in the same simulcast market. Now Northfield has attracted a different sort of customer, one so impressed with the organization that it wants to partner its internationally-recognized iconic Hard Rock brand with harness racing.
"When we looked at the opportunity for a gaming and entertainment facility in the state of Ohio, it was just a natural fit with us," said Jim Allen, Chairman of Hard Rock International. "With Brock [Milstein] and his Northfield Park organization, which by far is the most successful racing facility in the state, when you look at it from its history and its current cleanliness, the operations and its profitability, and when Brock allows us the opportunity to become a part of this - his vision was to build a separate structure for the gaming activities and the entertainment - it seemed like something that was a wonderful opportunity for us. We're enthused and we look forward to hopefully opening this facility sometime in the future."
The proposed $275 million Hard Rock project would include a Hard Rock-branded gaming center, premium steakhouse, Hard Rock Cafe, ongoing lineup of live music and iconic music memorabilia from Hard Rock’s unmatched collection, as well as a center bar, buffet and conference and meeting space. The development is expected to generate approximately 1,000 permanent jobs, more than 1,000 construction jobs and countless jobs associated with local suppliers and vendors.
"I think that one of the things that we've been able to do over our 40-year history is to not just be another restaurant, not just be another hotel or casino or live music venue," continued Allen. "We've really been able to blend really the most unique marketing plan - probably in the world - with the world's largest collection of music memorabilia, and most valuable, into an educational, into a historical - almost a museum kind of experience, obviously on top of the retail which, God bless us, but it's hard to go to an airport in the world and not see a Hard Rock shirt or hat.
"People just become so tremendously in love with the brand that it really creates more than just a restaurant or more than just a casino or more than just a box."
Allen continued to credit the work of Milstein and his team at Northfield Park, stating that the partnership would create a totally new destination for people in the Northfield-Cleveland-Akron market. All well and good for the customers, but what about the horse racing side of this arrangement? Will Ohio go down the same path as other states where the cut of slot revenues don't properly market and attract business? Milstein feels that marketing "just to market" is meaningless.
"We are going to market the property with a portion of the VLT revenues but you can't just market just to market. There's got to be a reason to market it and people are going to have to want to bet on the horse racing regardless of how much money you spend on TV commercials, print ads, internet and everything else."
Concentrating on prioritizing what's going to drive the business is Milstein's vision.
"Rather than just putting slot machines or VLTs at a racetrack, you do something that's more all-encompassing that creates an entertainment facility as opposed to just a gaming experience."
Of note, Allen indicates that the VLT arrangement with the state sees just one-third - 33 percent - of revenues going back to the government. Trot Radio's Norm Borg noted to Allen and Milstein that in Ontario, the governing body receives 75 percent in comparison. To hear the full interview, click the play button below.
Episode 259 – Jim Allen, Chairman of Hard Rock International and Brock Milstein, Chairman and CEO, Northfield Park
Audio Format: MP3 audio
Host: Norm Borg
Please note that the opinions expressed in the featured interview are those of the participants and do not necessarily reflect Rideau Carleton Raceway and/or Standardbred Canada.