Poor Alabama. The beautiful Yellowhammer State gave horse racing a real, honest try. When the Birmingham racecourse opened in the late 1980s, it was designed to make waves. The stands were built to host tens of thousands of people at once.
On opening night, it did exactly that. People from all over the South came to watch the fanfare. Just days later, things took a turn. Attendance plummeted. Events were cut and then cut again. The venue began to hemorrhage money at a rate of as much as $100,000 per day.
It was all over by 1995. Alabama hasn’t had a stable horse racing industry since. Could Wetumpka turn things around?
Overview
Known as the "City of Natural Beauty," Wetumpka is known for both its lovely scenery and its culture and art. It has a life-sized replica of the Temple of Hera--which doesn't really have much to do with horse racing but is a fun fact. The structure draws architecture enthusiasts from across the region, and it’s definitely a very Instagramable spot.
Here's what's more relevant: Wetumpka has a major casino called Wind Creek. Wind Creek is owned by the Poarch Band of Creek Indians. The tribal casino has become an economic engine for the area.
They have recently acquired the old location for the Birmingham Racetrack. The purchase represents a significant development for racing enthusiasts. Tribal Councilman Arthur Watershed has said this on the subject.
"As it sits today, there is opportunity there," he said. "That market has always been important to us. The level of investment would depend on what we're allowed to do." His cautious optimism reflects regulatory uncertainty.
Alabama, like many southern states, has implemented somewhat restrictive gambling laws in
the past. These regulations have stifled growth in the gaming industry. This can make it difficult to make big moves for any gaming company.
Lewis Benefield, president of the Birmingham Racecourse, is very familiar with this friction. "The people of Birmingham desire the same types of entertainment offered at other facilities in and around Alabama. Unfortunately, differing state laws and enforcement actions regarding gaming have limited our ability to compete effectively."
Granted, it hasn’t been legislative restrictions that have kept Alabama from having a vibrant racing scene. Still, it could pose a problem here. The Wind Creek group is hoping to make big moves as it tries to bring racing back to Alabama. The question of what they will be able to do currently remains up in the air.
Is Wetumpka in the mix?
While Wetumpka is not directly in the conversation in terms of being the next great horse racing venue, residents do have a reason for hope. For one thing, the town is only a short 90-minute drive to Birmingham. This proximity makes day trips entirely feasible for racing enthusiasts.
People who are hoping to have more options for betting and viewership won't be disappointed. The potential development could serve the entire region.
Poarch Band of Creek Indians is, as they have said, looking to put a lot of money into this track. Their investment plans suggest a comprehensive renovation of the facilities. The idea is to support an environment where fans can show up, maybe research free horse racing picks for today, place bets, and enjoy high-end dining and hotel accommodations in the community. The development would transform the venue into a destination complex.
Good for fans, but not necessarily directly impactful for the Wetumpka economy. The immediate economic benefits would concentrate around Birmingham.
That said, if the Birmingham investment goes well, who knows? They may be more than eager to expand into a community where they already have a vibrant presence. Particularly a location with a well-established hotel property already owned by the group.
They may also use their track ownership position as a way to expand horse betting
opportunities in their Alabama casinos, including the one in Wetumpka.
Why This Matters
Interestingly enough, the tax benefits for this arrangement are somewhat limited. Because the Poarch Band of Creek Indians is a tribal group, income taxes are not a factor. That's one of the big benefits that many communities experience when there are local track or casino developments. State and local governments often tout tax revenue as a primary advantage.
However, there are definitely still economic opportunities. Increased tourist revenue could be a considerable benefit. Visitors spend money at local businesses beyond the racing venue.
Also, various operational fees and costs that get pumped into the community. These include employment, vendor relationships, and infrastructure development. The Poarch Band of Creek Indians estimate that they have already put billions of dollars into Alabama communities.
That figure will only grow as they expand into new ventures.