Racinos in Rural Canada: Economic Impacts of the Grand River Raceway on Elora, Ontario, Canada

Abstract

Facilities that combine electronic slot machines and pari-mutuel racetracks (i.e. racinos) have been introduced to rural North America to stimulate local economies and/or racetrack patronage. This study examines the economic impacts of one racino on the community of Elora, Ontario, Canada. Renowned as a heritage tourist destination, Elora experienced economic decline during the 1990s. A racino was constructed by the Grand River Agricultural Society in 2003 to offset this downturn and to promote increased visitation to the village. Using a variety of data published by the Ontario Lottery and Gaming Corporation and the Grand River Agricultural Society, we first estimate the impact of the facility on employment and revenue generation (primary impacts). Survey data, collected from local business owners, and visitors to the historic downtown, are then used to describe and explain the perceived impacts of racino patrons on the economic well-being of local firms (secondary impacts). Recommendations to increase the facility's impacts are then drawn from comments provided by key informants. Our analysis finds that the facility has generated not only employment and revenue, but also sponsorships and in-kind financial benefits. We find, however, that secondary impacts are minimal, with few businesses perceived to benefit from patron expenditures. We attribute this to visitors' motivations and origins, and spatial placement of the facility. Four recommendations are provided to attract gamers and their partners to the shopping district. It is advised, however, that these actions be undertaken with caution to ensure retention of the historic ambiance that draws the heritage-seeking consumer. Keywords: racino, pari-mutuel racetrack, heritage tourist destination, historic ambiance, rural regeneration, visitation