The winner of Saturday's Kentucky Derby might want to save some roses for those mourning California horse racing.

No, it's not dead yet. But with the cancellation of Thursday's racing card at Hollywood Park, a bankruptcy filing by Santa Anita's parent corporation and the steady decline of race-ready thoroughbreds in barns from Pomona to Del Mar, it could be argued that the game is on life support and fading fast.

Many in the sport believe higher taxes, lower purses and laws that prevent the installation of slot machines at racetracks are driving owners and trainers to greener pastures.

"The state government is probably the most (fouled) up in the United States," jockey Danny Sorenson said. "Ray Charles could see that. The state government with all its taxes and negative loopholes is making owners and breeders obsolete. It's so far out of hand. How can you afford to win?"

Of course, there are those who argue just as forcefully that the decline of horse racing in California is more a function of a sour economy and that a rebound is inevitable.

"We're always going to have horse racing in California," said Jack Liebau, Hollywood Park's president. "I don't see that in anyway being in danger. Whether at the level that is now remains to be seen."

By the numbers

Officials estimate that between 50,000 and 60,000 people earn a paycheck in the California horse racing industry.

"People don't realize that California racing is a $4 billion industry," said Sherwood Chillingworth, director and executive vice president of the Oak Tree Racing Association, which holds its annual fall meeting at Santa Anita Park in Arcadia.

"Farms all over this state employ workers who probably couldn't get a job anywhere else," Chillingworth said. "It keeps them off the social payroll. It's not just the racetracks, it's the little farms that provide jobs for people and are big contributors to the community."

An early morning racing fan watches horse on track during workout on Santa Anita Racetrack Wednesday, March 4, 2009. (SGVN/Staff Photo by Walt Mancini)

Board for fiscal year 2007-08 indicated the state collected more than $40 million from horse racing through fees and pari-mutual takeouts.

California took in another $3 million in sales taxes on horses sold during the various meets during the 2007-08 fiscal year, according to the CHRB report. Another $1 million came in through auction sales of horses, the report noted.

Additionally, Arcadia, the site of Santa Anita; Inglewood, the location of Hollywood Park; Pomona, where Fairplex is located, along with several other cities, split $6.1 million from track revenue during 2007-08, the report indicated.

Chillingworth estimated the Breeders' Cup, horse racing's world championships, distributed millions of dollars around the Southland this past fall.

"The Breeders' Cup contributed $100 million to the community," said Chillingworth. "That's money spent on limos, cabs, restaurants, that sort of thing. No one takes that into their consideration when they are opining on horse racing. It's not just the gambling."

Many believe California's seemingly insatiable need for tax dollars is likely contributing to horse racing's slide. The number of horses in each race continues to shrink. Consequently, the opportunity for bettors to hit a longshot decreases, which leads to lower revenue for racetracks, smaller purses for thoroughbred owners - and less tax revenue.

Sorenson, the jockey, calls it a "saturation of racing."

While the number of fans attending racetracks in California has declined steadily since the mid-1980s, the total number of racing days in the state has increased. The end result, according to some, is an inevitable decline in quality racing.

"It affects everybody," Sorenson said. "Smaller fields mean less availability and less opportunity. It's harder to keep anything going. The top guys get the top mounts and it's a squeeze on everybody else."

Bye bye Golden state

As a result, trainers and owners are leaving California.

Among those who have left the state is trainer Paulo Lobo, a former Pasadena resident who took his stable of 25 mostly turf and distance runners to Belmont Park in New York last month.

Lobo said his clients, primarily Brazilian thoroughbred owners, had been thinking about the move for weeks and decided it was time.

"(We wanted) to make this move for many reasons," Lobo said. "We are thinking about more options, more tracks."

The economy also played a role in the decision, Lobo said. He noted that prize money payouts seemed to be shrinking in California.

"Everybody is dropping purses," he said.

For example, the Grade III Wilshire Stakes at Hollywood Park offered $110,000 in prize money as recently as 2003. On Saturday, the race offered $100,000. Meanwhile, costs such as feed, labor and care have remained steady or, in some cases, risen.

"We keep yelling for a level playing field," said Oak Tree's Chillingworth. "We have people going to New Mexico and West Virginia. It costs so much to train a horse in California and so the horses follow the money. You have to win a hell of a lot of dough to break even."

Many experts believe the worldwide economic crisis only exacerbates the problems.

"I think that whoever you are you are tightening your belt," Liebau said. "And that's impacting the number of horses you have in training."

Rising costs and lower prize money statewide don't help matters.

"California is the top area of costs as far as horses at the track," said Jack Harris, who heads the CHRB. "It's a tough economic prospect right now."

Solutions

Most of those involved in horse racing believe their sport can be revived in California. Unfortunately, many of their proposed solutions have been shot down in Sacramento.

Among the proposals is allowing slot-machine gambling at racetracks. As promoters see it, slots would bring more customers to the track and help increase purses - just as has occurred in Delaware and Louisiana.

Similar plans have been floated in Ohio, Texas, Maryland and New Jersey.

Not all are on board. A plan to allow slot machines at racetracks was shot down by California voters in 2004, and Harris believes slots might hurt more than help.

"Any kind of outside money coming in would be a plus although I've never been a big fan of slots as a panacea," he said. "If you have slots you don't really need racing. Racing needs to make it on its own."

Lower admission prices, and less complicated betting schemes, also might breathe new life into the sport, according to Liebau.

"Racing is going to have to change," Liebau said. "It's an intellectual game that appeals to problem solvers who like to study all the aspects of the sport. It's going to have to have bets that are no-brainers."

Among the no-brainers would be a wager that allowed gamblers to play odd or even numbered winners in a race, much like roulette, Liebau said.

Chillingworth said he hopes the state can find some way to tie race results to the California lottery.

"You'd have people buying Lotto tickets then checking out who won at the races," he said.

Less racing days or less races on daily cards are other possible solutions.

"One thing to do is have less racing," Harris said. "Four days a week versus what we have now. There will be bigger fields and that increases betting. It may be that by slightly less racing, the tracks will make more money."

Rays of hope

As the Kentucky Derby brings the "Sport of Kings" into the national spotlight on the first Saturday in May every year, it also gives new hope to those passionately involved in the game.

"I think we're in ICU but it's a case where we can recover if given the proper help," Chillingworth said. "Not giving us money but some way to make additional money ... some kind of stimulus package."

For now the fans will stick it out, because many believe California racing - even if diminished - can't be topped, and isn't vanishing anytime soon.

"That's like saying Vegas is going away," said Hollywood Park bettor Eddie March of Ventura. "As long as there's sickos like us coming out here every day there's going to be racing."

frank.girardot@sgvn.com

(626) 962-8811, Ext. 2129