Minnesota horse tracks object to tribal leaders' appointment to Racing Commission

Owners of Minnesota's two horse-racing tracks voiced strong objections on Monday to Governor Tim Walz's recent appointments of two tribal leaders to the Minnesota Racing Commission, citing concerns about potential conflicts of interest.

Governor Walz appointed Melanie Benjamin, chief executive of the Mille Lacs Band of Ojibwe, and Johnny Johnson, former president of the Prairie Island Indian Community, late Friday. Both tribes operate casinos in Minnesota.

"The Racing Commission's job is to regulate the industry, and our two leaders, President Johnson and Chief Executive Benjamin, are more familiar than probably anybody in the state on the regulation of gambling," Walz said, describing them as "two good folks" who "understand that responsibility."

However, representatives from Canterbury Park in Shakopee and Running Aces in Columbus expressed unease. The tracks, struggling in recent years, have sought to expand gambling options to enhance their viability and increase racing purses.

"We do not believe it is appropriate for competitors of the racetracks to serve in the role of our regulators," said Randy Sampson, CEO of Canterbury Park, in a statement. He noted the lack of precedent for such appointments.

Taro Ito, president and CEO of Running Aces, labeled the appointments "a slap in the face to the Minnesota horse racing industry," highlighting that Benjamin and Johnson manage casinos competing with the tracks and lack horse racing experience. Ito also pointed out that they replaced commissioners with extensive equine and racetrack operational experience.

Benjamin and Johnson will serve terms from July 1, 2024, to June 30, 2029. The positions are unpaid, aside from a $55 daily allowance for their work.

Benjamin succeeds former Commissioner Roy Johnson, while Johnny Johnson replaces Dan Erhart. The Mille Lacs band has operated Grand Casino Mille Lacs and Hinckley since 1991, and the Prairie Island Community has run Treasure Island Resort & Casino since 1993.

The Racing Commission oversees live horse racing, wagering, online wagering, and card clubs at Minnesota's racetracks. Sampson stressed that commission members have access to confidential business information about track operations, raising concerns about conflicts of interest.

Ito questioned how the commission could promote and advance the interests of horse racing while including members with duties to competing tribal casinos, which have a court action against the commission.

Governor Walz dismissed these concerns, stating: "They'll do their job. These are ethical folks that will do their job and they have every right to be on the Racing Commission as anyone else."

The appointments come amidst ongoing disputes between the tracks and tribes over the legalization of mobile sports betting, with legislation currently favoring exclusive tribal rights. Additionally, the Legislature recently banned Historical Horse Racing (HHR), a move supported by the tribes but opposed by the tracks, further complicating relations.