Blue Ribbon Downs Owners Say 1,000 Jobs in Jeopardy Because of Governorâ€™s Deal

At least 1,000 jobs are in jeopardy in Sallisaw, because the owners of the Blue Ribbon Downs racetrack say they may be forced to shut down.<br><br>Most of the Blue Ribbon Downs employees have been around

Friday, January 21st 2000, 12:00 am

By: News On 6

At least 1,000 jobs are in jeopardy in Sallisaw, because the owners of the Blue Ribbon Downs racetrack say they may be forced to shut down.

Most of the Blue Ribbon Downs employees have been around the track enough times to know the company has had its share of financial problems. But only once in the trackâ€™s 16 year history has Blue Ribbonâ€™s owners had to file bankruptcy and nearly shut down operations. The managers of the track say business was rebounding until Oklahoma governor Frank Keating made a deal with the Choctaw Nation. "We were doing extremely well in 1997 and 98 until this happened,â€ explained Blue Ribbon Downsâ€™ Don Essary. â€œNow it's going downhill."

Keating signed a compact with the Choctaws allowing them to simulcast horse racing at their casino in the small town of Pocola near Sallisaw. Essary says the Choctaw simulcast is taking away Blue Ribbon business to the tune of $60,000 a month. He says the compact will automatically renew in a few months unless Keating stops it.

About 400 people are employed at the racetrack. If the Choctaw Nation continues to simulcast in Pocola, it's almost inevitable the Blue Ribbon track will shut down at some point meaning everyone will lose their jobs. Sallisaw mayor George Glenn says around 1,000 jobs would be lost if Blue Ribbon closes and he thinks that is a conservative estimate. The mayor also noted that if the track shuts down, so will many businesses. Presently, there are 400 hotel rooms in Sallisaw. Glenn says that's a lot of hotel and motel rooms for a town whose population is only around 8,000. Super 8 Motelsâ€™ Dorothy Pitts says the track is the only reason the hotels were built. "Since the track is our major attraction in Sallisaw, if Blue Ribbon Downs closes, it will be bad for all of us," she said.

Glenn says without Blue Ribbon Downs, the city would lose $38 million annually, $570,000 in taxes alone. The state would lose $750,000 in tax revenue. "If Blue Ribbon Downs should close, and God forbid that it does, the blame would have to lie with Governor Keating," Essary said. The Governorâ€™s office says it's unfair to blame the governor because he is doing what's best for both parties. Keating is also doing research on the impact to the track and if it is devastating, there could be changes made to the compact. Horse owners say they are losing half a million dollars a year running their horses at the Blue Ribbon track. Keating will have to make a decision on the compact by April 15th.