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1997 Annual Report

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State of Indiana
Indiana Horse Racing Commission
Frank O'Bannon, Governor

Letter to the Govenor

March 15, 1998


The Honorable Frank O'Bannon
Governor of the State of Indiana
Room 206, The Statehouse
Indianapolis, IN 46206

Dear Governor O'Bannon:

The pari-mutuel horse racing industry moved forward at a rapid pace in 1997. Hoosier Park in Anderson was able to attract some of the top equine athletes throughout the Midwest to its live standardbred and thoroughbred meets. The prize money or purses offered to attract these quality horses were greatly increased over prior years. This was primarily due to the revenue generated by the portion of riverboat admission tax that is allocated to the racing industry. This revenue has proved vital to Hoosier Park's success and has propelled the track into the upper echelon of the pari-mutuel horse racing industry in the United States. Hoosier Park now ranks second in the country in average daily purse distribution for standardbred racing.

As in the past, the Commission continues to focus its energies on diligently regulating the pari-mutuel industry. The results of our regulatory efforts, along with statistics of interest, are highlighted in this report.

I am pleased to report that Indiana has gained a reputation throughout the Midwest for clean, honest and competitive racing. The Indiana Horse Racing Commission is determined to provide the strong leadership that is needed to assist in the continued success and maintain the integrity of our new pari-mutuel racing industry. Each Commissioner is proud and grateful to have the opportunity to serve you in this endeavor.

Respectfully submitted,

Michael G. Schaefer, Chairman
Indiana Horse Racing Commission

Table Of Contents

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Indiana Horse Racing Commission

Commissioners
Michael SchaeferChairman * (2000)
K. Clay SmithVice-Chairman * (1998)
Janet BozzelliSecretary * (2001)
Pete BeckMember * (2001)
Robert Ossenberg Member * (1999)
* Term expires September 1st of year indicated.
Staff
Joe Gorajec Executive Director
Kay RobertsAssistant Executive Director
Robert SmithDirector of Security
Deena PitmanDirector of Licensing
Kristen PerrelController
Ron AdamsInvestigator
Shirley EnglandLicensing Supervisor
Jacki BrownAdministrative Secretary
Carmen WilloughbyBreed Development Clerk

To further assist the Commission with its regulatory responsibilities, the following individuals provided professional or technical service at Hoosier Park during the 1997 racing season.

Standardbred Judges
Timothy Schmitz, Presiding Judge
Robert Agner, Associate Judge
William Perkins, Associate Judge
Commission Veterinarian
David Younts, D.V.M.
Racing Inspectors
Paul Clark
Karla Vaughn
Standardbred Breed Development
Advisory Committee

Henry B. Blackwell, II
Ernest M. Gaskin
Nat Hill, IV
Thoroughbred Stewards
Leland Seba, Presiding Steward
Emile Gauchet, Associate Steward
Steve Pagano, Associate Steward

Veterinary Technicians
Stephanie Adams
Claudia Shaff
Marci Shaff

Thoroughbred Breed Development
Advisory Committee

Mari Hulman George
Ed Martin, Jr.
Timothy H. Sams

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Year In Review

July

  • On July 11, Hot Lead, with Tony Morgan in the bike, wins the $150,000 Dan Patch Invitational Pace. The 6,023 fans in attendance represent the second largest crowd in track history.

August

  • Extreme Velocity, the winningest horse in Hoosier Park history, puts Indiana in the national spotlight with an explosive stretch rally to win the $282,000 Breeders' Crown final at the Meadowlands. The 1997 ISA Horse of the Year is owned by Dave and Merrill Stohler of Markleville, Indiana and trained by Trent Stohler.

  • On August 22, Perfect Art driven by George Brennan, captures the inaugural $500,000 Hoosier Cup. The half-million dollar purse is the largest in track history. A total of $676,900 in prize money paid during the night establishes a Hoosier Park record for most purses paid on a single card.

  • Tony Morgan and Ernie Gaskin earn top standardbred driving and training honors respectively. Both Morgan's 137 wins and Gaskin's 56 visits to the winner's circle establishes single season records at Hoosier Park.

  • The Racing Commission switches to a digital licensing system. A digital photo is taken of each licensee and stored in the licensing database while simultaneously printing onto a credit card size plastic badge. Photographs are immediately available for recall or reprinting of badges with no additional picture taking. The new system will be more cost effective and provide greater convenience for all licensees.

September

  • National racing icon trainer D. Wayne Lucas and Hall of Fame jockey Pat Day participate in the second Indiana Championship Day held on September 14. Ten races filled with Indiana bred or owned horses are contested and over $400,000 in purse money is awarded.

    On September 29, Richard A. "Pete" Beck and Janet Bozzelli are appointed by Governor O'Bannon to serve four year terms on the Racing Commission. Beck and Bozzelli replace outgoing Commissioners Dick Darko and Tom Wetterer, both of whom served the Commission with distinction since its inception in 1989. Chairman Michael G. Schaefer, Vice-Chairman Clay Smith and Robert Ossenberg are reappointed to staggered terms.

October

  • On October 4, Dubai Dust trained by D. Wayne Lucas captures the third running of the Indiana Derby.

  • For the first time in Indiana pari-mutuel history, Quarter Horse racing is held at Hoosier Park on Sunday, October 26. Three $10,000 stake races were carded. The first Quarter Horse race, the Governor's Stakes, is won by Easy Night Beat, which is owned by Mary Jo Renihan of Martinsville, Indiana and piloted by Carter Riley of Walton, Indiana.

  • Jon Court (65 wins) and Earl Murphy (18 wins) capture the thoroughbred riding and training titles respectively. Court's title is all the more noteworthy as he is unable to compete during the last three weeks of the meet when he suffers a broken leg after the 2nd race on November 10.

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Live Racing At Hoosier Park

Standardbred
Number of Dates85
Total Handle $5,647,918
Average Daily Handle $66,446
Total Attendance 95,809
Average Daily Attendance 1,127

Thoroughbred

Number of Dates57
Total Handle $5,264,793
Average Daily Handle $92,365
Total Attendance 73,900
Average Daily Attendance 1,296

Combined Standardbred and Thoroughbred

Number of Dates142
Total Handle $10,912,711
Average Daily Handle $76,850
Total Attendance 169,709
Average Daily Attendance 1,195

The statistics above represent attendance and handle at Hoosier Park on live racing only. Thoroughbred handle includes $38,907 wagered on Quarter Horse races. Additional wagering on Hoosier Park's live racing at Indiana OTB's is as follows - Standardbred ($1,807,099), Thoroughbred ($1,796,915) totaling ($3,604,014). Such wagering is included in OTB handle statistics on the next page.

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Simulcast Wagering by Location

    Hoosier Park     Merrillville OTB 
Simulcast Dates 320311
Total Handle $29,610,464$32,799,091
Average Daily Handle $92,533$105,463
 Ft. Wayne OTB Indianapolis OTB
Simulcast Dates 260324
Total Handle $15,315,618$58,319,245
Average Daily Handle $58,906$179,998
Total Simulcast Handle       $136,044,418

Hoosier Park statistics represent all wagering on out-of-state simulcasts (no live racing). The number of simulcast dates at Hoosier Park reflect any dates on which full card simulcasting took place. Special race simulcasting at Hoosier Park is included in the handle, but not in the number of dates. All OTB statistics represent all wagers at each location on both in-state and out-of-state simulcasting.

Admission is not charged at the Indianapolis OTB, the Ft. Wayne OTB and at Hoosier Park for simulcasting. Consequently, attendance is not counted. Attendance at the Merrillville OTB was 94,905.

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Distribution of the Wagering Dollar

The following is a breakdown of the distribution of all monies wagered at Hoosier Park and its satellite facilities:

Returned to Bettors$ 117,450,503.00
Track Share16,884,476.00
Purses Earned7,688,001.74
Pari-Mutuel Tax4,048,175.85
Breakage885,972.41
Total Handle
$146,957,129.00

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State Revenues

The following are the direct state revenues collected in accordance with the pari-mutuel statute IC 4-31:
Pari-Mutuel Tax$4,048,175.85
Track Reimbursement for Officials189,201.43
Admission Tax32,372.78
Fines and Civil Penalties Paid27,375.00
Track Permit and License Fees8,000.00
Total Revenue
$4,305,125.06

The direct revenue received by the State of Indiana exceeded the cost of regulation. Indiana Horse Racing Commission expenditures for calendar year 1997 were $1,388,466.15.

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Breakdown of Handle by Breed and Type

Breakdown of Handle by Breed and Type
BreedLive Handle%Simulcast Handle%Total Handle%
Standardbred$7,455,0175.1$23,167,36115.7$30,622,37820.8
Thoroughbred$7,061,7084.8$109,272,64374.4$116,334,35179.2
Combined Breeds$14,516,7259.9$132,440,40490.1$146,957,129100.0

The handle above represents all money wagered at all Indiana locations.

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Purses Paid

BreedDatesPurse PaidAverage Daily Purse Distribution
Standardbred85$9,558,420$112,452
Thoroughbred57$8,703,640$152,695

The following is a breakdown by breed of purses paid at Hoosier Park. Breed Development purse supplements and some horsemen's fees are included. Purse monies from Breed Development bonuses for Indiana sired or Indiana owned are not included. The Kentucky Sales Company's and Hambletonian Society's contributions ($1,002,030) are not included.

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Purses Trends

Standardbred Purses
Average Daily Distribution

Standardbred Purses Average Daily Distribution

Source: The United States Trotting Association
Note: The average daily purse distribution is calculated by multiplying the average purse by eleven.

Thoroughbred Purses
Average Daily Distribution

Thoroughbred Purses Average Daily Distribution

Source: The Jockey Club

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Purses Earned by Type

Purses Earned by Type
Type
Amount
%
Riverboats(*)$8,880,90048.4%
Simulcast - Receiving6,802,22137.0%
Breakage & Outs (*)1,235,9996.7%
Live Racing (Intrastate)885,7804.8%
Simulcast - Host (Interstate)558,6223.1%
Total$18,363,522100%
(*) Assumes 75% fo breed development funds are allocated to purses.

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Simulcast Handle - Hoosier Park as Host Track

The following is a breakdown, by breed and track, of monies wagered out-of-state on Hoosier Park's live race meets.

Thoroughbred
Illinois*$5,888,084
Ohio*4,793,862
Kentucky*3,122,563
Penn National1,735,799
New Jersey Hub1,525,050
Philadelphia Park1,422,367
The Meadows1,442,367
Lone Star Park1,356,165
Sam Houston1,227,000
Laurel Rase Course817,343
Ponoco Downs738,289
Calder Race Course726,297
Nebraska*602,863
New England Hub542,865
Faor Grounds456,824
Prairie Meadows443,833
Atlantic City411,126
Delaware Park392,256
Canterbury Park354,632
Connecticut OTB330,994
Evangeline Downs329,898
Wisconsin*318,784
Tri-State Greyhound229,702
Mobile Greyhound219,546
Michigan Hub189,525
Arizona*184,515
Fairplex163,652
Wyoming OTB162,850
Blue Robon Downs150,016
Emerald Downs113,979
Freehold Raceway113,860
Sunland Park44,263
Total
$30,647,240
* statewide system
Standardbred
Ohio*$2,953,888
Illinois*1,455,422
Detroit Race Course1,040,958
Kentucky (TB)*504,331
Philadelphia Park409,235
Penn National341,248
The Red Mile332,716
Michigan*274,366
The Meadows239,496
Ponoco Downs216,210
Pompano park213,082
New Jersey*172,734
New England Hub158,839
Delaware Park131,388
Freehold Raceway111,024
Yonkers Raceway62,340
Cal-Expo(Calif.)56,293
Foxboro Park45,112
Dover Downs19,390
Eureka Downs173
Total
$8,738,245
* statewide system
Thoroughbred Daily Average (57 dates)Standardbred Daily Average (85 dates)
$537,671$102,803

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Simulcast Handle - Hoosier Park as Receiving Track

The following is a breakdown, by breed and track, of monies wagered at all in-state locations on simulcasts originating from out of state.

Thoroughbred
Aqueduct$8,149,451
Churchhill Downs7,819,415
Turfway Park7,575,532
Calder Race Course6,268,079
Santa Anita Park5,453,007
Arlington International4,607,850
Gulfstream Park4,531,708
Hollywood Park4,390,879
Ohio 7 & 74,069,566
Belmont Park4,050,770
Fair Grounds3,297,658
Hawthorne3,277,690
Penn National2,910,176
Ellis Park2,897,907
Oaklawn Park2,859,627
Sportsman's Park2.800,263
Sam Houston Race Park2,545,996
Delaware Park2,491,215
Keeneland2,203,784
Laurel Race Course2,201,826
Hialeah Park2,071,345
Del Mar Race Course1,907,210
Evangeline Downs1,806,224
Saratoga Race Course1,648,960
Monmouth Park1,624,595
Retama Park1,536,780
Suffolk Downs1,493,232
Meadowlands1,459,514
Pimlico1,354,330
Remington Park1,330,681
Detroit Race Course1,115,020
Philadelphia Park814,838
Turf Paradice738,834
Prairie Meadows675,607
Rockingham Park607,380
Garden State Park595,996
Colonial Downs467,480
Canterbury Park414,749
Beulah Park364,010
Playfair Race Course226,462
Fairplex Park159,061
Fairmount Park105,021
Delta Downs89,573
Total     $109,272,643
Standardbred
Balmoral$3,921,906
Meadowlands3,559,266
Northfield Park3,367,629
Sportsman's Park2,928,251
Maywood2,221,970
Hawthorne1,922,973
Meadows1,219,714
Garden State Park947,596
Pompano Park726,401
Scioto Downs688,312
Northville Downs533,804
Ponoco Downs402,781
Freehold Raceway248,916
Fairmount Park207,307
Foxboro138,045
Delaware, OH (LBJ)77,873
Red Mile36,618
Harrington Raceway17,998
Total    $23,167,361
Hoosier's Top 5 Simulcast Circuit Choices
Kentucky(TB)
(CD,TP,EIP, &Kee)
$20,496,638
New York(TB)
(Aqu, Bel & Sar)
13,849,181
Southern Florida(TB)
(GP, Hia &Crc)
12,871,141
Southern California(TB)
(SA,Hol, & Dmr)
11,751,096
Chicago(SB)
(Spk, Bal, May & Haw)
10,995,100

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Occupational Licensing

Pursuant to IC 4-31-6 and 71 IAC 5-1-1, all persons participating in pari-mutuel racing under the jurisdiction of the Commission are required to be licensed. The licensing process is the backbone of the Commission's regulatory efforts. Each prospective licensee is fingerprinted. The Federal Bureau of Investigation (FBI) and the Indiana State Police provide the Commission with criminal histories of all applicants. The Commission may refuse or deny the application for licensure of any person whose criminal or racing violation record is contrary to the public's best interest.

CategoryCount
Owner, Standardbred1,471
Owner, Thoroughbred1,422
Groom1,045
Vendor Employee352
Owner/Trainer,330
Trainer, Thoroughbred329
Stable Name318
Owner/Trainer/Driver299
Track Employee223
Pari-Mutuel Clerk200
Owner/Trainer, Standardbred185
Driver/Trainer147
Trainer, Standardbred108
Jockey104
Track Security87
Asst. Trainer, Thoroughbred79
Driver63
Exercise Rider48
Vendor/Contractor38
CategoryCount
Commission Staff37
Track Management35
Racing Official31
Farrier31
Jockey Agent20
Veterinarian18
Owner, Quarter Horse17
Authorized Agent15
Asst. Trainer, Standardbred15
Gate Crew15
Pony Rider15
Apprentice Jockey12
Valet12
Other10
Owner/Trainer, Quarter Horse8
Trainer, Quarter Horse5
Vet. Assistant4
Farrier's Assistant3
Stable Employee1
Total Licenses Issued: 7,152
 1994199519961997
Licenses Issued1,9225,2696,2927,152
Probationary Licenses Issued  21545368
Licenses Refused16102926

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Equine Drug Testing

Pari-mutuel horse racing can succeed as a legitimate major league sport only if its races are perceived by the wagering public to be honest, competitive contests, free from manipulation by man or drugs. With the exception of furosemide (lasix) and phenylbutazone (bute), under regulatory restrictions, state law and Commission rules prohibit the presence of any drug in horses racing at a pari-mutuel track. The Commission's drug detection program is one of the nation's most comprehensive and its laboratory one of the most respected in the racing industry. Truesdail Laboratory in Tustin, California, serves as the primary testing laboratory for the Indiana Horse Racing Commission. Truesdail Lab has been a leader in racing chemistry and drug-related research for over 50 years. The following table indicates, by breed, the number of samples analyzed and the number of positive tests reported. In each instance, the offending horse was disqualified and placed last. In accordance with the pari-mutuel statute, all purse money earned is ordered returned and redistributed.

BreedRace DatesUrineBloodPositive Tests
Standardbred85135116792
Thoroughbred58100311417
Totals143235428209

The table below represents a further breakdown, by breed, of the name and types of drugs reported by the laboratory.

Number of Violations
StandardbredThoroughbredARCI Drug ClassificationType
26Banamine (Class 4)non-steroidal anti-inflammatory
-1Lasixdiuretic
-1Prednisolone (Class 4)corticosteroid

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Human Drug Testing

Commission regulations provide that a licensee or an applicant for licensure may be required, if reasonable suspicion exists, to submit to a drug test. Commission rules require a minimum suspension of thirty (30) days for a positive test for an illegal drug.

Human Drug Testing1994199519961997
Number of Samples Tested1141533
Number of Positive Tests03814

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Breed Development Programs

Overview

Pursuant to IC 4-31-11, breed development funds have been established to promote the breeding of horses while stimulating the agri-business sector of the state's economy. All breakage and unclaimed winning tickets are statutorily earmarked for breed development. In addition, twenty percent (20%) of the riverboat admission tax allocated to the racing industry is distributed to breed development funds. Standardbred and thoroughbred breed development advisory committees make recommendations to the Commission regarding the distribution of these monies.

Standardbred

In 1997 the Standardbred Breed Development Advisory Committee established a new series of Early/Late Closing Events held at Hoosier Park. This series created races for Indiana sired, owned and/or bred horses to compete for over $1.6 million in purse money. The Genesis Series for trotting and pacing fillies also expanded in 1997 to include three-year olds for the first time.

The successful county and state fair purse supplement programs were continued as were the purse bonuses for breeders and stallion owners. The stallion owner and breeder awards were expanded in 1997 to include horses who won a heat of the Indiana Sired Stakes. Through these and other efforts, the Standardbred Breed Development Program hopes to develop and promote a high quality Standardbred industry in the state of Indiana.

1997 Distribution of Awards
Purse supplements - Hoosier Park$1,423,402
Purse supplements - County Fairs245,500
Purse supplements - State Fair120,000
Indiana Sired & misc. awards61,294
Total   $1,850,196

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Breed Development Programs

Thoroughbred

The Thoroughbred Breed Development Advisory Committee has concentrated their resources in designing a program that will increase both the quality and quantity of Indiana breds that will compete at Hoosier Park in the future.

The highlight of the 1997 Thoroughbred racing season was "Indiana Championship Day" held on September 14. Ten stake races for Indiana owned and foaled horses were contested and purse money totaled in excess of $400,000. Trainer D. Wayne Lucas and jockeys Pat Day and Shane Sellers appeared in conjunction with the festivities for the day's events sponsored by the Thoroughbred Breed Development Program.

1997 Distribution of Awards
Purse Supplements$ 1,250,044
Owners Awards103,268
Breeders Awards85,661
Stallion Owner Awards10,121
Total $1,449,094
Purse supplements include $364,000 distributed on Indiana Championship Day.

1997 Breed Development Fund Revenue

BreedBreakageOutstanding Tickets *Riverboat Revenue Total
Standardbred442,986.21381,012.871,658,457.312,482,456.39
Thouroughbred442,986.20381,012.881,570,961.032,394,960.11
Total885,972.41762,025.753,229,418.354,877,416.51
* Outstanding ticket revenue is based on tickets purchased in 1996 which expired in 1997.

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Blood Gas Analysis Program

The purpose of the Blood Gas Analysis (BGA) program is to deter and detect the practice of "bicarbonate loading" or what is known in the racing business as "milkshaking." This practice generally entails giving a horse a large quantity of an alkaline substance, usually baking soda, prior to a race. The alkaline substance neutralizes the lactic acid that is produced during exercise and, as a consequence, delays the onset of fatigue. Research has demonstrated that this practice induces some horses to race faster times. Bicarbonate loading can give a horse an unfair competitive edge and thus compromise the integrity of the sport. This practice is strictly prohibited by the rules of the Commission.

The BGA Program is operated by the Commission in a small laboratory located in the paddock at Hoosier Park. Blood samples of selected horses are analyzed prior to the race on a state-of-the-art blood gas analysis machine. Each sample is analyzed by a certified lab technician under contract through St. John's Hospital in Anderson.

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Riverboat Revenue

The statute permitting riverboat gaming in Indiana earmarks sixty-five (65) cents of the three dollar admission tax to the pari-mutuel horse racing industry. These funds are distributed to various segments of the racing industry in accordance with Commission rule 71 IAC 12-2-15.

1997 Riverboat Revenue Allocation to Racing From Admission Tax (65 cents)

Purses
Standardbred
Thoroughbred
40%$3,316,914.62
3,141,922,08
$6,458,836.70
Track30% 4,844,127.52
Breed Development
Standardbred
Thoroughbred
20%$1,658,457.31
1,570,961.03
3,229,418.34
Promotion Fund10% 1,614,709.17
Total100% $16,147,091.73

Pursuant to Commission rule, the allocation between breeds for purses and breed development is determined based upon the percentage of pari-mutuel handle on each breed on live racing at all Indiana locations. Based on 1997 handle, 51.35% of available funds were distributed to standardbreds, while 48.65% was distributed to thoroughbreds.

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1998 Hoosier Park Live Race Dates

Standardbred - 94 dates (April 17 - August 23)
Thoroughbred - 58 dates (September 11 - November 28)
1998 Hoosier Park Live Race Dates Red indicates Standardbred Dates
Green indicates Thoroughbred Dates
Post Times
5:00 p.m. Sundays
7:00 p.m. Weekdays & Sundays
* Denotes Special Post Times

IHRC Approval - December 3, 1997

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