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1999 Annual Report

Table Of Contents

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Indiana Horse Racing Commission

Commissioners
Michael Schaefer Chairman * (2000)
Tim Sams Vice-Chairman * (2002)
Janet Bozzelli Secretary * (2001)
Richard "Pete" Beck Member * (2001)
Ed Martin, Jr. Member * (2003)
* Term expires September 1st of year indicated.
Staff
Joe Gorajec Executive Director
Deena Pitman Assistant Executive Director
Robert Smith Director of Security
Marge Slauter Controller
Jessica Larkins Director of Standardbred Racing
Jacki Brown Thoroughbred Development Director
Ron Adams Investigator
Shirley Murphy Licensing Supervisor

To further assist the Commission with its regulatory responsibilities, the following individuals provided professional or technical service at Hoosier Park during the 1999 racing season.

Standardbred Judges
Timothy Schmitz, Presiding Judge
William Perkins, Associate Judge
Richard Williams, Associate Judge
Thoroughbred Stewards
Leland Seba, Senior State Steward
Gary Wilfert, Associate Steward
Mike Manganello, Associate Steward
 
Commission Veterinarian
David Younts, D.V.M.
Veterinary Technicians
Stephanie Adams
Claudia Shaff
Marci Shaff
 
Racing Inspectors
Paul Clark
Karla Vaughn
Thoroughbred Breed Development
Advisory Committee
Mari Hulman George
Jake Frederick
 
Standardbred Breed Development
Advisory Committee
Henry B. Blackwell, II
Ernest M. Gaskin
Nat Hill, IV
Standardbred Advisory Board
Richard Link     Michael Thompson
Vic Losure     David White
Nancy Sabatini     Gary Wilcox

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Year In Review

February

  • The Commission initiates the nations first "@ home" licensing for owners. Applicants for license renewals can complete the licensing process, including receiving their photo I.D. badge, without visiting the licensing office.

March

  • Commission Executive Director, Joe Gorajec, is the recipient of the Association of Racing Commissioner's International (RCI) award as 1999 Outstanding Executive Director. The award is presented to Gorajec at the RCI's annual convention in New Orleans.

July

  • BJ's Whirlwind zooms by the field in the stretch to capture the sixth annual $150,000 Dan Patch Invitational Pace in a time of 1:50.1.

August

The first ever Little League Harness Racing Camp is held at Hoosier Park. Twenty (20) youngsters ages nine to thirteen, participate in the week long camp. Ellen Taylor, Executive Director of Harness Horse Youth Foundation and Tammy Poore, Hoosier Park's Publicity Director, play an instrumental role in the camp's success.

  • Eric Ledford (135 wins) and Joe Anderson (63 wins) capture the driving and training titles, respectively.

September

  • September 16th , Ed Martin, Jr. is appointed by Governor O'Bannon to serve a four-year term on the Racing Commission. Martin replaces Robert Ossenberg who had served the Commission with distinction since 1994.

October

  • On October 2nd, an all-time record crowd is on hand to witness Forty One Carats win the $300,000 added Indiana Derby. A crowd of 10,063 packs the grandstand and easily breaks the attendance record of 8088 set at the 1998 running of the Indiana Derby.

November

  • On November 15th, an application under the name "Indianapolis Downs" submitted for a permit to construct a track in Lawrence. The application is subsequently accepted for filing by the Commission on December 22nd.

December

  • In the most dramatic conclusions in the history of the track, jockey Mike Morgan guides home six winners closing night to capture the leading rider title. Morgan begins the final night of racing in fourth place in the jockey standings and finishes with 65 wins. Morgan's title snaps a three-year leading rider streak set by Jon Court. Stanley Roberts wins the training title with 29 victories.
  • The first year of "@ home" licensing renewals proves popular with owners racing at Hoosier Park. The Commission mails 574 photo ID badges to owners renewing licenses in 1999.

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Live Racing At Hoosier Park

Standardbred
Number of Dates102
Total Handle $5,105,628
Average Daily Handle$50,055
Total Attendance99,699
Average Daily Attendance977
Thoroughbred
Number of Dates65
Total Handle $5,301,719
Average Daily Handle$ 81,565
Total Attendance80,988
Average Daily Attendance1,246
Combined Standardbred and Thoroughbred
Number of Dates167
Total Handle$10,407,347
Average Daily Handle$62,319
Total Attendance180,687
Average Daily Attendance1,082

The statistics above represent attendance and handle at Hoosier Park on live racing only. Thoroughbred handle includes Quarter Horse races. Additional wagering on Hoosier Park's live racing at Indiana OTB's is as follows - Standardbred ($1,763,103), Thoroughbred ($1,883,943) totaling ($3,647,046). 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 Dates318307
Total Handle$28,047,602$30,972,697
Average Daily Handle$88,200$100,888
 Ft. Wayne OTB Indianapolis OTB
Simulcast Dates258321
Total Handle$16,668,698$69,170,605
Average Daily Handle$64,607$215,485
Total Simulcast Handle       $144,859,602

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 85,673.

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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$122,930,553.00
Track Share19,141,741.00
Purses Earned8,075,560.00
Pari-Mutuel Tax4,273,460.00
Breakage845,635.00
Total Handle
$155,266,949.00

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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$4,273,460.00
Track Reimbursement for Officials244,703.00
Admission Tax23,506.00
Fines and Civil Penalties Paid49,875.00
Track Permit and License Fees8,000.00
Total Revenue
$4,599,544.00

The direct revenue received by the State of Indiana exceeded the cost of regulation. Indiana Horse Racing Commission expenditures for calendar year 1999 were $1,152,831.86.

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Breakdown of Handle by Breed and Type

Breakdown of Handle by Breed and Type
Breed Live Handle % Simulcast Handle % Total Handle %
Standardbred $6,868,731 4.4 $25,804,250 16.7 $32,757,621 21.0
Thoroughbred $7,185,662 4.6 $115,408,306 74.3 $122,509,328 79.0
Combined Breeds $14,054,393 9.0 $141,212,556 91.0 $155,266,949 100.0

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

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Purses Paid

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 ($1,258,995) are not included.

Breed DatesPurse PaidAverage Daily
Purse Distribution
Standardbred102$11,960,800$117,263     
Thoroughbred65$12,600,200$193,849     

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Purse 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

Purse earned by Type
Type Amount %
Riverboats (*)$ 13,377,20757.1%
Simulcast - Receiving7,060,62830.2%
Breakage & Outs (*)1,105,5844.7%
Live Racing (Intrastate)1,014,3404.3%
Simulcast - Host (Interstate)852,5553.7%
Total $23,370,314 100%
(*) Assumes 70% of breed development funds are allocated to purses (SB 90% / TB 53%.)

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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 *7,513,639
Ohio *6,916,460
Kentucky *3,498,549
Penn National3,109,116
Calder Race Course2,942,863
Sam Houston2,913,449
Philadelphia Park2,254,233
New Jersey *1,983,258
Las Vegas Casinos1,968,365
Lone Star Park1,894,475
The Meadows1,801,758
New England Hub1,497,407
Nebraska *1,306,715
Birmingham1,277,055
North Dakota*1,252,648
Maryland*1,127,696
Connecticut OTB1,122,940
Multimedia Games919,760
Atlantic City/Resorts911,892
Washington*837,038
Prairie Meadows514,111
Blue Ribbon Downs450,417
Dairyland Greyhound445,981
Les Bois424,502
Mountaineer423,168
Hollywood Park421,600
Evangeline Downs411,177
Gulf Greyhound409,214
Oaklawn Park391,677
TV Games (TVG)377,975
Delaware Park364,702
Michigan*308,432
Southland Greyhound294,118
Raceway Park255,405
Sunland Park254,098
Los Alamitos232,174
Wyoming OTB (*)216,788
Manor Downs197,484
Maine*178,534
Hinsdale Greyhound158,164
Multinoma Greyhound106,414
Bay Meadows41,879
Total$53,927,694
* statewide system
Standardbred
Illinois *5,304,597
Ohio*3,462,994
Philadelphia Park1,015,859
Penn National899,706
Kentucky*897,937
Michigan*684,018
New Jersey*602,923
Sportscreek Raceway437,926
The Meadows334,134
New England *325,496
Sam Houston232,149
Pompano Park215,941
Turf Paradise211,317
Delaware (Ohio)140,459
Maine*113,183
Hinsdale Greyhound86,265
Laurel Race Course70,285
Freehold Raceway15,431
Lincoln Greyhound15,426
TV Games40
Total$15,066,086
* statewide system
Thoroughbred  Standardbred
Daily Average  Daily Average
(65 dates)  (102 dates)

$829,657
 
$147,706

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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
Ohio 7 & 77,779,291
Aqueduct6,318,140
Calder Race Course6,054,552
Churchill Downs6,014,521
Turfway5,462,329
Hawthorne5,331,735
Gulfstream Park5,068,851
Santa Anita4,879,001
Belmont Park4,816,515
Fair Grounds4,191,597
Hollywood Park3,809,587
Sam Houston Race Park3,471,290
Laurel Race Course3,434,605
Ellis Park3,258,352
Sportsman's Park2,754,134
Louisiana Downs2,745,517
Lone Star Park2,672,868
Oaklawn Park2,259,979
Saratoga Race Course2,233,896
Penn National2,186,467
Monmouth Park2,026,372
Evangeline Downs2,025,239
Keeneland1,874,546
Pimlico1,819,471
Del Mar Race Course1,708,388
Golden Gate1,631,314
Hialeah Park1,627,983
Delaware Park1,469,981
Retama Park1,331,361
Suffolk Downs1,329,542
The Meadowlands1,153,860
Tampa Bay Downs1,054,648
Philadelphia Park1,020,979
Emerald Downs975,139
Turf Paradise964,150
Beulah953,731
Bay Meadows921,171
Fairmount Park860,452
Remington Park713,467
Prairie Meadows698,880
Great Lakes Downs552,939
Garden State Park494,005
Delta Downs474,574
Fairplex Park470,641
Charlestown - (?)440,072
Woodbine358,641
Kentucky Downs334,200
Rockingham Park324,796
Canterbury Park300,443
Finger Lakes268,050
Portland Meadows233,707
Colonial Downs231,363
Duabi20,974

Total

$115,408,306
Standardbred
Balmoral6,483,928
Northfield Park4,897,711
The Meadowlands4,706,561
Maywood3,587,429
The Meadows1,467,398
Garden State Park961,663
Scioto Downs881,211
Northville Downs507,640
Freehold398,560
Pocono Downs376,193
Fairmount Park304,244
Pompano Park211,698
Plainridge198,639
Dover Downs198,039
Raceway Park120,063
Rosecroft Raceway104,134
Colonial Downs96,411
Red Mile94,880
Harrington85,070
Mohawk34,870
Delaware County (OH)87,908

Total

$25,804,250
Hoosier's Top 3
Simulcast Circuit Choices
Kentucky (TB)
(CD, TP, EIP, & Kee)
$16,609,748
 
New York (TB)
(Aqu, Bel & Sar)
13,368,551
 
Southern Florida (TB)
(Crc, GP & Hia )
12,751,386

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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.

Category Count Category Count
Owner, Thoroughbred 1,765 Commission Staff 44
Owner, Standardbred 1,624 Asst. Trainer, Standardbred 35
Groom 1,035 Vendor/Contractor 34
Stable Name 397 Farrier 30
Trainer, Thoroughbred 376 Racing Official 26
Owner/Trainer, 341 Authorized Agent 23
Vendor Employee 316 Jockey Agent 23
Owner/Trainer/Driver 261 Track Management 22
Track Employee 253 Trainer, Quarter Horse 21
Pari-Mutuel Clerk 202 Owner/Trainer, Quarter Horse 18
Driver/Trainer 146 Vet. Assistant 16
Owner/Trainer, Standardbred 133 Pony Rider 15
Jockey 128 Veterinarian 13
Trainer, Standardbred 128 Gate Crew 13
Asst. Trainer, Thoroughbred 107 Valet 12
Driver 88 Other 11
Owner, Quarter Horse 83 Apprentice Jockey 8
Track Security 80 Farrier's Assistant 3
Exercise Rider 44 Stable Employee 1
Total Licenses Issued: 7,877
 199419951996199719981999
Licenses Issued 1,922 5,269 6,292 7,152 7,806 7,877
Probationary Licenses Issued 21 54 53 68 80 70
Licenses Refused 16 10 29 26 21 21

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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
Standardbred 103 1791 2251 3
Thoroughbred 65 1233 1476 16
Totals 168 3024 3727 19

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

Number of Violations ARCI
StandardbredThoroughbred Drug Classification Type
1 4 Banamine (Class 4) non-steroidal anti-inflammatory
1 1 Acetaminophen (Class 4) analgesic
 1 Naproxen (Class 4) non-steroidal anti-inflammatory
1 1 Procaine (Class 3) local anesthetic
 5 Bute (Overage) non-steroidal anti-inflammatory
 2 Lasix (Overage) diuretic
 2 Lasix (non-approved) diuretic

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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 Testing 19941995 1996 1997 1998 1999
Number of Samples Tested 1 14 15 33 24 32
Number of Positive Tests 0 3 8 14 12 19

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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

The Standardbred Breed Development Program continued with a lucrative program at Hoosier Park in 1999 that included a series of Early/Late Closing events, the GENESIS Series and the Indiana Sires Stakes. The Early/Late Closing events for Indiana sired, owned and bred horses, Indiana sired, owned or bred overnights and the GENESIS series competed for $5,218,102 in purse money. The GENESIS is a series of races for two and three-year-old Indiana owned or sired fillies, provided as an incentive to encourage ownership of fillies in Indiana to improve the quality of broodmares thereby enhancing the value and quality of yearlings produced in Indiana. Most important, the Breed Development program has provided an opportunity for the Indiana Sires Stakes to become one of the industry's premier programs. A total of $1,569,447 was paid in purses in 1999 to the Indiana Sires Stakes for two and three-year-old and aged Indiana sired horses. The success of the Indiana Standardbred Breed Development Program during 1999 has resulted in nearly five million dollars paid in purses at Hoosier Park and premium prices received for Indiana sired yearlings at the Indiana sales. More than 1,940 broodmares were bred to registered Indiana stallions in 1999, assuring continuous growth of our state's Standardbred industry.

The successful county and state fair purse supplement programs were continued with increased purses to the fairs. Newly introduced was the "Fall Classic Racing Program" (better known as Second Chance Racing) which gave Indiana sired horses an opportunity to race after the completion of the Indiana State Fair and Hoosier Park. Owners of Indiana sired horses winning in open company at Hoosier Park received a bonus award. Breeder awards were made to the breeders of the winning Indiana sired horses of the finals and legs of the Sires Stakes and the Indiana sired Early/Late closing events. Through these continued efforts, the Standardbred Breed Development Program is developing and promoting a fast growing and high quality Standardbred industry in the state of Indiana.

1999 Distribution of Awards
Purse supplements - Hoosier Park$1,808,200
Purse supplements - County Fairs452,000
Purse supplements - State Fair260,000
Purse supplements - Fall Classic104,000
Indiana Sired & Breeder Awards181,077

Total

$2,805,277

Thoroughbred

The mission of the Thoroughbred Development Advisory Committee is to provide incentives and awards to three important elements of the Indiana thoroughbred industry: the owner, the breeder and the stallion owner. The intent of these incentives and awards is to promote investment of capital into the Indiana economy (via thoroughbred breeding, racing and related agri-business) and maximize the positive impact to the state's economy. The incentives reward risk, and the awards reward success on the racetrack…through winning!

The Indiana bred program is funded by the Breed Development Fund established in the Indiana pari-mutuel statute. The Breed Development Fund consists of breakage (the difference in the rounding off of pari-mutuel payoffs), outs (all uncashed tickets), and the riverboat admissions tax allocation. The Indiana Horse Racing Commission receives 65 cents for every admission on an Indiana riverboat. Twenty (20) percent of the 65 cents goes into the Breed Development Fund. The Breed Development Fund is divided equally, fifty (50) percent to the Indiana Thoroughbred Development Fund and fifty (50) percent to the Standardbred Breed Development Fund.

1999 Distribution of Awards
Purse Supplements$ 1,623,926
Owners Awards785,862
Breeders Awards633,815
Stallion Owner Awards37,980
Out-of-State Awards3,447

Total

$3,085,030
1999 Breed Development Fund Revenue
BreedBreakageOutstanding
Tickets *
Riverboat
Revenue
Total
Standardbred 422,817.80 366,885.30 2,469,853.24 3,259,556.34
Thoroughbred 422,817.79 366,885.30 2,469,853.24 3,259,556.33
Total 845,635.59 733,770.60 4,939,706.48 6,519,112.67

* Outstanding ticket revenue is based on tickets purchased in 1998 which expired in 1999.

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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.

1999 Riverboat Revenue Allocation to Racing From Admission Tax (65 cents)
Purses  40%  $9,879,413.02
 Standardbred  $4,939,706.51 
 Thoroughbred  4,939,706.51 
Track  30%  7,409,559.76
Breed Development  20%  4,939,706.51
 Standardbred  $2,469,853.24 
 Thoroughbred  2,469,853.24 
Promotion Fund  10%  2,469,853.25
Total  100%  $24,698,532.54

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