Arizona Senate Committees Advance Horse Racing Bill

The Arizona Senate moved a gaming bill through two committees–one unanimously–and it now awaits an assignment date for a vote by the full Senate.

Senate Bill 1794 passed the Appropriations and Rules committees, with wide support. The bill authorizes historic horse racing, providing up to $140 million in new state tax revenues, as well as support for the state's horse racing industry.

“This long-overdue modernization effort will help the many local businesses that support the horse racing industry and also provide much-needed revenue to the state,” said Save Arizona Horse Racing spokeswoman Lorna Romera. “Arizona has an ideal climate for hosting year-round horse races and attracting fans, horses, breeders, trainers and others looking to escape the hostile environment in California. We urge members of the legislature to seize on this opportunity to make Arizona the premier destination in the country for horse racing.”

Horse racing has been a key economic driver in Arizona for decades. But since 2004, Arizona has seen parimutuel handles drop by $55 million a year, purses drop by $5 million a year and live racing attendance has dropped 45%.

Senate Bill 1794 would modernize Arizona wagering laws, while limiting the number of HHR terminals to just 15% of tribal gaming positions–minimizing any impact on those revenues. HHR also relies on parimutuel wagering, which was legal in Arizona before tribal gaming compacts began, so their authorization would not violate those state agreements.

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Historical Horse Racing Bill Introduced In Arizona

A broad coalition of horse racing and gaming enthusiasts from across Arizona are working with Legislators to advance legislation to modernize gaming in the state.

Senate Bill 1794, introduced by Sen. David Gowan, would authorize historic horse racing and stands to generate up to $140 million in new tax revenues, while also providing desperately needed support for the state's horse racing industry and supporting local businesses. The bill is set to be heard in a Senate committee on Tuesday.

Horse racing has been a key economic driver in Arizona for decades – creating thousands of jobs, supporting hundreds of local businesses and generating millions of dollars in state and local tax revenues. But since 2004, Arizona has seen parimutuel handles drop by $55 million a year, purses drop by $5 million a year and live racing attendance has dropped 45 percent.

Senate Bill 1794 would modernize Arizona wagering laws, while limiting the number of HHR terminals to just 15% of tribal gaming positions – minimizing any impact on those revenues. HHR also relies on parimutuel wagering, which was legal in Arizona before tribal gaming compacts began, so their authorization would not violate those state agreements.

“The modernization effort led by Senator Gowan will save the horse racing industry in Arizona and help keep horsemen in our state,” said Bob Hutton, President of the Arizona Horseman's Benevolent & Protective Association. “Implementing historic horse racing will provide much-needed support to the various industry partners that are involved in each race day, attract high quality horses, and revitalize the horse racing experience throughout Arizona.”

If passed, the measure would generate between $100 million and $140 million in new state tax revenues, create 4,000 new jobs and lead to more than $300 million in capital investments in Arizona Downs, a shuttered horse racing track north of Phoenix. In addition, daily purses would increase from $80,000 to $300,000, positioning Arizona to be an industry leader on the west coast.

“By modernizing Arizona's horse racing industry, we are well-positioned to become the premier destination for horse racing on the West Coast,” Sen. Gowan said. “Arizona has an ideal climate for hosting year-round horse races and attracting fans, horses, breeders, trainers and others looking to escape the hostile environment in California.”

Historic Horse Racing allows players to bet on previously run horse races. Gameplay begins when the player deposits a wager and then picks the winners of three randomly chosen races in the projected order of finish. Identifying information including the location, date, and names of the horses and jockeys are not shown, but the player can view handicapping information like the jockeys' and trainers' win percentage. After the wager is placed, the player can watch an animated re-enactment of the selected past race results.
To learn more about the legislative efforts, visit www.savearizonahorseracing.com.

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Arizona Racing Legislation Introduced

Legislation has been introduced in Arizona to modernize gaming at tracks and OTBs in the Grand Canyon State. Senate Bill 1794, introduced by Sen. David Gowan, would authorize historic horse racing [HHR] and stands to generate up to $140 million in new tax revenues. The bill is set to be heard in a Senate committee on Tuesday.

Since 2004, according to savearizonahorseracing.com, Arizona has seen pari-mutuel handles drop by $55 million a year and purses drop by $5 million a year as live racing attendance has dropped 45%. During the same time period, tribal gross gaming revenues have increased from $1.3 billion to $2 billion.

The bill would modernize Arizona wagering laws while limiting the number of HHR terminals to just 15% of tribal gaming positions. Pari-mutuel wagering was legal in Arizona before tribal gaming compacts began, so their authorization would not violate those state agreements.

“The modernization effort led by Senator Gowan will save the horse racing industry in Arizona and help keep horsemen in our state,” said Bob Hutton, president of the Arizona Horseman's Benevolent & Protective Association. “Implementing historic horse racing will provide much-needed support to the various industry partners that are involved in each race day, attract high quality horses, and revitalize the horse racing experience throughout Arizona.”

According to savearizonahorseracing.com, if passed, the measure would generate between $100 million and $140 million in new state tax revenues, create 4,000 new jobs, and lead to more than $300 million in capital investments in Arizona Downs. In addition, daily purses in Arizona would increase from $80,000 to $300,000.

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Turf Paradise To Re-Open Turf Course Jan. 25

The grass course at Turf Paradise, which management closed after conducting only three races over it the first two days of the meet Jan. 4 and 5, is now scheduled for a Jan. 25 reopening after having restoration work performed on its root system.

Turf Paradise general manager Vincent Francia detailed the maintenance work and plans for the reopening of the seven-furlong infield course during the Jan. 14 Arizona Racing Commission meeting.

“What happened with the turf course was nobody’s fault,” Francia claimed. “When we closed on March 14 [in the midst of the COVID-19 outbreak], we suspended all activity. And that suspension included not taking care of the turf course during the summer…

“So when we started racing [on] it at the early part of the meet, the jockeys found it safe, but they were really just digging it up, and we could see that if we continued to run on it we were going to damage it and it’s not going to be able to continue,” Francia said.

“So we have been off of it. Last Saturday, the turf course was infused with liquid iron. And what that does, that’s like a human booster shot,” Francia explained. “That liquid goes right to the roots, and that was followed with a nitrate fertilizer. I was on the course Tuesday. I can already see the difference through Wednesday. We’re scheduled to go back on the turf Jan. 25, and hopefully this corrective action will take us through the rest of the meet,” which ends May 1.

Leroy Gessmann, who serves as both the Arizona Horsemen’s Benevolent and Protective Association (AZHBPA) executive director and the National HBPA president, told commissioners that “we’re all anxious to get back on it, but we all understand the importance of getting a good root system on the turf course in order to run on it.”

Turf Paradise is flush with about 1,400 horses on its backstretch, an uptick from previous meets largely because of the influx of outfits from northern California and New Mexico, where racing has been recently curtailed because of restrictions related to the pandemic.

“We’re in the ninth day of the 84-day session,” Francia said. “We’ve been up every day in our handle, which is very encouraging, and this is without the turf course being in operation, which is very popular with the horseplayers.

“Handle-wise, we’re doing really wonderful,” Francia continued. “The on-track attendance every day is where we want it. It’s about 60 people a day. We can manage that, make sure everybody’s safe. They’re all wearing masks [but we try to] keep them socially distant.”

Francia told commissioners that since the backstretch opened in late November, 22 coronavirus positives have been reported among licensees who have been tested. He added that most of those positives were reported among off-track betting (OTB) mutuel tellers, one of whom died from COVID-19 complications.

Francia said there have been three coronavirus positives among backstretch personnel, and that all three were quarantined, subsequently tested negative, and are now back at work.

Without naming the licensees, Francia added that, “We did have a rider test positive [Jan. 13] who never entered the [jockeys’] room. He is quarantined. His jockey agent is quarantined. And the two other riders [who employ that agent] have been contact-traced and alerted.”

Francia said that, “I think one of the obvious things we can conclude there is our horsemen are outside. And being outside in fresh air is an advantage, and that helps with the prevention of this virus spreading. When we look at our OTB teller situation, [they are] not outside. They are in confined quarters, a restaurant or a bar, and there’s people going in and out.”

Added Gessmann: “Having hardly any breakouts [on the backside] has been fabulous. I would have never thought we’d get [this far into the meet] and only have two or three positives of horsemen back there.”

Gessmann also lauded Turf Paradise for the Jan. 11 reopening of the four-furlong dirt training track in the southwest corner of the backside, which will help ease congestion during morning training.

“The reports I’m getting back from exercise riders is it’s in good shape,” Gessmann said. “After sitting for 10 months with no use, it is worked up and getting conditioned. It’s been a big help to get that open.”

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