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Thoroughbred Idea Foundation: Horsemen Deserve Fair Compensation

Horsemen should be properly compensated for content. A major source of funding for the sport and its stakeholders, is in jeopardy.

Horsemen have been pawns in the operation of racing for decades, not receiving their fair share of compensation for the content that their horses provide. The effects of the global pandemic have only made this clearer. Through the first six months of 2020, wagering on American races is down nearly 11 percent. Purses, however, are down 40 percent.

When the doors to casinos closed, and racing was put on hold, horsemen suffered. The owners and operators of advanced deposit wagering outlets like TwinSpires and Xpressbet did not. In fact, profits from Churchill Downs Incorporated's online wagering business rose 39 percent in Q2 2020 from the previous year despite not hosting its flagship event!

These two entities, among other ADWs, were pressed into service like never before because of the pandemic's impact which effectively closed on-track betting. While undoubtedly helpful, the customers forced to switch online may never return to betting through the sport's most lucrative channels – on-track wagering. This will hasten the imbalance in contributions to purses.

As most horsemen realize, online, out-of-state bets on racing are often the least valuable to purses. Now, ADW betting is the vast majority of wagering and unlikely to change soon. Even worse, the ADWs continue to retain an outsized portion of the commissions from wagering takeout. Without racing, the ADWs have little to offer customers. They should not take advantage of the horsemen who enable their very existence.

In its latest publication (click the link to read more), the Thoroughbred Idea Foundation (TIF) calls on horsemen, and their representative groups, to begin asking critical questions about the composition of wagering on its races, increasing attentiveness to approvals of wagering contracts and to better understand the delicate balance needed to continue sustaining racing purses. Racing operators act purely from a position of self-interest.

Horsepeople need to start doing the same.

The time to fix the broken model is now.

Roughly 65 percent of all wagering on racing in Q2 2020 came from the major ADWs, like TVG, TwinSpires, Xpressbet and NYRA Bets. So if doors were closed to tracks, where did the rest originate?

TIF estimates that approximately one-third of all wagering on American racing comes from entities we characterize as “high-volume betting shops,” or HVBS, which are the equivalent of private, high-end wagering platforms which do not need separate ADWs. As HVBS wagering increases, a series of disadvantages are created, increasing costs on all other bettors, and having the effect of reducing participation from, or outright eliminating, non-HVBS players.

The impact for all racing stakeholders, particularly horsemen, will be felt over time because HVBS players (which number in the dozens) are often the least profitable towards purses. HVBS wagering has increased over time, from only 8 percent of U.S. betting in 2003 to the estimated 30 to 35 percent now. When you adjust for inflation, racing's least valuable customers (relative to their contribution to purses) have increased by 114 percent in the last 16 years.

Meanwhile, participation from racing's most valuable customers – recreational players wagering under $100,000 annually – is declining at alarming rates. Make no mistake – our sport needs ALL of its customers, both from HVBS and non-HVBS sources. TIF estimates that all non-HVBS play has declined by a staggering 63 percent, adjusted for inflation, since 2003.

The most valuable source of prize money has dropped by a significant amount while the least valuable source has increased substantially.

This situation threatens purse levels in the intermediate and long-term across all racing jurisdictions, but particularly in light of the evolution of competitive wagering products – legal sports betting, daily fantasy sports and the growth of online casinos, which do not contribute revenue to purses even if the online license is granted to a track operator.

As racing faces declining contributions from casino-related revenues towards purses, or worse – loses all casino-based contributions to purses – along with a steady rise in wagering competition, horsemen must get involved in these contracts and start asking questions, increasing attention on the racing wagering business.

If you would like more information, please reach out to TIF Executive Director Patrick Cummings or one of the TIF board members.

The post Thoroughbred Idea Foundation: Horsemen Deserve Fair Compensation appeared first on Horse Racing News | Paulick Report.

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Grants Pass Downs Reports Significant Handle Increase; Over $2.2 Million Wagered On Summer Meet

Grants Pass Downs, Oregon's premier horse racing track, concluded its second commercial meet on July 8, following a four-week run of Tuesday and Wednesday racing. The summer meet, which began June 16, carded 78 races over nine dates and handled a total of $2,235,303, nearly quadruple the total amount from last year's non-commercial summer meet. The meet saw a dramatic jump in online and off-track betting, with nearly 94 percent of the meet's handle being driven by off-site betting – representing an astounding 859 percent increase from last summer's meet.

The horsemen and horsewomen received $619,511 in purse money on the season at an average of $68,835 per race day and $7,942 per race. Compared to summer 2019, average race day purses saw an increase of $38,863 – up 130 percent. Additionally, the track's field size jumped to an average 7.94 horses per race over last summer's 5.34 horses per race.

“This record-breaking meet shows that racing is alive and well in spite of COVID-19, and our success is a testament to the hard work put in by track staff, operations and facilities teams and the wonderful community of horsemen and women whose efforts made the meet possible,” said Randy Evers, President of Grants Pass Downs. “We are proud to be one of the few live sporting events on television while supporting the local Grants Pass economy.”

Once again, the meet's leading jockey was Kassie Guglielmino with 14 wins in 58 starts. Guglielmino, who also finished the 2019 fall commercial meet as Grants Pass Downs' top jockey, was followed by Taylor E. Smith (11 wins in 50 starts). Jorge Rosales was the meet's leading trainer with 12 wins and ten second place finishes in 37 starts, and Marjorie Avery finished atop the owner rankings with five wins and six second place finishes in 16 starts.

The meet's record handles were achieved despite limited crowd sizes. In response to the pandemic, Grants Pass Downs complied with the Governor's order to limit the number of nonessential people on site at 250 on racing days during the summer meet. It also made significant operational changes to align with guidance from the CDC and Oregon public health officials to ensure the safety of staff, participating horsemen, athletes, and stakeholders. Dates for the upcoming fall race meet will be announced soon.

For questions about meet details, terms, training schedules, or fees and regulations, please visit https://gpdowns.com/.

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Kentucky HBPA Requests Judge Alter Ruling In 2-Year-Old Lasix Case

Two weeks after a judge denied a motion for a temporary injunction from the Kentucky Horsemen's Benevolent and Protective Association (KHBPA) to halt Lasix-free 2-year-old racing in the state, the organization is asking him to reconsider. Earlier this month, Franklin County Circuit Judge Thomas Wingate denied the motion for temporary injunction and also granted a motion to dismiss the case against the Kentucky Horse Racing Commission, Churchill Downs, and Keeneland for a lack of standing.

Now, the KHBPA's attorneys say, that decision was unfair. Part of Judge Wingate's order focused on the organization's standing, which had been questioned by the defendants just before a hearing in late May. The KHBPA says the judge's order referred to affidavits from KHBPA members which were never intended to address the legal question of standing. The question of standing can include questions about the identity of a party, as well as whether a plaintiff can demonstrate they have suffered an injury as the result of actions by defendants.

In this case, Judge Wingate's order echoed a motion by the defendants, who say the “alleged injury” to KHBPA was speculative and not concrete. He also questioned why the KHBPA did not bring forth the name of an individual owner or trainer claiming to have been injured by the Lasix ban. The KHBPA said that it can do so, and simply wasn't given the opportunity before.

Parties in the case are expected to appear before the court on July 29 to hear arguments surrounding the KHBPA's latest motion. Prior to the June dismissal of the case, The Jockey Club, the Kentucky Thoroughbred Association and the Breeders' Cup were all permitted to file amicus briefs in support of the defendants in the case.

At a meeting of the Kentucky Horse Racing Commission this week, equine medical director Dr. Bruce Howard reported that so far this meet, Churchill Downs has held eleven 2-year-old races without race-day Lasix. Those races have included a total of 107 starters. None of them experienced epistaxis (bleeding from the nostrils), according to the commission's records.

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