It also turns a spotlight onto a world largely hidden from the public eye-one that industry leaders are generally loathe to discuss publicly, and in which just a few anonymous gamblers can have an outsized impact on the financial fitness or ill-health of the sport.

Last year, Del Mar continued a deal with a player identified as Elite 17 that saw them enjoy a noticeably more favorable rate of play than other high-volume players that wager through the CAW platform, Elite Turf Club, according to detailed wagering reports obtained by the TDN, background conversations with racing officials and figures within the CAW world, along with publicly available data.

At the enormous volumes CAW gamblers play, such deals can give individual players a significant financial edge.

The result was that this one player constituted nearly 47% of Elite Turf Club's total handle on Del Mar last year, according to the reports. Two years prior, Elite 17's play had constituted just over 36% of Elite Turf Club's total handle on Del Mar, according to publicly available California Horse Racing Board (CHRB) data.

At the same time, the amount of money another Elite Turf Club player (Elite 2) wagered on the track dropped off by over $32 million between 2021 and 2023, the reports show-from around $45 million in 2021 to around $13 million last year. In 2021, Elite 2's play came to just over 27% of Elite Turf Club's total handle on Del Mar. Last year, that number had dropped to around 12%.

According to multiple sources familiar with the situation, Elite 2 received a deal similar to Elite 17 in prior years at Del Mar, but not last year.

An individual familiar with the situation-who spoke as a “California racing source” on condition of anonymity-said that, prior to the track's 2023 summer meet, Elite 2 declined such a deal, which would have necessitated paying a “substantial seven-figure up-front payment.”

Del Mar Thoroughbred Club | Horsephotos

When asked if Elite 2 had changed their mind about the deal after the summer meet was underway, the source declined to answer, citing concerns about proprietary business information. “But you can't make an up-front payment after the meet has started,” the source added.

Such arrangements have served as a pre-payment on host fees to be split between the track and the purse account, sources say.

The deals that Del Mar has struck with Elite Turf Club players over the years, while hardly an anomaly among tracks nationally, nonetheless raises questions about the best approach to managing CAW play in a state where purse revenues are generated solely through betting. If purses fuel the sport, getting this equation right is an imperative.

Are deals between tracks and individual CAW players, therefore, a sustainable approach for growing the sport in California? Is CAW play now so vital to the economics of horse racing that every step must be taken to maximize their business? Or should California's tracks be much more focused on incentivizing play from the average punters who generally contribute the biggest slice to purses, rather than pandering to the whales of the betting seas?

While it's difficult to know exactly how such deals might have impacted Del Mar's purse account revenues, the bare numbers illustrate a track facing tough economic headwinds, with serious implications for the horsemen and women in the state.

Purses last fall at Del Mar were reduced by over 10% due to a purse account overpayment reportedly to the tune of $2.1 million. All-source handle at the track's flagship summer meet declined nearly 11% from 2022 to 2023, according to the DRF. Wagering through Elite Turf Club on the track's product has declined from around $167 million in 2021 to around $113 million last year, according to the CHRB.

“As a track with no subsidies from alternative forms of gaming that depends exclusively on handle for purse generation, promoting handle from all segments of the betting market is very important to us. On an annual basis we sit down with the [Thoroughbred Owners of California] TOC to both establish purse levels and to discuss how we best promote wagering on our simulcast signal,” wrote Del Mar Thoroughbred Club president, Josh Rubinstein, in response to a series of questions.

Before the start of each meet in California, the tracks present the TOC with a list of individual host fees charged to each location that receives its simulcast signal. For that track's meet to proceed, the TOC must first sign this document.

“We are proud of our racing product, which has been well-received for the last several years, and confident that our host fees are fair and competitive with other major race tracks. We will continue to work with our partners to balance pricing considerations with the overall demands of the wagering markets,” Rubinstein added.

How takeout is divided from CAW play

BACKGROUND ON RATES AND REBATES
The debate around CAW players typically surrounds the major edge they wield over regular gamblers thanks to their use of sophisticated wagering technologies and the attractive rates and rebates offered to them-inducements not available to the average punter.

When “rates” are mentioned, what is meant are “host fees.” This is a charge wagering outlets pay to track operators for the contractual right to import a simulcast signal. A wagering outlet could be another racetrack, an ADW platform (like FanDuel), or a CAW platform (like Elite Turf Club).

Experts say that CAW host fees for the premium tracks typically vary between 6% and 8%. After breeders' premiums and other minor deductions have been removed, host fees are roughly split 50/50 between the track and the purse account in California.

The entities that pay the lowest host fee, therefore-like CAW players-contribute the lowest per-dollar amount to purses. At the same time, proponents of CAW argue how these inducements are warranted due to the vast amounts these players inject into the betting pools.

The amount CAW players are “rebated” can be broadly calculated with this simple equation:

Rebate = Takeout minus host fee (plus any other associated minor fees). The smaller the host fee and the larger the takeout, then the bigger the rebate.

Let's use the 20% blended takeout rate among the pools. And let's say the host fee (plus other associated fees) that the CAW player pays comes to 7%.

The rebated discount for the CAW players, therefore, could be a maximum 13% on every dollar wagered.

Experts recently told the TDN that the most successful CAW players can consistently win at an average rate of around 92%. At that win rate, a 13% rebate (for example) would see the player enjoy a 5% profit margin.

According to wagering reports reviewed by the TDN, that win rate is an undercount. These reports show how Elite Turf Club players can win at an average rate in excess of 105%, even before their rebate from Elite is factored in. At this rate, the profit margin would be much better than many investment accounts.

It's also important to note how the numerical monikers given to Elite Turf Club players-a company majority owned by The Stronach Group (TSG)-don't relate to just one person.

These players employ a team of potentially dozens of people, including mathematical wizards who create sophisticated computer algorithms capable of analyzing the betting markets for exploitable weaknesses, as well as individuals who place the bets for them.

Insiders consulted for this story describe how these teams of experts can, over time, deduce through the betting markets and through other data sources if rival CAW players receive more favorable rates.

Given the money at stake, the competition can be cutthroat.

ELITE 17'S DEAL
As CAW play has grown exponentially in recent years, track operators have cut deals like that between Del Mar and Elite 17 to attract their business. And the amount these gamblers wager is often so huge, just one player can make up a significant portion of a track's overall handle.

In 2019, when the renowned gambler “Dr. Nick” stopped wagering on Australian racing reportedly due to increased taxes on bookmakers, his exit was projected to trigger a 6% drop in turnover on racing across the board.

Multiple sources for this story said that Elite 17 and Elite 2 were both well-known Australian gamblers.

Scott Daruty | Horsephotos

Scott Daruty, president of both TSG's Monarch Content Management and of the Elite Turf Club, declined to confirm or deny their identities, citing confidentiality agreements.

According to detailed reports obtained by the TDN, Elite 17 wagered more than $650 million on U.S. racing through Elite Turf Club alone last year. In 2021, Elite 17 wagered roughly $60 million on Del Mar's product, according to the CHRB. Last year, Elite 17 wagered some $53 million. Last summer at Del Mar, the amount Elite 17 wagered was roughly 10% of the total handle at Del Mar, using the DRF's all-source handle figures as a baseline.

These numbers don't account for Elite 17's potential play on horse racing through other methods such as fixed-odds providers and exchange options like Betfair in other countries, or on other sports. Some CAW players also have accounts with different CAW platforms like Velocity, owned by Churchill Downs, which enables wagering on tracks whose simulcast signals are managed by Churchill.

At the same time, multiple sources say individual deals are still fairly prevalent among smaller tracks struggling financially, but that they're now unusual among the nation's top-tier tracks.

According to wagering reports reviewed by the TDN, the New York Racing Association (NYRA) offered the same host fee to Elite Turf Club players at Saratoga last year, irrespective of the betting pool. This included Elite 17. The host fee NYRA charged was slightly lower than Del Mar charged the same CAW players (outside of Elite 17), these reports show.

“NYRA cannot responsibly comment or opine on information never provided to our organization,” wrote NYRA spokesperson, Pat McKenna, in response to questions about the wagering reports. The TDN provided to NYRA an overview of the figures in the reports but not the raw data. NYRA's data was independently verified for the TDN. NYRA is a minority owner in Elite Turf Club.

McKenna did, however, stress the steps the organization has taken to manage CAW play, including barring CAW play in the Pick 6, Late Pick 5, and Cross Country Pick 5 pools, and requiring CAW players to place win bets on its races no later than two minutes to post.

California has also taken similar steps to moderate CAW play.

Since Santa Anita's 2022 fall meet, the win pool has been closed to CAW players one-minute to post, or else they must also pay a surcharge of around 3.5% on top of their normal rate if they want to bet to the close of the win-pool. Last year, Del Mar followed suit. Both tracks have also reverted to the traditional Pick 6.

When it comes to Del Mar's deal with Elite 17, the agreement was incumbent upon the player making a substantial payment at the start of the meet, according to multiple sources. Once that up-front payment was made, Elite 17 paid a host fee almost half of that for other Elite Turf Club players, wagering reports show.

But multiple sources familiar with the situation explained how factoring in the up-front payment, Elite 17 paid a host fee on Del Mar's product last year around a percentage point or so lower than the other CAW players.

At the volume CAW gamblers play, just one percentage point difference in host fee can mean a significant edge for one CAW player over all others, along with possible residual effects on all other participants in the betting pools in terms of late odds movement.

Bill Nader | Horsephotos

TOC president and CEO Bill Nader explained that deals involving up-front payments incentivize the player to maximize the amount they wager on the track's product.

“For example, if the player bets over a certain threshold, the player benefits from a high-volume discount. If the player does not reach that wagering threshold, the effective rate would be higher than other CAW players,” wrote Nader.

But could the deal that Del Mar struck with Elite 17 have prompted other CAW players-and Elite 2 in particular-to have curbed their play at the track last year?

The California racing source said that other CAW players were offered similar terms to Elite 17 last year. However, it should be noted that the other CAW players that wager through Elite Turf Club on Del Mar didn't bet to nearly the same volume as Elite 17 last year, and that Elite 2 was the only Elite Turf Club player to wager in the region of Elite 17's handle in 2021.

The California racing source also noted how CAW play is closely aligned with overall handle on a track's product, and that declines in total handle would invariably lead to decreases in CAW play.

“It's hard for us to say with any certainty why player A or B may have reduced his or her volume of play,” the source said. “The best source for that is the player themself.”

The TDN reached out to a representative of the player believed to be Elite 2, who declined to discuss the situation.

Here, it should be noted that at least one Elite Turf Club player increased their play between 2021 and 2023. This was Elite 10, who wagered $4.9 million in 2021 and $6.7 million in 2023 on Del Mar's product.

The TDN does not have access to data showing individual CAW handle on Del Mar's product in 2022. That was the year the California Horse Racing Board (CHRB) stopped making such data publicly available. Even so, California remains more transparent than other jurisdictions about what CAW data it makes publicly available.

Another wrinkle in this story is how Del Mar boasts an attractive wagering product with good field sizes and an impressive safety record. With that in mind, was the deal the right one to strike?

“With the benefit of hindsight, it has been the wrong deal for over 10 years and this is why we need a market correction,” wrote Nader, in response to a series of questions. “We represent the owners and purses are paid to owners, trainers, and jockeys, and there is room for improvement. This is what the TOC hired me to do.”

When asked why the TOC approved the deal last year, Nader wrote how 2023 “was my first full year with the TOC and we needed time to work with our Board members and others, notably the tracks, to voice our reservations and allow for a period of adjustment. This entire exercise has been a work in progress.”

WHY IS THIS IMPORTANT RIGHT NOW?
The issue of shrinking purse revenues amid declining economic benchmarks couldn't be a more pressing issue in California right now, where the industry attempts to piece together a revised racing framework in the wake of Golden Gate's impending closure in June.

At the end of the day, therefore, those arguably most impacted by decisions around managing CAW play are the industry stakeholders attempting to eke out a living from the sport.

When asked for comment on the story, the California Thoroughbred Trainers (CTT) wrote in a prepared statement how, “based on Del Mar's representations and the TOC's confirmation of how the purse account there has been managed, we can only say we're disturbed and confused. In January of 2021, at a CTT Board meeting, we attempted to question TOC leadership at the time about how purse levels were being funded, and were angrily rebuked by those in charge.”

At that point in time, Greg Avioli was TOC president.

“Since purses are the lifeblood of our sport, and are fueled by the public's interest and its confidence in the integrity of pari-mutuel betting, the apparent lack of transparency we're hearing about now has to be remedied immediately,” the CTT added.

Scott Chaney | courtesy of the CHRB

According to CHRB executive director, Scott Chaney, the agency is “keenly aware of the questions, importance and interest surrounding CAWs and plans to place the topic on our meeting agenda in the next month or so.”

Chaney added how “the concepts of purse accounts and structure are also vitally important to racing in California, therefore in order promote understanding and transparency, we are in the process of amending our race meet license application to include additional questions in this area.”

All of which leads to this question: Will Elite 17 be offered the same deal this year?

“No. Negotiations are ongoing across the entire customer sector,” wrote Nader.

“High-volume players will agree that two key deliverables to make their business models more attractive are access and liquidity to commingled pools,” added Nader. “Our racetrack partners should also understand the collective upside and if everyone can take a step back and look at this thing holistically, we can work it out.”

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Del Mar executives speaking about the meet at Thursday's California Horse Racing Board (CHRB) meeting did not initially mention the purse cuts when making their standard presentation for licensure, which the CHRB unanimously granted.

But Del Mar's president, Josh Rubinstein, detailed the reductions when directly queried about the state of purses by CHRB vice chair Oscar Gonzales.

“We have reduced purses slightly for this fall meet,” Rubinstein said. “[We're] coming off two years of record wagering at Del Mar in 2021 and '22, and what we've seen nationally this year across the board in the industry, handle has been down eight of nine months.

“We think there are multiple reasons for that,” Rubinstein continued. “My own personal view is we're in a fairly soft economy right now–higher interest rates, inflation concerns–and there's just less discretionary income that people have. So we are matching purse levels to what we believe will be the handle generation for the meet.”

Rubinstein termed the cuts as “a market correction from where we were the last two years. So depending on the race, anywhere from 3% to 11%, but still some of the highest purses in the country during this time.”

Tom Robbins, Del Mar's executive vice president for racing and industry relations, told the CHRB that the 15-stakes schedule “remains intact” compared to last fall's meet.

Rubinstein noted that the fall season at Del Mar is traditionally a scaled-back version of racing compared to the track's nationally prominent summertime flagship meet that extends over two months. Instead of some 2,000 horses being stabled on the grounds, there are more like 350-400, with the remainder of runners shipping in from Santa Anita Park or Los Alamitos Race Course.

To help defray the costs of travel, Del Mar will be paying trainers a $250 stipend on each racing day they participate in the fall meet.

“We realize it's expensive for trainers to come down to Del Mar,” Rubinstein said.

Del Mar will race Fridays (8 races), plus Saturdays and Sundays (nine races). A Thanksgiving Thursday holiday program will also be carded.

Horses will be allowed to ship in for stabling Sunday, Nov. 5, the day after the Breeders' Cup at Santa Anita. Del Mar opens for morning training Nov. 6.

Del Mar has scheduled November/December fall meets regularly since 2014, when the track filled a void in the Southern California racing schedule after Hollywood Park's 2013 closure. Prior to 2014, Del Mar's only other attempt at autumn racing was a 20-date October meet in 1967.

The post Del Mar to Trim Fall Meet Purses in 3-11% Range appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

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“For the safety of everyone involved–our horses, our riders and all the workers, staff and fans–we have made the decision to cancel Sunday's races,” DMTC President and COO Josh Rubinstein said Saturday morning. “Unfortunately, the forecast calls for substantial rain and winds that appear to be headed our way. We are hopeful this will only be a one-day thing for us, but it is a necessary step we feel we have to take.”

It will mark only the second time in the seaside track's 84-year history that a program has been lost to the weather. In 2019, its Thanksgiving Day card was called off ahead of a projected storm.

Many horses at Del Mar are housed in outside pens on the backside, constructed with chain-link fencing and plastic tarps as roofs. These pens are especially susceptible to a heavy rain and wind event.

Trainer John Sadler, who has a couple dozen in outside pens, told the Del Mar notes team that he is planning to move them to empty stalls on the backside or to Los Alamitos. Trainer Carla Gaines also found temporary housing for her dozen or so horses, but George Papaprodromou has several horses he needs to shelter before the arrival of the hurricane Saturday night.

“I'm full, I don't know what to do,” Papaprodromou told the notes team, adding that he was hopeful of finding appropriate accommodations for the horses.

Trainer Dan Blacker also has a dozen or more horses outside, but they are housed in a more sturdy structure, with actual walls not fencing.

“Those roofs, the water runs off of them pretty well,” Blacker says. “It's the more outdoor pens you gotta worry about.”

Sunday's nine-race program was to be highlighted by the Solana Beach S. No word was immediately available on the rescheduling of the race.

Track officials have indicated that no individual make-up day will be scheduled in light of the loss. Instead, the plan is to arrange to work in many of the planned races on different days over the course of coming weeks.

According to a text sent to horsepeople, the main track and training track will be closed both Sunday and Monday, with both ovals expected to re-open to all activity on Tuesday.

Del Mar has a 31-day schedule this year which started Friday, July 21 and goes forward to Sunday, Sept. 10.  Racing is conducted on a Thursday-through-Sunday basis primarily with the addition of an extra card Labor Day Monday, Sept. 4.

Racing will resume at the track next Thursday with a 2 p.m. first post.

The post Del Mar Cancels Sunday Racing In Advance of Hurricane appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

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“The Thoroughbred Idea Foundation's analysis of data from Del Mar between 2018 and 2022 showed on an inflation-adjusted basis, per-race (or per-opportunity basis for certain bet types) CAW betting, from what is believed to be 17 accounts, has grown tremendously in the last five years-up 46% in the superfecta pool, 49% in trifectas, 78% in pick fives, 128% in the show pool and a staggering 403% in the pick six pool,” reads the report, concluding, “The trend for all other customers is disturbing.”

This trend is problematic; the report concludes that major problems is that the increases in CAW betting, due to rebates, does not make up for the handle decline from other sources. That has a deleterious effect on purses, whose soul source of funding in California is through wagering.

The report, “Sharks & Minnows–Managing the Growing Imbalance in Racing Wagering Markets,” is available on the TIF website, racingthinktank.com.

CAW bettors receive rebates on the takeout because of the large volumes they bet, but they quote Del Mar president Josh Rubenstein as saying that those rebates will be limited at the Del Mar summer meet–at least in the win pool.

“We get that late odds fluctuation is frustrating to players,” Rubinstein said, referring to the fact that CAW players place their bets based on their perceived value in the odds close to post time, which creates major odds shifts–often after the horses have left the gate.

“Beginning with our upcoming summer meet, [we] will be implementing new protocols for CAW players that are designed to limit participation in the win pools at two minutes to post. Based on what we've monitored and analyzed from other tracks, we believe these protocols will reduce late odds changes.” TIF reported that the largest rebates will be given to bets made with more than three minutes to post, a smaller amount at two minutes, and the smallest rebate at under two minutes. Non-rebated customers pay 15.43%, the report says.

“Limiting CAW guardrails to merely a rebate change in the win pool, while potentially helpful in reducing some late odds changes, amounts to little more than window dressing for mainstream customers,” TIF concludes. “CAW betting in Del Mar's exotic pari-mutuel pools, particularly the trifecta, superfecta, pick three, four, five and six pools has been substantial. Play from Elite (Turf Club, a top CAW) and RGS (Racing and Gaming Services, another) customers exceeded 32% of total handle in each of those bet types last year and was 38% of pick five handle.

“CHRB data does not delineate how much is staked on the early pick five, with its friendly 14% takeout to mainstream bettors, and how much is on the high takeout late pick five, with a 23.68% takeout rate. It is reasonable to expect the percentage of CAW play reflects their enormous pricing advantage over the public on the late pick five. Total handle figures do not tell the most accurate story. In nearly every pool offered by Del Mar, all non-Elite and RGS handle is declining.”

To read the full report, click here.

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“The American Horse Council consistently produces the most comprehensive national economic impact studies that showcase the vast benefits that the equine industry brings to communities across the country,” said Josh Rubinstein, President of Del Mar Thoroughbred Club, an American Horse Council member. “As our industry continues to evolve, we are confident that the results will underscore our industry's commitment to advancing California's economy, expanding the travel and tourism industry, and creating a space for friends and family to create unforgettable shared experiences together.”

The American Horse Council's economic impact studies examine the industry's contributions to the national GDP, as well as individual states, which includes employment, volunteers, equid population, acreage and more. Each category is also broken down by sector: recreation, racing, competition and working horses.

“The CHPC mission is to preserve and protect California's vibrant equestrian culture. Funding the economic impact study affirms the coalition's commitment to not only uplift the equine industry but to encourage stakeholders, large and small, to use their voice to advance their shared interests,” said Bill Nader, President and CEO of Thoroughbred Owners of California. “To that end, if you benefit from the equine industry in any capacity at all, I encourage you to fill out the following survey links to make your voice heard.”

Click here to learn more about the economic impact study.

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“We are delighted to announce that the World Championships will be returning to Del Mar next year for what is sure to be an unforgettable two-year-run on the West Coast,” said Drew Fleming, Breeders' Cup President and CEO.

This year's Breeders' Cup races take place at Santa Anita Nov. 3 and 4.

Fleming added, “Breeders' Cup has always been a strong supporter of California racing and we look forward to showcasing this wonderful venue once again to our horsemen and fans from around the world.”

In 2017 and again in 2021, Del Mar drew fans from around the world and set wagering records on both occasions. In the inaugural Del Mar Breeders' Cup, two-day on-track handle was a record $25,181,317, as Gun Runner stamped his authority on that year's GI Breeders' Cup Classic. History was made in 2021, as Japan celebrated its first two Breeders' Cup victories with Loves Only You (Jpn) and Marche Lorraine (Jpn). Despite operating at only 50% capacity due to COVID-related protocols, all-sources handle reached a record $183,260,127.

“We're excited for the return of Breeders' Cup to Del Mar in 2024,” said Josh Rubinstein, President of Del Mar Thoroughbred Club. “The prestige of the event combined with our venue's iconic, seaside setting makes for an extraordinary weekend. Additionally, we are grateful for the economic support the Championship races bring to our community. This is a milestone event for San Diego and we look forward to building upon the record-breaking success in 2017 and 2021.”

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In conjunction with Equibase and its timing partner Gmax, Del Mar has re-surveyed its seven-furlong turf oval for the different race distances run over it. The survey included both distances of the races and run-up distances from where the starting gate is positioned to the point where the timing mechanism is triggered.

Accordingly, track officials have modified several starting gate and turf rail positions. The results of the survey also helped Del Mar to correct some historic variations in how distances (measured from the finish line back) were calculated. As a result, adjustments have been made to the position of the poles on the turf course.

“The integrity of timing data is critical and we know we have to get this right,” said Del Mar’s President and Chief Operating Officer Josh Rubinstein. “We believe the adjustments made as a result of the survey, while relatively minor, combined with Gmax’s GPS technology, will provide for more accurate and consistent timing.”

Del Mar conducts grass racing at six different distances-five furlongs, one mile, 1 1/16 miles, 1 1/8 miles, 1 3/8 miles and 1 1/2 miles. The turf course has five rail adjustments for its races– zero, 12 feet, 18 feet, 24 feet and 30 feet. Approximately 40% of the track’s races are run on its turf course. Rail adjustments and run-ups are necessary for both safety and fairness, helping to preserve the consistency of the turf course. Track officials noted that in some cases, due to the gate positions, the run-up to where the timing begins may be slightly longer than it was in the past, which could result in slightly faster times.

The Bing Crosby Meet runs through Nov. 29.

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TDN reported back on Aug. 18 that some dirt and turf final times at Del Mar were mis-clocked anywhere between .07 seconds and 1.19 seconds by the industry’s official data-keeper during an August portion of the meet. Those times—initially derived from global positioning metrics—were retroactively hand-clocked, adjusted, and reposted as official without any public disclosure of the corrections.

In an Aug. 20 statement, Equibase acknowledged “inconsistencies” in its Del Mar turf clockings, but said its dirt timings were “highly accurate.”

At that time, Equibase also stated that its Del Mar chart callers would utilize hand-clockings for turf races for the remainder of the meet, which wrapped up Sept. 7.

The Gmax system had just been installed prior to the July-September season. It’s used at 11 other North America racetracks.

“On the turf, when rail positions were moved, there were some challenges,” Rubinstein said Thursday in response to a direct question about the accuracy of the Gmax system from CHRB vice chair Oscar Gonzales.

“So when we discovered the issue we hand-timed our turf races for the final week and a half [of the meet],” Rubinstein continued. “And [since] the conclusion of the summer meet, over the last two weeks, our turf course is being re-surveyed digitally. And that [data] will be installed into the new Gmax GPS system.

“We expect no problems with turf timing through the GPS system this fall,” Rubinstein emphasized.

“The main track was terrific,” Rubinstein added. “All of the [dirt] GPS times checked out with our backup hand-timed system.”

Gmax debuted in North America 2018. But problems date to at least 2019, when early-adopter Laurel Park discontinued its usage of the system for a period because of inaccuracies, according to an article earlier this month in The Racing Biz.

CHRB commissioners did not press DMTC officials any further on the issue on Thursday after Rubinstein’s assertion that the upcoming meet would be timed problem-free.

The Del Mar fall meet will span 15 race dates from Oct. 31-Nov. 29.

Tom Robbins, DMTC’s executive vice president for racing and industry relations, said stabling will open Oct. 25, with the main track open for training the next morning.

“Unlike the summer meet, where we usually stable around 1,900 horses, the fall meet is largely a ship-in meet with about 350 to 400 horses stabled on-site,” Robbins said.

Last week DMTC announced a 10% overnight purse hike compared to the same autumn meet last season. The reason cited was increased handle revenue.

Robbins also noted that “because of better-than expected business from the summer meet, four stakes races that appear in our license application at reduced levels [the GI Hollywood Debry, GI Matriarch S., GII Seabiscuit H., and GII Hollywood Turf Cup] have been restored to their previous levels.”

With regard to the purse hike, DMTC racing secretary David Jerkens said that “in today’s climate, with many tracks that are cutting back across the country, this is an accomplishment.”

Alan Balch, executive director of the California Thoroughbred Trainers, asked the CHRB to extend the previous race-meet agreement for Del Mar even though one isn’t currently in place, as is required for the track’s licensure.

“We’ve made ourselves available for further conversations and negotiations so we can try to get this resolved,” Balch said of the necessary contract. “But I would want to take this opportunity [to] express the trainers’ appreciation for [track management’s] continued efforts to improve the conditions at Del Mar.

Balch, in particular, lauded Del Mar’s “Ship and Win” bonus program.

“They’ve constantly monitored the objective data, and I just want to emphasize the point [that this bonus program] benefits all of California racing, and it’s critically important [to bringing] more horses to California.”

The CHRB unanimously voted to give Del Mar the go-ahead for its fall meet.

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Approaching the jocks’ room, however, Espinoza paused.

“There wasn’t enough room for all of us,” said Espinoza of the room’s quarters, which had been split between Quarter Horse and Thoroughbred riders. “We were stacked in there like sardines.”

Events from that afternoon have played out like a serialized medical drama, with one jockey after another testing positive for COVID-19, first Martin Garcia, then Luis Saez–both of them riders from out of state.

Espinoza’s two rides yielded no wins that day and he returned home as usual. Two days later, “it hit me pretty bad,” he said of symptoms including headaches and body pain.

Aware of Garcia’s positive diagnosis, Espinoza sought his own test–positive–after which he alerted Del Mar management.

A weekend of live racing later, Del Mar tested all of the track’s jockeys and jock’s room personnel, with 15 riders proving positive for COVID-19, all reportedly asymptomatic.

Many in the industry have been quick to point the finger of blame at Los Alamitos–something Dr. Ed Allred, who owns and operates Los Alamitos, takes umbrage with.

“Our track doctor [Michael Morris] assures me he was careful,” said Allred, who added that, while hindsight would suggest prior jockey testing and better social distancing in the jock’s room might have been wise, the vagaries of the virus–which includes an incubation period of between 2-14 days–mean that it’s hard to pinpoint exactly when and where the infections occurred.

“The idea that this has started at Los Alamitos is poppycock,” he said.

Los Alamitos had suffered only one positive test–a backstretch worker in early May–prior to the track’s short two-week Thoroughbred meet, said Allred. Last week, Los Alamitos conducted tests on 49 riders and various track employees–mandatory for the former, voluntary for the latter–which yielded nine positives, all of them jockeys, he added.

But now that racing in California has entered into a second temporary suspension of live racing, coupled with the recent patchwork of subsequent positives, tough questions are being asked over the industry’s response so far, and its plan of action into the future.

Certainly, there have made missteps–lost tests, misguided protocols, slow lines of communication.

At the same time, industry figures are quick to highlight the unprecedented nature of this public health crisis, including the slippery complications of shifting guidelines from a variety of local, state and federal agencies, along with limited and sometimes inaccurate testing availability and equipment.

Still, lessons can be learned, experts say. As the pandemic in the U.S. shows no sign of abating, and as medical resources continue to run thin, these lessons will need to be adopted quickly, especially as the industry in California remains under a public microscope unlike any other jurisdiction in the country.

“Racing is not an essential service,” warned Dr. Ghazala Sharieff, corporate vice president and chief medical officer at San Diego’s Scripps Health, who has provided Del Mar with medical guidance. Individual responsibility, she added, is paramount.

“If people can’t follow the guidelines, and we have all these outbreaks, the better part might be to unfortunately say, ‘No more racing.'”

“It’s frustrating”

When the pandemic closed Santa Anita’s doors at the end of March, the impetus was to resume live racing as quickly and safely as possible, said Aidan Butler, acting executive director of California racing for The Stronach Group (TSG).

“We made a statement when we were shut down, and it was a true statement,” said Butler, pointing to the industry’s fragile economic ecosystem. “‘You’ve got to get us going or we’re going to have a humanitarian and animal welfare issue.'”

By and large, the protocols that Santa Anita built into the race-day furniture, including the mandatory testing of jockeys before each weekend of live racing and the efforts to separate the front side community from the backstretch, were warmly received. Terry Meyocks, CEO of the Jockey’s Guild, held them up as a possible gold standard other tracks should seek to emulate where possible.

The porous nature of the backstretch, however–with veterinarians, trainers, exercise riders and farriers coming and going daily–is an Achilles heel of every track. According to the Los Angeles County Department of Public Health, there were 38 confirmed infections at Santa Anita, with 10 symptomatic cases awaiting confirmation. Testing problems suggest this could be an undercount.

According to trainer Ben Cecil, when his foreman tested positive for COVID-19 near the end of May, he sent his team of eight employees to be tested by Santa Anita’s own medical personnel.

However, when Cecil checked on the results some 10 days later, he was told the samples had been lost, he said.

“By the time I found that out, there wasn’t much point in testing everybody again,” he said.

None of the untested employees became sick, he added.

“I think personally, our guys on the ground might have been slightly overwhelmed with the level of pressure and stress they were under,” admitted Butler, about the lost samples. “But I think as we moved forward, we became far better at it.”

Arguably the greatest obstacle to backstretch testing appears to be limited testing capacity within LA County as a whole–a problem since the start of the pandemic.

When one of trainer Jim Cassidy’s exercise riders returned from a weekend trip to Las Vegas carrying the virus, Cassidy sent his other employees to the nearby Methodist Hospital in Arcadia, opposite the racetrack–what had hitherto been a popular testing destination for the backstretch community–only for the workers to be turned away.

“They were told that there were too many race-trackers coming over to get tested,” said Cassidy. “They never did get tested.”

TDN reached out to Methodist Hospital for comment, but did not receive a response before deadline.

According to Cliff Goodrich, executive director of the California Thoroughbred Horsemen’s Foundation (CTHF), which is responsible for backstretch healthcare, Methodist Hospital adopted a policy of testing only those who are symptomatic.

“It’s frustrating when you’re doing what the health department calls for to test anybody who came in close contact with an individual who tested positive, and then have a hospital say, ‘We’re only testing those showing symptoms,'” said Goodrich.

“There’s always room for improvement”

Besides the daily traffic in and out of the backstretch, live racing has maintained open channels between tracks, none more so than between Santa Anita and Los Alamitos, which maintained live racing throughout the pandemic. Los Alamitos carded additional Thoroughbred races during the evenings–races that proved popular with several Santa Anita-based trainers.

As the latest Santa Anita meet drew to a close, Santa Anita convened a “Working Group” consisting of key representatives from Del Mar, Los Alamitos, California Thoroughbred Trainers and the CTHF to share information.

According to Josh Rubinstein, Del Mar Thoroughbred Club president, Santa Anita provided overall testing numbers and individual results in a timely way.

“Santa Anita management was also great about sharing what they felt were best practices from their experience,” he wrote in an email.

Since the Del Mar stable area opened its doors June 26, five backstretch employees have tested positive, confirmed Rubinstein.

Some industry figures, however, argue that vital information could and should have been shared much sooner among all necessary stakeholders. The first working group call occurred on June 20, with closing day at Santa Anita just one day later.

According to Jack Liebau, vice president of the Los Alamitos Racing Association, he was unaware of the “extent” of the infection within Santa Anita’s backstretch until “Yahoo News” alerted him to an LA Times report July 12.

When asked whether Los Alamitos had similarly shared with other associations information concerning the backstretch employee who had tested positive, Liebau responded that the individual “was not known” to go to either Santa Anita or Del Mar. “Los Al backside is pretty much a self contained one,” he wrote in an email.

Privacy restrictions through the Health Insurance Privacy and Portability Act (HIPPA) pose barriers to the free flow of information, explained various officials, despite these laws having been relaxed in response to the pandemic.

“The original intent was to build something of a database that specific associations would have access to,” said Butler. “Unfortunately, the lawyers put the fear of God into everybody, including ourselves.”

Still, “there’s always room for improvement,” said Goodrich, about the way information has been shared among necessary stakeholders, adding that patient permission would also help to open those lines of communication further. “It would become easier to share information among a key group.”

“Why do we need to move from place to place?”

As the fallout from the July 4 weekend unfolded, several of Del Mar’s jockey COVID protocols proved a lightning-rod for criticism, none more so than the decision not to conduct mandatory testing of jockeys before opening day.

“If I was a reckless person, then I could have just gone and ridden opening day,” said Espinoza, adding how by that time, his symptoms had disappeared. “Nobody would have known I was infected, even myself.”

According to Sharieff, the reasons behind the decision not to mandate uniform jockey testing were largely two-fold. One concerns the possible deceptive nature of negative test results.

“Just because you get a negative test one day, does not mean even the same day or the next day you can’t start having symptoms,” Sharieff said. “There’s that period in-between testing where you can infect a ton of people and think you’re safe.”

The other surrounds restricted testing capability in San Diego County.

“As we get even tighter on tests now–we just got notified about a shortage, we’re down to less than a month of supplies–we’re going to tell you, ‘If you have symptoms, you need to stay home and self-quarantine,'” she said. “Even the governor now says not to do asymptomatic testing.”

Santa Anita contracted out the weekly testing of jockeys to a private company. When asked how limited capacity in the county might impact Del Mar’s intended weekly jockey testing, Rubinstein wrote that, “We are confident that we’ll be able to source testing resources as needed.”

“I get it, people are social”

As the track gears up towards a resumption of live racing next weekend, what specific lessons can be gleaned from the industry’s response thus far?

The TDN asked the California Horse Racing Board (CHRB) about what guidance the agency has provided during the pandemic.

CHRB spokesperson Mike Marten responded, “We issued an advisory Mar. 26 stating that local health authorities have jurisdiction in these matters, but that we would assist them on request. We have had communications with local health authorities and assisted when requested to do so, but the principal contact is between the track and health authority. The CHRB has taken direct action at racetracks to protect CHRB employees, including the closure of licensing offices when warranted.”

The CHRB failed to respond to multiple follow-up questions, including further agency guidance.

According to Liebau, effective action boils down to “more and more testing, and more transparency in the results of that testing.”

Liebau also posited an idea to limit the movement of people: isolate live racing to one facility.

“If we don’t have spectators, why do we need to move from place to place?” he said.

Butler said that regulations at Santa Anita will continue to be tweaked. He highlighted an intended additional precaution at Golden Gate Fields, whereby those who don’t live on the backstretch will be required to wear face shields along with their masks.

At the end of the day, said Sharieff, the more we practice individual responsibility–wearing masks, rigorous hand hygiene and social distancing–the greater the likelihood of stemming further spread of the virus.

“I get it, people are social,” said Sharieff. “It’s across the board, people feeling like, ‘The county’s opening up, we’re safe.’ But that’s actually the wrong message, and now we’re closing back down again for the same reason–people aren’t being careful. And if [individuals] wants to keep racing, they’re going to have to do better.”

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