McIngvale To Place Derby Bet On Track

Owner James 'Mattress Mack' McIngvale, who earlier this week announced that he would be making a bet in excess of $2-million as a hedge against a promotion in which customers of his Gallery Furniture chain will be refunded in the event that favored Essential Quality (Tapit) prevails, has confirmed that the bet will be placed on site at Churchill Downs in order to maximize the money that goes to purses.

McIngvale has bet through casinos on similar promotions on the World Series and Super Bowl, where he is able to secure fixed odds. But he is committed to placing the bet at Churchill, which allows local horsepeople to benefit most.

“This is the first horse-racing event I've been able to use as a promotion,” said McIngvale. “The people at Churchill Downs have been great working with me on using their trademarks and this and that. Of course, I've been receiving calls from across the country, legal bookmakers wanting me to bet with them, people in some states where they don't contribute much if anything to the [betting] pool. Their pitch is that $2 million won't effect the pool, but you'll get the same odds as you would at Churchill.

He continued, “Well, I don't want to do that, because I'm a horseman. I know what pays those purses is the handle. So all the money I'm betting will be at Churchill Downs. Let's face it, Churchill Downs has to make some money, too, to put on the show. So it's good for Churchill, which is a tremendous track and promoter of horse racing, but most of all it's good for the owners, trainers, jockeys, the backstretch workers who put their life into the game. I didn't want to bet someplace else or offshore. I wanted to go where the track's dollars were maximized and the horse owners' dollars were maximized to support the ecosystem of the entire game.”

The purse account at Churchill receives about 10% of all on-track wagering, so a bet of $2 million will contribute about $200,000 to purses. That number would be half–or less–if the wager were placed through other means.

McIngvale has already wired $4 million to Churchill Downs and plans to spend Derby day at the track.

“I haven't decided how much I'm going to bet. It depends on how many mattresses we sell,” he said. “But it will be at least $2 million. I have to figure whether to bet it all at once, or bet $500,000 three or four different times. How to structure it, whether I want to bet any exactas or just win bets or any place and show bets. I've got a lot of people advising me. I'm just worried about Essential Quality. I hope he wins. He's deserving. It should be a great event. I'm just glad that whatever money I'm betting will go mainly to the horsemen and Churchill Downs, where it deserves to go.”

Marty Maline, executive director of the Kentucky Horsemen's Benevolent Protective Association, applauded McIngvale's move to bet on track.

“When people see these monstrous numbers in total handle wagered on a track's card, they think the horsemen get a tremendous split from all of that,” Maline said. “But there's a huge difference between $100 bet on a racetrack and $100 bet off-track as far as what goes to purses. I certainly don't want to denigrate the ADWs, because that's broadened the market and allowed people to bet who otherwise couldn't. But a bet at the track contributes far more to purses than anywhere else it might be placed. Good for Mattress Mack.”

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Record Purses for Ellis Park

Average daily purses are expected to top $350,000 at this summer's Ellis Park meeting, highest in the track's 99-year history, according to racing secretary Dan Bork. Bork said purses for maiden races will likely top the record $50,000 achieved in 2019 before the pandemic forced cutbacks last year in the wake of a three-month shutdown. Those numbers include Kentucky Thoroughbred Development Fund supplements.

Ellis Park released its 2021 stakes schedule Sunday. The schedule features 14 stakes races and the Henderson track has expanded its Kentucky Downs Preview Day to an entire weekend, Aug. 7-8. The Preview races–all on grass and designed as stepping stones to Kentucky Downs' lucrative stakes in early September–now total seven with the addition of the $100,000 Kentucky Downs Preview Dueling Grounds Oaks for 3-year-old fillies at a mile and a sixteenth and the $100,000 Kentucky Downs Preview Dueling Grounds Derby for 3-year-olds at a mile and an eighth.

All the Kentucky Downs Preview stakes carry a purse of $100,000 with the exception of the $125,000 Preview Turf Cup, a 1 1/4-mile prelude to Kentucky Downs' $1-million GII Calumet Turf Cup at 1 1/2 miles. The winner of each of the Preview Weekend stakes receives an automatic spot with the entry fees waived in the corresponding stakes at Kentucky Downs.

Five dirt stakes take center stage Aug. 15, headlined by the $200,000 Ellis Park Derby. Also on the Aug. 15 card: the Groupie Doll S. for fillies and mares, the Ellis Park Juvenile and Ellis Park Debutante–each increased to $125,000–along with the $100,000 Audubon Oaks at seven-eighths of a mile.

“We've been delighted with how horseplayers and fans have responded to our stakes being super-sized into festival-type days,” said Jeff Hall, Ellis Park's director of racing operations. “Now we're going from two to three days that will provide some of the best racing programs outside of Saratoga and Del Mar. And I dare say on the two stakes-packed Sundays that we could be right up there with both coasts. Since creating Kentucky Downs Preview Day in 2018, the program has just blossomed and succeeded in its mission of providing launching pads to Kentucky Downs. We're thrilled to add two more stakes, filling a void in the 3-year-old grass divisions and expanding the series to a weekend.”

Ellis Park's purse increases are attributable to its relationship with Kentucky Downs, which through an arrangement with the Kentucky Horsemen's Benevolent and Protective Association will transfer $4.2 million into Ellis' purse account this year. That money will be split equally between unrestricted association purses and KTDF funds, for which the transfer requires approval of the Kentucky Horse Racing Commission and its KTDF advisory committee.

“The three-way deal among Kentucky Downs, Ellis Park and the Kentucky HBPA has proven a win-win-win for all parties and the state and really helps strengthen the entire circuit,” said Marty Maline, executive director of the Kentucky HBPA. “Kentucky Downs Preview Weekend is so fitting because it also casts the limelight on Kentucky Downs several weeks before they open. Ellis adding two 3-year-old turf stakes will keep those horses in Kentucky throughout the summer and heading into Kentucky Downs.”

The Ellis Park meeting runs from June 27 through Sept. 4.

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No Handout: Just A Level Playing Field

As the calendar turns to February and the countdown continues towards the adjournment of the Kentucky State Legislature on March 30, 2021, the Kentucky HBPA hosted a media event Tuesday morning at Skylight Training Center to get the word out on what Historical Horse Racing means to Kentucky racing and the impacts that would be felt by citizens across the Commonwealth if it were not protected by state legislature.

Certain Historical Horse Racing (HHR) machines, electronic gambling systems that allow people to bet on replays of past horse races, cannot continue unless the Kentucky Supreme Court creates  legislation to allow them to qualify as pari-mutual racing per the definition they alone can define.

Local Louisville-based television stations were on hand to hear the stories of several people who have built their careers in racing as they explained how their lives would change if a solution was not found to maintain the status quo for historical horse racing facilities.

Trainer Tom Drury, who has been in the spotlight in recent months with 2020 GII Blue Grass S. winner Art Collector (Bernardini), bases his outfit at Skylight and hosted the event outside his barn.

“I think the average person in Kentucky obviously knows of the Derby and they know Keeneland, but there are some that don't realize that Kentucky racing happens year round,” he said. “For me as an individual, I've got a family here so being able to travel around the country is just not something that's feasible for me.”

Drury said that this issue is not only relevant to horsemen, but to the entire equine industry. He explained how he has used the same hay farmer outside of Louisville for over 15 years  and spoke of the local tack shop where he purchases all his stable's feed and supplies.

“The trickle-down effect that the equine community has is going to affect us all,” he said. “There are a lot of people that rely on horse racing to feed their families. It even trickles down to Skylight Country Store, where my employees have lunch after work. This is something that has to go through in order for us to survive.”

Along with the direct effect that would be felt by the equine community, Drury said the entire state would be negatively impacted.

“You're talking about 100,000 jobs in Kentucky,” he noted. “And that's just the equine part of it. When you start looking at the people who work at the racetracks- the parking attendant, the people who sell programs, the people who work in concessions, this is huge for the state of Kentucky.”

He continued, “I think the frustrating part of it for horse trainers is that we're not asking for a bailout or a handout, we're just asking for a level playing field to be able to compete with the rest of the country. We want to stop losing our horses to other places because they have the expanded gaming and things of that nature.”

Even with the purse benefits obtained through HHR, Drury said that keeping owners in Kentucky has been an increasing challenge.

“I think the big majority of owners would love to have their horses in Kentucky year-round, or at least the Kentucky owners would,” he said. “Most of them are very passionate about their horses. They want to go to the races and watch their horses run. The last few years have really came down to a dollars-and-cents thing. If you can run at Turfway Park for $30,000 versus going to Oaklawn and running for $80,000, it's hard to tell a man not to move his horse. The playing field is so uneven right now for the state of Kentucky and it's frustrating at times because we're supposed to be the leaders of this industry.”

Jockey Declan Cannon has traveled the Kentucky circuit for the past five years. The Irishman spoke on the global perception he's seen of Kentucky racing.

“I've only been here five years but I've had so many conversations with people I've met on planes and when they ask where you're going and you say Kentucky, they know that's the home of horse racing. It's a great place to be and it's so important that we keep it protected.”

If Historical Horse Racing were to leave Kentucky, Cannon said that he too would be forced to go.

“It's my living, it's all I know to do,” he said. “For me, it's a huge effect and it will be for a lot of other people too, so hopefully the right thing is done.”

Gary Churchman has been a farrier in Kentucky for over 40 years. He's worked for Drury along with Dale Romans and other local horsemen his entire career. While he did travel to Florida and New Orleans for about four years, ultimately he chose to stay home for the majority of his career.

“My father was a horse trainer and I've worked for many top-tier outfits,” he said. “I've rased a couple of sons and put them through college with this industry. It's been good to me and I want that for all my friends, but it's going the wrong way.

Churchman estimated that roughly 40 farriers work on the backsides of both Louisville and Lexington, although some do travel during the wintertime.

“They talk about all the jobs here in Kentucky, but I don't like statistics and numbers,” he said. “It's lives. It's people. People who raised their families and are putting them back into this industry. Like Tommy said, we don't want to be bailed out, we just want a leg up. These are good people, and people [outside of the industry] don't understand how big of a team it takes to get these horses to the races.”

Marty Maline, the executive director of Kentucky's HBPA, spoke on those who would be most impacted if Kentucky trainers started to look elsewhere to race.

“We have a contingent of people who race at Belterra in the summer and Turfway in the winter,” he said. “There are hundreds of grooms and hotwalkers who live on the backside. If all of a sudden Turfway ceases to be, they will be homeless during the wintertime because their home in the winter is a tackroom at Turfway. Trainers can move their outfits, even though it would be difficult, but what happens to all those people? They want to work. Seven days a week they get up in the freezing cold to take care of horses that they love. It's their job, and not only that, it's their home.”

When the announcement was made last October that the construction of Turfway Park's new grandstand and historical racing machine facility would halt until the HHR ambiguity was sorted out, Maline said that reality set in for many Kentucky trainers.

“Anyone who's been to Turfway knows that Churchill Downs had grand plans to rebuild the whole structure and redo the whole barn area,” he said. “We have leaking tack rooms and a lot of problems on the backside. All that was going to be remedied by the revenue they were going to see from HHR. So right now the horsemen are dealing with the most difficult of situations as there's no facility. The backside is there, but the facility is gone.”

Drury echoed the uncertainty felt by many Turfway trainers in the past months.

“We've been struggling at Turfway for years and all of a sudden Churchill comes out that they're buying it and there's this excitement in the air and people are thinking that finally this is going to go the right way,” he recalled. “You've got guys that normally leave the state in the winter and are suddenly making arrangements to stay here and be back in their own home year-round. Now it kind of feels like the rug got pulled out from underneath us. I can't stress enough how there are so many little guys out there that don't have the luxury to go to Gulfstream or Oaklawn. They rely on Kentucky to feed their families. Without this being addressed, there's going to be a lot of them that aren't going to make it.”

Maline has been in touch with management from tracks across the state and said none have had a positive outlook on if HHR funding were to cease.

“If this isn't resolved, I talked to Ellis Park's management just last week and in no uncertain terms, they're gone. Kentucky Downs will cease to be and it's a pretty good indication that when Churchill stopped all construction, if this doesn't get resolved, Turfway will be cease to be. These are not just idle threats by horsemen, these are real concerns.”

Maline added that his team has already been in touch with the Ohio HBPA, explaining that if the situation gets worse, Ohio's program would also be hurt as the number of trainers who race at Belterra Park in the summer would decrease significantly.

When asked what sentiments he's seen expressed from horsemen across the state, Maline said that most people have been more confused than angry.

“They're so concerned that this has to be resolved,” he said. “It hard for people to understand because they mention that horse racing in so many states benefits from casinos. So here we had an opportunity- HHR is based on horse racing, it has a racing motif to it, so it's our vehicle to get finances rolling into our sport. It's very hard for them to understand, what happened?”

Steve Wade is the owner of Skylight Supply, a tack shop located a few miles down the road from Skylight Trainer Center. The store has been a family business since 1985 and Wade said he is a fourth-generation horseman. Without the training center in Goshen and other Thoroughbred farms and training outfits in the surrounding Louisville area, Wade said their business would be forced to close.

“The Thoroughbred industry is the largest amount of business we do,” he said. “If it weren't for Tommy [Drury] and every other trainer, we wouldn't exist and I wouldn't be doing this any longer. This is in our blood, our DNA. It's all we've ever known and it's very devastating to think it could end.”

 

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More Ky Outfits to Winter at Turfway Despite Muted Purse Projections

Turfway Park, currently in the midst of being demolished and rebuilt under new corporate ownership, is projecting 2,400 applications for 900 stalls for the upcoming 52-date combined holiday, winter, and spring meets that will open Dec. 2.

But even though a larger-than-usual number of Kentucky racing outfits are expected to remain at Turfway for the winter instead of shipping out to warmer-climate race meets, track officials told members of the Kentucky Thoroughbred Development Fund (KTDF) advisory committee during an Oct. 6 video meeting that purse expectations should be tempered because of decreased earnings projections, the COVID-19 pandemic, and ongoing construction work that will leave the facility without a grandstand for the entirety of its winter/spring racing season that runs through March.

It was one year ago this week that Churchill Downs, Inc. (CDI), announced its agreement to buy Turfway and invest $200 million in acquisitions and reconstruction costs that include a new Tapeta synthetic racing surface, a new grandstand and clubhouse, and an off-site wagering facility 12 miles to the northeast in Newport that will house simulcasting and historical horse racing (HHR) gaming machines.

Tom Minneci, the senior director of finance at CDI, told the KTDF board Tuesday that “we’re trying to get as close as we can to what we offered last year” in daily average purses at Turfway.

That would put the baseline maiden special weight purses in the ballpark of $46,000-$48,000 per race.

But Bill Landes III, the chairman of the KTDF advisory committee, who represents the Kentucky Thoroughbred Owners and Breeders Association (KTOB) on the board, cautioned to journalists reporting on the meeting that “I don’t know how actively I would report on that number” until more precise financial figures and a condition book are provided by CDI and Turfway officials.

J. David Richardson, who also represents the KTOB on the KTDF advisory committee, noted that “if you just listen to the rumble…there’s a big feeling that this is going to be a lot different than last year,” with numerous outfits making plans to stay in Kentucky for the winter.

But, Richardson added, “I think there are some people whose expectations may be a little out of line with reality” considering all of the unknowns in the purse equation.

Minneci explained that “We are projecting lower earnings this year because of the funding [that Turfway received] last year from [CDI-owned] Derby City Gaming. But we will get funding from the new facility there in Newport. So the projected daily earnings are just under $41,000. Last year, with the funding from Derby City Gaming, the daily earnings were just north of $64,000.”

Turfway’s current balance of KTDF funding is zero, Minneci said. The track requested between $1.9 and $2.4 million from the KTDF, and the board unanimously approved that request to be recommended to the full Kentucky Horse Racing Commission (KHRC) for final approval at its Oct. 20 meeting.

The KTDF is funded by three-quarters of 1% of all money wagered on both live Thoroughbred races and HHR gaming, plus 2% of all money wagered on Thoroughbred races via inter-track wagering and whole-card simulcasting.

The KTDF board on Tuesday did not address last week’s Kentucky State Supreme Court opinion regarding the apparent illegality of HHR that got remanded back to a lower court. HHR in Kentucky raked in $2.2 billion in revenues during the most recent fiscal year, and that form of gaming contributes tens of millions of dollars annually to purses.

Nevertheless, Turfway general manager Chip Bach said his track is forging ahead with plans for the upcoming racing season. He outlined the timing of operations and disclosed a few tweaks that are in the pipeline to try and improve both the product and the amenities.

Turfway’s stabling opens Nov. 1, with training starting Nov. 3. The December “holiday” meet will consist of 13 programs, and Bach said Turfway has a request pending with the KHRC to switch its schedule from night racing on Wednesdays-Saturdays to nights on just Thursdays and Fridays and afternoons on Saturdays and Sundays.

The 39-date 2021 winter/spring meet picks up in January and will run through March (dates to be approved).

“Obviously, we will not have a grandstand,” Bach said. “We will have space for wagering…for the owners and trainers that come to see their horses run. But we will not have any public space available. And at the present we’re working on those temporary structures and systems to conduct a live race meet, [like] judges’ booths [and] photo-finish” facilities.

Bach added that, “We will be open at Newport Racing and Gaming, so we will have a [place to generate the] live handle” that helps to fund the KTDF.

“The Tapeta is in and ready to go,” Bach said. “There are a couple of things our maintenance team has to do in terms of turning it over every couple of weeks, but it’s ready to go right now. It’s beautiful. We’re excited. The Polytrack, of course, was worn out, and we’re really excited to see how this performs.”

Turfway, despite its name, has never had a turf course. But it CDI has designed plans to add an inner, seven-furlong dirt track at a later date if the gaming corporation wants to.

“As the new facility is being built, we are taking into consideration the ability to put a dirt track on the inside [of the Tapeta track],” Bach said. “I do not believe that is being contemplated for the first full year that we are open, but we will have the ability to create that dirt track. The lighting and all the electrical work is being designed to not only support the Tapeta one-mile track, but also a seven-eighths dirt track should we move forward with it.”

Marty Maline, the executive director of the Kentucky Horsemen’s Benevolent and Protective Association, said most outfits are looking forward to wintering at Turfway, although he added that some long-time stables from Ohio that have traditionally supported winter racing in Kentucky could be out of luck in terms of getting stalls.

“There’s a lot of excitement, A lot of people are deciding either to keep a string here or [stay] exclusively here,” Maline said. “I know some of those Belterra guys who have been there through thick and thin will probably be jettisoned off, I would imagine, because there are some very strong outfits that are contemplating staying all winter.”

Also at Tuesday’s KTDF board meeting, Minneci told the board that Churchill Downs is “hoping to have spectators here at the track, depending what happens with COVID-19 and positivity rates” during its 24-date, Oct. 25-Nov. 29 meet.

Ben Huffman, the director of racing at Churchill, said “I’m really close to finalizing the condition book, probably by [Tuesday] evening or [Wednesday]. We’re trying to get the MSW [purses] here for the fall meet somewhere between $80,000 and $85,000.”

The board unanimously approved $3 to $3.5 million in KTDF funding for Churchill’s fall meet, pending the subsequent finalization by the KHRC.

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