New Mexico: Advanced Deposit Wagering Bill Would ‘Modernize And Digitize’ Pari-Mutuel Wagering

In a letter to New Mexico horsemen sent out on Thursday, Feb. 4, the New Mexico Horsemen's Association executive director Richard Erhard announced that state representative Candy Ezzell will introduce a bill to legalize advanced deposit wagering on Monday, Feb. 8.

The bill, HB199, will be introduced before the House Commerce and Economic Development Committee at 1:30 p.m., local time. It was developed in concert by the NMHA, New Mexico Horse Breeders Association, and Jeff True, president and general manager of Ruidoso Downs.

“The overarching objective of HB199 is to Modernize and Digitize our Pari-Mutuel Domain and allow New Mexico residents to wager on horse racing (our New Mexico content) through the use of their own personal electronic devices, i.e., mobile phones,” Erhard wrote. “There are numerous positive aspects of this legislation, however three notable positive outcomes are as follows:

  1. Allow further penetration into our pari-mutuel market, therefore creating more revenue for the state of New Mexico and its legendary horse racing industry.
  2. Maintain the current level of on-track revenue.
  3. Stop bet poaching by out-of-state ADW groups.”

For more information, the full letter to horsemen is available here.

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Breeders’ Cup Connections: At 91 Years Young, Blue-Collar Trainer Dancing His Way Into The Winner’s Circle

It's been a difficult year all around, but there are still a few bright spots out there in the world – you just have to know where to look.

This week, we found that feel-good story down in New Mexico. At the age of 91, trainer Rey Marquez saddled his first winner of 2020 at Zia Park on Dec. 3. It was his 13th starter of the year. 

It was “just” a $10,000 maiden claiming race on a Thursday, but truly it was more than that. It was a rare moment of joy bursting forth from this challenging year, both for Marquez himself and all those who know him.

“I don't know how many 90-year-olds are still training,” Marquez admitted during a telephone interview, noting that he turns 92 on Dec. 22. “But me, I still danced three times a week 'til the place shut down due to COVID – I do a mean cha-cha, gal!”

The horse, Lincoln County Kid, won by a length, and Marquez danced his way into the winner's circle with his trademark grin. It was a good return on investment; Marquez had purchased the 2-year-old gelding for $1,500 just six weeks prior. 

He'd taken a chance on Lincoln County Kid, sight unseen, to help out an old friend: a trainer forced to sell off his stock and leave the business. Marquez remembers telling his fellow horsemen that if things in New Mexico didn't start looking up, and soon, “there'd be a lot of tack for sale.”

It isn't just the pandemic that's dealing raw edges to the state's horse racing industry. Uncertainty about the future of racing at Sunland Park has sent some trainers and owners rushing for the border, and a recent lawsuit filed by the New Mexico Horsemen's Association against the state's commission alleges the latter has been improperly collecting over $8 million since 2004 to pay liability insurance for jockeys.  

“We have a really plum relationship with casinos – we get 20 percent of their net – but right now casinos are closed,” Marquez explained. “On Thursday when I won it was an $8,000 purse, so $4,800 goes to the winner. Last year when I won a maiden race my share was $16,000. 

“Everybody's having a hard time here. I just keep hoping for a miracle.”

Compounding the issue is the fact that account wagering is not legal in New Mexico. With COVID restrictions firmly established at Zia Park, no fans are allowed and thus there are also no mutuels clerks; that meant Marquez didn't have a bet down on Lincoln County Kid when the gelding paid $31.60 to win.

“It's not the best place in the world to be at right now,” Marquez said simply. 

Still, New Mexico has been his home since he and his childhood sweetheart Josephine got married 69 years ago, and he doesn't plan to leave now. There are too many happy memories tucked in around every little corner. 

He and Josephine were married for 35 years, and she passed away 34 years ago this month. 

Rey Marquez (Bernadette Barrios photo)

“We had a great marriage, and everybody loved her,” Marquez said, emotion causing his voice to catch. “That woman never met a stranger, and she loved the horses.”

Marquez still lives in Albuquerque, where he cut his teeth working for the local Health Department. He always enjoyed attending the races with Josephine and their friends on the weekends, and one afternoon on the way home from Ruidoso Downs, one friend suggested they buy a horse together. 

The idea was tempting, sure, but with two young children to support it just wasn't financially feasible. 

A few weeks later, fate intervened.

“One morning, two blocks away from the office, a cabbie had a passenger who was in a real hurry trying to catch a flight,” Marquez remembered. “He T-boned me at a light, and I got a nice insurance payout. So I guess you could say I got into racing by accident, literally.”

It took three horses before Marquez saw his silks head out to the track in the afternoon – his first two suffered injuries before they made it to the races.

“It was just bad luck at first,” said Marquez. “I asked my wife, 'Do you think somebody's trying to tell us to stay out of this business?' And she said, 'Hell no, go get us another one!'”

At first, Marquez hired an experienced trainer to condition his horses, then spent weekends on the backstretch helping out and learning as much as he could. Eventually Marquez got his trainer's license, and began operating a “working man's stable.”

Ruben Garcia, a friend who owned several Mexican restaurants in the city, was the first to offer Marquez a chance to begin training full time. Marquez took him up on the opportunity after retiring from the health department at age 62.

It was a family operation from the start. Marquez' wife was his biggest fan, and their daughter Threse ran the shed row for 17 years until her eldest child was school-aged.

He had a few nice runners over the years, led by 1984 Santa Fe Futurity winner Dan's Diablo. More recently, Marquez said the stakes-placed Strike A Spider was one of his favorites.

“This sport has been good to me,” Marquez said. “I wouldn't say I'm prudent, but I got my first nickel in it, and I haven't lost it yet.”

Marquez has saddled 266 winners from 3,488 starters during his career, according to Equibase. He's had a winner nearly every year since 1976, and said he never spent more than $4,000 on a horse. 

For Marquez, it's the thrill of watching his horses thundering down the stretch in front that keeps him rising early every morning to see to the needs of his small stable. The racing game also gives him a chance to stay close to the memory of his beloved late wife. 

“Most of my friends have passed on now,” Marquez said thoughtfully, then deflected that grim reality with humor via a story about his doctor.  

“I eat mostly fried chicken, fried chicken skin, pork … about two to three years ago my regular doctor retired, and the new doctor started talking to me and asked me what I ate. She was surprised, she said, 'There's the rule and there's the exception, and you're the exception!' I guess maybe she's right.”

 

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New Mexico Horsemen Sue Racing Commission To Reclaim $8 Million Collected For Jockey Insurance

The New Mexico Horsemen's Association is seeking the return of more than $8 million it alleges the New Mexico Racing Commission has been collecting  improperly from horsemen since 2004 to pay liability insurance for jockeys.

The representative organization for both Thoroughbred and Quarter horse owners and trainers in New Mexico filed suit in Bernalillo County District Court on Dec. 2 against the commission – which is a part of the Tourism Department of the state of New Mexico – five commissioners and executive director Ismael “Izzy” Trejo.

The complaint, a petition for declaratory judgment and relief, outlines the responsibilities of the racing commission under New Mexico law, including how retained revenue from wagering on live and simulcast races is to be distributed.

“New Mexico law, N.M.S.A. 1978, 60-1A-19, only allows the money distributed pursuant to the Horse Racing Act, to the Horsemen to be used for two distinct and clear purposes, one for purses and the other for medical benefits of the members of the New Mexico Horsemen's Association,” the complaint states.

The horsemen allege that the New Mexico Racing Commission ordered them to divert a portion of their money to racetracks for liability insurance for jockeys.

According to the complaint, $8,426,181.09 has been taken from the New Mexico Horsemen's Association since 2004 for jockey insurance.

“The Racing Commission has no power or authority to violate the statute or to direct the money received by the Horsemen be used for another purpose other than that which the statute directs,” the complaint states.

In addition, horsemen allege the commission has improperly ordered horsemen to pay a “gate fee or starter's fee” every time a horse races.

“The costs of operating the 'gate' are and always have been an expense of the association putting on the race, that is a cost or expense of the racino and not the owner or trainer of the horse entering the gate for a scheduled race,” the complaint states, adding that “there is no provision in New Mexico law that allows the Racing Commission to access a fee to horsemen for the starter's gate.”

Finally, the complaint alleges that the New Mexico Racing Commission improperly demands the Horsemen's Association pay a fee for a license. “The Horsemen's Association does not race horses, or train horses and is a benevolent, non-profit organization and no license is required,” the complaint alleges

The suit asks the court to “order the New Mexico Racing Commission repay and return $8,426,181.09 to the New Mexico Horsemen's Association.” It also seeks an order that the New Mexico Racing Commission  “cease and desist from ever directing monies be spent by the New Mexico Horsemen's that by statute are designated for certain purposes.”

Richard Erhard, executive director of the New Mexico Horsemen's Association, declined to comment on the suit. The New Mexico Racing Commission's executive director, Izzy Trejo, could not be reached for comment.

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Zia Park Fall Meeting In Question Due To Pandemic’s Shutdown Of Casinos

Due to the effects of the global COVID-19 pandemic, the fall meet at Zia Park, scheduled to run 54 days beginning Sept. 21 and running through Dec. 22, is uncertain.

New Mexico Horsemen's Association Executive Director Richard Erhard met via telecom with Chris McErlean, Vice President of racing at Penn National, and Bill Belcher, the general manager of Zia Park, on August 6 to discuss the status of the upcoming meet.

During the meeting, the main points established included that Penn National will continue to wait for confirmation from the New Mexico Governor's office stating that racetrack casinos will be allowed to open prior to making a final decision to hold a race meet.

Second, after that confirmation is made, it will take Zia Park five weeks of preparation to open, with racing to begin on the sixth week.

Given this timeline, Penn National does not see it as being advantageous for anyone to open Zia Park for a 2020 meet if confirmation to open casinos does not come until September 30 or later.

The NMHA hosted an open Zoom video conference on August 10, with more than 50 people in virtual attendance. This included horsemen and representatives from NMHA and other New Mexico racetracks.

“It was a very productive meeting, as far as I'm concerned,” Erhard said. “We're all in this together, and that's why I reached out to all stakeholders.”

Despite their casinos being closed, both Ruidoso Downs and The Downs at Albuquerque have opened their race meets under strict health guidelines.

Ruidoso opened its meet on May 22 and will run through Labor Day. It offers live viewing and wagering of the races, as well as a local drive-through betting service.

The Downs at Albuquerque opened its delayed meet on August 8, and will run through September 20. It is also scheduled to host the Bank of America Challenge Championships on October 24.

New Mexico House of Representatives member Candy Spence Ezzell is a horseman with a close understanding of racing in the state.

“First off, I have to applaud Ruidoso Downs, its owners and management, for going up and promoting our industry, giving the horses the opportunity to race,” she said. “They have gone above and beyond to accommodate the horsemen.”

As far as Zia Park goes, she said, there are contracts in place and if they refused to run dates, they could potentially be violating state statutes.

Horse racing is an important industry in New Mexico, she says, as it is the third largest in the state. Racing creates significant amounts of jobs within the industry itself, as well as being a high tourism driver when people attend the races, funding the hospitality, food and travel industries.

“The impact of COVID-19 on racing in New Mexico has just been disastrous, and I think everybody is realizing we're in this together and we need to work on this together,” Erhard said. “If we stay in silos and don't work with each other, I don't have much hope. If we work together and everyone's up front and put everything on the table, I think we can come up with a solution.”

The shut down has been extremely difficult for the racetracks, as well as horsemen, with a loss of revenue from the casinos and from customers. If Zia and Sunland casinos were to stay shuttered, it would also directly affect Ruidoso, as they have a lease agreement in place for slot machines that result in Ruidoso getting purse and track revenue generation through the lease agreements.

Jeff True, general manager at Ruidoso Downs and a member of the AQHA Racing Council, says that while racetracks are feeling it, the impact on horsemen is a big concern.

“We're going to finish our meet Labor Day weekend, as bad as it was revenue wise, and kind of shut down for the winter. Zia Park not opening means the horses that would normally go from here to Zia are not going to be able to do that; they're not going to have a place to go. So the impact on Ruidoso is less than it is on the horsemen.”

There are discussions ongoing about potential solutions, including moving race dates. True said that while Ruidoso is open to discussion, there is a great deal of work, including finding funding, that would need to be done to make that happen.

“We need everyone's input, we need everyone's brain power, and we need to find some solutions,” Erhard said. “We don't have a lot of time to fool around.

“Bottom line is, we want to race,” he added. “Horsemen need to race. We need a place to continue training. We need a place to go with our stock. This can't just stop.”

This story originally appeared on the American Quarter Horse Association website, and was reprinted by the Paulick Report with permission.

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