Rice Begins Testimony On Hearing’s Fifth Day, Characterizes Payments To Racing Office As Gifts

On the fifth day of a hearing into alleged rule violations by top New York trainer Linda Rice, Rice's attorney began laying the framework of his defense. Rice is accused of “actions inconsistent with and detrimental to the best interest of racing generally ad corrupt and improper acts and practices in relation to racing,” according to the New York State Gaming Commission. An investigation by the gaming commission determined that Rice received horse names and past performance information prior to draw time for a number of races between 2011 and 2015, and that she provided payments to members of the racing office staff in exchange for that information.

Attorney Andrew Turro, who represents Rice, reiterated his view that Rice did not violate a specific rule on the books at the time either with the New York Racing Association (NYRA) or the commission by taking the information, but also said Wednesday that Rice's payments to racing office staff weren't bribes.

“To use an overworked phrase, there's simply no quid pro quo,” said Turro in his opening statement for Rice's defense. “The evidence received today, and the evidence that will continue to be presented to this court will establish the undeniable truth — that the money Miss Rice gave to the racing office officials to the starting gate crew and virtually everyone who worked at the track were merely gestures of sincere appreciation and never an inducement to anything.”

Rice began her testimony Wednesday by going over her financial records from the time in question, showing a series of checks made out to individuals in the racing office, the starting gate crew, jockeys' valets, and chief examining veterinarian Dr. Anthony Verderosa which she wrote after winning the Saratoga meet title in 2009. Later, Rice said she gave checks and later cash to the entire racing office staff and starting gate crew via entry clerk Jose Morales. Morales has admitted to providing Rice with the information in question. Those payments were intended to be Christmas gifts, Rice said, and were typically $200 or a bit more, depending upon the number of people employed in each department at the time. Rice said she later learned there was a cap of $75 allowed as gratuity for NYRA employees after the gate crew were called before the stewards for taking larger tips from jockeys.

Also on Wednesday, Turro called trainers Jeremiah Englehart and James Ferraro to learn more about their experiences with the racing office, particularly during times when there was a shortage of horses available to fill races in New York. Previous testimony from senior racing office officials stated that entry clerks are not permitted to give out the name of a horse or name of a trainer when “hustling” entries for a race with a small field. They are permitted to divulge information about the expected pace or comparative talent of horses entered in a race pre-draw, even giving out specifics such as a rival's recent finish positions.

But Ferraro and Englehart say they have been given the names of trainers and horses pre-draw if a clerk is pushing to get a race filled. Englehart also said he uses a software program which helps him keep track of what conditions his horses are eligible for; the program also lets him review previous races with similar conditions, giving him a good idea which horses could be entered in a given allowance or claiming race. Englehart estimated that when entries are released for a race with eight horses, he will have correctly guessed the identities of five of them, on average.

Ferraro and Englehart also said they learn about the entries in an upcoming race from jockeys' agents, who may be aware of horses their clients are riding.

When questioned by counsel for Rice and the commission, Englehart seemed to have complex feelings about what Rice had done.

“I've competed against Linda for a long time and I have a lot of respect for how hard she works, how hard it is or might have been for her to rise to the place she's at right now,” he told Turro. “I think it's just not fair to think we're going to throw a career away because of a misjudgment. There's a lot of people out there that might not be good in the game and we need to focus on that.”

Under asked by commission attorney Rick Goodell whether Rice received an unfair advantage, Englehart also said this–

“If Linda was receiving emails when no one else was, and I'm not 100 percent sure no one else was, maybe it isn't a one-time happening … knowing it's frowned upon now I would say no it's not fair, but at the time I stand by what I said before and I don't know if I wouldn't have done the same thing.”

While Morales, a longtime acquaintance of Rice, characterized the gratuities and a couple of loans from Rice as consideration for the information he provided her, Turro depicted the relationship differently. Rice knew the Morales family many years and was close to them at a time several years ago when a car accident killed one of Jose's teenaged siblings.

“I knew his lifestyle was — he was having a lot of problems as far as drinking, driving, domestic issues with his wife and whatnot,” Rice said. “I felt sorry for him because his life was somewhat of a mess. I always thought I knew, possibly, why.”

Turro also laid the groundwork for his closing argument, which will be that the commission should not suspend or revoke Rice's license — both options on the table for the hearing officer according to the commission.

“I'll urge that justice be done and the nightmare my client has been living through can end,” he said. “I will urge the hearing officer to allow her to continue training without further interruption.”

The hearing will continue Thursday.

See previous coverage of the hearing here, here, and here.

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View From The Eighth Pole: Del Mar Can Add Year-Round Stability To California’s Racing Industry

California's horse racing industry has never been good at long-range planning. Instability will do that. Historic Bay Meadows racetrack in San Mateo in the Bay Area was shuttered for development in 2008. The same company that closed Bay Meadows had purchased Hollywood Park in Inglewood near Los Angeles in 2005 and almost immediately threatened to close that track, too, unless some form of relief from expanded gambling came along. It never did, and the “track of lakes and flowers” ran its last race in 2013. Despite advance warnings, the industry seemed unprepared when the tracks closed.

Thoroughbred breeders and owners like stability. The timeline from planning to breeding to foaling to racing is a four-year process. Owners who buy yearlings or 2-year-olds in training at public auction are looking at months to years before they can see their investments competing on the racetrack.

Instability, along with challenging economics, have led to serious declines in California breeding. The state's Thoroughbred foal crop in 2006 – the one eligible to race in that final year at Bay Meadows – numbered 3,320. The most recent California foal crop was 1,594 in 2019, a 52% drop over 13 years. There appears to be no slowing down, either. The number of mares bred in California fell by 12.5% from 2019 to 2020, from 2,018 to 1,766 mares, according to the breed's official registry, The Jockey Club.

Looking down the road, at least one more California racetrack is destined to close in the not-so-distant future. Dr. Edward Allred, the 84-year-old owner of Los Alamitos in Cypress, has made no secret of the fact his track will be developed in a matter of years. To his credit, Allred stepped up to provide additional stabling when Hollywood Park closed and expanded the Quarter Horse racing surface to accommodate year-round training, plus several weeks of Thoroughbred racing annually. Allred has been sufficiently compensated; in addition to host simulcast revenue during live Thoroughbred race meets, Los Alamitos receives $12,500 daily from the state's Stabling and Vanning Committee for providing 825 stalls.

Stabling at Los Alamitos was a stopgap measure. It's time for the California horse racing industry to develop a longer-term solution that provides some stability to the state's owners and breeders if this industry is to have a future.

Del Mar, just to the north of San Diego, could be the answer. The track races 12 weeks annually, with separate summer and fall meets, then closes its stables the rest of the year.

The racetrack property is owned by the state of California and leased by the Del Mar Thoroughbred Club from the 22nd District Agricultural Association, which until 2020 has hosted the annual San Diego County Fair – one of the largest in the United States. The fair represented a sizable percentage of the 22nd District's annual revenue, but so did its lease agreement with the Thoroughbred Club, especially since the races traditionally attract large crowds that spend significant sums on food and beverage.

This year's fair, along with on-track attendance at Del Mar's summer and fall meets, were nixed by the coronavirus pandemic. The 22nd District took an enormous financial hit – revenue is down 90% – and without deep cash reserves it was forced to lay off 60% of its work force of 157 full-time employees.

Year-round stabling would supply a significant financial boost to the 22nd District, provided Del Mar would get the same per diem arrangement Los Alamitos currently enjoys. There would be hurdles to clear to make this possible, one of them being the San Diego County Fair that traditionally begins in early June and runs through July 4 is so big that it spills onto the racetrack and into the stable area. Downsizing the fair, however, may be a necessity in the wake of COVID-19.

Because it is a state-owned facility and not subject to the pressures of development, Del Mar presents an excellent long-term option for year-round training and, if given the opportunity, expanded live race meets. The track has already satisfied federal Concentrated Animal Feeding Operations (CAFOs) water runoff requirements, something many other tracks are struggling with.  Another benefit to year-round stabling could put the city of Del Mar in compliance with a state law requiring a minimum amount of housing for low-income families. Stable employees living on the backstretch might check that box.

California trainers surveyed for this story said they would jump at the opportunity to maintain part of their stable at Del Mar. Some speculate that Midwest or East Coast trainers would be more inclined to maintain an auxiliary string of horses in California if Del Mar played an expanded role.

“We need to have viable long-term racing and training venues in Southern California,” Thoroughbred Owners of California president Greg Avioli said. “There's no question owners and trainers appreciate the opportunity to train at Del Mar, and should the opportunity present itself for year-round training, it's definitely something the TOC would consider.”

California can't afford to wait for the next track to close before developing a better blueprint for training and racing, for stability in the industry. The time is now to work on that plan.

That's my view from the eighth pole.

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Fairmount Park To Be Renamed FanDuel Sportsbook And Horseracing Through New Partnership

Fairmount Park in Collinsville, Ill., will soon have a new name through its partnership with the sports betting giant FanDuel. The 95-year-old racetrack just east of St. Louis, Mo., will be known as FanDuel Sportsbook and Horse Racing.

In an interview with the St. Louis Post-Dispatch, FanDuel Group CEO Matt King outlined plans for a sportsbook at the racetrack, but added “We're investing broadly to revitalize the track itself.” The Post-Dispatch reports plans for the track to bring back the St. Louis Derby – last run in 2006 – and fund it with a $250,000 purse.

The sportsbook could open as early as late January 2021.

The Illinois Racing Board has approved 53 days of live racing at Fairmount Park in 2021, with a meet extending from April 27-Sept. 6

Fairmount Park is also in the process of getting a casino license made possible through a gaming bill passed by the Illinois legislature in 2019. The track has been owned since 2000 by William Stiritz and Associates.

FanDuel and the horseracing network and advance deposit wagering company TVG are related through their common ownership by Flutter Entertainment.

Read more at St. Louis Post-Dispatch.

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Tamarkuz Colt Red Flag Cruises To Bob Hope Victory At Del Mar

The million-dollar yearling Spielberg went off as the odds-on favorite, but it was Red Flag – who “only” cost $220,000 at the same Kentucky sale – flying home the winner Sunday in the seventh edition of the Grade 3 Bob Hope Stakes for 2-year-olds at Del Mar.

Red Flag, from the first crop of the Speightstown stallion Tamarkuz, battled early with his more-expensive rival, but assumed command under Victor Espinoza approaching the quarter pole and drew out under a hand ride to an easy 7 1/4-length triumph. The victory was worth $60,000 from the $100,500 purse and pushed the youngster's earnings to $94,100 after three starts. He covered the seven furlongs in 1:23.56.

Red Flag is owned by Tina and Jerome Moss of Los Angeles and is trained by John Shirreffs. The chestnut colt's green and pink colors were familiar ones to those who followed the amazing career of the champion mare Zenyatta, co-owned by Jerome Moss and trained by Shirreffs.

Finishing second was Eric Homme's Uncle Boogie and third was Reddam Racing's Ambivalent. Spielberg, who is owned by a group that includes SF Racing, Starlight Racing or Madaket Stables and others, and went off at 3-5, finished fourth nearly 10 lengths behind the winner.

Red Flag paid $23.40, $9.60 and $9.40 across the board. Uncle Boogie returned $6.00 and $5.60, while Ambivalent paid $6.60 to show.

“John (trainer Shirreffs) said, 'You know him (Espinoza broke his maiden on him last out on Oct. 10 at Santa Anita), go ahead and see what you can do with him.' He broke running and he wanted to go. He seemed to be more professional today than last time. He's still a baby and he was fooling around before. Be he was good today and did all the right things. He'll go farther, for sure. With the way he ran today, why not?”

“I didn't really expect that kind of performance,” said Shirreffs. “I was hoping to get a placing. He broke his maiden from way off the pace and he's been doing better and better in the mornings, but he's not a brilliant work horse. So this was a pleasant surprise. You always hope but you never know. He's gone from 5 1/2-furlongs to seven, so it looks like he'll be able to go longer. It's special because (owners) Mr. and Mrs. Moss were here today and got to see him run.”

Leading rider Abel Cedillo and leading trainer Peter Miller won the nitecap together with Magical Thought ($20.60) and stayed on top in each of their categories after eight days of the current 15-day session. Cedillo now has 13 firsts and Miller has seven. Cedillo was the top rider at last fall's Bing Crosby meet and Miller has won four different versions of the “second season” at Del Mar.

Del Mar will return to action on Friday with first post at 12:30 p.m.

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