Arizona Commission Meeting: ‘The Eyes Are On Us’

If there's a main takeaway from Tuesday's Arizona Racing Commission Meeting, it's an acknowledgement from officials and track management that the racing industry is monitoring Turf Paradise closely.

“We've got to do a better job at coming up with answers and coming up with solutions,” said commissioner Rory Goree, arguably the most outspoken member of the commission about Turf Paradise's poor equine safety record.

“I'm hopeful that here, in the near future, we as a commission will be able to talk about some of the solutions and ideas and make Arizona the light it needs to be, that we're making the change, doing the right thing instead of being the laughingstock that we are right now,” Goree added. “The eyes are on us.”

Repeated mention was given to racehorse Creative Plan (Creative Cause), who last raced at Turf Paradise Jan. 7, when a tailed off last of nine.

Creative Plan was recently euthanized due to irreversible damage to his suspensory ligaments and fetlock joints that had deteriorated over the course of weeks, according to an article in the Paulick Report Tuesday morning.

Between the time he last ran and his euthanasia, however, Creative Plan was sent to an Arizona horse auction, but went through unsold before being abandoned, the article found.

“With Creative Plan, there was a lot of finger-pointing going on, trying to cover our own butts,” admitted Goree.

In her latest track safety report, Sue Gale, the Arizona Department of Gaming's chief veterinarian, explained that Turf Paradise's race-day equine fatality rate was “creeping up.”

In a special commission meeting earlier this month, Gale said that the racing-related catastrophic injury rate was 2.8 fatalities per 1000 starts this season at Turf Paradise.

In her report Tuesday, Gale said that the fatality rate was now around 2.98 per 1000 starts at Turf Paradise.

According to the Jockey Club, the national fatality rate for 2020 was 1.41 per 1000 starts.

Gale said that she has included Creative Plan's death in the track's race-day fatality rate because he was injured during a race, “and then was put to sleep, or euthanized, this past week.”

However, another horse that fractured its fetlock earlier on in the meet, and who, despite efforts at rehabilitation was euthanized three months later, was not included within the track's race-day fatality numbers, Gale explained.

More broadly, official veterinarians, said Gale, have lately been scratching more horses on pre-race exams.

“It does seem that now we're about half-way through the meet, some of the horses are showing some wear and tear,” said Gale.

Nevertheless, one ongoing problem has been the lack of veterinarians “or administrative assistance” to help identify and red-flag horses at greater risk of catastrophic injury at Turf Paradise prior to pre-race exams, admitted Gale.

Gale said that, while she has been doing this task on a limited basis, “having someone on the staff that can do this on a more regular basis” would likely make a difference.

Rudy Casillas, the Department of Gaming's deputy director and racing division director, reported that he has asked Gale to start requiring the horsemen to submit updated veterinary medical records of every horse that is entered to race.

“That way, the veterinarians can review those medical reports of each horse that is entered to race and get a better sound picture of that horse's capability and physical status and medical status,” said Casillas. “That will be implemented coming forth, and, hopefully, that makes a difference.”

Another potential nexus of change is the state's claiming rules, said Goree.

“Seems like every morning I read the board and find out that there's a horse that's moved on, just wandering around on the backside, and I think it's because these horses are getting claimed so much they don't know where they live,” said Goree.

According to Goree, he has spoken with Rudy Casillas, the Department of Gaming's deputy director and racing division director, about the claiming rules.

“I know he's going to talk to the AG [attorney general] and see what we might be able to do,” said Goree.

Turf Paradise general manager, Vincent Francia, added more texture to the issue, reporting that there have been 441 claims thus far this season.

“That is a record here at Turf Paradise,” said Francia, pointing as a reason to the track's purses–now supplemented with both state and federal funds–with the average purse working out at about $19,000 per race.

“When you have a purse structure like we have, a lot of claiming is going to go on,” Francia said.

Another ongoing question mark at Turf Paradise has been the condition of the racing surface.

This week, Turf Paradise drafted in veteran track surface consultant Steve Wood to monitor the adding of organic materials and sand to the main track, Francia said.

The organic materials are put in to give the track “bounce” and to help maintain moisture levels, said Francia. The sand is to help prevent clumping of the clay-like materials, he added.

A problem seemingly as intractable as track conditions at Turf Paradise has been a shortage of official veterinarians. Indeed, at the commission meeting last October, Gale suggested putting a call out to practicing veterinarians in the area as an opportunity for them to “pick up some work.”

In an attempt to alleviate the burden, the gaming department has asked for funding for an additional veterinarian in the latest executive budget, said Arizona Department of Gaming director, Ted Vogt.

“It's been our number one funding issue for the past two fiscal years, so we're hopeful it'll get across the line this year,” said Vogt.

Earlier on in the meeting, the commissioners voted to approve Rillito Race Track's three-year racing permit application and the race-dates within that window, despite ongoing questions as to the facility's economic viability.

Casillas said that a prior financial review of the track found that it was “insolvent” with less than $1,000 in its bank account at the time.

Because of the importance of Rillito in the Southern Arizona racing calendar, however, “the department has worked tirelessly with Rillito staff to project Rillito's revenue streams, donations, purse monies, state and federal grant funds that are being provided to Rillito,” said Casillas.

That projected amount comes to roughly $900,000 plus. The department's original estimate of Rillito's costs to operate the race-meet was $1.2 million.

“Therefore, the division strongly recommends that Rillito tighten their belts, and be extremely vigilant and responsible and not expend needlessly,” said Casillas, who added that the gaming division would be monitoring their financial predicament closely.

“We want to openly inform Rillito that on an ongoing basis, the division will scrutinize their financial status, and expect that Rillito meet all their obligations, and more so, adopt generally accepted accounting principles to correct the past few years of disarray,” said Casillas.

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Safety Featured at AZ Commission Meeting

At a special Arizona Racing Commission Meeting Wednesday, Turf Paradise's equine safety record was once again a serious bone of contention, with commissioner Rory Goree calling the track's equine fatality numbers “deplorable.”

In her routine track safety report, Sue Gale, the Arizona Department of Gaming's chief veterinarian, explained that 22 horses have died at Turf Paradise since the start of the meet, on Nov. 5 of last year–nine racing-related fatalities, five during training, and eight due to illness.

The racing-related catastrophic injury rate works out to 2.8 fatalities per 1000 starts thus far this season at Turf Paradise. According to The Jockey Club, the national fatality rate for 2020 was 1.41 per 1000 starts.

Last year in Arizona–including both Turf Paradise and Arizona Downs–the fatality rate was 1.94 per 1000 starts, said Gale.

“Unfortunately, this month of January, we did have a week where there were four horse breakdowns within one week,” said Gale, who didn't provide any context on the possible reasons underpinning the fatalities other than to explain that such events are often multifactorial.

“We're waiting on the postmortems that we do on all racing fatalities and we will be having a racing safety committee meeting later this month to go over those reports and see if we can see any common factor that we can focus some attention on,” said Gale, who added that the safety meeting would likely occur after the next Arizona Racing Commission meeting Feb. 15.

Of the commissioners, Goree was by far the most critical of the situation. “We're still killing horses at a terrible rate out there, and I'm sick of it,” he said.

What's more, since the start of the latest Turf Paradise meet, there have been three equine ambulance failures, said Goree.

“One of them, a horse was picked up improperly. Another time, the second, the equine ambulance became inoperable and was unable to assist a horse on the track,” said Goree.

“The third time, an incident in the paddock in what was described as, quote, to me, 'a shit-show with the equine ambulance unable to get into the paddock until the 10th try and an incompetent track vet,'” said Goree.

“We keep killing horses like this, we're going to be out of business,” Goree said. “And I have to ask myself: How did we get to this point?”

One reason, said Goree, is insufficient funding to institute prior recommendations to tackle the state's rocky safety record, which goes back years.

Indeed, the high equine fatality rate during Turf Paradise's 2017-2018 season prompted the issuance of this commission report.

“What happened in 2017, our budget got whacked,” explained Goree. “Somebody went down to the legislature and lobbied to reduce RWA.”

The Regulatory Wagering Assessment (RWA) is a wagering tax used to fund the department.

“We got whacked by a million dollars. We were not able to implement bringing in another state vet. We were not able to implement bringing in another safety steward,” said Goree.

“And he we are, still with the same problems we had in 2017,” he added. “We're still killing horses at a terrible rate out there. And I'm disgusted about it, and I'm tired of it. We need to take action.”

Another key area of concern has been the condition and maintenance of Turf Paradise's training, racing and stabling facilities.

Indeed, an Arizona Department of Gaming inspection of Turf Paradise on Oct 20 last year–a little more than two weeks before the start of the current meet–found numerous human and equine health and safety failures, including a lack of necessary track maintenance equipment, and railings that needed to be fixed or replaced.

Some of the broken turf railing support arms “have sharp protruding points that would easily impale, severely injure or kill an equine or jockey if they were to fall on it,” the report states, before concluding with a list of eight key recommendations.

According to Rudy Casillas, the Department of Gaming's deputy director and racing division director, the agency continues to work with Turf Paradise to upgrade and purchase new equipment, the latter of which has recently included new tractors and a new roller to seal the track.

“We're monitoring with the track superintendent on a daily basis the track condition and whether it needs any soil and materials put into it,” said Casillas. “We have had Turf Paradise hire a consultant to come out, look the track over every couple of weeks and make recommendations.”

Casillas added that the department has inserted a provision into state and federal grant monies being issued to permitted tracks to fund the position of an additional veterinarian.

“That money would be held out to allow the department to hire a department veterinarian in addition to Dr. Gale, so that we can have 100% pre-race exams by certified veterinarians,” said Casillas.

A shortage of official veterinarians has been an ongoing issue in Arizona. Indeed, at the October commission meeting, Gale suggested putting a call out to practicing veterinarians in the area as an opportunity for them to “pick up some work.”

Nevertheless, Gale said Wednesday that Turf Paradise has recently hired a new track veterinarian, Alyssa Butler.

“She and I meet prior to the races to discuss which horses we consider might be of concern, and also after the races when she lets me know which horses have problems,” said Gale. “I think that communication has been key, and is going to maybe greatly improve, or would hope that it greatly improves, our outlook here for the remaining half of the Turf Paradise meet going forward.”

The current Turf Paradise meet is scheduled to end May 7.

Earlier on in the meeting, the latest attempt to return simulcasting signals from The Stronach Group (TSG)-owned racetracks into Arizona crumbled when the commission denied the company's Simulcast Horse Racing Import Signal contracts for Turf Paradise and Arizona Downs.

It has been roughly two years since Monarch–the TSG arm tasked with distributing the company's signal–sent its product into Arizona.

Representatives for Turf Paradise told the commission that the track supported their contract and that the loss of Monarch's signal had cost them millions in lost revenue.

Nevertheless, Kory Langhofer, counsel for Arizona Downs, argued that their contract provided an anti-competitive fee rate when compared to Turf Paradise, that it included an unlawful provision barring Arizona Downs from operating OTB sites within 60-miles of Turf Paradise, and that it unfairly prohibits Arizona Downs from unilaterally expanding its business.

“All three of these things together, we can't make it work,” said Langhofer.

In the end the commissioners agreed, denying the contracts on a 2-1 vote.

There also remains no confirmed race dates this year for Arizona's Rillito Race Track, which ordinarily runs a meet in February and March.

Casillas explained that there have been delays in the permit application process due to the track's questionable financial viability.

“We have discovered some financial concerns,” said Casillas. “We're working with them on a daily basis.”

Casillas added that Rillito projects approximately $120,000 a day in revenues from admission, parking and food and beverage sales.

According to Casillas, the department's own calculations show that it costs Rillito approximately $1.2 million to run the race-meet.

“Without the state and federal monies being contributed to them, they would be running a little shy to run the meet,” said Casillas. “I'm hoping that come the 15th everything is on track that we can proceed with having you review their financial state and determine whether or not you want to make an approval on their permit and race days.”

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AZ Breeders: ‘No Future’ Without Commission Help to Kickstart Live Racing

Thursday’s Arizona Racing Commission (AZRC) meeting opened with the chairman Rory Goree asking stakeholders to “refrain from discussing anything” related to a controversial appeal over who controls purse account money that is scheduled for the October meeting. And it ended with Turf Paradise owner Jerry Simms apologizing for the frustration the state’s Thoroughbred community feels over his decision not to incur liability by running a 2020-21 meet during a pandemic.

In between those brief, book-ended statements that define the currently closed status of racing in Arizona, commissioners heard a slew of impassioned pleas from breeders, owners, and trainers all desperately imploring the AZRC to take some form of action so that live racing can get back up and running in the state for the first time since March.

Last month, Turf Paradise withdrew its request for a traditional autumn-through-spring meet, citing COVID-19 concerns. Arizona Downs months ago called off its summer race meet after failing to secure permission top open from local health officials. Beyond the pandemic, a prolonged fight over off-track betting (OTB) privileges, simulcast signals, and how the horsemen’s purse money can be used has been batted back and forth in the courts and during commission meetings, clouding the future of the state’s two commercial tracks.

“Anybody sitting within the Arizona breeders has seen the value of their horses drop 50%-plus, with no place to run our horses in-state,” said Kevin Owens, a board of directors member of the Arizona Thoroughbred Breeders Association. “There’s a couple of big farms and there’s a lot of people who have people who have ‘backyard’ horses that count on Arizona as a state to facilitate a racing facility to bring these Arizona-breds to track. I don’t know what’s going to happen. I would certainly hope the commission is getting behind Arizona Downs to try to assist them in any way possible to get their meet open [and] operating.

Owens was referring to the possibility of Arizona Downs taking on some winter race dates, an idea that is feasible but depends in part upon the yet-to-be-decided status of the purse account.

“We have no future,” Owens continued. “We’ve been destroyed in this business. Our studs aren’t worth anything. We have a sale coming up [Nov. 19], that by all potential is going to be a bloodbath. We are continuing with our sale, [and] I would encourage the commission to maybe show up at the sale and see what we’re about. We haven’t had much interest from you guys in actually getting into our business and seeing what we do and what it costs to sponsor a sale like this and raise a bunch of horses.

“We’ve given more than one chance to Turf Paradise, and it’s time to move on. There’s been no good faith put forth by that facility at this point, and I believe that we should put everything that we have behind Arizona Downs, as it seems like they are the only ones that are going to have a chance to survive in this state. We need to go forward with an entity that’s concerned with the racing public, the horsemen, and the breeders.”

Breeder, owner and trainer Stacy Campo told commissioners that, “We really need this to happen. I have 18 horses ready to go into training immediately. Twelve of them are Arizona-breds. And you know, we’ve worked very hard to be able to sit here and be the backbone of racing in Arizona. And I hate to say it, but the breeders in Arizona are the backbone. We do supply the stock [and] we need to get live racing. Arizona Downs can do it. I’ve got the horses and the supply to go up there and run.”

Cynthia George, who said she is an owner, trainer, pony person, and exercise rider, underscored that, “the time is critical, because people can’t hold on much longer. Many [out-of-state] meets are coming to a close, and we all need a place to go…. If there’s [an in-state] track available, we need to open.”

Owner Freddy Alvarez added that, “Arizona Downs is the future for the horsemen. We need a place to go. We own 12 horses…. I know [the commission does its] best, but all it takes is a couple of eyes at Turf Paradise to see there’s nothing going on there,” with regard to reopening in the conceivable future.

Robert Hutton, the president of the Arizona Horsemen’s Benevolent and Protective Association, said that, “the horsemen of Arizona are not looking for handouts, but only the opportunity that is offered when a live meet takes place…. It is time for this industry to move forward without the constant distraction that has hindered us for years.”

Not a single one of the 10 horse community members who spoke at the meeting expressed constructive or encouraging sentiments for Turf Paradise over Arizona Downs.

Yet despite all the support thrown behind Arizona Downs, Tom Auther, an owner and partner in Arizona Downs, said he had “nothing to report” in the section of the AZRC agenda devoted to updates from the tracks.

Jerry Simms, the owner of Turf Paradise, did have something to say during the public commentary period after most of the horse community members had spoken. He began by saying that he understood their frustration, but that he felt like he was in a “no good deed goes unpunished” position.

Simms said he has been involved in the Turf Paradise ownership for 20 years, and that the track has been operating at a “huge negative” in recent years.

“The track owes me $8 million. And there hasn’t been a distribution since 2005. But I was happy—and am happy—to continue doing that,” Simms said.

But then, Simms added, COVID-19 changed everything.

“I made the decision that I didn’t want to have the liability,” Simms said. “There are many lawsuits out there where people are suing, and claiming that [business owners are negligent for operating in a pandemic]. And it was a difficult decision for me to make. But we sat down with my top management and realized this is what we had to do. We just didn’t want the liability of putting people in that kind of risk. But I completely understand the frustration that the folks have had. I’m sorry about that part. That’s all.”

Although no immediate lifeline for the return to live racing was proposed by the AZRC, Goree said that moving forward, his organization needs to “start looking at what the requirements are regarding live racing versus having an OTB. I would just want the department to maybe start looking at that and report back to us as to what powers we may have regarding if [a licensee is] not offering live racing [but still operating] OTB networks.”

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Ducey Appointments Give Arizona Racing Commission Quorum

Arizona Gov. Doug Ducey on Thursday announced 35 appointments to boards and commissions throughout the state, including two appointments to the Arizona Racing Commission.

“Even in a pandemic, we need to keep our civic processes moving forward and ensure that government is fulfilling its responsibility to its citizens,” said Ducey. “Today's appointees each bring unique experience, judgment and expertise to their roles, and I'm thankful for their commitment to serving Arizonans.”

Ducey appointed Jana Propheter and Holly Hover to the Arizona Racing Commission. The Commission regulates and supervises racing and pari-mutuel/simulcast wagering.

The five-member Arizona Racing Commission has not had a quorum and has been unable to meet for much of this year. The commission is chaired by Rory Goree, with Chuck Coolidge the only other member until Ducey's appointment of Hover and Propheter.

Jana Propheter is the assistant field research manager for Metrostudy, a housing data provider. In her role, she recruits and trains surveyors and analyzes data for quarterly reports. She has worked with and owned horses and ponies for 30 years. Propheter earned a Bachelor of Science degree in Food and Nutrition from Arizona State University.

Holly Hover is the manager and trainer of Holly Hover Performance Horses in Cave Creek. In her role, she specializes in the preparation of youth and amateur competitors. In 2015, she was named Most Valuable Professional for the American Quarter Horse and was named Professional Horsewoman of the Year in 2017. Holly volunteers her time in the community and most recently served as the 2019 Head Western Coach for the Arizona State University Equestrian Team.

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