California Voters Reject Sports Betting Initiatives By Wide Margins

Two sports betting ballot initiatives – one that would allow racetracks and tribal casinos to operate sports books and the other permitting online sports wagering – were soundly rejected by California voters on Tuesday.

Proposition 26 would have permitted sports wagering at tribal casinos and four tracks – Del Mar, Golden Gate Fields, Los Alamitos, and Santa Anita. With some mail-in and provisional ballots still to be counted, voters rejected Prop 26 by a margin of  70.1 percent to 29.9 percent.

Prop 26 also would have expanded gambling at tribal casinos to permit roulette and craps, something they currently can not offer.

California racetracks and the Thoroughbred Owners of California urged voters to support Prop 26 but are not listed among donors supporting the initiative financially. More than a dozen California-based tribes funded the campaign in support of Prop 26, which was opposed by card clubs and poker rooms throughout the state.

Proposition 27, permitting licensed tribes or gambling companies to offer sports betting over the internet and on mobile devices, lost by an even wider margin, 83.3 percent against and only 16.7 percent voting in favor.

Prop 27 was supported by gambling companies FanDuel, DraftKings, Fanatics, Bet MGM, Penn National Gaming, WynnBet,  and Bally's Interactive, along with some experts on homelessness and mental health. A portion of revenue from Prop 27 would have gone toward solving California's homeless crisis.

Analysts estimated more than $450 million was spent on both initiatives.

At least 27 states, plus Washington, D.C., permit some form of sports betting, which was made legal by a 2018 Supreme Court ruling.

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Economic Indicators: Wagering Trends Down In October, But Year-To-Date Figures Nearly On Par

Equibase, North American racing's official database, has released its October statistics for the industry's economic indicators, including field size, wagering, and other data, along with 2019 and 2020 comparables. The 2019 data is included as a pre-COVID-19 comparison.

Equibase is continuing to provide monthly reporting of its Economic Indicators Advisories as a service to the industry and in consideration of the economic changes resulting from the COVID-19 pandemic. The Advisory is typically disseminated on a quarterly basis to provide key metrics used to measure racing's performance throughout the year.

Both total wagering and average wagering per race day trended down from October of 2021 to October of 2022, the former by about five percent, and the latter by nearly six. However, year-to-date figures for the first 10 months of the year show 2022 to be nearly on par with 2021, with just a 0.02 percent drop in total wagering and 0.72 percent decline in average wagering per race day.

Looking at numbers from 2020, wagering is up 12.59 percent through the first 10 months of the year in 2022, but average daily wagering is down 9.77 percent. Those figures are compatible with the 24.78 percent increase in race days and 8.16 percent drop in field size.

Compared to 2019, prior to the pandemic, wagering through the first 10 months of the year is up 11.46 percent, with average wagering per race day showing an increase of 20.67 percent.

The strongest category remains purses, which were up 12.42 percent in October of 2022, and up 11.62 percent through the first 10 months of 2022. Compared to 2020, purses through the first 10 months of the year are up over 50 percent; average purses per race day are up 22.77 percent.

October 2022 vs. October 2021
Indicator October 2022 October 2021 % Change
Wagering on U.S. Races* $903,455,809 $950,283,112 -4.93%
U.S. Purses $121,208,687 $107,820,743 +12.42%
U.S. Race Days 332 328 +1.22%
U.S. Races 2,782 2,748 +1.24%
U.S. Starts 21,152 20,750 +1.94%
Average Field Size 7.60 7.55 +0.69%
Average Wagering Per Race Day $2,721,252 $2,897,205 -6.07%
Average Purses Per Race Day $365,086 $328,722 +11.06%
YTD 2022 vs. YTD 2021
Indicator YTD 2022 YTD 2021 % Change
Wagering on U.S. Races* $10,443,740,372 $10,445,477,843 -0.02%
U.S. Purses $1,103,214,337 $988,374,722 +11.62%
U.S. Race Days 3,555 3,530 +0.71%
U.S. Races 28,792 28,974 -0.63%
U.S. Starts 208,102 211,366 -1.54%
Average Field Size 7.23 7.30 -0.92%
Average Wagering Per Race Day $2,937,761 $2,959,059 -0.72%
Average Purses Per Race Day $310,328 $279,993 +10.83%

2020 Comparisons:

October 2022 vs. October 2020
Indicator October 2022 October 2020 % Change
Wagering on U.S. Races* $903,455,809 $929,063,211 -2.76%
U.S. Purses $121,208,687 $90,904,717 +33.34%
U.S. Race Days 332 340 -2.35%
U.S. Races 2,782 2,852 -2.45%
U.S. Starts 21,152 22,410 -5.61%
Average Field Size 7.60 7.86 -3.24%
Average Wagering Per Race Day $2,721,252 $2,732,539 -0.41%
Average Purses Per Race Day $365,086 $267,367 +36.55%
YTD 2022 vs. YTD 2020
Indicator YTD 2022 YTD 2020 % Change
Wagering on U.S. Races* $10,443,740,372 $9,275,606,633 +12.59%
U.S. Purses $1,103,214,337 $720,140,966 +53.19%
U.S. Race Days 3,555 2,849 +24.78%
U.S. Races 28,792 23,747 +21.24%
U.S. Starts 208,102 186,886 +11.35%
Average Field Size 7.23 7.87 -8.16%
Average Wagering Per Race Day $2,937,761 $3,255,741 -9.77%
Average Purses Per Race Day $310,328 $252,770 +22.77%

2019 Comparisons:

October 2022 vs. October 2019
Indicator October 2022 October 2019 % Change
Wagering on U.S. Races* $903,455,809 $776,071,164 +16.41%
U.S. Purses $121,208,687 $91,981,753 +31.77%
U.S. Race Days 332 334 -0.60%
U.S. Races 2,782 2,754 +1.02%
U.S. Starts 21,152 22,176 -4.62%
Average Field Size 7.60 8.05 -5.58%
Average Wagering Per Race Day $2,721,252 $2,323,566 +17.12%
Average Purses Per Race Day $365,086 $275,394 +32.57%
YTD 2022 vs. YTD 2019
Indicator YTD 2022 YTD 2019 % Change
Wagering on U.S. Races* $10,443,740,372 $9,370,253,183 +11.46%
U.S. Purses $1,103,214,337 $985,848,771 +11.91%
U.S. Race Days 3,555 3,849 -7.64%
U.S. Races 28,792 31,308 -8.04%
U.S. Starts 208,102 233,153 -10.74%
Average Field Size 7.23 7.45 -2.94%
Average Wagering Per Race Day $2,937,761 $2,434,464 +20.67%
Average Purses Per Race Day $310,328 $256,131 +21.16%

* Includes worldwide commingled wagering on U.S. races.

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‘People Seem To Like The Bad Guy LOL LOL’: Documents In Federal Doping Case Reveal New Side Of 2019 Pennsylvania Drug Case

A series of documents filed by prosecutors in the 2020 federal doping case reveal a previously unknown service offered by veterinarian Dr. Louis Grasso to his clients – help getting out of positive post-race or pre-race drug tests.

The government filed its pre-sentencing report on co-defendants Grasso and trainer Rene Allard Oct. 20. Both entered guilty pleas to drug adulteration and misbranding charges earlier this year. While the documents mostly recall information from the indictments about the frequency and types of substances used by both, Grasso's report goes farther.

Prosecutors have already stated that Grasso was offering to write prescriptions for any substance desired to his clients for $100, including prescriptions for erythropoietin, a blood-doping drug. He was also allowing his veterinary license to be used by co-defendant Donato Poliseno after his previous source for a veterinary license number died unexpectedly.

Read our 2022 reporting about the untimely death of Dr. Edward Conner here.

Grasso also made and peddled his own drugs.

“Unlike legitimate drug manufacturers, the defendant conducted no studies to determine the safety and efficacy of his drugs, undertook no compliance measures to ensure that the drugs were properly manufactured, and disregarded the medical necessity or propriety of distributing drugs in bulk without valid prescriptions,” the report read.

Almost all of those were sold to trainers in bulk quantities, allowing laypeople to determine which horses got how much and when.

But perhaps the most disturbing revelation in the report is that Grasso, on two separate occasions, was employed by trainers to deliver false testimony in their defense against drug positives with state racing commissions.

In one conversation with an unidentified trainer, Grasso told the trainer “you will have to get a veterinarian to back you up and bring some kind of documentation that the horse was in a clinic and being jugged and had a fever and yadda yadda yadda and there is a possibility you can get out of it.”

Grasso further warned that the person could find a veterinarian willing to go to bat for them, adding, “I mean you give them enough money.”

Grasso admitted in another conversation that he had once performed this service for co-defendant Rene Allard.

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Attached to the government's pre-sentencing report for Allard was a partial excerpt of a 2019 appeal decision out of Pennsylvania that described testimony of Grasso on behalf of Allard. The horse in question was Kings Barns according to Allard's record in the USTA database but was abbreviated to KB in the written appeal decision.

“Dr. Grasso described KB as an 'average racehorse' who was 'slightly excitable' and 'immunodepressed,'” according to the decision. “He confirmed that, due to the horse's illness, he had recommended the scratching of KB from its scheduled Aug. 11, 2018, race. He described the symptoms of the illness as including a respiratory infection, fever, dehydration and lack of appetite.”

Read more about Allard and Grasso's defense pre-sentencing reports here.

Grasso also testified the horse had spiked a fever of 105.7 and a hematocrit reading of 59%, indicative of severe hydration for which he was treating the horse. The horse allegedly spiked a temperature again and received fluids and a medication to reduce his fever.

The excerpt indicates that the positive test occurred before a race KB won on July 7, 2018. It appears to suggest that the horse was originally out of normal limits on a base-excess test, which is a measure of blood pH, but that a retest put the horse in normal limits.

The board of stewards at The Downs at Mohegan Sun Pocono had fined Allard $1,000 and suspended him 30 days, but after hearing the testimony of Grasso and others, decided to reverse their previous ruling.

Meanwhile, in private conversations, Grasso bragged to a third trainer “Grasso 2, Commission 0.”

Detail is not provided on which other trainer may have benefitted from false testimony by Grasso.

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Grasso awaits sentencing with a significant record that prosecutors claim clearly shows he has no problem acting against the law. In 1992, Grasso had been arrested and was subsequently convicted for distributing anabolic steroids. On multiple occasions, he was found to have sold drugs to an undercover officer, resulting in three years of probation and 400 hours of community service. In 2000, he was again arrested for dispensing controlled substances in Delaware, where he was not licensed. He later negotiated a deal with prosecutors in that case and pled guilty to resisting arrest, resulting in a one-year suspended sentence and a year's probation. He lost his Drug Enforcement Agency license as a result.

In a text message to an unidentified person, Grasso wrote he has “ALWAYS been the bad guy so that's [his] reputation” that he “plays into it because it keeps the persona where [he] likes it!!!” and “all it does is make [his] business even larger [because] people seem to like the bad guy LOL LOL.”

In the pre-sentencing report on Allard, prosecutors highlighted the length and profitability of his illegal drug use, which they allege brought him an income of over $3 million in 2019 and more than $20 million in purses total. Allard was fond of administering or directing administration of drenches, which are given via a nasogastric tube immediately before a race.

“In one instance, Allard was even caught red-handed tubing and drenching a horse scheduled to race that day – which no trainer is permitted to do – and abruptly fled the stall when he was caught,” the report read.

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This is followed by a citation to an exhibit which was filed under seal, so no further information about the incident was publicly available.

Prosecutors accuse Allard of trying to cover his doping and other questionable activity by maintaining a supply closet in his barn that was labeled with Grasso's name and which contained a shockwave machine and a “small pharmacy's worth of drugs, including ingredients he used to mix his own drenches.” The government claims it was Allard who primarily used those items and the labeling was insurance in case anyone asked questions about the contents.

The report also notes that Allard was successful in overturning a positive for codeine and morphine in Ontario, in addition to the Pennsylvania TCO2 case in which Grasso testified. Another TCO2 case in 2019 was dismissed due to an equipment malfunction. A 2016 positive test for oxycodone was also rescinded.

In the case of Grasso, prosecutors are advocating for five years in federal prison. For Allard, they're requesting 30 months.

Sentencing for both is scheduled for Nov. 15 at 11 a.m. before U.S. District Judge Daniel Patrick Moynihan in New York.

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Record $189 Million Wagered On Two-Day Breeders’ Cup

Total all-sources, global common-pool handle for the two-day Breeders' Cup World Championships at Keeneland Race Course was $189,060,373, a record for the two-day event.

The total represents a 3.4% increase over the prior record of $182,908,409 set when the event was held at Del Mar in 2021 and an 18% increase from the total handle of $160,472,893 at the 2020 event held at Keeneland.

Total common-pool handle on Saturday's 12-race Breeders' Cup card was a record $122,918,607. All sources common-pool handle on Breeders' Cup's 10-race Future Stars Friday card was $66,141,766, also a new record for a Breeders' Cup Friday. This is the fifth consecutive year that Breeders' Cup grouped all its juvenile races together on Friday.

“We witnessed a spectacular two days of racing capped by Flightline's absolute brilliance in the Longines Breeders' Cup Classic, once again showcasing the best Thoroughbreds from around the world and we want to thank our partners here at Keeneland, who did a phenomenal job, and the greater Lexington community,” said Breeders' Cup president and CEO Drew Fleming. “The Breeders' Cup is truly an international championship event and the very best our sport has to offer.”

On-track handle for the two days was $28,326,478. Saturday's attendance was 45,973 and the two-day on-track attendance was 85,824.

The Breeders' Cup World Championships will return to Santa Anita Park in 2023 for its 40th running.

Breeders' Cup Two-Day Attendance and Handle (common-pool) history:

Year Location Attendance Handle
2022 Keeneland 85,824 $189,060,373
2021 Del Mar 47,089 $182,908,409
2020 Keeneland No Attendance Reported $160,472,893
2019 Santa Anita 109,054 $174,628,986
2018 Churchill Downs 112,672 $157,445,841
2017 Del Mar 70,420 $166,077,486
2016 Santa Anita 118,484 $156,861,811
2015 Keeneland 94,652 $149,869,035
2014 Santa Anita 98,319 $151,158,813
2013 Santa Anita 94,628 $160,704,877
2012 Santa Anita 89,742 $144,272,332
2011 Churchill Downs 105,820 $161,512,867
2010 Churchill Downs 114,353 $173,857,697
2009 Santa Anita 96,496 $153,271,176
2008 Santa Anita 86,588 $155,740,328
2007 Monmouth Park 69,584 $129,197,262

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