Judge Rules Belterra Owes Ohio HBPA $2.7M In ‘Deprived’ VLT Money

A money disagreement that has simmered for nearly a decade got a step closer to settlement Thursday when a federal judge ruled the Ohio Horsemen's Benevolent and Protective Association (OHBPA) is entitled to $2,769,652 in gaming revenues that the present and former owners of Belterra Park withheld between 2014 and 2018.

The dispute arose from Belterra's failure to pay the OHBPA its share of net-win video lottery terminal (VLT) commission from Belterra Park. The quarrel was exacerbated when the two sides disagreed over the rate that was supposed to be the horsemen's lawful cut and whether or not retroactivity applied to that rate, with the OHBPA alleging that Belterra's withholding of money over a four-year period amounted to “unjust enrichment.”

The Mar. 30 order by Judge Algenon Marbley in United States District Court for the Southern District of Ohio (Eastern Division) is not a final judgment. But the judge did write that, “this Court finds that statute requires Defendants to pay Plaintiff the [higher] 9.95% rate from May 1, 2014, to June 30, 2018 [and that] having found that no reasonable jury could find for Defendants on Plaintiff's unjust enrichment claim, this Court GRANTS summary judgment on this issue.”

Dave Basler, the OHBPA's executive director, told TDN via phone Friday morning that the horsemen were pleased with the ruling.

“We felt throughout that that was money that was owed to the horsemen, and felt strongly that that was something that we needed to pursue legally until it was resolved,” Basler said. “The money obviously would be a benefit to our purse account.”

The initial complaint filed Dec. 18, 2020, explained that when VLT gaming was first legalized by Ohio in 2009, the state authorized racinos to retain 66.5% of revenues, with “between 9% and 11%” of those net-win proceeds to then be paid to Thoroughbred and Standardbred entities.

That range of percentages was set five years before any actual VLT gaming happened at Belterra, and in 2012 the state authorized the Ohio State Racing Commission to set the actual rate that would go to the horsemen. But until a new, firm rate got set, 9% was to be used as the placeholder to determine purse proceeds, according to an escrow agreement negotiated between Belterra and the commission.

Belterra didn't open for VLT gaming until May 1, 2014, largely because the track formerly known as River Downs was undergoing a substantial renovation to rebrand the property as Belterra Park Gaming & Entertainment Center. The capital expenditures for that project were to be a factor in determining the new calculation rate for purse money, but the complaint alleged that Belterra stalled and tried to overstate the costs it incurred fixing up the property, an allegation that Belterra denied.

Eventually, on June 27, 2018, the racing commission set the percentage of Belterra Park's net-win VLT commission that it owed to the OHBPA at 9.95%. The OHBPA interpreted that rate to mean both retroactively and moving forward, while Belterra argued that the OHBPA was not due any retroactive funds, because Belterra and the commission had negotiated over the catch-up payments and had factored that aspect into the escrow agreement.

Four days after that final rate was established, the OHBPA did, in fact, begin receiving its full 9.95% from Belterra. But the bone of contention that led to the lawsuit had to do with the retroactivity surrounding the remaining .95% beyond the 9% stipulated in the escrow agreement. The OHBPA argued that Belterra never made good on the four-year difference between the placeholder rate and the revised rate, which is how the plaintiffs arrived at the $2,769,652 figure.

“Here, Plaintiff argues, because Belterra Park was the only racino in the state with which Plaintiff failed to reach agreement on the VLT commission rate, the parties entered a temporary 'escrow agreement' of 9% pending an administrative ruling by the Racing Commission,” the Mar. 30 order stated.

“Plaintiff maintains that the Escrow Agreement was only meant to be temporary; it could not set the commission rate because it was not a method authorized by the statute. As such, Plaintiff argues, the 9.95% commission rate must be backdated because the statute considers only one fixed rate that is to be applied from the moment the first coin is dropped,” the order stated.

The judge agreed with the HBPA's reasoning, explaining the decision this way: “This Court finds the best way to apply the statute is to do so based on its plain meaning. Plaintiff was due payment using a rate determined by the Racing Commission in the absence of an agreement with Belterra Park. The Racing Commission did eventually determine a commission rate of 9.95%. This commission rate is thus applicable for the entire period that Belterra Park operated its VLT gaming.

“Indeed, the statute provides that the Racing Commission must set the rate within six months. This did not happen. No authority indicates, however, that the Racing Commission's tardiness has any relevance to this case. As such, this Court finds that statute requires Defendants to pay Plaintiff the 9.95% rate from May 1, 2014, to June 30, 2018,” the order stated.

The OHBPA had also asked to be paid prejudgment interest on the outstanding payment. But the judge denied that request at the Mar. 30 summary judgment stage on a legal technicality because the plaintiffs failed to state whether they sought the interest “pursuant to statute or common law.”

The order did state, though, that the OHBPA could file a separate motion for prejudgment interest, which leaves that aspect of the case open for the time being.

Also unknown at this stage is whether the defendants plan to appeal. There are multiple parties involved on that side of the case.

Belterra Park itself is named as a defendant, as is the racino's current owner/operator, Boyd Gaming Corporation.

Pinnacle Entertainment, Inc., (which, according to the suit, owned Belterra between 2011 and 2018) and Penn National Gaming, Inc. (which, according to the suit, briefly had an ownership interest in Belterra in 2018), are also listed as defendants.

David Strow, Boyd's vice president of corporate communications, answered a Friday query from TDN about a possible appeal by emailing that the company did not wish to comment on the court order at this time.

The post Judge Rules Belterra Owes Ohio HBPA $2.7M In ‘Deprived’ VLT Money appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post

Lone Star Park Announces 2023 Season

The Thoroughbred racing season at Lone Star Park will begin Thurs., April 13, with 44 live racing days and will conclude Tues., July 4. The calendar will feature live racing on Thursdays and Fridays at 6:35 p.m., Saturdays, Sundays and Memorial Day at 1:35 p.m., and special twilight post times of 5:00 p.m. on July 3 and July 4. The 2023 stakes schedule has a total of 21 stakes worth a combined $2,925,000. The highlight of the schedule is Lone Star Million Day on Memorial Day featuring the GIII Steve Sexton Mile.

The post Lone Star Park Announces 2023 Season appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post

12 Questions: Sue Finley

Sue Morris Finley, Publisher & CEO of the Thoroughbred Daily News, spent her childhood driving back and forth to Aqueduct, Belmont and Saratoga with her family. In 1993, she was part of the team that took over the production of the Thoroughbred Daily News, and oversaw its move to Red Bank, NJ, becoming its co-publisher. For 12 years, she was the First Vice President of the Thoroughbred Retirement Foundation, a national organization dedicated to the humane retirement of former racehorses, and served three years on the board of the Thoroughbred Aftercare Alliance.

What was your racing highlight of the year?

Unquestionably, Flightline's Breeders' Cup. I bought my Breeders' Cup tickets early, made sure to get outdoor seating so I could see him in person, and then kept my fingers and toes crossed all year that he would make it. It was worth the wait.

What is one moment in 2022 that you haven't gotten over yet?

The turmoil over HISA. I feel as if all of our lives and careers are hanging in the balance, and no one is in charge.

Who, if anyone, do you think was the equine breakout star of the year?

Forte. Totally in command in the Breeders' Cup Juvenile to win his third Grade I. Wow.

What about a human breakout star?

It's a tie among the 26 incredible people who work at the TDN. Their journalistic skills and dedication to their jobs are second to none, and they've driven us to another record year. It's an honor to work with them all.

Favorite international meet?

I love going to the races at Deauville during the Arqana summer yearling sale, but I think my favorite day at the races ever was at a small track outside of Berlin called Hoppegarten. Not only did almost everyone at the track bring their dog to the races with them, but they all stood and applauded each horse as they came back from the race—win or lose.

Favorite Thoroughbred of all time?

It's a tie. Affirmed, because my parents took me to see the 1978 Belmont Stakes and it kindled my love for the sport. And Renaissance Bob, who we rescued from a slaughter auction and who went on to spend 23 years at the TRF's Wallkill Correctional Facility, helping incarcerated men to change their lives. Both chestnuts, incidentally.

What is one change you'd like to see happen in racing in the foreseeable future?

I would like to see video replays made freely accessible everywhere. How can we promote the sport when we can't see it and show it to others?

What or who surprised you the most this year?  Could be a performance, a stallion, a sales price, etc.

Sharp Azteca, who's currently number one on the first-crop list with 34 winners!

You get to have one conversation with someone deceased in the racing industry.  Who are you talking to and what's the topic?

My dad. I'm counting him as being in the industry since he was one of our most important assets: a die-hard fan and a $2 bettor who loved nothing more than coming home with a $10 profit after a long day at the track. And because I'd give anything to talk to my dad again.

What was the biggest lesson you learned in 2022?

Don't count your chickens.

Finally, what are you most looking forward to in 2023?

Discovering the next Flightline. Is it too early to start looking for him?

The post 12 Questions: Sue Finley appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post

NTRA Offers D.C. Internship Program

The National Thoroughbred Racing Association is seeking current students or recent graduates for its internship program in Washington, D.C. The NTRA's new Washington office is located on Capitol Hill under the operation of former U.S. Congressman Tom Rooney, the President and CEO of the NTRA.

“With the new Congress in January and everything in Washington reopening after COVID, we are very eager to welcome interns into our D.C. office,” Rooney said. “The dynamic work environment of Capitol Hill is great for young people, and we hope to bring students with an interest in Thoroughbred racing and government affairs onto our team. One of my favorite things about being a Congressman was helping bring young people to D.C. and showing them how it works, and it is our hope that our internship program can do just that.”

Qualifications include, but aren't limited to, strong written and oral communication skills, the ability to take direction, learn and work independently and proactively, strong attention to detail and organizational skills and a team member mentality. The full internship posting can be found here.

The post NTRA Offers D.C. Internship Program appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post

Verified by MonsterInsights