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State of Indiana
Indiana Horse Racing Commission
Frank O'Bannon, Governor
March 15, 1998
The Honorable Frank O'Bannon
Governor of the State of Indiana
Room 206, The Statehouse
Indianapolis, IN 46206
Dear Governor O'Bannon:
The pari-mutuel horse racing industry moved forward at a rapid pace in 1997. Hoosier Park in Anderson was able to attract some of the top equine athletes throughout the Midwest to its live standardbred and thoroughbred meets. The prize money or purses offered to attract these quality horses were greatly increased over prior years. This was primarily due to the revenue generated by the portion of riverboat admission tax that is allocated to the racing industry. This revenue has proved vital to Hoosier Park's success and has propelled the track into the upper echelon of the pari-mutuel horse racing industry in the United States. Hoosier Park now ranks second in the country in average daily purse distribution for standardbred racing.
As in the past, the Commission continues to focus its energies on diligently regulating the pari-mutuel industry. The results of our regulatory efforts, along with statistics of interest, are highlighted in this report.
I am pleased to report that Indiana has gained a reputation throughout the Midwest for clean, honest and competitive racing. The Indiana Horse Racing Commission is determined to provide the strong leadership that is needed to assist in the continued success and maintain the integrity of our new pari-mutuel racing industry. Each Commissioner is proud and grateful to have the opportunity to serve you in this endeavor.
Michael G. Schaefer, Chairman
Indiana Horse Racing Commission
|Michael Schaefer||Chairman * (2000)|
|K. Clay Smith||Vice-Chairman * (1998)|
|Janet Bozzelli||Secretary * (2001)|
|Pete Beck||Member * (2001)|
|Robert Ossenberg||Member * (1999)|
|* Term expires September 1st of year indicated.|
|Joe Gorajec||Executive Director|
|Kay Roberts||Assistant Executive Director|
|Robert Smith||Director of Security|
|Deena Pitman||Director of Licensing|
|Shirley England||Licensing Supervisor|
|Jacki Brown||Administrative Secretary|
|Carmen Willoughby||Breed Development Clerk|
To further assist the Commission with its regulatory responsibilities, the following individuals provided professional or technical service at Hoosier Park during the 1997 racing season.
On July 11, Hot Lead, with Tony Morgan in the bike, wins the $150,000 Dan Patch Invitational Pace. The 6,023 fans in attendance represent the second largest crowd in track history.
Extreme Velocity, the winningest horse in Hoosier Park history, puts Indiana in the national spotlight with an explosive stretch rally to win the $282,000 Breeders' Crown final at the Meadowlands. The 1997 ISA Horse of the Year is owned by Dave and Merrill Stohler of Markleville, Indiana and trained by Trent Stohler.
On August 22, Perfect Art driven by George Brennan, captures the inaugural $500,000 Hoosier Cup. The half-million dollar purse is the largest in track history. A total of $676,900 in prize money paid during the night establishes a Hoosier Park record for most purses paid on a single card.
Tony Morgan and Ernie Gaskin earn top standardbred driving and training honors respectively. Both Morgan's 137 wins and Gaskin's 56 visits to the winner's circle establishes single season records at Hoosier Park.
The Racing Commission switches to a digital licensing system. A digital photo is taken of each licensee and stored in the licensing database while simultaneously printing onto a credit card size plastic badge. Photographs are immediately available for recall or reprinting of badges with no additional picture taking. The new system will be more cost effective and provide greater convenience for all licensees.
National racing icon trainer D. Wayne Lucas and Hall of Fame jockey Pat Day participate in the second Indiana Championship Day held on September 14. Ten races filled with Indiana bred or owned horses are contested and over $400,000 in purse money is awarded.
On September 29, Richard A. "Pete" Beck and Janet Bozzelli are appointed by Governor O'Bannon to serve four year terms on the Racing Commission. Beck and Bozzelli replace outgoing Commissioners Dick Darko and Tom Wetterer, both of whom served the Commission with distinction since its inception in 1989. Chairman Michael G. Schaefer, Vice-Chairman Clay Smith and Robert Ossenberg are reappointed to staggered terms.
On October 4, Dubai Dust trained by D. Wayne Lucas captures the third running of the Indiana Derby.
For the first time in Indiana pari-mutuel history, Quarter Horse racing is held at Hoosier Park on Sunday, October 26. Three $10,000 stake races were carded. The first Quarter Horse race, the Governor's Stakes, is won by Easy Night Beat, which is owned by Mary Jo Renihan of Martinsville, Indiana and piloted by Carter Riley of Walton, Indiana.
Jon Court (65 wins) and Earl Murphy (18 wins) capture the thoroughbred riding and training titles respectively. Court's title is all the more noteworthy as he is unable to compete during the last three weeks of the meet when he suffers a broken leg after the 2nd race on November 10.
|Number of Dates||85|
|Average Daily Handle||$66,446|
|Average Daily Attendance||1,127|
|Number of Dates||57|
|Average Daily Handle||$92,365|
|Average Daily Attendance||1,296|
Combined Standardbred and Thoroughbred
|Number of Dates||142|
|Average Daily Handle||$76,850|
|Average Daily Attendance||1,195|
The statistics above represent attendance and handle at Hoosier Park on live racing only. Thoroughbred handle includes $38,907 wagered on Quarter Horse races. Additional wagering on Hoosier Park's live racing at Indiana OTB's is as follows - Standardbred ($1,807,099), Thoroughbred ($1,796,915) totaling ($3,604,014). Such wagering is included in OTB handle statistics on the next page.
|Hoosier Park||Merrillville OTB|
|Average Daily Handle||$92,533||$105,463|
|Ft. Wayne OTB||Indianapolis OTB|
|Average Daily Handle||$58,906||$179,998|
Hoosier Park statistics represent all wagering on out-of-state simulcasts (no live racing). The number of simulcast dates at Hoosier Park reflect any dates on which full card simulcasting took place. Special race simulcasting at Hoosier Park is included in the handle, but not in the number of dates. All OTB statistics represent all wagers at each location on both in-state and out-of-state simulcasting.
Admission is not charged at the Indianapolis OTB, the Ft. Wayne OTB and at Hoosier Park for simulcasting. Consequently, attendance is not counted. Attendance at the Merrillville OTB was 94,905.
The following is a breakdown of the distribution of all monies wagered at Hoosier Park and its satellite facilities:
|Returned to Bettors||$ 117,450,503.00|
|Track Reimbursement for Officials||189,201.43|
|Fines and Civil Penalties Paid||27,375.00|
|Track Permit and License Fees||8,000.00|
The direct revenue received by the State of Indiana exceeded the cost of regulation. Indiana Horse Racing Commission expenditures for calandar year 1997 were $1,388,466.15.
|Breed||Live Handle||%||Simulcast Handle||%||Total Handle||%|
The handle above represents all money wagered at all Indiana locations.
|Breed||Dates||Purse Paid||Average Daily Purse Distribution|
The following is a breakdown by breed of purses paid at Hoosier Park. Breed Development purse supplements and some horsemen's fees are included. Purse monies from Breed Development bonuses for Indiana sired or Indiana owned are not included. The Kentucky Sales Company's and Hambletonian Society's contributions ($1,002,030) are not included.
Source: The United States Trotting Association
Note: The average daily purse distribution is calculated by multiplying the average purse by eleven.
Source: The Jockey Club
|Simulcast - Receiving||6,802,221||37.0%|
|Breakage & Outs (*)||1,235,999||6.7%|
|Live Racing (Intrastate)||885,780||4.8%|
|Simulcast - Host (Interstate)||558,622||3.1%|
|(*) Assumes 75% fo breed development funds are allocated to purses.|
The following is a breakdown, by breed and track, of monies wagered out-of-state on Hoosier Park's live race meets.
|New Jersey Hub||1,525,050|
|Lone Star Park||1,356,165|
|Laurel Rase Course||817,343|
|Calder Race Course||726,297|
|New England Hub||542,865|
|Blue Robon Downs||150,016|
|* statewide system|
|Detroit Race Course||1,040,958|
|The Red Mile||332,716|
|New England Hub||158,839|
|* statewide system|
|Thoroughbred Daily Average (57 dates)||Standardbred Daily Average (85 dates)|
The following is a breakdown, by breed and track, of monies wagered at all in-state locations on simulcasts originnating from out of state.
|Calder Race Course||6,268,079|
|Santa Anita Park||5,453,007|
|Ohio 7 & 7||4,069,566|
|Sam Houston Race Park||2,545,996|
|Laurel Race Course||2,201,826|
|Del Mar Race Course||1,907,210|
|Saratoga Race Course||1,648,960|
|Detroit Race Course||1,115,020|
|Garden State Park||595,996|
|Playfair Race Course||226,462|
|Garden State Park||947,596|
|Delaware, OH (LBJ)||77,873|
|Hoosier's Top 5 Simulcast Circuit Choices|
Pursuant to IC 4-31-6 and 71 IAC 5-1-1, all persons participating in pari-mutuel racing under the jurisdiction of the Commission are required to be licensed. The licensing process is the backbone of the Commission's regulatory efforts. Each prospective licensee is fingerprinted. The Federal Bureau of Investigation (FBI) and the Indiana State Police provide the Commission with criminal histories of all applicants. The Commission may refuse or deny the application for licensure of any person whose criminal or racing violation record is contrary to the public's best interest.
|Probationary Licenses Issued||21||54||53||68|
Pari-mutuel horse racing can succeed as a legitimate major league sport only if its races are perceived by the wagering public to be honest, competitive contests, free from manipulation by man or drugs. With the exception of furosemide (lasix) and phenylbutazone (bute), under regulatory restrictions, state law and Commission rules prohibit the presence of any drug in horses racing at a pari-mutuel track. The Commission's drug detection program is one of the nation's most comprehensive and its laboratory one of the most respected in the racing industry. Truesdail Laboratory in Tustin, California, serves as the primary testing laboratory for the Indiana Horse Racing Commission. Truesdail Lab has been a leader in racing chemistry and drug-related research for over 50 years. The following table indicates, by breed, the number of samples analyzed and the number of positive tests reported. In each instance, the offending horse was disqualified and placed last. In accordance with the pari-mutuel statute, all purse money earned is ordered returned and redistributed.
|Breed||Race Dates||Urine||Blood||Positive Tests|
The table below represents a further breakdown, by breed, of the name and types of drugs reported by the laboratory.
|Number of Violations|
|Standardbred||Thoroughbred||ARCI Drug Classification||Type|
|2||6||Banamine (Class 4)||non-steroidal anti-inflammatory|
|-||1||Prednisolone (Class 4)||corticosteroid|
Commission regulations provide that a licensee or an applicant for licensure may be required, if reasonable suspicion exists, to submit to a drug test. Commission rules require a minimum suspension of thirty (30) days for a positive test for an illegal drug.
|Human Drug Testing||1994||1995||1996||1997|
|Number of Samples Tested||1||14||15||33|
|Number of Positive Tests||0||3||8||14|
Pursuant to IC 4-31-11, breed development funds have been established to promote the breeding of horses while stimulating the agri-business sector of the state's economy. All breakage and unclaimed winning tickets are statutorily earmarked for breed development. In addition, twenty percent (20%) of the riverboat admission tax allocated to the racing industry is distributed to breed development funds. Standardbred and thoroughbred breed development advisory committees make recommendations to the Commission regarding the distribution of these monies.
In 1997 the Standardbred Breed Development Advisory Committee established a new series of Early/Late Closing Events held at Hoosier Park. This series created races for Indiana sired, owned and/or bred horses to compete for over $1.6 million in purse money. The Genesis Series for trotting and pacing fillies also expanded in 1997 to include three-year olds for the first time.
The successful county and state fair purse supplement programs were continued as were the purse bonuses for breeders and stallion owners. The stallion owner and breeder awards were expanded in 1997 to include horses who won a heat of the Indiana Sired Stakes. Through these and other efforts, the Standardbred Breed Development Program hopes to develop and promote a high quality Standardbred industry in the state of Indiana.
|Purse supplements - Hoosier Park||$1,423,402|
|Purse supplements - County Fairs||245,500|
|Purse supplements - State Fair||120,000|
|Indiana Sired & misc. awards||61,294|
The Thoroughbred Breed Development Advisory Committee has concentrated their resources in designing a program that will increase both the quality and quantity of Indiana breds that will compete at Hoosier Park in the future.
The highlight of the 1997 Thoroughbred racing season was "Indiana Championship Day" held on September 14. Ten stake races for Indiana owned and foaled horses were contested and purse money totaled in excess of $400,000. Trainer D. Wayne Lucas and jockeys Pat Day and Shane Sellers appeared in conjunction with the festivities for the day's events sponsored by the Thoroughbred Breed Development Program.
|Purse Supplements||$ 1,250,044|
|Stallion Owner Awards||10,121|
|Breed||Breakage||Outstanding Tickets *||Riverboat Revenue||Total|
|* Outstanding ticket revenue is based on tickets purchased in 1996 which expired in 1997.|
The purpose of the Blood Gas Analysis (BGA) program is to deter and detect the practice of "bicarbonate loading" or what is known in the racing business as "milkshaking." This practice generally entails giving a horse a large quantity of an alkaline substance, usually baking soda, prior to a race. The alkaline substance neutralizes the lactic acid that is produced during exercise and, as a consequence, delays the onset of fatigue. Research has demonstrated that this practice induces some horses to race faster times. Bicarbonate loading can give a horse an unfair competitive edge and thus compromise the integrity of the sport. This practice is strictly prohibited by the rules of the Commission.
The BGA Program is operated by the Commission in a small laboratory located in the paddock at Hoosier Park. Blood samples of selected horses are analyzed prior to the race on a state-of-the-art blood gas analysis machine. Each sample is analyzed by a certified lab technician under contract through St. John's Hospital in Anderson.
The statute permitting riverboat gaming in Indiana earmarks sixty-five (65) cents of the three dollar admission tax to the pari-mutuel horse racing industry. These funds are distributed to various segments of the racing industry in accordance with Commission rule 71 IAC 12-2-15.
1997 Riverboat Revenue Allocation to Racing From Admission Tax (65 cents)
Pursuant to Commission rule, the allocation between breeds for purses and breed development is determined based upon the percentage of pari-mutuel handle on each breed on live racing at all Indiana locations. Based on 1997 handle, 51.35% of available funds were distributed to standardbreds, while 48.65% was distributed to thoroughbreds.
IHRC Approval - December 3, 1997