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Indiana Horse Racing Commission

HRC > Annual Reports & Statistics > 1997 Annual Report 1997 Annual Report

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State of Indiana
Indiana Horse Racing Commission
Frank O'Bannon, Governor

Letter to the Govenor

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.

Respectfully submitted,

Michael G. Schaefer, Chairman
Indiana Horse Racing Commission

Table Of Contents

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Indiana Horse Racing Commission

Commissioners

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.

Staff

Joe Gorajec Executive Director
Kay Roberts Assistant Executive Director
Robert Smith Director of Security
Deena Pitman Director of Licensing
Kristen Perrel Controller
Ron Adams Investigator
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.

Standardbred Judges
Timothy Schmitz, Presiding Judge
Robert Agner, Associate Judge
William Perkins, Associate Judge
Commission Veterinarian
David Younts, D.V.M.
Racing Inspectors
Paul Clark
Karla Vaughn
Standardbred Breed Development
Advisory Committee

Henry B. Blackwell, II
Ernest M. Gaskin
Nat Hill, IV
Thoroughbred Stewards
Leland Seba, Presiding Steward
Emile Gauchet, Associate Steward
Steve Pagano, Associate Steward

Veterinary Technicians
Stephanie Adams
Claudia Shaff
Marci Shaff

Thoroughbred Breed Development
Advisory Committee

Mari Hulman George
Ed Martin, Jr.
Timothy H. Sams

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Year In Review

July

  • 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.

August

  • 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.

September

  • 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.
October

  • 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.

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Live Racing At Hoosier Park

Standardbred
Number of Dates 85
Total Handle $5,647,918
Average Daily Handle $66,446
Total Attendance 95,809
Average Daily Attendance 1,127

Thoroughbred

Number of Dates 57
Total Handle $5,264,793
Average Daily Handle $92,365
Total Attendance 73,900
Average Daily Attendance 1,296

Combined Standardbred and Thoroughbred

Number of Dates 142
Total Handle $10,912,711
Average Daily Handle $76,850
Total Attendance 169,709
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.

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Simulcast Wagering by Location

     Hoosier Park     Merrillville OTB 
Simulcast Dates 320 311
Total Handle $29,610,464 $32,799,091
Average Daily Handle $92,533 $105,463

  Ft. Wayne OTB Indianapolis OTB
Simulcast Dates 260 324
Total Handle $15,315,618 $58,319,245
Average Daily Handle $58,906 $179,998
Total Simulcast Handle       $136,044,418

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.

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Distribution of the Wagering Dollar

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 Share 16,884,476.00
Purses Earned 7,688,001.74
Pari-Mutuel Tax 4,048,175.85
Breakage 885,972.41
Total Handle
$146,957,129.00


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State Revenues

The following are the direct state revenues collected in accordance with the pari-mutuel statute IC 4-31:

Pari-Mutuel Tax $4,048,175.85
Track Reimbursement for Officials 189,201.43
Admission Tax 32,372.78
Fines and Civil Penalties Paid 27,375.00
Track Permit and License Fees 8,000.00
Total Revenue
$4,305,125.06

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.

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Breakdown of Handle by Breed and Type

Breakdown of Handle by Breed and Type
Breed Live Handle % Simulcast Handle % Total Handle %
Standardbred $7,455,017 5.1 $23,167,361 15.7 $30,622,378 20.8
Thoroughbred $7,061,708 4.8 $109,272,643 74.4 $116,334,351 79.2
Combined Breeds $14,516,725 9.9 $132,440,404 90.1 $146,957,129 100.0

The handle above represents all money wagered at all Indiana locations.

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Purses Paid

Breed Dates Purse Paid Average Daily Purse Distribution
Standardbred 85 $9,558,420 $112,452
Thoroughbred 57 $8,703,640 $152,695

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.

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Purses Trends

Standardbred Purses
Average Daily Distribution

Standardbred Purses Average Daily Distribution

Source: The United States Trotting Association
Note: The average daily purse distribution is calculated by multiplying the average purse by eleven.

Thoroughbred Purses
Average Daily Distribution

Thoroughbred Purses Average Daily Distribution

Source: The Jockey Club

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Purses Earned by Type

Purses Earned by Type


Type
Amount
%
Riverboats(*) $8,880,900 48.4%
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%
Total $18,363,522 100%
(*) Assumes 75% fo breed development funds are allocated to purses.

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Simulcast Handle - Hoosier Park as Host Track

The following is a breakdown, by breed and track, of monies wagered out-of-state on Hoosier Park's live race meets.

Thoroughbred

Illinois* $5,888,084
Ohio* 4,793,862
Kentucky* 3,122,563
Penn National 1,735,799
New Jersey Hub 1,525,050
Philadelphia Park 1,422,367
The Meadows 1,442,367
Lone Star Park 1,356,165
Sam Houston 1,227,000
Laurel Rase Course 817,343
Ponoco Downs 738,289
Calder Race Course 726,297
Nebraska* 602,863
New England Hub 542,865
Faor Grounds 456,824
Prarie Meadows 443,833
Atlantic City 411,126
Delaware Park 392,256
Canterbury Park 354,632
Connneticut OTB 330,994
Evangeline Downs 329,898
Wisconsin* 318,784
Tri-State Greyhound 229,702
Mobile Greyhound 219,546
Michigan Hub 189,525
Arizona* 184,515
Fairplex 163,652
Wyoming OTB 162,850
Blue Robon Downs 150,016
Emerald Downs 113,979
Freehold Raceway 113,860
Sunland Park 44,263
Total
$30,647,240
* statewide system


Standardbred

Ohio* $2,953,888
Illinois* 1,455,422
Detroit Race Course 1,040,958
Kentucky (TB)* 504,331
Philadelphia Park 409,235
Penn National 341,248
The Red Mile 332,716
Michigan* 274,366
The Meadows 239,496
Ponoco Downs 216,210
Pompano park 213,082
New Jersey* 172,734
New England Hub 158,839
Delaware Park 131,388
Freehold Raceway 111,024
Yonkers Raceway 62,340
Cal-Expo(Calif.) 56,293
Foxboro Park 45,112
Dover Downs 19,390
Eureka Downs 173
Total
$8,738,245
* statewide system

Thoroughbred Daily Average (57 dates)

Standardbred Daily Average (85 dates)
$537,671 $102,803

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Simulcast Handle - Hoosier Park as Receiving Track

The following is a breakdown, by breed and track, of monies wagered at all in-state locations on simulcasts originnating from out of state.

Thoroughbred

Aqueduct $8,149,451
Churchhill Downs 7,819,415
Turfway Park 7,575,532
Calder Race Course 6,268,079
Santa Anita Park 5,453,007
Arlington International 4,607,850
Gulfstream Park 4,531,708
Hollywood Park 4,390,879
Ohio 7 & 7 4,069,566
Belmont Park 4,050,770
Fair Grounds 3,297,658
Hawthorne 3,277,690
Penn National 2,910,176
Ellis Park 2,897,907
Oaklawn Park 2,859,627
Sportsman's Park 2.800,263
Sam Houston Race Park 2,545,996
Delaware Park 2,491,215
Keeneland 2,203,784
Laurel Race Course 2,201,826
Hialeah Park 2,071,345
Del Mar Race Course 1,907,210
Evangeline Downs 1,806,224
Saratoga Race Course 1,648,960
Monmouth Park 1,624,595
Retama Park 1,536,780
Suffolk Downs 1,493,232
Meadowlands 1,459,514
Pimlico 1,354,330
Remington Park 1,330,681
Detroit Race Course 1,115,020
Philadelphia Park 814,838
Turf Paradice 738,834
Prairie Meadows 675,607
Rockingham Park 607,380
Garden State Park 595,996
Colonial Downs 467,480
Canterbury Park 414,749
Beulah Park 364,010
Playfair Race Course 226,462
Fairplex Park 159,061
Fairmount Park 105,021
Delta Downs 89,573
Total     $109,272,643


Standardbred

Balmoral $3,921,906
Meadowlands 3,559,266
Northfield Park 3,367,629
Sportsman's Park 2,928,251
Maywood 2,221,970
Hawthorne 1,922,973
Meadows 1,219,714
Garden State Park 947,596
Pompano Park 726,401
Scioto Downs 688,312
Northville Downs 533,804
Ponoco Downs 402,781
Freehold Raceway 248,916
Fairmount Park 207,307
Foxboro 138,045
Delaware, OH (LBJ) 77,873
Red Mile 36,618
Harrington Raceway 17,998
Total    $23,167,361

Hoosier's Top 5 Simulcast Circuit Choices
Kentucky(TB)
(CD,TP,EIP, &Kee)
$20,496,638
New York(TB)
(Aqu, Bel & Sar)
13,849,181
Southern Florida(TB)
(GP, Hia &Crc)
12,871,141
Sourthern California(TB)
(SA,Hol, & Dmr)
11,751,096
Chicago(SB)
(Spk, Bal, May & Haw)
10,995,100

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Occupational Licensing

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.

Category Count
Owner, Standardbred 1,471
Owner, Thoroughbred 1,422
Groom 1,045
Vendor Employee 352
Owner/Trainer, 330
Trainer, Thoroughbred 329
Stable Name 318
Owner/Trainer/Driver 299
Track Employee 223
Pari-Mutuel Clerk 200
Owner/Trainer, Standardbred 185
Driver/Trainer 147
Trainer, Standardbred 108
Jockey 104
Track Security 87
Asst. Trainer, Thoroughbred 79
Driver 63
Exercise Rider 48
Vendor/Contractor 38
Category Count
Commission Staff 37
Track Management 35
Racing Official 31
Farrier 31
Jockey Agent 20
Veterinarian 18
Owner, Quarter Horse 17
Authorized Agent 15
Asst. Trainer, Standardbred 15
Gate Crew 15
Pony Rider 15
Apprentice Jockey 12
Valet 12
Other 10
Owner/Trainer, Quarter Horse 8
Trainer, Quarter Horse 5
Vet. Assistant 4
Farrier's Assistant 3
Stable Employee 1
Total Licenses Issued: 7,152
  1994 1995 1996 1997
Licenses Issued 1,922 5,269 6,292 7,152
Probationary Licenses Issued   21 54 53 68
Licenses Refused 16 10 29 26

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Equine Drug Testing

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
Standardbred 85 1351 1679 2
Thoroughbred 58 1003 1141 7
Totals 143 2354 2820 9

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 Lasix diuretic
- 1 Prednisolone (Class 4) corticosteroid

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Human Drug Testing

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

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Breed Development Programs

Overview

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.

Standardbred

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.

1997 Distribution of Awards
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
Total   $1,850,196

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Breed Development Programs

Thoroughbred

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.

1997 Distribution of Awards
Purse Supplements $ 1,250,044
Owners Awards 103,268
Breeders Awards 85,661
Stallion Owner Awards 10,121
Total $1,449,094
Purse supplements include $364,000 distributed on Indiana Championship Day.

1997 Breed Development Fund Revenue

Breed Breakage Outstanding Tickets * Riverboat Revenue Total
Standardbred 442,986.21 381,012.87 1,658,457.31 2,482,456.39
Thouroughbred 442,986.20 381,012.88 1,570,961.03 2,394,960.11
Total 885,972.41 762,025.75 3,229,418.35 4,877,416.51
* Outstanding ticket revenue is based on tickets purchased in 1996 which expired in 1997.

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Blood Gas Analysis Program

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.

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Riverboat Revenue

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)

Purses
Standardbred
Thoroughbred
40% $3,316,914.62
3,141,922,08
$6,458,836.70
Track 30%   4,844,127.52
Breed Development
Standardbred
Thoroughbred
20% $1,658,457.31
1,570,961.03
3,229,418.34
Promotion Fund 10%   1,614,709.17
Total 100%   $16,147,091.73

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.

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1998 Hoosier Park Live Race Dates

Standardbred - 94 dates (April 17 - August 23)
Thoroughbred - 58 dates (September 11 - November 28)
1998 Hoosier Park Live Race Dates

Red indicates Standardbred Dates
Green indicates Thoroughbred Dates
Post Times
5:00 p.m. Sundays
7:00 p.m. Weekdays & Sundays
* Denotes Special Post Times

IHRC Approval - December 3, 1997