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Indiana Horse Racing Commission

HRC > Annual Reports & Statistics > 1998 Annual Report 1998 Annual Report

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

Letter to the Govenor

April 15, 1999


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 1998. The Commission has seen several promising trends develop which are indicative of a maturing and thriving horse racing industry in Indiana. Significant growth in size of foal crops, upgrading in the quality of stallions and higher prices paid for Indiana sired or bred horses are just a few indicators. Much of the racing industry's success is 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 both Indiana horsemen and Hoosier Park.

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 1998 racing season.

Standardbred Judges
Timothy Schmitz, Presiding Judge
William Perkins, Associate Judge
Richard Williams, 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
Steve Pagano, Associate Steward
Gary Wilfert, 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

May

  • Hoosier Park and its satellite facilities set a single day handle record of $1,881,082 on Kentucky Derby Day. The handle surpasses the record of $1,858,178 set on Derby Day in 1997.

July

  • On July 11th, a crowd of 7,472 on hand for the Dan Patch Invitational witness Pacific Fella and driver Cat Manzi shatter Hoosier Park's track record, pacing to victory in a time of 1:48.2.

August

  • Tony Morgan (252 wins) and Ernie Gaskin (82 wins) lead the driver and trainer standings for the second year in a row. Each also establish all-time Hoosier Park money earning records. Morgan's earnings total $3,015,716 while Gaskin becomes the first trainer to top the million dollar mark with an overall total of $1,324,519.

October

  • On October 3, Hoosier Park attracts the largest crowd in history of the facility for the $300,000 - added Indiana Derby. A total of 8,088 fans poured into the facility to see One Bold Stroke and rider Robby Albarado outduel Dixie Dot Com and David Flores.

  • On October 13, Vic's Rebel took a giant stride for the Indiana-Bred program by establishing a track record of 1:33.4 for the mile. Six days later, Vic returns to win the open $65,000 added Indy Mile.

November

  • Jon Court (118 wins) and Gary Patrick (22 wins) capture the riding and training titles, respectively. Court's 118 victories establishes a single season record, eclipsing the old mark of 91 he set in 1996.

      On November 6, Timothy H. Sams is appointed by Governor O'Bannon to serve a four year term on the Racing Commission. Sams replaces outgoing Commissioner K. Clay Smith who had served the Commission with distinction since its inception in 1989.

December

  • Governor O'Bannon reappoints Ernie Gaskin and Nat Hill to the Standardbred Breed Development Advisory Committee.

  • On December 4, 1998, the Indiana Supreme Court ruled in favor of the Commission in the first racing related action ever brought before the State's highest court. The high court denied a petition to transfer an appeal made by Cathy Rheinheimer regarding a wrongly issued injunction, thus letting stand an Indiana Court of Appeals decision in favor of the Indiana Horse Racing Commission.

  • On December 17, Robert Ossenberg is unanimously elected Vice-Chairman of the Racing Commission.

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Live Racing At Hoosier Park

Standardbred

Number of Dates 95
Total Handle $5,461,678
Average Daily Handle $57,491
Total Attendance 92,579
Average Daily Attendance 975

Thoroughbred

Number of Dates 58
Total Handle $5,335,290
Average Daily Handle $ 91,988
Total Attendance 76,524
Average Daily Attendance 1,319

Combined Standardbred and Thoroughbred

Number of Dates 153
Total Handle $10,796,968
Average Daily Handle $70,568
Total Attendance 169,103
Average Daily Attendance 1,105


The statistics above represent attendance and handle at Hoosier Park on live racing only. Thoroughbred handle includes Quarter Horse races. Additional wagering on Hoosier Park's live racing at Indiana OTB's is as follows - Standardbred ($2,050,349), Thoroughbred ($1,749,094) totaling ($3,799,443). Such wagering is included in OTB handle statistics on the following page.

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Simulcast Wagering by Location

Hoosier Park Merrillville OTB
Simulcast Dates 319 311
Total Handle $29,179,356 $30,678,506
Average Daily Handle $91,471 $98,645

Ft. Wayne OTB Indianapolis OTB
Simulcast Dates 271 322
Total Handle $18,451,560 $60,755,289
Average Daily Handle $68,087 $188,681
Total Simulcast Handle       $139,064,711

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 92,609.

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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 $ 117,032,914.00
Track Share 20,492,185.00
Purses Earned 7,366,834.00
Pari-Mutuel Tax 4,096,088.00
Breakage 873,657.72
Total Handle
$149,861,678.72


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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 $4,096,088.00
Track Reimbursement for Officials 227,346.58
Admission Tax 26,179.40
Fines and Civil Penalties Paid 21,950.00
Track Permit and License Fees 8,000.00
Total Revenue
$4,379,563.98

The direct revenue received by the State of Indiana exceeded the cost of regulation. Indiana Horse Racing Commission expenditures for calandar year 1998 were $1,118,850.28.

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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 $7,512,027 5.0 $22,862,752 15.3 $30,374,779 20.3
Thoroughbred $7,084,384 4.7 $112,402,516 75.0 $119,483,124 79.7
Combined Breeds $14,596,411 9.7 $135,265,268 90.3 $149,861,679 100.0

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Purses Paid

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 ($1,258,995) are not included.
Breed Dates Purse Paid Average Daily Purse Distribution
Standardbred 95 $12,186,805 $128,282            
Thoroughbred 58 $11,468,830 $197,738            

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Purse Trends

 Purse Trends

 Purse Trends

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Purses Earned by Type

Purse Earned by Type

Type Amount %
Riverboats (*) $ 12,084,168 55.2%
Simulcast - Receiving 6,763,263 31.0%
Breakage & Outs (*) 1,220,342 5.6%
Live Racing (Intrastate) 1,053,754 4.8%
Simulcast - Host (Interstate) 750,817 3.4%
Total $21,872,344 100%

(*) Assumes 75% of 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 * 7,068,537
Ohio * 6,358,332
Penn National 3,467,283
Kentucky * 3,312,325
Calder Race Course 2,758,620
Philadelphia Park 2,346,431
Sam Houston 2,285,286
New Jersey * 2,206,250
Lone Star Park 1,752,335
The Meadows 1,521,887
Las Vegas 1,382,489
New England Hub 1,199,349
Maryland* 1,094,270
Nebraska * 1,036,228
Connecticut OTB 908,181
Atlantic City/Resorts 793,497
Multimedia Games 632,432
Washington* 602,146
Evangeline Downs 551,815
Delaware Park 514,746
Les Bois 421,957
Wisconsin * 414,152
Canterbury Park 401,776
Oaklawn Park 372,433
Birmingham 367,353
Prairie Meadows 360,757
Southern Cal 328,038
Blue Ribbon Downs 319,038
Mobile Greyhound 244,431
Juerez 212,199
Wyoming OTB 180,363
Southland Greyhound 174,882
Tri-State Greyhound 166,605
Multinoma Greyhound 120,335
Freehold Raceway 116,319
Hazel Park 102,721
Maine* 59,462
Dover Downs 42,307
Detroit Race Course 21,308
Total $46,218,875
* statewide system

Standardbred

Illinois * 6,660,492
Ohio* 3,645,432
Penn National 1,166,575
The Meadows 998,856
Michigan* 774,829
New Jersey* 708,594
Kentucky* 669,705
Philadelphia Park 651,867
Sportscreek Raceway 469,185
New England * 181,100
Atlantic City/Resorts 143,886
Sam Houston 118,629
Delaware (Ohio) 117,368
Tri-State Greyhound 103,151
Multimedia Games 39,327
Evangeline Downs 35,986
Freehold Raceway 17,079
Total $16,502,061
* statewide system

Thoroughbred Daily Average (58 dates)
$796,877

Standardbred Daily Average (95 dates)
$173,706

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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 originating from out of state.

Thoroughbred

Ohio 7 & 7 7,452,740
Churchill Downs 7,294,729
Turfway Park 6,268,055
Aqueduct 6,028,998
Calder Race Course 5,864,961
Santa Anita Park 5,296,692
Hawthorne 5,018,749
Gulfstream Park 4,637,957
Belmont Park 4,217,929
Sportsman's Park 4,014,673
Fair Grounds 3,779,122
Penn National 3,730,903
Hollywood Park 3,619,860
Laurel Race Course 3,536,211
Ellis Park 3,263,151
Sam Houston Race Park 3,029,604
Lone Star Park 2,788,956
Oaklawn Park 2,787,109
Monmouth Park 2,208,702
Saratoga Race Course 2,070,597
Evangeline Downs 2,005,276
Keeneland 1,956,600
Del Mar Race Course 1,743,938
Hialeah Park 1,655,243
Delaware Park 1,494,438
Meadowlands 1,430,888
Golden Gate 1,307,609
Bay Meadows 1,261,249
Retama Park 1,235,694
Louisiana Downs 1,204,482
Pimlico 1,147,773
Suffolk Downs 1,085,954
Detroit Race Course 1,001,744
Philadelphia Park 969,957
Remington Park 784,207
Turf Paradise 749,971
Garden State Park 732,931
Colonial Downs 576,742
Fairplex Park 554,378
Tampa Bay 473,759
Prairie Meadows 453,928
Emerald Downs 437,948
Canterbury Park 400,124
Rockingham Park 334,559
Fairmount Park 218,747
Delta Downs 166,722
Finger Lakes 107,957
Total $112,402,516

Standardbred

Balmoral 5,413,543
Northfield Park 4,621,705
Meadowlands 4,067,589
Maywood 3,173,824
Meadows 1,558,043
Scioto Downs 879,524
Garden State Park 775,665
Northville Downs 521,402
Pompano Park 502,896
Fairmount Park 455,274
Freehold Raceway 321,388
Pocono Downs 307,770
Red Mile l54,567
Little Brown Jug 61,119
Dover Downs 48,443
Total $22,862,752

Hoosier's Top 3 Simulcast Circuit Choices

Kentucky (TB)
(CD, TP, EIP, & Kee)
$18,782,535
New York (TB)
(Aqu, Bel & Sar)
12,317,524
Southern Florida (TB)
(Crc, GP & Hia )
12,158,161

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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, Thoroughbred 1,661
Owner, Standardbred 1,659
Groom 1,074
Trainer, Thoroughbred 377
Stable Name 342
Vendor Employee 326
Owner/Trainer/Driver 326
Owner/Trainer, Thoroughbred 322
Track Employee 230
Pari-Mutuel Clerk 200
Owner/Trainer, Standardbred 191
Driver/Trainer 167
Jockey 127
Trainer, Standardbred 110
Asst. Trainer, Thoroughbred 97
Track Security 83
Driver 72
Exercise Rider 56
Commission Staff 42
Vendor/Contractor 40
Farrier 36
Track Management 30
Asst. Trainer, Standardbred 28
Racing Official 26
Owner, Quarter Horse 26
Authorized Agent 24
Jockey Agent 22
Pony Rider 16
Veterinarian 13
Gate Crew 13
Valet 13
Other 13
Trainer, Quarter Horse 11
Owner/Trainer, Quarter Horse 10
Vet. Assistant 10
Apprentice Jockey 9
Farrier's Assistant 4
Stable Employee 0
Total Licenses Issued: 7,806

1994 1995 1996 1997 1998
Licenses Issued 1,922 5,269 6,292 7,152 7,806
Probationary Licenses Issued 21 54 53 68 80
Licenses Refused 16 10 29 26 21

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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 94 1910 2343 7
Thoroughbred 58 1004 1303 3
Totals 152 2914 3646 10

The table below represents a further breakdown, by breed, of the name and types of drugs reported by the laboratory.

 
Number of Violations ARCI  
Standardbred Thoroughbred Drug Classification Type
4 - Banamine (Class 4) NSAID*.
1 - Methocarbol (Class 4) muscle relaxant
2 - Trichlormethiazide (Class 4) diuretic
- 1 Isoxsuprine (Class 4) vasodilator
- 2 Lasix diuretic

       * non-steroidal anti-inflammatory

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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 1998
Number of Samples Tested 1 14 15 33 24
Number of Positive Tests 0 3 8 14 12

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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

The Standardbred Breed Development Program continued with a lucrative program at Hoosier Park in 1998 that included a series of Early/Late Closing events, the GENESIS Series and the Indiana Sires Stakes. The Early/Late Closing events for Indiana sired, owned and bred horses, Indiana sired, owned or bred overnights and the GENESIS series competed for $3,481,877 in purse money. The GENESIS is a series of races for two and three-year-old Indiana owned or sired fillies, provided as an incentive to encourage ownership of fillies in Indiana to improve the quality of broodmares thereby enhancing the value and quality of yearlings produced in Indiana. Most important, the Breed Development program has provided an opportunity for the Indiana Sires Stakes to become one of the industry's premier programs. A total of $1,446,894 was paid in purses in 1998 to the Indiana Sires Stakes for two and three-year-old and aged Indiana sired horses. The success of the Indiana Standardbred Breed Development Program during 1998 has resulted in nearly five million dollars paid in purses at Hoosier Park and premium prices received for Indiana sired yearlings at the Indiana sales. More than 1,680 broodmares were bred to registered Indiana stallions in 1998, assuring continuous growth of our state's Standardbred industry.

The successful county and state fair purse supplement programs were continued with increased purses to the fairs. Owners of Indiana sired horses winning in open company at Hoosier Park received a bonus award. Breeder awards were made to the breeders of the winning Indiana sired horses of the finals of the Sires Stakes and the Indiana sired Early/Late closing events. Through these continued efforts, the Standardbred Breed Development Program is developing and promoting a fast growing and high quality Standardbred industry in the state of Indiana.

1998 Distribution of Awards

Purse supplements - Hoosier Park $1,514,100
Purse supplements - County Fairs 338,500
Purse supplements - State Fair 140,000
Indiana Sired & Breeder Awards 70,715
Total
$2,063,315

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Breed Development Programs

Thoroughbred

The Thoroughbred Breed Development Program provides incentives and awards to three important elements of the Indiana Thoroughbred industry: the owner, the breeder and the stallion owner. Indiana bred or owned horses earned over $5,000,000 during the 1998 Hoosier Park meet. Seven of the top ten money earning horses of the meet were from Indiana bred or owned. In 1998, the program initiated out-of-state breeder awards to breeders of registered Indiana bred horses winning races during the time there is no Thoroughbred racing at Hoosier Park.

The highlight of the 1998 Thoroughbred racing season was "Indiana Championship Day" held on September 13, 1998. Eight stake races for Indiana owned and foaled horses were contested and purse money totaled in excess of $600,000 for the championship day events. Trainer Bob Baffert 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.

1998 Distribution of Awards

Purse Supplements $ 2,920,331
Owners Awards 324,528
Breeders Awards 324,143
Stallion Owner Awards 28,336
Out-of-State Awards 3,798
Total
$3,601,136

Purse supplements include $600,000 distributed on Indiana Championship Day.

1998 Breed Development Fund Revenue

Breed Breakage Outstanding
Tickets *
Riverboat Revenue Total
Standardbred 436,828.86 376,732.50 2,123,003.09 2,936,564.45
Thoroughbred 436,828.86 376,732.50 2,123,003.09 2,936,564.45
Total 873,657.72 753,465.00 4,246,006.18 5,873,128.90

* Outstanding ticket revenue is based on tickets purchased in 1997 which expired in 1998.

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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.

1998 Riverboat Revenue Allocation to Racing
From Admission Tax (65 cents)

Purses 40%   $8,899,664.26
Standardbred   $4,449,832.13  
Thoroughbred   4,449,832.13  
Track 30%   6,674,748.17
Breed Development 20%   4,449,832.10
Standardbred   $2,224,916.05  
Thoroughbred   2,224,916.05  
Promotion Fund 10% 2,224,916.06
Total 100%   $22,249,916.59

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1999 Hoosier Park Live Race Dates

Standardbred - 103 dates (April 9 - August 25)
Thoroughbred - 65 dates (September 10 - December 5)
1999 Hoosier Park Live Race Dates

Red indicates Standardbred Dates Green and Underlined indicates Thoroughbred Dates

Post Times
5:30 p.m. Sundays
7:00 p.m. Weekdays & Sundays
* Denotes Special Post Times

Approved - December 17, 1998