State of Arizona Department of Racing 53rd Annual Report 2001-2002 DEDICATION Dr. Walter F. Condon On April 22, 2002 the Arizona racing community lost a long-time supporter and regulator. Dr. Condon was appointed to the Arizona Racing Commission by Governor Evan Mecham in 1987, and served under three subsequent governors, Moffard, Symington, and Hull. Dr. Condon completed three full five-year terms, and concluded his term as Racing Commissioner on January 21, 2002, and was honored by Governor Hull with a Certificate of Appreciation in recognition of fifteen years of dedicated service as a member of the Arizona Racing Commission. Governor Hull praised Dr. Condon’s commitment and dedication to fulfilling the Commission’s mission and goals which earned him the respect and appreciation of the citizens of the great State of Arizona. Dr. Condon served on the Racing Commission during an era of exceptional growth and change in Arizona pari-mutuel racing. During his first five-year term as Commissioner, off-track wagering went from one site to 24 sites, gradually shifting the gambling dollar from on-track wagering to off-track wagering. When Dr. Condon completed his service with the Racing Commission, 64 off-track wagering facilities were in operation. Dr. Condon was also on-board during the advent of Indian gaming and witnessed its effect on the pari-mutuel racing industry. Dr. Condon served the Commission with honor and integrity and was appreciated for his strong commitment to pari-mutuel racing in Arizona. Ron Mouser Longtime Department of Racing licensing supervisor Ron Mouser passed away on March 13, 2002. Ron moved to Phoenix in 1983 and became the first licensing supervisor for the newly created Arizona Department of Racing. Ron is responsible for establishing most of the licensing procedures in place today. After 15 years of dedicated service, Ron retired from the Department in 1998. In May 1998, Ron became one of the first individuals to receive a recognition award from the Arizona Racing Commission for his outstanding service to the Arizona pari-mutuel racing industry. Ron’s dedication and commitment to whatever project he undertook has left a lasting legacy. Ron was an inspiration to all those he came in contact with during his years of service with the Department of Racing and is deeply missed by his many friends in both the Department of Racing and the Arizona racing industry. ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT ARIZONA DEPARTMENT OF RACING JANE DEE HULL GOVERNOR WADETURNER DIRECTOR FRANK c. LA VIA, JR. DEPUTY DIRECTOR October 21,2002 The Hon. JaneDee Hull Governor of the State of Arizona 1700 West Washington Phoenix, AZ 85007 Dear Governor Hull: In accordancewith A.R.S. 5-104 (P), the Arizona Department of Racing respectfully submits its annual report for FY 2002. During the year, the Department of Racing supervisedhorse and greyhound racing and pari-mutuel wagering conducted at three commercial horse tracks, three greyhound tracks, and 15 county fair racing meetings. In addition, the Department supervised wagering at 77 teletrack wagering locations throughout Arizona. The Department issued 6,071 licenses to racing participants during the year. Boards of Stewards surpervising racings meetings statewide issued 778 rulings During FY 2002, the Arizona Racing Commission conducted hearings and approved permit applications for five commercial racing applicants, three teletrack applicants and 15 county fair racing applicants. The Commission approved eight new off-track wagering facilities. The following numbers document racing and wagering activity in Arizona in FY 2002: .Total statewide pari-mutuel handle was $274 million, down more than $11 million or 4% from FY 2001. This representsthe first decline in annual statewide handle in five years.Total state pari-mutuel tax receipts amounted to $757,662, down 58% from FY 2001. The Department estimatesstate pari-mutuel tax revenues in FY 2003 will be comparable to collections in FY 2002. .A total of 13,5341ive races were conducted during 1,005 live racing performances in FY 2002. .Total wagering at Turf Paradise and its off-track sites was $126 million in FY 2002, a nominal change from FY 2001 levels. .Wagering on races offered by Yavapai Downs at Prescott Valley grew nearly 10% to $29 million last year.Phoenix Greyhound Park handled $68 million in wagers, down almost 12% from FY 2001 levels. .Wagering at Tucson Greyhound Park and its OTBs declined 8% last year to nearly $25 million. .Apache Greyhound Park handled $5.3 million in wagers on 69 live programs and year-round simulcasts. .Wagering at teletrack (off-track) locations accountedfor 63% of total Arizona handle. .Wagering on simulcast races (conducted out-of-state) accountedfor 65% of total Arizona handle. On behalf of the Arizona Racing Commission and the Department of Racing, I affirm our commitment to work closely with you and your staff to effectively and efficiently regulate and supervise Arizona's pari-mutuel racing industry. Respectfully submitted, I.L. 1~ O no W ~ w (/) Z w U :;j ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL RE PORT 2 Investigations Unit The Department’s Investigations Unit conducted 1,209 investigative cases during FY 2002. By the close of the reporting period all but 195 cases had been closed, referred, or adjudicated administratively. The 195 pending cases all related to license applicant investigations. The Investigations Unit is comprised of a supervisor, an executive secretary, six certified law enforcement investigators, and an OTB coordinator. Of the total cases investigated, approximately 979 cases related to licensing. Additionally, 175 cases were investigated relating to rule compliance for commercial horse racing, greyhound racing, and county fair racing programs. The unit conducted 670 inspections of sites, including off-track betting sites (OTBs), greyhound licensed facilities, and other locations under the Department’s jurisdiction requiring noticing pursuant to A.R.S. § 41-1009. for day-to-day operation of the sites. The Department issued 74 such licenses during the past fiscal year. In addition, all of those employed at the site by a permittee, along with others the Director may require, must be licensed. The expiration date for all teletracking licenses is January 31, 2005. Teletracking Sites Licensing & Inspections Five of Arizona’s racing permittees operated teletracking (off-track betting) networks. The number of facilities within each network changes periodically. The network servicing the three horse tracks (Turf Paradise, Yavapai Downs and Fort Tuthill Downs) is largely the same and used 59 sites during FY 2002. Turf Paradise also sent its racing signal to four county fairs. The state’s other commercial horse track, Rillito Park, did not operate a network during the fiscal year. Phoenix Greyhound Park sent its signal to 33 sites during the fiscal year. Tucson Greyhound Park sent its signal to nine sites. Many of the sites are shared and the total number of facilities used was 77. Drug/Alcohol Abuse Investigations Substance abuse investigations continue to be aided by the use of field drug screening tests of suspected drug abusers. The Department began using an improved NIDA-5 drug field-testing device two years ago, available through the Department’s contract laboratory. Field tests that indicate drug abuse are then confirmed through conventional laboratory procedures using the Department’s contracted SAMHSA certified laboratory. (* Refusals to testing are treated the same as positive tests for administrative discipline). The Director, under authority provided by teletracking rules, currently licenses owners, managers, agents, and others who are responsible The Department constantly monitors the sites to ensure that the laws and regulations are followed. During FY 2002, the Department’s teletracking coordinator and other division investigators made 358 visits to off-track sites. The coordinator consults with facility owners and managers, the employees of the permittee, and the betting customers to ensure that the site maintains security for both the personnel and customers and to make certain that the parimutuel wagering equipment, audio-visual, closed circuit and satellite transmission equipment are functioning properly. Suspected alcohol abuse is detected through breath/alcohol testing in the field, with laboratory confirmation as required. Statutory language in A.R.S. § 5-104 (C) defines the specific license categories subject to substance abuse testing. (The summary of human drug and alcohol abuse testing cases for the fiscal year is listed below.) Summary of Human Drug and Alcohol Testing Tests Human Drug Tests Positive Tests Percent Positive Breath/Alcohol Test Positive Tests Percent Positive FY 2000 FY 2001 FY 2002 38 16* 42.0% *Plus 5 refusals 16 5 31.0% 53 11* 39.6% *Plus 10 refusals 7 5 71.4% 36 6* 28% *Plus 4 refusals 2 1 50% ARIZONA DEPARTMENT OF RACING FY 2003 ANNUAL REPORT 3 Licensing and Inspection of Racing Kennels/Breeding Farms During FY 2002, Department investigators conducted 168 inspections of the 64 greyhound racing kennels, breeding farms, and other operations (RBO), that were licensed during the three-year greyhound industry licensing cycle which began January 31, 1999. Only 40 such operations have licensed in the cycle starting February 1, 2002. Again, this year less than 1% of all kennel inspections required administrative referrals, showing a high level of compliance with the greyhound welfare provisions within the rules. The inspection statistics include weekly inspections at Apache Greyhound Park, the only greyhound racing enclosure where greyhounds are housed on the grounds of the racetrack during the meet. Breeding/Whelping Inspections The certification procedure requires the breeder (owner or lessee) of the brood dam at the time of whelping to file a breeding/whelping report with the Department within ten days of a litter whelping. Additionally, 90 days from whelping, the tattooing of the litter must be reported on the second-part tattoo report. These procedures are now required by rule as part of the process towards certifying these greyhounds to be eligible for the Arizona Breeders Award program. Upon receipt of the required reports, the Department’s assigned investigators visit the licensed farms to inspect each reported litter, to verify whelping and tattooing. The Department’s assigned investigators made 141 such litter inspections, on 876 reported pups. Every greyhound litter whelped and reported must be inspected to be eligible for subsequent certification as Arizona-bred. The BWI investigator also conducts spot checks for verification of tattooing, after receipt of the required tattoo report, and follow-up inspections to ensure compliance with statutory and regulatory language. Investigations Summary – FY 2002 No. Offenses 113 228 17 1 36 66 11 0 6 44 66 137 484 1209 Denied Referred Pending Warning No Action 1 0 8 0 0 0 1 0 0 0 0 0 0 10 102 0 6 1 10 63 8 0 6 44 3 2 0 245 7 0 0 0 0 3 0 0 0 0 1 0 184 195 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 228 3 0 26 0 2 0 0 0 62 135 299 757 False Application Interviews Undesirables Possession of Contraband Human Drug Testing Horse Rule Violation Greyhound Rule Violation Illegal Gambling Criminal Violation Animal Drug Testing Miscellaneous Inspection-Kennels Criminal Records Received Total Equine and Canine Drug Testing The Department contracted with The Industrial Laboratories Company, Inc., of Denver, Colorado to serve as its primary drug-testing laboratory. In addition, secondary laboratory contracts were awarded to the Center for Tox Services (Tempe, Arizona), and PTRL East (Richmond, Kentucky). During FY 2002, a total of 13,671 samples were submitted to this lab for testing to comply with Arizona statutes and rules governing the use of drugs and medications in horses and greyhounds. A total of 38 positive tests were reported from horse samples. Two greyhound samples returned with positive test results. A breakdown of the positive tests is noted below. The Industrial Laboratories Company is accredited through a program administered by the American Association of Laboratory Accreditation. Positive Equine & Canine Drug Tests Commercial Horse Racing (34) 3 Clenbuterol 9 Oxyphenbutazone 16 Phenylbutazone 6 Phenylbutazone/Oxyphenbutazone Greyhound Racing (2) 2 Flunixin County Fair Horse Racing (4) 2 Oxyphenbutazone 1 Phenylbutazone 1 Phenylbutazone/Oxyphenbutazone ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 4 RACING LEGISLATION AND RULEMAKING Legislative Summary During the 2002 Legislative session, Governor Hull signed four bills that affect the Department of Racing. The Department also was impacted by budget cuts dictated by declines in state revenues. The Arizona Legislature considered proposals concerning tribal-state gaming compacts and expanded gaming at racetrack locations during both the 2002 regular session and a special session. S.B. 1164 S.B. 1164 provides specific statutory authority reiterating that the Department of Racing has access to federal criminal history information via the applicant fingerprint card process. It also clarifies the fact that the Department of Racing has the authority to bill the cost of background investigations to the applicant. The bill amends A.R.S. § 5-107.01 of the racing statutes. H.B. 2708 H.B. 2708, the omnibus budget reconciliation bill, establishes a division of boxing regulation within the Department of Racing and directs Racing Director to appoint an assistant director for boxing regulation to perform duties prescribed in boxing statutes. The bill became effective August 22, 2002. H.B. 2700 H.B. 2700, a measure concerning Arizona’s budget process, requires that state agencies post their strategic plans on the agency’s official internet website by January 1 of each year. H.B. 2414 H.B. 2414 requires all state agencies to post a copy of their annual report on their web site rather than distributing printed copies. Legislative Gaming Proposals concerning During the 2002 regular legislative session, several gaming-related bills were considered by the legislature. In addition, Governor Hull called a special legislative session during which several gaming proposals were considered. In both sessions, proposals to define the terms of future tribal-state gaming compacts and to authorize gaming devices at qualifying racetracks were introduced. However, neither session produced a bill that established the state’s policy on tribal gaming or expanded gaming at racetracks. After Legislative efforts failed, both tribal interests and a coalition including Arizona racetracks gathered a sufficient number of signatures to place three different propositions on the November 2002 general election ballot. Department of Racing Budget During the FY 2002 fiscal year, the Department’s budget was cut by nearly $180,000 (or 5.5%). Its FY 2003 budget was reduced an additional $150,000, or 4.9%, before considering standard and technical adjustments and the receipt of additional monies ($80,300) associated with new responsibilities for regulating boxing. Over two years, the Department’s budget has been reduced by $330,000 or more than 10%. The Department has accrued savings by keeping numerous positions vacant. These vacancies have impacted agency operations in many areas, including rulemaking and accounting functions. Rulemaking Activity There was no rulemaking activity during the 2002 fiscal year. ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 5 STATE RECEIPTS The Department collects pari-mutuel commission fees and license fees, which are deposited into eight separate funds. Revenues received from fines are deposited directly into the State General Fund. In FY 2002, more than 78% of state racing-related revenues were generated from pari-mutuel commissions, the share of racetrack handle paid the state according to statute. relief that is available in the following forms: • Tax reductions for greyhound tracks; • Exemption from State tax on monies handled on simulcast wagers; • A Hardship Tax Credit for tracks which have suffered a decline in business; and • Capital Improvement Program tax reductions for horse tracks in small counties. State revenues from pari-mutuel sources declined in FY 2002 compared to last fiscal year, and remain well below levels attained prior to the implementation of tax relief legislation enacted in 1994. Tax revenues were down 91% compared to FY 1995. In addition, the amusement sales tax on monies retained from wagers has been phased out over three years. As of July 1, 1998, permittees are no longer subject to this tax. The table below summarizes state pari-mutuel tax paid by commercial racing permittees between FY 1996 and FY 2002. In 1994, the Legislature passed S.B. 1373, which provided the racing industry with an assortment of tax breaks beginning on July 1, 1995. Tracks became eligible for tax When combined with revenues from license fees and fines, state racing-related revenues in FY 2002 amounted to $962,257. Trends in State Pari-Mutuel Tax Payments FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Percent Change Horse Tracks Fort Tuthill Downs Yavapai Downs Rillito Park Turf Paradise - - - - - - - -100% $21,818 - - - - - - -100% - - - - - - - -100% - - $354,408 $589,792 $522,442 $661,654 $595,011 -40% $21,818 - $354,408 $589,792 $522,422 $661,654 $595,011 -54% - $24,323 $55,671 - - - - -100% Phoenix Greyhound Park $2,767,536 $2,603,932 $2,544,279 $2,360,262 $2,022,163 $1,165,011 $162,651 -97% - - -100% $2,822,820 $2,628,255 $2,599,950 $2,360,262 $2,022,163 $1,165,011 $162,651 -98% Commercial Track Totals $2,844,638 $2,628,255 $2,954,358 $2,950,054 $2,544,605 $1,826,665 $757,662 -91% Horse Track Totals Greyhound Tracks Apache Greyhound Park Tucson Greyhound Park Greyhound Track Totals $55,284 - - - ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 6 - Disposition of State Racing Related Receipts (and fund share of State pari-mutuel receipts) FY 1997 FY 1998 FY 1999 FY 2001 FY 2000 FY 2002 $49,165 1.8% $2,142,484 37.0% $1,989,279 29.1% $3,172,344 46.5% $2,575,970 41.4% $4,444,693 54.8% Arizona Breeders' Award Fund $597,892 21.7% $800,000 13.8% $800,000 11.7% $800,000 11.7% $800,000 12.9% $800,000 9.9% Arizona County Fairs Racing Betterment Fund $597,892 21.7% $800,000 13.8% $800,000 11.7% $800,000 11.7% $800,000 12.9% $800,000 9.9% Agriculture Promotion Fund $897,244 32.5% $1,200,000 20.7% $1,200,000 17.6% $1,200,000 17.6% $1,200,000 19.3% $1,200,000 14.8% Arizona Coliseum And Exposition Fund $299,081 10.8% $400,000 6.9% $400,000 5.9% $400,000 5.9% $400,000 6.4% $400,000 4.9% County Fairs Racing Fund $224,108 8.1% $300,000 5.2% $300,000 4.4% $300,000 4.4% $300,000 4.8% $300,000 3.7% Adm. of County Fair Racing and Awards Fund $36,665 1.3% $48,228 0.8% $48,579 0.7% $48,345 0.7% $45,000 0.7% $45,000 0.6% Stallion Award Fund $29,773 1.1% $40,000 0.7% $40,000 0.6% $40,000 0.6% $40,000 0.6% $40,000 0.5% Agricultural Consultant/Training Fund $27,066 1.0% $57,351 1.0% $55,837 0.8% $67,713 1.0% $61,771 1.0% $80,951 1.0% $200 0.0% $275 0.0% $4,300 0.1% $275 0.0% $75 0.0% $3,400 0.0% Other $0 $0 FY FY FY FY FY FY 20 02 $2,000,000 FY $2,000,000 20 01 $4,000,000 19 97 $4,000,000 20 02 $6,000,000 20 01 $6,000,000 20 00 $8,000,000 19 99 $8,000,000 19 98 $10,000,000 19 97 Distribution of State Revenues General Fund $10,000,000 $8,114,044 FY Pari-Mutuel $6,222,816 20 00 State Receipts Pari-Mutuel Commission & Other Sources Unclaimed Property $6,828,678 FY $5,637,995 19 99 Other $5,788,338 FY $2,759,086 19 98 Total Distribution FY ARIZONA DEPARTMENT OF RACING FY 2002 Annual Report 7 Greyhound Adoption Fund FY General Fund H.B. 2151 Provisions of H.B. 2151 (Laws 1996, Chapter 353) became effective in FY 1998. This law authorizes up to twenty percent of the revenues derived from the disposition of unclaimed property to be allocated to the various recipients of pari-mutuel racing revenues. seven of the funds. The aggregate maximum is $3.585 million. Once the maximums are reached, all monies received from either pari-mutuel sources or unclaimed property receipts (except for one percent for the Agricultural Consulting/ Training Fund) will be deposited in the State General Fund. H.B. 2151 provides that the funds shall receive a fixed percentage of revenues from both racing and the share of unclaimed property receipts. H.B. 2151 also imposes a maximum amount that may be deposited to The following table indicates the percentage or maximum amount of revenues that funds receive after July 1, 1997, when H.B. 2151 became effective. New Funding Provisions of H.B. 2151 Effective July 1, 1997 New Share Fund County Fairs Livestock & Agriculture Promotion Fund * County Fairs Racing Betterment Fund * Breeders’ Award Fund * Exposition and State Fair Fund * County Fair Racing Fund * Stallion Award Fund * Administration of Betterment & Breeders Awards Fund * Agricultural Consulting and Training Fund General Fund Total Maximum Funding Guarantees *Funds with cap under H.B. 2151 Receipts from the Disposition of Unclaimed Property The Department of Revenue transferred $7,186,030 to the Department of Racing from the disposition of unclaimed property during FY 2002. Of this total, $2,754,686 33% 22% 22% 11% 9% 1% 1% 1% (none) Annual Maximum Under H.B. 2151 $1,200,000 $800,000 $800,000 $400,000 $300,000 $40,000 $45,000 N/A N/A $3,585,000 was transferred to the eight funds to enable these funds to reach statutorily authorized levels. Monies that remained available after funding caps were reached, a total of $4,431,344, were transferred to the general fund. Summary of Receipts from the Disposition of Unclaimed Property January 2002 disbursement March 2002 disbursement July 2002 disbursement Total received $500,000 $1,100,000 $5,586,030 $7,186,030 Disbursed to “racing” funds Remaining Balance Disbursed to General Fund $2,754,686 $4,431,344 ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 8 The table below gives a categorical breakdown of state revenues and the table on page 7 provides information on disposition of state racing-related receipts. Categorical Breakdown of State Revenues FY 1997 Mutuel Commission Unclaimed Property License Fees Fines Other Total FY 1998 $2,606,325 FY 1999 FY 2000 FY 2001 FY 2002 $58,125 $47,155 $47,481 $2,943,787 $2,681,159 $88,529 $49,205 $25,658 $2,945,419 $2,465,180 $166,829 $45,570 $14,997 $2,549,046 $4,153,331 $59,506 $45,810 $20,985 $1,802,280 $4,266,855 $91,558 $42,502 $19,621 $750,354 $7,186,030 $158,988 $56,315 $-37,643 $2,759,086 $5,788,338 $5,637,995 $6,828,678 $6,222,816 $8,114,044 REVENUE PROJECTIONS Projections developed by the Department to estimate future year handle are based on historical levels, industry trends and the continued operations of each of Arizona's seven commercial racetracks. With the passage of S.B. 1373, significant changes in racing law became effective July 17, 1994 (See page 6 – State Receipts). As noted, changes created by S.B. 1373 have led to reductions in State pari-mutuel revenues from levels reached in the early 1990s. The tables presented on the following pages indicate anticipated State pari-mutuel commissions from wagering handle over the next few fiscal years. Also provided are actual and estimated amounts for the Hardship Tax Credit which permittees may use to offset tax that otherwise would be paid to the State. It also indicates the source of changes creating reductions in State revenues. As noted, these revenue projections are contingent on continued operation of seven tracks and based on handle levels similar to those attained in preceding years. If a track were to cease operations, as Yuma did in FY 1994, it would affect revenue estimates. The projections may detail changes in revenues to the State for each track as a result of provisions included in S.B. 1373, and the ensuing order of the Arizona Racing Commission. Because of S.B. 1373, tracks now accrue additional revenues that under previous law (in effect prior to July 1994) would have been paid to the State in the form of pari-mutuel taxes. ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 9 Determination of Hardship Tax Credit According to A.R.S. 5-111(I) Actual Figures for FY 2003 Based on FY 2002 Handle PREVIOUS TRACKS FY 2002 TOTAL TAX DUE HARDSHIP CARRYOVER BASE BASE PERIOD FISCAL YEAR % PARI-MUTUEL BASED ON TAX HARDSHIP TAX CREDIT WITH YEAR AMOUNT AMT WAGERED DECREASE TAX DUE % DECREASE CREDIT TAX CREDIT CARRYOVER HORSE TRACKS: Fort Tuthill Downs FY 1994 $798,671 $0 -100.00% $0 $0 $0 Yavapai Downs FY 1994 $17,490,826 $29,037,249 66.01% $107,288 $0 $0 Rillito Park FY 1990 $3,887,981 $513,941 -86.78% $10,279 Turf Paradise FY 1994 $101,467,993 $126,971,259 25.13% $609,639 FY 1990 $12,262,396 $5,315,494 -56.65% $89,074 ($8,920) ($26,760) $0 ($7,320) ($7,320) $0 ($71,407) $0 $0 ($98,167) $0 $0 GREYHOUND TRACKS: Apache Greyhound Park $0 ($50,462) ($151,386) ($84,837) ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 10 PGP: Western Racing FY 1990 $49,391,582 $38,512,063 -22.03% $1,263,716 ($278,397) ($835,191) PGP: American Racing FY 1994 $46,293,967 $30,283,886 -34.58% $1,058,621 ($366,071) ($1,098,213) ($154,956) ($1,253,169) Tucson Greyhound Park FY 1990 $38,110,346 $25,487,238 -33.12% $499,852 ($165,551) ($496,653) ($1,307,897) ($1,804,550) Yuma Greyhound Park FY 1990 $7,314,587 $0 -100.00% $0 $0 $0 ($236,223) $0 ($835,191) $0 $0 State Pari-Mutuel Revenue - FY 2002 ALLOWABLE TRACKS HARDSHIP HANDLE CREDITS PARI-MUTUEL CAPITAL HARDSHIP AGP TAX IMPROVEMENT TAX CREDITS CHARITY NET to DUE WITHHOLDINGS CREDIT to PGP DAYS STATE HORSE TRACKS: Fort Tuthill Downs Yavapai Downs Rillito Park Turf Paradise Subtotal Horse Tracks $7,320 $0 $0 $0 $0 $0 $0 $0 $0 $29,037,249 $107,288 $107,288 $0 $0 $0 $0 $0 $81,686 $513,941 $10,279 $0 $10,279 $0 $126,971,259 $609,639 $0 $0 $89,006 $156,522,449 $727,205 $107,288 $10,279 $0 $0 $0 $14,628 $595,011 $14,628 $595,011 GREYHOUND TRACKS: Apache Greyhound Park $235,289 $5,315,494 $89,074 $106,310 $85,542 ($106,310) $3,532 ($0) PGP: Western Racing $639,975 $38,512,063 $1,249,084 $385,121 $639,975 $49,262 $12,074 $162,651 $0 PGP: American Racing $820,628 $30,283,886 $1,058,622 $302,839 $665,672 $57,048 $33,063 Tucson Greyhound Park $1,807,840 $25,487,238 $499,852 $0 $499,852 $0 $0 $0 Subtotal Greyhound Tracks $3,503,732 $99,598,681 $2,896,632 $794,270 $1,891,041 $0 $48,669 $162,651 GRAND TOTAL $3,592,738 $256,121,130 $3,623,837 $901,557 $1,901,320 $0 $63,297 $757,662 Revenues to Agricultural Consulting and Training Fund Revenue Requirements to "Guaranteed Funds" Shortfall Revenue to General Fund $7,504 $3,585,000 ($2,834,842) $0 Determination of Hardship Tax Credit According to A.R.S. 5-111(I) Actual Figures for FY 2003 TRACKS BASE BASE FISCAL YEAR % FY 2002 TOTAL TAX DUE HARDSHIP CARRYOVER YEAR PERIOD 2002 DECREASE PARI-MUTUEL BASED ON TAX HARDSHIP TAX CREDIT WITH AMOUNT AMT WAGERED TAX DUE % DECREASE CREDIT TAX CREDIT CARRYOVER HORSE TRACKS: Fort Tuthill Downs FY 1994 $798,671 Yavapai Downs FY 1994 $17,490,826 Rillito Park FY 1990 Turf Paradise FY 1994 Apache Greyhound Park FY 1990 PGP: Western Racing FY 1990 PGP: American Racing -100.00% $29,037,249 66.01% $3,887,981 $513,941 -86.78% $10,279 $101,467,993 $126,971,259 25.13% $609,639 $12,262,396 $5,315,494 -56.65% $49,391,582 $38,512,063 -22.03% FY 1994 $46,293,967 $30,283,886 -34.58% Tucson Greyhound Park FY 1990 $38,110,346 $25,487,238 -33.12% Yuma Greyhound Park FY 1990 $7,314,587 ($7,320) ($7,320) $107,288 ($8,920) ($26,760) ($71,407) ($98,167) $89,074 ($50,462) ($151,386) ($84,837) ($236,223) $1,263,716 ($278,397) ($835,191) $1,058,621 ($366,071) ($1,098,213) ($154,956) ($1,253,169) $499,852 ($165,551) ($496,653) ($1,307,897) ($1,804,550) TAX CREDIT GREYHOUND TRACKS: ($835,191) -100.00% Projected Future Hardship Tax Credits Estimated Figures for FY 2004 TRACKS BASE BASE PREVIOUS % FY 2003 TOTAL TAX DUE HARDSHIP CARRYOVER YEAR PERIOD FISCAL YEAR DECREASE PARI-MUTUEL BASED ON TAX HARDSHIP WITH AMOUNT AMT WAGERED TAX DUE % DECREASE CREDIT TAX CREDIT CARRYOVER HORSE TRACKS: Fort Tuthill Downs FY 1994 $798,671 Yavapai Downs FY 1994 $17,490,826 Rillito Park FY 1990 Turf Paradise FY 1994 Apache Greyhound Park FY 1990 PGP: Western Racing FY 1990 PGP: American Racing -100.00% $29,037,249 66.01% $3,887,981 $513,941 -86.78% $10,279 $101,467,993 $126,971,259 25.13% $609,639 $12,262,396 $5,315,494 -56.65% $49,391,582 $38,512,063 -22.03% FY 1994 $46,293,967 $30,283,886 -34.58% Tucson Greyhound Park FY 1990 $38,110,346 $25,487,238 -33.12% Yuma Greyhound Park FY 1990 $7,314,587 ($7,320) ($7,320) $107,288 ($8,920) ($26,760) ($87,888) ($114,648) $89,074 ($50,462) ($151,386) ($147,149) ($298,535) $1,263,716 ($278,397) ($835,191) $1,058,621 ($366,071) ($1,098,213) ($227,611) ($1,325,824) $499,852 ($165,551) ($496,653) ($1,304,698) ($1,801,351) TAX CREDIT GREYHOUND TRACKS: $0 ($835,191) -100.00% Projected Future Hardship Tax Credits Estimated Figures for FY 2005 TRACKS BASE BASE PREVIOUS % FY 2004 TOTAL TAX DUE HARDSHIP CARRYOVER YEAR PERIOD FISCAL YEAR DECREASE PARI-MUTUEL BASED ON TAX HARDSHIP WITH AMOUNT AMT WAGERED TAX DUE % DECREASE CREDIT TAX CREDIT CARRYOVER HORSE TRACKS: Fort Tuthill Downs FY 1994 $798,671 Yavapai Downs FY 1994 $17,490,826 Rillito Park FY 1990 Turf Paradise FY 1994 Apache Greyhound Park FY 1990 PGP: Western Racing FY 1990 PGP: American Racing -100.00% $29,037,249 66.01% $3,887,981 $513,941 -86.78% $10,279 $101,467,993 $126,971,259 25.13% $609,639 $12,262,396 $5,315,494 -56.65% $49,391,582 $38,512,063 -22.03% FY 1994 $46,293,967 $30,283,886 -34.58% Tucson Greyhound Park FY 1990 $38,110,346 $25,487,238 -33.12% Yuma Greyhound Park FY 1990 $7,314,587 ($7,320) ($7,320) $107,288 ($8,920) ($26,760) ($104,369) ($131,129) $89,074 ($50,462) ($151,386) ($209,461) ($360,847) $1,263,716 ($278,397) ($835,191) $1,058,621 ($366,071) ($1,098,213) ($300,266) ($1,398,479) $499,852 ($165,551) ($496,653) ($1,301,499) ($1,798,152) GREYHOUND TRACKS: -100.00% ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 11 $0 ($835,191) PROJECTED STATE PARI-MUTUEL REVENUES ESTIMATED FOR FY 2003 Allowable Hardship Credits Pari-Mutuel Tax Due Capital Improvement Withholdings $107,288 $10,279 $609,639 $727,206 $107,288 $105,487 $29,037,249 $513,941 $126,971,259 $156,522,449 $107,288 $10,279 GREYHOUND TRACKS: Apache Greyhound Park PGP: Western Racing PGP: American Racing Tucson Greyhound Park Subtotal Greyhound Tracks $236,223 $835,191 $1,253,169 $1,804,550 $4,129,133 $5,315,494 $38,512,063 $30,283,886 $25,487,238 $99,598,681 $89,074 $1,263,716 $1,058,621 $499,852 $2,911,263 $30,804 $240,838 $0 $0 $271,642 $89,074 $835,191 $1,025,558 $499,852 $2,449,676 GRAND TOTAL $4,234,620 $256,121,130 $3,638,469 $378,930 $2,459,955 HORSE TRACKS: Fort Tuthill Downs Yavapai Downs Rillito Park Turf Paradise Subtotal Horse Tracks Handle Hardship Tax Credit AGP Credits to PGP Charity Days Total Credits $7,320 $98,167 Carryover Hardship Credit $0 $0 $0 $595,011 $595,011 $7,320 $0 $87,888 $0 $95,208 $14,628 $14,628 $107,288 $10,279 $14,628 $132,195 $0 $12,074 $33,063 $0 $45,137 $89,074 $1,118,907 $1,058,621 $499,852 $2,766,454 $0 $144,809 $0 $144,809 $147,149 $0 $227,611 $1,304,698 $1,679,458 $59,765 $2,898,649 $739,820 $1,774,666 $10,279 ($30,804) $30,804 Net to State Revenues to Agricultural Consulting/Training Fund Revenue Requirements of "Guaranteed Funds" Shortfall $7,398 $3,585,000 $2,852,578 ESTIMATED FOR FY 2004 Allowable Hardship Credits Pari-Mutuel Tax Due Capital Improvement Withholdings $107,288 $10,279 $609,639 $727,206 $107,288 $121,968 $29,037,249 $513,941 $126,971,259 $156,522,449 GREYHOUND TRACKS: Apache Greyhound Park PGP: Western Racing PGP: American Racing Tucson Greyhound Park Subtotal Greyhound Tracks $298,535 $835,191 $1,325,824 $1,801,351 $4,260,901 $5,315,494 $38,512,063 $30,283,886 $25,487,238 $99,598,681 GRAND TOTAL $4,382,869 $256,121,130 HORSE TRACKS: Fort Tuthill Downs Yavapai Downs Rillito Park Turf Paradise Subtotal Horse Tracks Handle Hardship Tax Credit AGP Credits to PGP Charity Days Total Credits Net to State $7,320 $114,648 Carryover Hardship Credit $7,320 $10,279 $14,628 $14,628 $107,288 $10,279 $14,628 $132,195 $0 $0 $595,011 $595,011 $111,689 $0 $416,451 $0 $0 $416,451 $209,461 $0 $300,266 $1,301,499 $1,811,226 $1,011,462 $1,922,915 $107,288 $10,279 $89,074 $1,263,716 $1,058,621 $499,852 $2,911,263 $0 $12,074 $33,063 $0 $89,074 $835,191 $1,025,558 $499,852 $2,449,675 $45,137 $89,074 $847,265 $1,058,621 $499,852 $2,494,812 $3,638,469 $107,288 $2,459,954 $59,765 $2,627,007 Revenues to Agricultural Consulting/Training Fund Revenue Requirements of "Guaranteed Funds" Shortfall $104,369 $7,398 $3,585,000 $2,580,936 ESTIMATED FOR FY 2005 Allowable Hardship Credits Pari-Mutuel Tax Due Capital Improvement Withholdings $107,288 $10,279 $609,639 $727,206 $107,288 $138,449 $29,037,249 $513,941 $126,971,259 $156,522,449 GREYHOUND TRACKS: Apache Greyhound Park PGP: Western Racing PGP: American Racing Tucson Greyhound Park Subtotal Greyhound Tracks $360,847 $835,191 $1,398,479 $1,798,152 $4,392,669 $5,315,494 $38,512,063 $30,283,886 $25,487,238 $99,598,681 GRAND TOTAL $4,531,118 $256,121,130 HORSE TRACKS: Fort Tuthill Downs Yavapai Downs Rillito Park Turf Paradise Subtotal Horse Tracks Handle Hardship Tax Credit AGP Credits to PGP Charity Days Total Credits $7,320 $131,129 $10,279 $14,628 $14,628 Carryover Hardship Credit $107,288 $10,279 $14,628 $132,195 $0 $0 $0 $595,011 $595,011 $128,170 $0 $416,451 $0 $0 $416,451 $372,921 $1,298,300 $1,942,994 $1,011,462 $2,071,164 $107,288 $10,279 $89,074 $1,263,716 $1,058,621 $499,852 $2,911,263 $0 $12,074 $33,063 $0 $89,074 $835,191 $1,025,558 $499,852 $2,449,675 $45,137 $89,074 $847,265 $1,058,621 $499,852 $2,494,812 $3,638,469 $107,288 $2,459,954 $59,765 $2,627,007 Revenues to Agricultural Consulting/Training Fund Revenue Requirements of "Guaranteed Funds" Shortfall ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 12 Net to State $7,398 $3,585,000 $2,580,936 $7,320 $120,850 $271,773 DEPARTMENT ADMINISTERED FUNDS Arizona County Fair Racing Betterment Fund County Fair Race Meet Subsidies - Of the revenues derived from the State pari-mutuel commission tax and license fees, 22%, up to a maximum of $800,000, is deposited into the Arizona County Fairs Racing Betterment Fund. These funds are distributed to the county fair racing associations for the promotion and betterment of their local race meets. The Department makes three types of distributions: purse subsidies and promotion and betterment funds. Purse Subsidies - Each county conducting a meet in FY 2002 received $46,800, an amount equivalent to $1,300 per race for 36 races. Three counties have futurity races in which the nominating and sustaining fees are included in the purse totals. These counties are Apache, Graham, and Santa Cruz. Promotion and Betterment Grants - These are used for payment of certain expenditures authorized by the Department such as security, starting gate and totalisator equipment rentals, plant preparation and maintenance. Meets conducted at County Fair tracks received promotion and betterment grants in the amount of $33,000. One-time grants were given for rental and transportation of the tote board and the purchase of a backside camera. Fairs at tracks, which also host commercial race days, receive a smaller grant. Yavapai County Fair Association and Pima County Fair Horse Racing Commission both hosted a commercial meet while conducting the County Fair meets at Yavapai Downs and Rillito Park, respectively, in which they received a promotion and betterment grant in the amount of $21,850. Meets conducted at commercial facilities did not receive funding. FY 2002 Betterment Payments to Counties County Apache Cochise Coconino* Gila Graham Greenlee La Paz Maricopa Mohave Navajo Pima Pinal Santa Cruz Yavapai Yuma Purses Betterment Improvements Total $46,800 $46,800 $46,800 $46,800 $46,800 $46,800 $0 $0 $46,800 $0 $46,800 $0 $46,800 $46,800 $0 $468,000 $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 $0 $0 $33,000 $0 $21,850 $0 $33,000 $21,850 $0 $307,700 $1,575 $775 $0 $1,575 $775 $775 $0 $0 $775 $0 $0 $0 $775 $0 $0 $7,025 $81,375 $80,575 $79,800 $81,375 $80,575 $80,575 $0 $0 $80,575 $0 $68,650 $0 $80,575 $68,650 $0 $782,725 *All distributions are for FY 2002 meets except purses for Coconino County, which were paid in FY 2001. Because Coconino County’s meet occurred in early July, purse funds were distributed at the end of the fiscal year to ensure they were received by the county prior to the meet. Coconino County received $46,800 for the purses and $33,000 for betterment for the July 2002 meet. ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 13 COUNTY FAIRS RACING BETTERMENT FUND In FY 2002, the Department of Racing disbursed $782,725 in purse and betterment monies to county fairs conducting racing at county fair tracks, and to fairs racing at tracks which also host commercial race days. FY 2002 County Fairs Racing Betterment Fund Balance July 1, 2001 Receipts Available for Distribution Distribution: Betterment Purses Total Distribution $336,016 $800,000 $1,136,016 $314,725 $468,000 $782,725 Balance as of June 30, 2002 $353,291 STALLION AWARD FUND The Arizona Stallion Award Fund receives a share of pari-mutuel revenues with which to pay owners of Arizona stallions whose offspring finish first, second or third in designated races in Arizona. The Stallion Award Program was first created in 1991. At the end of FY 2002, $60,285 was available in the Stallion Awards Fund. FY 2002 Stallion Award Fund Balance July 1, 2001 Receipts Available for Distribution $60,286 $40,000 $100,286 Distribution: $40,001 Balance as of June 30, 2002 $60,285 BREEDERS' AWARD FUND The Arizona Breeders' Award Fund is a nonreverting fund in which revenues are used to pay breeders' awards mandated by statute. During FY 2002, a total of 245 breeders received one or more quarterly Breeders' Awards payments. Of these, 88 were greyhound breeders, 35 bred successful Quarter Horses and 122 were Thoroughbred breeders. FY 2002 Breeders’ Award Fund Balance July 1, 2001 $413,484 Receipts $800,000 Available for Distribution $1,213,484 Distribution: Breeders’ Awards Greyhounds $395,497 Horses $193,478 Total Distribution $588,975 Balance June 30, 2002 $624,509 Excess Breeders’ Awards amounting to $577,692 were paid in FY 2003. GREYHOUND ADOPTION FUND The Greyhound Adoption Fund receives 100% of all fees associated with licensing of greyhound racing kennels, breeding farms and other operations. FY 2002 Greyhound Adoption Fund Balance July 1, 2001 Receipts Available for Distribution $125 $3400 $3525 Distribution $3225 Balance as of June 30, 2002 ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 14 $300 DEPARTMENT BUDGET AND STAFFING amounts in excess of $75,000 reverting to the General Fund at fiscal year end. Funding and Staffing The Department’s operations are funded from three sources. The Commercial Racing program receives an appropriation from the General Fund. The fund which provides for Administration of the County Fairs Racing receives one percent of revenues and is non-reverting. The County Fair Racing program utilizes a special revolving fund which receives nine percent of revenues. The Department may expend these fund monies up to the amount appropriated by the Legislature, with The Department’s actual expenditures for FY 1998 through FY 2002, and its appropriations for FY 2003 and request for FY 2004 are summarized on page 16, as is Department staffing. Department of Racing Budget Expenditures (FY 2002) Appropriation (FY 2003) Request (FY 2004) Admin of County Fair Racing & Awards $3,500,000 $3,000,000 County Fair Racing $2,500,000 $2,000,000 Commercial Racing $1,500,000 $1,000,000 $500,000 $0 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 F u ll T im e E q u iv a le n t (F T E ) E m p lo ye e s E x p e n d itu re s (F Y 2 0 0 2 ), Ap p ro p ria tio n (F Y 2 0 0 3 ), R e q u e s t (F Y 2 0 0 4 ) 70 C o m m e rc ia l R a c in g 60 50 40 C o u n ty F a ir R a c in g 30 20 A d m in o f C o u n ty F a ir R a c in g & A w a rd s 10 0 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 15 Arizona Department of Racing Budget and FTE Information Commercial Racing Actual Exp Actual Exp Actual Exp Actual Exp Appropriation Budget Request FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FTE 48.8 46.8 46.8 46.8 47.5 47.5 Full-Time 39.0 37.0 37.0 37.0 38.0 38.0 Seasonal 9.8 9.8 9.8 9.8 9.8 9.8 $1,572,000 Personal Services $1,404,784 $1,441,408 $1,430,145 $1,488,977 $1,572,000 ERE $328,041 $309,323 $313,851 $348,727 $367,600 $367,600 Professional & Outside $452,784 $394,426 $440,873 $454,666 $401,000 $401,000 Travel In State $82,869 $79,435 $92,291 $93,954 $100,800 $100,800 Travel Out of State $10,861 $5,983 $7,593 $2,357 $2,400 $2,400 $233,913 $233,250 $228,984 $214,825 $221,500 $221,500 Other Operating Equipment Total $76,212 $73,192 $43,236 $21,849 $5,700 $5,700 $2,589,464 $2,537,017 $2,556,973 $2,625,356 $2,671,000 $2,671,000 Actual Exp Actual Exp Actual Exp Actual Exp County Fair Racing FY 1999 FTE FY 2000 FY 2001 FY 2002 Appropriation FY 2003 Budget Request FY 2004 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 Full-Time Seasonal Personal Services $120,595 $116,874 $132,674 $122,885 $168,700 ERE $24,494 $20,362 $23,664 $21,848 $33,740 $168,700 $33,740 Professional & Outside $97,172 $41,486 $49,923 $48,525 $50,610 $50,610 Travel In State $44,970 $52,082 $70,502 $62,264 $74,228 $74,228 $10,122 $10,122 $337,400 $337,400 Travel Out of State Other Operating $4,981 $5,715 $4,283 $7,562 Equipment $8,547 $8,128 $28,627 $410 $300,759 $244,647 $309,674 $263,493 Total Admin of County Fair Racing & Awards Actual Exp Actual Exp Actual Exp FY 1999 FY 2000 FY 2001 Actual Exp FY 2002 Appropriation FY 2003 Budget Request FY 2004 FTE 2.0 2.0 2.0 2.0 2.0 2.0 Full-Time 2.0 2.0 2.0 2.0 2.0 2.0 $31,682 $28,986 $30,895 $40,484 $46,008 $46,008 $8,397 $8,075 $8,752 $6,604 $11,664 $11,664 Travel In State $4,757 $4,626 $4,162 $4,957 $5,184 $5,184 Travel Out of State $1,005 $382 $595 $360 $1,944 $1,944 $42,069 $44,404 $52,404 $64,800 $64,800 Seasonal Personal Services ERE Professional & Outside Other Operating Equipment Total $45,841 SUMMARY Actual Exp Actual Exp Actual Exp FY 1999 FY 2000 FY 2001 FTE 56.8 54.8 54.8 54.8 55.5 55.5 Full-Time 41.0 39.0 39.0 39.0 40.0 40.0 Seasonal 15.8 15.8 15.8 15.8 15.8 15.8 Personal Services Actual Exp FY 2002 Appropriation FY 2003 Budget Request FY 2004 $1,557,061 $1,587,268 $1,593,715 $1,652,346 $1,786,708 ERE $360,932 $337,760 $346,268 $377,178 $413,004 $413,004 Professional & Outside $549,956 $435,912 $490,796 $503,191 $451,610 $451,610 Travel In State $132,596 $136,143 $166,954 $161,175 $180,212 $180,212 $11,866 $5,983 $7,593 $2,357 $2,400 $2,400 $238,894 $239,347 $233,862 $222,747 $233,566 $233,566 Travel Out of State Other Operating Equipment Total $1,786,708 $84,759 $81,320 $71,863 $22,259 $5,700 $5,700 $2,936,064 $2,823,733 $2,911,051 $2,941,253 $3,073,200 $3,073,200 ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 16 TRACK CAPITAL IMPROVEMENTS Arizona Revised Statutes §5-111.02 and §5111.03 authorize commercial horse and greyhound racing permittees with capital improvement projects approved prior to the expiration date established by statute to reduce the pari-mutuel tax due the State. Authorized reductions in the State's share of handle are one percent if the racing meeting is conducted in a county having a population over 500,000 and two percent in all other counties. the public, breeders, and racing animal owners and to increase the revenue to the State from the increase in pari-mutuel wagering resulting from such improvements. A brief description of the capital improvement projects, the amount approved and the amount withheld during the fiscal year is shown below. The summary includes projects that have been approved, but for which withholding has not begun. The program is designed to encourage the improvement of racing facilities for the benefit of Permittee Project Description Approved Amount Withheld During FY 2002 Cumulative Withholding Remaining Deduction Prescott Downs/Yavapai Downs PD-12 Grandstand & Clubhouse Structure, etc. Total-Prescott (Yavapai) Downs American Greyhound Racing, Inc. PGP 01 (Phoenix, Yuma and Apache Greyhound Parks) PGP 02 $52,196,636 $107,288 $132,782 $52,063,854 $52,196,636 $107,288 $132,782 $52,063,854 Ginny pit, fire escape ladder $844,851 Elevators, escalators $349,890 PGP 03 Administrative offices and construction of new grandstand facility YGP 01 Escalators AGP 01 Clubhouse renovation, computer hardware and software Total- American Greyhound Racing, Inc. Total -- All tracks withholding for Capital Improvements in FY 2001 Included in Aggregate Totals Below $17,000,000 $207,900 $1,686,826 $20,089,467 $794,269 $19,817,825 $271,642 $72,286,103 $901,557 $19,950,607 $52,335,496 1) Excludes projects for which withholding has been completed, except for American Greyhound Racing, Inc. 2) For projects approved after October 1982, the tax liability may be reduced at any track operated by the permittee and applied to the cumulative total of projects approved for the permittee. Therefore, the reduction in percentage is taken at all meets conducted by American Greyhound Racing, Inc. and applied against the total of projects shown. ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 17 Fiscal Year 2002 Racing Activity at Yuma Greyhound Park, and Pima County Fair Horse Racing Commission at Rillito Park. Permittees, track locations and permit terms are summarized below. Commercial Racing Permits Issued.  During FY 2002, the Arizona Racing Commission approved commercial racing permits for American Greyhound Racing, Inc. at Apache Greyhound Park, American Greyhound Racing, Inc. and Western Racing, Inc. at Phoenix Greyhound Park, Tucson Greyhound Park, Inc. at Tucson Greyhound Park, Southern Arizona Greyhound Racing, Inc. Racetrack Statistics  Tables on pages 19-29 present a five-year summary of business information associated with Arizona racetracks. Commercial Racing Permittees, Tracks and Permit Terms Permittee Track Permit Term American Greyhound Racing, Inc. Apache Greyhound Park 1/1/02 - 12/31/04 American Greyhound Racing, Inc. Phoenix Greyhound Park 1/1/02 - 12/31/04 Pima County Fair Horse Racing Commission Rillito Park 2/16/02 – 3/3/02 Southern Arizona Greyhound Racing, Inc. Yuma Greyhound Park (no live racing) 1/1/02 - 12/31/04 Tucson Greyhound Park, Inc. Tucson Greyhound Park 1/1/02 - 12/31/04 TP Racing, L.L.L.P. Turf Paradise Race Course 6/14/00 - 5/31/03 Western Racing, Inc. Phoenix Greyhound Park 1/1/02 - 12/31/04 Yavapai County Fair Association Yavapai Downs at Prescott Valley 5/26/01 – 8/29/03 County Fair Racing All counties conducted racing meetings during FY 2002. Figures that describe county fair racing meetings in both of the past two fiscal years are included for reference on pages 30 and 31. Page 29 includes a five-year summary of county fair racing activities. Fairs conducting racing meetings at commercial facilities in FY 2002 include La Paz, Maricopa, Navajo, Pima, Pinal, Yavapai, and Yuma counties. Yavapai County and Yuma County conducted their race meetings at Yavapai Downs in Prescott Valley, and Pima County conducted its race meeting at Rillito Park in Tucson. The remaining counties utilized Turf Paradise in Phoenix. Turf Paradise conducted additional wagering at four county fairs during FY 2002, including Apache County Fair, Greenlee County Fair, Maricopa County Fair, and Santa Cruz County Fair. During FY 2002 seven counties conducted county fair racing at commercial facilities and eight counties raced at non-commercial facilities. Of those counties racing at commercial facilities, both Yavapai County and Pima County conducted commercial as well as county fair race meetings. ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 18 GRAND TOTAL--COMMERCIAL AND COUNTY FAIR RACING Recapitulation of all Commercial Horse, Greyhound and County Fair Racing MEETING BUSINESS FIGURES FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 903 575 1,478 972 519 1,491 1,004 534 1,538 988 607 1,595 1,001 588 1,589 1,432 1,022 1,042 988 1,005 13,805 129,525 143,330 13,581 150,187 163,768 14,292 175,132 189,424 13,915 188,726 202,641 13,534 212,803 226,337 824,839 864,998 1,689,837 807,046 893,556 1,700,602 813,650 872,508 1,686,158 880,614 932,595 1,813,209 810,454 855,374 1,665,828 Race Days/Performances (incl. 15 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races Number in Attendance On-Track Off-Track Total Number in Attendance $265,115,514 $179,375 Pari-Mutuel Handle Average Handle per Race Day Breakdown by location On-Track Handle Off-Track Handle $92,353,083 $172,762,431 Breakdown by source Live Races Simulcast Races $135,856,813 $129,258,701 $269,797,172 $180,950 $92,553,167 $177,244,005 $134,085,795 $135,711,377 $278,037,824 $180,779 $285,909,178 $179,253 $96,782,415 $181,255,409 $107,309,899 $178,599,279 $121,941,593 $156,096,231 $107,074,785 $178,834,393 $274,228,624 $172,579 $102,322,446 $171,906,178 $95,785,970 $178,442,654 DISTRIBUTION OF REVENUES Returned to Public $204,836,229 $2,954,359 State Pari-Mutuel Revenues $208,613,214 $216,557,955 $2,950,054 $223,085,133 $2,544,605 $214,510,744 $1,826,665 $757,662 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Capital Improvement AGP Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit AGP-Hardship Tax (Transferred to PGP) Breakage Total Track Revenues $53,875,950 $903,193 $401,500 ($188) $90,013 $883,457 $0 $1,171,002 $57,324,927 $54,862,309 $869,326 $409,658 $0 $92,363 $852,582 $0 $1,147,665 $58,233,902 $54,926,514 $768,324 $395,587 ($448) $89,419 $975,316 $0 $1,260,006 $58,414,718 $57,433,648 $624,772 $368,886 $0 $61,457 $1,243,214 $0 $1,274,313 $61,006,290 $54,840,464 $561,913 $339,609 $0 $63,297 $1,901,210 $0 $1,226,711 $58,933,204 Purses $20,483,351 $19,758,007 $20,993,664 $23,590,039 $22,796,740 Racetrack Trends at a Glance On-Track Off-Track $4 Million Million $3 $2 $200 $200 $180 $180 $160 $160 $140 $140 $120 $120 $100 $80 $1 $ FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Live Simulcast On-Track vs. Off-Track Handle Million Annual Revenues to State Source of Handle $100 $80 $60 $60 $40 $40 $20 $20 $ $ FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 19 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 COMMERCIAL TRACKS Recapitulation of all Commercial Horse and Greyhound Racing MEETING BUSINESS FIGURES FY 1998 Race Days/Performances (incl. 15 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days FY 1999 FY 2000 FY 2001 FY 2002 843 573 1,416 912 517 1,429 944 531 1,475 927 605 1,532 943 586 1,529 1,372 962 982 927 947 13,244 129,113 142,357 13,045 149,764 162,809 13,684 174,201 187,885 13,367 186,798 200,165 13,029 211,006 224,035 Number in Attendance On-Track Off-Track Total Number in Attendance 686,259 819,678 1,505,937 655,725 836,424 1,492,149 687,039 814,253 1,501,292 696,600 868,658 1,565,258 691,411 801,961 1,493,372 Pari-Mutuel Handle Average Handle per Race Day $246,764,392 $174,269 $250,133,949 $175,041 $257,971,592 $174,896 $265,716,408 $173,444 $256,121,130 $167,509 Breakdown by location On-Track Handle Off-Track Handle $84,501,548 $162,262,844 $84,299,013 $165,834,936 $88,619,600 $169,351,992 $98,724,645 $166,991,763 $94,376,373 $161,744,757 Breakdown by source Live Races Simulcast Races $125,674,757 $121,089,635 $123,658,045 $126,475,904 $113,393,331 $144,578,261 $99,487,061 $166,229,347 $89,292,335 $166,828,795 $190,572,821 $193,333,290 $200,719,621 $207,062,754 $200,150,196 Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races DISTRIBUTION OF REVENUES Returned to Public State Pari-Mutuel Revenues $2,954,359 $2,950,054 $2,544,605 $1,826,665 $757,662 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Capital Improvement AGP Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit AGP-Hardship Tax (Transferred to PGP) Breakage Total Track Revenues $49,889,086 $903,193 $401,500 ($188) $90,013 $883,457 $0 $1,070,152 $53,237,213 $50,590,081 $869,326 $409,658 $0 $92,363 $852,582 $0 $1,036,595 $53,850,604 $50,812,707 $768,324 $395,587 ($448) $89,419 $975,316 $0 $1,145,915 $54,186,820 $53,399,050 $624,772 $368,886 $0 $61,457 $1,243,214 $0 $1,138,521 $56,835,900 $51,191,723 $561,913 $339,609 $0 $63,297 $1,901,210 $0 $1,128,504 $55,186,256 Purses $18,455,880 $17,577,539 $18,785,661 $21,175,708 $20,538,575 Racetrack Trends at a Glance Annual Revenues to State On-Track Off-Track Million Million $3 $2 $1 Simulcast $180 $180 $160 $160 $140 $140 $120 $120 Million $4 Live On-Track vs. Off-Track Handle $100 $80 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 $100 $80 $60 $60 $40 $40 $20 $20 $ $ Source of Handle $ FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 20 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 COMMERCIAL GREYHOUND TRACKS Apache Greyhound, Phoenix Greyhound, Tucson Greyhound MEETING BUSINESS FIGURES Race Days/Performances (incl. 12 charity days) Live Race Days Dark Day-Simulcast only Total Race Days Live Performances (Matinee & Evening) FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 646 443 1,089 723 366 1,089 748 343 1,091 721 367 1,088 735 351 1,086 1,175 773 786 721 739 Number of Races Live Races Simulcast Races Total Number of Races 11,343 124,417 135,760 11,192 144,727 155,919 11,748 162,112 173,860 11,379 173,146 184,525 11,040 178,577 189,617 Number in Attendance On-Track Off-Track Total Number in Attendance 311,414 418,466 729,880 289,496 400,264 689,760 327,651 335,234 662,885 285,800 334,221 620,021 265,590 288,959 554,549 Pari-Mutuel Handle Average Handle per Race Day $129,028,589 $118,484 $130,435,520 $119,776 $122,888,935 $112,639 $111,638,553 $102,609 $99,598,681 $91,711 Breakdown by location On-Track Handle Off-Track Handle $46,744,911 $82,283,678 $48,088,401 $82,347,119 $46,005,461 $76,883,474 $40,922,646 $70,715,907 $35,401,074 $64,197,607 Breakdown by source Live Races Simulcast Races $77,680,993 $51,347,596 $77,166,247 $53,269,273 $71,632,705 $51,256,230 $60,752,689 $50,885,864 $52,932,069 $46,666,612 $99,124,883 $100,815,024 $94,527,130 $85,940,817 $76,021,553 $2,599,951 $2,360,261 $2,022,163 $1,165,011 $162,651 $25,211,399 $737,096 $401,500 ($188) $70,148 $463,951 $0 $419,850 $27,303,756 $24,952,174 $731,240 $409,658 $0 $67,631 $675,356 $0 $424,176 $27,260,234 $23,456,958 $650,736 $395,587 ($448) $61,643 $807,910 $0 $446,711 $25,819,097 $22,007,836 $524,191 $368,886 $0 $52,546 $1,230,762 $0 $348,503 $24,532,724 $20,308,368 $454,625 $339,609 $0 $48,669 $1,890,931 $0 $345,257 $23,387,459 $7,840,358 $6,631,102 $6,303,401 $6,322,136 $5,564,391 DISTRIBUTION OF REVENUES Returned to Public State Pari-Mutuel Revenues Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Capital Improvement AGP Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit AGP-Hardship Tax (Transferred to PGP) Breakage Total Track Revenues Purses Racetrack Trends at a Glance On-Track Off-Track $3 Million Million $2 $1 $ On-Track vs. Off-Track Handle Live Simulcast $90 $90 $80 $80 $70 $70 $60 $60 $50 $50 Million Annual Revenue to State $40 $40 $30 $30 $20 $20 $10 $10 $ $ FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Source of Handle FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 21 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 APACHE GREYHOUND PARK 2551 West Apache Trail Apache Junction, Arizona 85220 American Greyhound Racing, Inc. Daniel A. Luciano, President MEETING BUSINESS FIGURES FY 1998 Race Days/Performances (incl. 3 charity days) Live Race Days Dark Day-Simulcast only Total Race Days Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races Number in Attendance On-Track Off-Track Total Number in Attendance FY 1999 FY 2002 Racing Dates: July 1, 2001-June 30, 2002 FY 2000 FY 2001 FY 2002 74 289 363 78 285 363 73 291 364 69 294 363 69 293 362 74 78 73 69 69 1,110 53,903 55,013 1,170 54,876 56,046 1,165 53,437 54,602 1,123 52,035 53,158 932 56,843 57,775 N/A 0 N/A N/A 0 N/A 70,756 0 70,756 38,290 0 38,290 42,600 0 42,600 Pari-Mutuel Handle Average Handle per Race Day $7,623,509 $21,001 $7,432,560 $20,475 $7,274,183 $19,984 $5,639,221 $15,535 $5,315,494 $14,684 Breakdown by location On-Track Handle Off-Track Handle $7,623,509 $0 $7,432,560 $0 $7,274,183 $0 $5,639,221 $0 $5,315,494 $0 Breakdown by source Live Races Simulcast Races $2,725,037 $4,898,472 $2,536,440 $4,896,120 $2,448,873 $4,825,310 $1,911,793 $3,727,428 $1,619,524 $3,695,970 $5,875,513 $5,882,209 $5,587,770 $4,399,937 $4,071,255 $55,671 $0 $0 $0 $0 DISTRIBUTION OF REVENUES Returned to Public State Pari-Mutuel Revenues Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Capital Improvement AGP Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit AGP-Hardship Tax (Transferred to PGP) Breakage Total Track Revenues Purses $1,569,519 $54,501 $97,969 ($152,470) $6,909 $87,297 $0 $28,601 $1,692,326 $1,371,655 $50,729 $97,922 ($148,651) $5,338 $134,166 ($37,793) $39,191 $1,512,558 $1,504,039 $48,977 $96,506 ($145,484) $5,965 $128,723 ($36,130) $30,437 $1,633,033 $1,113,932 $38,236 $74,549 ($112,784) $4,958 $100,191 $0 $20,203 $1,239,285 $1,126,627 $32,390 $73,904 ($106,310) $3,532 $85,542 $0 $27,789 $1,243,474 $327,128 $533,048 $482,419 $382,432 $169,194 Racetrack Trends at a Glance On-Track Off-Track Annual Revenues to State $60,000 $9 $5 $8 Million $30,000 $20,000 Million $7 $40,000 $6 $5 $4 $2 $ FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 $3 $1 $1 $0 $4 $2 $3 $10,000 Source of Handle $6 $10 $50,000 Thousand Live Simulcast On-Track vs. Off-Track Handle $ FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 22 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 PHOENIX GREYHOUND PARK 3801 East Washington Street Phoenix, Arizona 85036 American Greyhound Racing, Inc. and Western Racing, Inc. Daniel A. Luciano, President MEETING BUSINESS FIGURES FY 1998 FY 1999 Race Days/Performances (incl. 9 charity day) Live Race Days Dark Day-Simulcast only Total Race Days 363 0 363 363 0 363 362 2 364 337 26 363 354 8 362 Live Performances (Matinee & Evening) 402 402 401 337 358 5,765 38,126 43,891 5,799 41,744 47,543 5,871 44,419 50,290 5,333 47,383 52,716 5,174 46,694 51,868 217,910 319,675 537,585 207,870 290,487 498,357 191,499 261,018 452,517 180,723 234,716 415,439 157,522 197,407 354,929 Pari-Mutuel Handle Average Handle per Race Day $98,612,533 $271,660 $99,224,599 $273,346 $90,084,023 $247,484 $78,029,244 $214,957 $68,795,949 $190,044 Breakdown by location On-Track Handle Off-Track Handle $29,186,953 $69,425,580 $30,721,352 $68,503,247 $27,268,555 $62,815,468 $22,547,761 $55,481,483 $18,742,278 $50,053,671 Breakdown by source Live Races Simulcast Races $68,259,450 $30,353,083 $68,051,076 $31,173,523 $60,175,923 $29,908,100 $48,595,503 $29,433,741 $42,224,319 $26,571,630 $75,696,402 $76,642,768 $69,435,014 $60,237,048 $52,487,648 $2,544,280 $2,360,261 $2,022,163 $1,165,011 $162,651 $18,844,810 $682,595 $303,531 $152,282 $63,239 $8,347 $0 $317,048 $20,371,852 $18,521,905 $680,511 $311,735 $148,651 $62,292 $179,361 $37,793 $317,115 $20,259,363 $16,997,315 $601,759 $299,081 $145,036 $55,678 $185,962 $36,130 $342,016 $18,662,977 $14,875,989 $485,955 $294,337 $112,784 $47,588 $567,075 $0 $243,455 $16,627,183 $13,737,588 $422,235 $265,705 $106,310 $45,137 $1,305,647 $0 $246,051 $16,128,673 $6,509,451 $5,056,462 $4,665,210 $3,952,833 $3,570,784 Number of Races Live Races Simulcast Races Total Number of Races Number in Attendance On-Track Off-Track Total Number in Attendance FY 2000 FY 2002 Racing Dates: July 1, 2001 - June 30, 2002 FY 2001 FY 2002 DISTRIBUTION OF REVENUES Returned to Public State Pari-Mutuel Revenues Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Capital Improvement AGP Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit AGP-Hardship Tax (Transferred to PGP) Breakage Total Track Revenues Purses Racetrack Trends at a Glance On-Track Annual Revenues to State Off-Track $3 $2 $80 $80 $70 $70 $60 $60 Million Million Million $50 $1 $40 $30 FY 1999 FY 2000 FY 2001 FY 2002 $50 $40 $30 $10 $10 FY 1998 Source of Handle $20 $20 $ Live Simulcast On-Track vs. Off-Track Handle $ $ FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 23 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 TUCSON GREYHOUND PARK 2601 South Third Avenue Tucson, Arizona 85713 Tucson Greyhound Park, Inc. C. Thomas Taylor, Chief Executive Officer MEETING BUSINESS FIGURES FY 1998 Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 1999 FY 2002 Racing Dates: July 1, 2001-June 30, 2002 FY 2000 FY 2001 FY 2002 209 154 363 282 81 363 313 50 363 315 47 362 312 50 362 699 293 312 315 312 4,468 32,388 36,856 4,223 48,107 52,330 4,712 64,256 68,968 4,923 73,728 78,651 4,934 75,040 79,974 Number in Attendance On-Track Off-Track Total Number in Attendance 93,504 98,791 192,295 81,626 109,777 191,403 65,396 74,216 139,612 66,787 99,505 166,292 65,468 91,552 157,020 Pari-Mutuel Handle Average Handle per Race Day $22,792,547 $62,789 $23,778,361 $65,505 $25,530,729 $70,333 $27,970,088 $77,265 $25,487,238 $70,407 Breakdown by location On-Track Handle Off-Track Handle $9,934,449 $12,858,098 $9,934,489 $13,843,872 $11,462,723 $14,068,006 $12,735,664 $15,234,424 $11,343,302 $14,143,936 Breakdown by source Live Races Simulcast Races $6,696,506 $16,096,041 $6,578,731 $17,199,630 $9,007,909 $16,522,820 $10,245,393 $17,724,695 $9,088,226 $16,399,012 Returned to Public $17,552,968 $18,290,047 $19,504,346 $21,303,832 $19,462,650 $0 $0 $0 $0 $0 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit Breakage Total Track Revenues $4,797,070 $0 $0 $0 $368,307 $74,201 $5,239,578 $5,058,614 $0 $0 $0 $361,829 $67,870 $5,488,313 $4,955,604 $0 $0 $0 $493,225 $74,258 $5,523,087 $6,017,915 $0 $0 $0 $563,496 $84,845 $6,666,256 $5,444,153 $0 $0 $0 $499,742 $71,417 $6,015,312 Purses $1,003,779 $1,041,592 $1,155,772 $1,986,871 $1,824,413 Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Off-Track $16 $600 $14 $500 $12 $400 $10 $300 $200 FY 1999 FY 2000 FY 2001 FY 2002 Source of Handle $18 $16 $14 $8 $12 $10 $8 $6 $6 $4 $4 $2 $2 FY 1998 Simulcast $20 $100 $0 Live On-Track vs. Off-Track Handle Million $700 Million Thousand Annual Revenues to State $ $ FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 24 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 COMMERCIAL HORSE TRACKS Rillito Park, Turf Paradise, Yavapai Downs MEETING BUSINESS FIGURES FY 1998 Race Days/Performances (incl. 3 charity days) Live Race Days Dark Day-Simulcast Only Total Race Days FY 1999 FY 2000 FY 2001 FY 2002 197 130 327 189 151 340 196 188 384 206 238 444 208 235 443 197 189 196 206 208 1,901 4,696 6,597 1,853 5,037 6,890 1,936 12,089 14,025 1,988 13,652 15,640 1,989 32,429 34,418 374,845 401,212 776,057 366,229 436,160 802,389 359,388 479,019 838,407 410,800 534,437 945,237 425,821 513,002 938,823 $117,735,803 $360,048 $119,698,429 $352,054 $135,082,657 $351,778 $154,077,855 $347,022 $156,522,449 $353,324 Breakdown by location On-Track Handle Off-Track Handle $37,756,637 $79,979,166 $36,210,612 $83,487,817 $42,614,139 $92,468,518 $57,801,999 $96,275,856 $58,975,299 $97,547,150 Breakdown by source Live Races Simulcast Races $47,993,764 $69,742,039 $46,491,798 $73,206,631 $41,760,626 $93,322,031 $38,734,372 $115,343,483 $36,360,266 $120,162,183 $91,447,938 $92,518,266 $106,192,491 $121,121,937 $124,128,643 Live Performances Number of Races Live Races Simulcast Races Total Number of Races Number in Attendance On-Track Off-Track Total Number in Attendance Pari-Mutuel Handle Average Handle per Race Day DISTRIBUTION OF REVENUES Returned to Public State Pari-Mutuel Revenues $354,408 $589,793 $522,442 $661,654 $595,011 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement-Non Taxable Charity Day Hardship Tax Credit Breakage Total Track Revenues $24,677,687 $166,097 $0 $19,865 $419,506 $650,302 $25,933,457 $25,637,907 $138,086 $0 $24,732 $177,225 $612,420 $26,590,370 $27,355,749 $117,588 $0 $27,776 $167,406 $699,204 $28,367,723 $31,391,214 $100,581 $0 $8,911 $12,452 $790,018 $32,303,176 $30,883,355 $107,288 $0 $14,628 $10,279 $783,247 $31,798,797 Purses $10,615,522 $10,946,437 $12,482,260 $14,853,572 $14,974,184 Racetrack Trends at a Glance On-Track Off-Track Annual Revenue to State $700 $120 $140 $600 $100 $120 $500 Million $400 $60 $300 $40 $200 $100 Source of Handle $100 $80 Million Thousand Live Simulcast On-Track vs. Off-Track Handle $80 $60 $40 $20 $20 $ FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 $ $ FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 25 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 RILLITO PARK 4502 North First Avenue Tucson, Arizona 85728 Pima County Fair Horse Racing Commission Stephen Brody, Chairman MEETING BUSINESS FIGURES FY 1998 Race Days/Performances Live Race Days Dark Day-Simulcast Only Total Race Days FY 1999 FY 2002 Racing Dates: February 16, 2002 - March 3, 2002 FY 2000 FY 2001 FY 2002 6 12 18 6 18 24 6 15 21 8 0 8 6 0 6 6 6 6 8 6 53 466 519 53 511 564 57 524 581 70 0 70 55 0 55 Number in Attendance On-Track Off-Track Total Number in Attendance 13,255 3,727 16,982 14,136 2,590 16,726 15,739 2,234 17,973 19,568 0 19,568 16,446 0 16,446 Pari-Mutuel Handle Average Handle per Race Day $846,231 $47,013 $748,512 $31,188 $805,367 $38,351 $622,612 $77,827 $513,941 $85,657 Breakdown by location On-Track Handle Off-Track Handle $627,810 $218,421 $483,824 $264,688 $553,395 $251,972 $622,612 $0 $513,941 $0 Breakdown by source Live Races Simulcast Races $416,441 $429,790 $462,861 $285,651 $536,409 $268,958 $622,612 $0 $513,941 $0 $656,010 $582,340 $623,105 $478,943 $396,671 $0 $0 $0 $0 $0 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement-Non Taxable Charity Day Hardship Tax Credit Breakage Total Track Revenues $176,183 $0 $0 $0 $8,329 $5,709 $190,221 $152,213 $0 $0 $0 $9,257 $4,703 $166,172 $165,462 $0 $0 $0 $10,728 $6,071 $182,261 $127,203 $0 $0 $0 $12,452 $4,014 $143,669 $102,977 $0 $0 $0 $10,279 $4,014 $117,270 Purses $103,810 $115,911 $119,170 $148,810 $92,922 Live Performances Number of Races Live Races Simulcast Races Total Number of Races DISTRIBUTION OF REVENUES Returned to Public State Pari-Mutuel Revenues Racetrack Trends at a Glance Annual Revenues to State On-Track Off-Track $700 On-Track vs. Off-Track Handle Live $1 Simulcast Source of Handle $4 $600 $3 $400 $300 Million Million Thousand $500 $200 $2 $1 $100 $ $ FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 26 $ FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 TURF PARADISE 1501 West Bell Road Phoenix, Arizona 85023 TP Racing, L.L.L.P. Randy Fozzard, General Manager MEETING BUSINESS FIGURES FY 1998 Race Days/Performances (incl. 3 charity days) Live Race Days Dark Day-Simulcast Only Total Race Days FY 1999 FY 2002 Racing Dates: July 1, 2001 - June 30, 2002 FY 2000 FY 2001 FY 2002 143 94 237 135 103 238 142 131 273 150 198 348 151 195 346 143 135 142 150 151 1,489 3,244 4,733 1,421 3,386 4,807 1,477 9,418 10,895 1,528 11,659 13,187 1,492 29,044 30,536 Number in Attendance On-Track Off-Track Total Number in Attendance 325,907 299,565 625,472 311,159 314,991 626,150 302,065 364,604 666,669 330,615 381,201 711,816 333,776 371,515 705,291 Pari-Mutuel Handle Average Handle per Race Day $94,499,401 $398,732 $94,633,681 $397,621 $108,136,724 $396,105 $126,906,157 $367,844 $126,971,259 $366,969 Breakdown by location On-Track Handle Off-Track Handle $34,705,114 $59,794,287 $33,500,746 $61,132,935 $40,041,977 $68,094,747 $55,318,801 $71,587,356 $56,603,892 $70,367,367 Breakdown by source Live Races Simulcast Races $40,762,340 $53,737,061 $38,743,262 $55,890,419 $35,006,967 $73,129,757 $33,082,690 $93,823,467 $30,481,949 $96,489,310 $73,434,052 $73,025,177 $85,148,765 $99,669,190 $100,733,160 $354,408 $589,793 $522,442 $661,654 $595,011 $19,728,164 $33,533 $0 $16,129 $411,177 $521,938 $20,710,941 $20,353,770 $0 $0 $17,105 $167,968 $479,869 $21,018,711 $21,729,631 $0 $0 $21,019 $156,678 $558,189 $22,465,517 $25,927,603 $0 $0 $8,911 $0 $647,711 $26,584,225 $25,004,970 $0 $0 $14,628 $0 $623,491 $25,643,089 $9,008,875 $9,130,070 $10,580,175 $12,895,787 $12,934,104 Live Performances Number of Races Live Races Simulcast Races Total Number of Races DISTRIBUTION OF REVENUES Returned to Public State Pari-Mutuel Revenues Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement-Non Taxable Charity Day Hardship Tax Credit Breakage Total Track Revenues Purses Racetrack Trends at a Glance On-Track Off-Track $700 $80 $600 $70 $500 $60 $400 On-Track vs. Off-Track Handle $80 $40 $40 $20 $20 $ $ FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 $60 $30 $10 Source of Handle $100 $50 $100 Simulcast $120 $300 $200 Live Million Million Thousand Annual Revenues to State $ FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 27 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 YAVAPAI DOWNS 10501 Hwy. 89A Prescott Valley, Arizona 86314 Yavapai County Fair Association James M. Grundy, General Manager MEETING BUSINESS FIGURES FY 1998 Race Days/Performances Live Race Days Dark Day-Simulcast Only Total Race Days FY 1999 FY 2002 Racing Dates: May 25, 2002 - August 30, 2002 FY 2000 FY 2001 FY 2002 48 24 72 48 30 78 48 42 90 48 40 88 51 40 91 48 48 48 48 51 359 986 1,345 379 1,140 1,519 402 2,147 2,549 390 1,993 2,383 442 3,385 3,827 Number in Attendance On-Track Off-Track Total Number in Attendance 35,683 97,920 133,603 40,934 118,579 159,513 41,584 112,181 153,765 60,617 153,236 213,853 75,599 141,487 217,086 Pari-Mutuel Handle Average Handle per Race Day $22,390,171 $310,975 $24,316,236 $311,747 $26,140,566 $293,714 $26,549,086 $301,694 $29,037,249 $319,091 Breakdown by location On-Track Handle Off-Track Handle $2,423,713 $19,966,458 $2,226,042 $22,090,194 $2,018,767 $24,121,799 $1,860,586 $24,688,500 $1,857,466 $27,179,783 Breakdown by source Live Races Simulcast Races $6,814,983 $15,575,188 $7,285,675 $17,030,561 $6,217,250 $19,923,316 $5,029,070 $21,520,016 $5,364,376 $23,672,873 $17,357,876 $18,910,749 $20,420,621 $20,973,804 $22,998,812 $0 $0 $0 $0 $0 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement-Non Taxable Charity Day Hardship Tax Credit Breakage Total Track Revenues $4,773,340 $132,564 $0 $3,736 $0 $122,655 $5,032,295 $5,131,925 $138,086 $0 $7,627 $0 $127,848 $5,405,487 $5,460,656 $117,588 $0 $6,757 $0 $134,944 $5,719,945 $5,336,408 $100,581 $0 $0 $0 $138,293 $5,575,282 $5,775,408 $107,288 $0 $0 $0 $155,742 $6,038,438 Purses $1,502,837 $1,700,457 $1,782,915 $1,808,975 $1,947,158 Live Performances Number of Races Live Races Simulcast Races Total Number of Races DISTRIBUTION OF REVENUES Returned to Public State Pari-Mutuel Revenues Racetrack Trends at a Glance Annual Revenues to State $30 $600 $25 $400 $300 $20 $20 $15 $15 $10 $5 $100 Source of Handle $25 $10 $200 Live Simulcast On-Track vs. Off-Track Handle Million Million $700 $500 Thousand On-Track Off-Track $5 $ $ FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 * Prescott Downs through 2001 ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 28 $ FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 COUNTY FAIR TRACKS Recapitulation of County Fair Racing at Fairs and Commercial Tracks MEETING BUSINESS FIGURES FY 1998 Race Days/Performances Live Race Days Dark Day-Simulcast Only Total Race Days FY 1999 FY 2000 FY 2001 FY 2002 60 2 62 60 2 62 60 3 63 61 2 63 58 2 60 Live Performances 60 60 60 61 58 Number of Races Live Races Simulcast Races Total Number of Races 561 412 973 536 423 959 608 931 1,539 548 1,928 2,476 505 1,797 2,302 Number in Attendance On-Track Off-Track Total Number in Attendance 138,580 45,320 183,900 151,321 57,132 208,453 126,611 58,255 184,866 184,014 63,937 247,951 119,043 53,413 172,456 Pari-Mutuel Handle Average Handle per Race Day $18,351,122 $295,986 $19,663,223 $317,149 $20,066,232 $318,512 $20,192,770 $320,520 $18,107,494 $301,792 Breakdown by location On-Track Handle Off-Track Handle $7,851,535 $10,499,587 $8,254,154 $11,409,069 $8,162,815 $11,903,417 $8,585,254 $11,607,516 $7,946,073 $10,161,421 Breakdown by source Live Races Simulcast Races $10,182,056 $8,169,066 $10,427,750 $9,235,473 $8,548,262 $11,517,970 $7,587,724 $12,605,046 $6,493,635 $11,613,859 $14,263,408 $15,279,924 $15,838,334 $16,022,379 $14,360,548 $0 $0 $0 $0 $0 Track Mutuel Revenues Track Commission Breakage Total Track Revenues $3,986,864 $100,850 $4,087,714 $4,272,228 $111,070 $4,383,298 $4,113,807 $114,091 $4,227,898 $4,034,598 $135,792 $4,170,390 $3,648,741 $98,207 $3,746,948 Purses $2,027,471 $2,180,468 $2,208,003 $2,414,331 $2,258,165 DISTRIBUTION OF REVENUES Returned to Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Annual Revenues to State Off-Track $500 $10 $400 $8 $12 $10 Million $12 Million Thousand $600 $8 $6 $6 $200 $4 $4 $100 $2 $2 $300 $ $ $ FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Source of Handle $14 $14 $700 Live Simulcast On-Track vs. Off-Track Handle FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 29 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 County Fair Racing For Fiscal Year 2002 Race Days ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 30 Fairs at Non-Commercial Tracks Coconino County Fair at Flagstaff July 1, 2, 3, 4, 2001 Apache County Fair at St. Johns September 15, 16, 22, 23, 2001 Gila County Fair at Globe September 29, 30, October 6, 7, 2001 Greenlee County Fair at Duncan March 16, 17, 23, 24, 2002 Graham County Fair at Safford March 30, 31, April 6, 7, 2002 Cochise County Fair at Douglas April 13, 14, 20, 21, 2002 Santa Cruz County Fair at Sonoita April 27, 28, May 4, 5, 2002 Mohave County Fair at Kingman May 11, 12, 18, 19, 2002 Subtotal - Fairs at Non-Commercial Tracks Live Races Simulcast Races Total Handle Simulcast Handle Attendance Returned to Public Track Commission Breakage to Track Purses 4 27 103 $1,355,308 $902,056 13,005 $1,067,366 $280,192 $7,750 $115,541 4 32 0 $47,966 $0 1,375 $37,296 $10,187 $484 $58,949 4 29 0 $72,960 $0 3,150 $56,652 $15,687 $621 $58,836 4 32 0 $58,910 $0 1,655 $45,839 $12,566 $505 $57,833 4 32 0 $81,100 $0 3,300 $63,024 $17,325 $751 $53,253 4 32 0 $102,544 $0 5,450 $79,895 $21,931 $718 $57,076 4 37 1 $235,031 $29,855 6,200 $184,328 $48,905 $1,799 $112,964 4 32 0 $119,822 $0 2,526 $93,021 $25,480 $1,322 $95,782 32 253 104 $2,073,641 $931,911 36,661 $1,627,421 $432,273 $13,950 $610,234 4 40 108 $1,535,600 $946,519 17,480 $1,215,982 $312,351 $7,266 $253,900 4 38 329 $2,885,598 $1,935,492 24,397 $2,291,037 $579,222 $15,339 $285,491 4 38 362 $3,254,699 $2,225,752 21,183 $2,585,228 $651,345 $18,126 $307,280 4 35 0 $299,427 $0 10,649 $230,437 $66,504 $2,486 $64,089 4 36 346 $3,352,475 $2,337,969 25,054 $2,667,299 $666,066 $19,111 $302,687 4 38 381 $3,396,114 $2,322,668 20,332 $2,701,810 $679,464 $14,840 $312,804 Fairs at Commercial Tracks Yavapai County Fair at Prescott Valley (Yavapai Downs) September 1, 2, 3, 4, 2001 La Paz County Fair at Phoenix (Turf Paradise) January 12, 13, 19, 20, 2002 Maricopa County Fair at Phoenix (Turf Paradise) January 26, 27, February 1, 2, 2002 Pima County Fair at Tucson (Rillito Park) February 2, 3, 9, 10, 2002 Pinal County Fair at Phoenix (Turf Paradise) February 9, 10, 16, 17, 2002 Navajo County Fair at Phoenix (Turf Paradise) March 9, 10, 16, 17, 2002 Yuma County Fair at Prescott Valley (Yavapai Downs) May 25, 26, 27, 28, 2002 Subtotal - Fairs at Commercial Tracks 4 27 167 $1,309,940 $913,548 16,700 $1,041,334 $261,516 $7,089 $121,680 28 252 1,693 $16,033,853 $10,681,948 135,795 $12,733,127 $3,216,468 $84,257 $1,647,931 Total - All County Fair Racing 60 505 1,797 $18,107,494 $11,613,859 172,456 $14,360,548 $3,648,741 $98,207 $2,258,165 County Fair Racing For Fiscal Year 2001 Race Days ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 31 Fairs at Non-Commercial Tracks Coconino County Fair at Flagstaff July 1, 2, 3, 4, 5, 2000 Apache County Fair at St. Johns September 16, 17, 23, 24, 2000 Gila County Fair at Globe September 30, October 1, 7, 8, 2000 Greenlee County Fair at Duncan March 17, 18, 24, 25, 2001 Graham County Fair at Safford March 31, April 1, 7, 8, 2001 Cochise County Fair at Douglas April 14, 15, 21, 22, 2001 Santa Cruz County Fair at Sonoita April 28, 29, May 5, 6, 2001 Mohave County Fair at Kingman May 12, 13, 19, 20, 2001 Coconino County Fair at Flagstaff June 29, 30, 2001 Subtotal - Fairs at Non-Commercial Tracks Live Races Simulcast Races Total Handle Simulcast Handle Attendance Returned to Public Track Breakage to Commission Track Purses 5 36 95 $1,840,779 $1,118,458 24,723 $1,473,816 $357,356 $9,607 $145,687 4 32 0 $41,551 $0 1,320 $32,365 $8,823 $363 $53,525 4 32 0 $82,841 $0 2,950 $64,307 $17,879 $655 $60,443 4 33 0 $74,397 $0 2,900 $58,000 $15,881 $516 $51,792 4 32 0 $94,655 $0 4,400 $73,539 $20,416 $700 $56,125 4 34 0 $100,354 $0 5,250 $78,182 $21,448 $724 $58,965 4 37 0 $196,185 $0 8,000 $152,980 $41,696 $1,509 $125,120 4 33 0 $110,725 $0 2,620 $86,237 $23,311 $1,177 $57,826 2 9 85 $819,432 $670,728 5,683 $662,286 $153,401 $3,745 $77,771 35 278 180 $3,360,919 $1,789,186 57,846 $2,681,712 $660,211 $18,996 $687,254 4 40 161 $1,927,371 $1,372,012 17,286 $1,519,574 $398,213 $9,584 $287,400 4 40 311 $3,089,876 $2,047,432 24,225 $2,449,911 $601,052 $38,913 $293,982 4 40 378 $3,386,431 $2,228,409 22,591 $2,687,346 $679,480 $19,604 $324,026 4 34 0 $358,162 $0 11,972 $275,923 $79,709 $2,530 $70,263 4 40 382 $3,092,549 $1,934,038 23,257 $2,461,889 $612,665 $17,995 $287,720 4 40 390 $3,474,133 $2,335,865 22,275 $2,757,905 $696,469 $19,759 $313,686 Fairs at Commercial Tracks Yavapai County Fair at Prescott (Prescott Downs) September 2, 3, 4, 5, 2000 La Paz County Fair at Phoenix (Turf Paradise) January 13, 14, 20, 21, 2001 Maricopa County Fair at Phoenix (Turf Paradise) January 26, 27, February 3, 4, 2001 Pima County Fair at Tucson (Rillito Park) February 3, 4, 10, 11, 2001 Pinal County Fair at Phoenix (Turf Paradise) February 10, 11, 17, 18, 2001 Navajo County Fair at Phoenix (Turf Paradise) March 10, 11, 17, 18, 2001 Yuma County Fair at Prescott Valley (Yavapai Downs) May 26, 27, 28, 29, 2001 Subtotal - Fairs at Commercial Tracks 4 36 126 $1,503,329 $898,104 68,499 $1,188,119 $306,799 $8,411 $150,000 28 270 1,748 $16,831,851 $10,815,860 190,105 $13,340,667 $3,374,387 $116,796 $1,727,077 Total - All County Fair Racing 63 548 1,928 $20,192,770 $12,605,046 247,951 $16,022,379 $4,034,598 $135,792 $2,414,331 TELETRACK ACTIVITY The handle at teletracking facilities was mostly down during FY 2002. The Arizona Racing Commission approved teletracking operations for five permittees: Phoenix Greyhound Park, Tucson Greyhound Park, Turf Paradise, Rillito Park, Yavapai County Fair Association (Yavapai Downs) and Coconino County Racing (Fort Tuthill Downs). Also, county fair meets at Yavapai Downs and Turf Paradise offered teletrack wagering. These permittees utilized 77 locations during the year. A detailed summary of Teletrack wagering during FY 2002 is included on pages 33-35. The Table below summarizes the teletrack handle generated by commercial and county fair meets. FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 $1,631,180 $1,561,911 $1,788,012 $2,120,115 $1,102,882 $20,052,064 $22,105,470 $24,118,181 $24,883,119 $27,279,570 $2,664,614 $2,578,964 $2,920,652 $2,483,999 $2,396,799 $59,794,276 $61,132,935 $68,092,678 $71,513,929 $70,508,851 $6,204,238 $7,270,025 $7,191,772 $6,633,368 $6,541,170 $266,482 $264,688 $251,972 $0 $0 Phoenix Greyhound Park $69,269,838 $68,503,247 $62,967,472 $55,480,483 $50,051,474 Tucson Greyhound Park $12,933,280 $13,790,867 $14,232,145 $15,035,143 $14,329,756 $172,815,972 $177,196,506 $181,562,884 $178,150,156 $172,209,902 Fort Tuthill Downs (Fair Meet) Yavapai Downs Yavapai Downs (Fair Meets) Turf Paradise Turf Paradise (Fair Meets) Rillito Park TOTALS ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 32 TELETRACKING ACTIVITY - GREYHOUND MEETS PHOENIX GREYHOUND PARK CITY APACHE JUNCTION CASA GRANDE CAVE CREEK CHANDLER CHANDLER CHANDLER FLORENCE FOUNTAIN HILLS GLENDALE KINGMAN LAKE HAVASU CITY LITCHFIELD PARK PEORIA PEORIA PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PINETOP PRESCOTT VALLEY SAN CARLOS SCOTTSDALE SIERRA VISTA SURPRISE TEMPE TEMPE TEMPE TEMPE YUMA SITE HANDLE APACHE GREYHOUND PARK MCMASHER'S SPORTS BAR SATISFIED FROG GALLAGHER'S DIRTY DRUMMER STADIUM CLUB MY OFFICE BAR FT. MCDOWELL CASINO MAX'S SPORTS BAR DAMBAR & STEAKHOUSE LONDON BRIDGE BREWERY LIGHTHOUSE RESTAURANT GALLAGHER'S GRAND INN BIG DADDY'S BRENNAN'S BRENNAN'S PUB & GRUB CHASE'S FINAL SCORE SPORTS GRILL 40TH STREET GRILL GALLAGHER'S PADRE MURPHY'S THE WAGON WHEEL PLAZA BOWL APACHE GOLD CASINO CASINO ARIZONA COCHISE HEALTH & RACQUET RUNNER'S SPORTS BAR HORSE & HOUND HORSE & HOUND-Off Broadway MCDUFFY'S SPORTS BAR POOCH'S EASY STREET YUMA GREYHOUND PARK TOTAL *REVENUE DAYS $1,781,626 $802,993 $330,485 $871,743 $1,998,748 $2,480,629 $93,875 $1,580,386 $2,233,811 $327,360 $164,187 $2,663,261 $1,284,778 $2,199,738 $1,519,576 $2,269,380 $1,894,183 $617,887 $2,334,604 $1,846,573 $1,728,919 $6,029,180 $84,389 $440,610 $256,231 $4,112,381 $847,057 $243,427 $1,570,957 $1,923,613 $1,234,348 $946,462 $1,338,077 $7,511 $1,890 $1,133 $2,539 $5,425 $5,698 $230 $2,950 $4,617 $1,056 $474 $7,138 $4,149 $4,556 $3,834 $5,387 $4,023 $1,423 $6,533 $4,573 $5,156 $13,335 $234 $1,339 $709 $9,878 $2,396 $561 $3,663 $4,836 $2,918 $2,414 $2,233 357 363 286 365 363 365 89 268 283 204 179 365 365 364 363 360 364 215 365 363 365 365 118 305 309 365 301 178 365 365 364 365 353 $50,051,474 $124,811 10,364 TUCSON GREYHOUND PARK CITY MARANA TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON SITE OLD FATHER INN AIRPORT INN FAMOUS SAM'S - CENTRAL FAMOUS SAM'S - EAST GOLDEN PIN LANES JEFF'S PUB KAPPY'S SPORTS PAGE LOUNGE THE KEYS TOTAL HANDLE *REVENUE DAYS $902,141 $148,450 $1,648,189 $2,075,024 $408,747 $3,084,232 $1,936,273 $2,190,021 $1,936,679 $0 $0 $0 $0 $0 $0 $0 $0 $0 361 97 361 361 88 361 361 267 354 $14,329,756 $0 2,611 * Revenue contributed following application of hardship tax relief ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 33 TELETRACKING ACTIVITY - COMMERCIAL HORSE MEETS YAVAPAI DOWNS CITY SITE AHWATUKEE APACHE JUNCTION APACHE JUNCTION CASA GRANDE CAVE CREEK CAVE CREEK CHANDLER CHANDLER COTTONWOOD DOUGLAS FLAGSTAFF FLORENCE FOUNTAIN HILLS GLENDALE GLENDALE GOODYEAR KINGMAN LAKE HAVASU CITY MARANA NEW RIVER PARKER PATAGONIA PAYSON PEORIA PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PRESCOTT PRESCOTT VALLEY PRESCOTT VALLEY QUARTZSITE ROCK SPRINGS SAFFORD SAN CARLOS SCOTTSDALE SHOW LOW SIERRA VISTA SURPRISE SUN CITY TEMPE TEMPE TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON YOUNGTOWN YUMA HANDLE GRACE INN APACHE GREYHOUND PARK ARIZONA JOE'S MCMASHER'S SPORTS BAR THE CRACKED CRAB SATISFIED FROG DIRTY DRUMMER STADIUM CLUB FAMOUS SAM'S SHOOTERS MUSEUM CLUB MY OFFICE BAR FT. MCDOWELL CASINO GALLINGERS MAX'S SPORTS BAR ROMAN'S OASIS ABC RESTAURANT GALLAGHER'S AGAIN OLD FATHER INN NEW RIVER STATION STROKES THE BIG STEER MARIO'S RESTAURANT GRAND INN AMERICAN LEGION #7 BRENNAN'S DINO'S/ORIGINAL TOMMY'S FINAL SCORE SPORTS GRILL 40TH STREET GRILL NORTH STAR RESTAURANT PADRE MURPHY'S ROMAN'S COUNTY LINE TURF PARADISE KELSIE'S SNEAKERS ANTELOPE LANES YAVAPAI DOWNS QUARTZSITE YACHT CLUB ROCK SPRINGS CAFE JB'S RESTAURANT APACHE GOLD CASINO CASINO ARIZONA RT'S BLACK BULL KING'S COURT RUNNER'S SPORTS BAR MCCARTHYS HORSE & HOUND-BROAD'Y MCDUFFY'S SPORTS BAR AIRPORT INN FAMOUS SAM'S-EAST FAMOUS SAM'S-CENTRAL GOLDEN PIN LANES JEFF'S PUB KAPPY'S RESTAURANT RILLITO PARK SPORTS PAGE THE KEYS TUCSON GREYHOUND PARK JOE BROWNS YUMA GREYHOUND PARK TURF PARADISE DAYS $1,063,085 $846,953 $345,065 $258,759 $183,559 $139,098 $1,115,568 $835,497 $155,360 $23,691 $405,904 $51,603 $307,223 $56,415 $1,178,932 $122,754 $240,311 $360,724 $229,613 $40,894 $93,848 $4,567 $79,196 $804,610 $198,113 $1,502,436 $660,717 $735,798 $1,663,697 $862,613 $2,002,001 $621,857 $831,097 $123,741 $410,469 91 76 91 91 58 33 91 91 58 43 91 58 58 33 91 91 91 91 91 31 91 4 58 91 33 91 91 91 91 91 91 91 50 33 91 $108,213 $146,303 $192,194 $126,727 $1,284,828 $348,091 $520,869 $253,007 $280,359 $1,048,780 $863,480 $37,602 $232,952 $243,220 $200,612 $449,335 $342,957 91 91 87 90 91 81 91 91 75 91 91 33 91 91 33 91 91 $212,164 $241,103 $1,262,238 $28,586 $190,726 58 53 91 20 42 $0 $0 $0 $0 $27,170,114 HANDLE *REVENUE DAYS $2,929,684 $2,608,861 $1,262,558 $774,629 $289,433 $458,481 $3,315,101 $2,441,833 $27,569 $85,096 $933,984 $105,807 $15,000 $13,292 $6,389 $3,966 $1,434 $2,382 $16,948 $12,521 $143 $428 $4,777 $532 242 242 243 241 113 121 241 243 10 136 240 121 $80,716 $2,823,918 $365,981 $641,570 $953,031 $492,841 $134,188 $229,395 $419 $14,464 $1,861 $3,278 $4,867 $2,526 $697 $1,170 64 241 242 242 241 241 103 242 $204,703 $2,070,369 $257,312 $5,044,845 $1,865,531 $2,181,430 $5,928,530 $2,385,868 $5,118,290 $1,633,201 $1,031 $10,515 $1,337 $25,768 $9,507 $11,135 $30,364 $12,154 $26,205 $8,312 168 243 47 240 238 242 242 242 243 242 $278,459 $1,128,424 $532,295 $406,726 $369,269 $580,762 $1,447 $5,743 $2,715 $2,069 $1,896 $2,963 92 243 212 241 242 243 $501,214 $1,306,468 $765,000 $1,161,356 $3,358,390 $2,399,672 $21,843 $668,292 $799,164 $111,009 $1,429,148 $992,375 $102,609 $867,680 $583,764 $3,088,020 $2,575 $6,691 $3,915 $5,963 $17,128 $12,298 $113 $3,418 $4,119 $577 $7,308 $5,083 $533 $4,424 $2,926 $15,634 243 241 241 243 243 243 29 240 242 22 242 241 5 216 137 242 $1,326,906 $6,729 171 0 0 0 0 $22,906 $9,734 $2,353 $50,258 $0 $0 $0 $0 4 4 9 4 4,201 $70,508,851 $359,689 10,491 COUNTY FAIRS ST. JOHNS DUNCAN PHOENIX SONOITA SUB-TOTAL APACHE COUNTY FAIR GREENLEE COUNTY FAIR MARICOPA COUNTY FAIR SANTA CRUZ COUNTY FAIR *Funds contributed after the application of hardship tax relief and capital improvement payments. ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 34 TELETRACKING ACTIVITY - FAIR MEETS FORT TUTHILL DOWNS YAVAPAI DOWNS (Yavapai & Yuma) TURF PARADISE (La Paz, Maricopa Navajo and Pinal) CITY SITE AHWATUKEE APACHE JUNCTION APACHE JUNCTION CASA GRANDE CAVE CREEK CAVE CREEK CHANDLER CHANDLER COTTONWOOD DOUGLAS DUNCAN FLAGSTAFF FLORENCE FOUNTAIN HILLS GLENDALE GLENDALE GOODYEAR KINGMAN LAKE HAVASU CITY MARANA NEW RIVER PARKER PATAGONIA PAYSON PEORIA PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PRESCOTT PRESCOTT VALLEY PRESCOTT VALLEY QUARTZSITE ROCK SPRINGS SAFFORD SAN CARLOS SCOTTSDALE SHOW LOW SIERRA VISTA SURPRISE SUN CITY TEMPE TEMPE TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON YOUNGTOWN YUMA GRACE INN APACHE GREYHOUND PARK ARIZONA JOE'S MCMASHER'S SPORTS BAR THE CRACKED CRAB SATISFIED FROG DIRTY DRUMMER STADIUM CLUB FAMOUS SAM'S SHOOTERS GREENLEE COUNTY FAIR MUSEUM CLUB MY OFFICE BAR FT. MCDOWELL CASINO GALLINGERS MAX'S SPORTS BAR ROMAN'S OASIS ABC RESTAURANT GALLAGHER'S AGAIN OLD FATHER INN NEW RIVER STATION STROKES THE BIG STEER MARIO'S RESTAURANT GRAND INN AMERICAN LEGION #7 BRENNAN'S DINO'S/ORIGINAL TOMMY'S 40TH STREET GRILL NORTH STAR RESTAURANT PADRE MURPHY'S ROMAN'S COUNTY LINE FINAL SCORE SPORTS GRILL TURF PARADISE KELSIE'S SNEAKERS ANTELOPE LANES YAVAPAI DOWNS QUARTZSITE YACHT CLUB ROCK SPRINGS CAFE JB'S RESTAURANT APACHE GOLD CASINO CASINO ARIZONA RT'S BLACK BULL KING'S COURT RUNNER'S SPORTS BAR MCCARTHYS HORSE & HOUND-BROAD'Y MCDUFFY'S SPORTS BAR AIRPORT INN FAMOUS SAM'S-EAST FAMOUS SAM'S-CENTRAL GOLDEN PIN LANES JEFF'S PUB KAPPY'S RESTAURANT SPORTS PAGE RILLITO PARK THE KEYS TUCSON GREYHOUND PARK JOE BROWNS YUMA GREYHOUND PARK TOTAL HANDLE DAYS HANDLE DAYS HANDLE DAYS $30,891 $29,407 $24,194 $13,764 $16,954 $0 $43,052 $34,344 $9,224 $0 $0 $11,347 $3,153 $19,938 $0 $36,444 $4,696 $7,739 $14,454 $15,612 $0 $6,377 $5,550 $5,430 $34,925 $0 $28,449 $31,157 $90,238 $32,828 $90,139 $26,704 $27,176 $40,179 $0 $22,786 $0 $3,207 $4,540 $12,224 $3,015 $57,113 $41,518 $20,687 $8,296 $0 $29,890 $27,764 $0 $5,973 $13,879 $0 $21,592 $8,385 $7,805 $0 $10,099 $62,282 $4,120 $3,342 4 4 4 4 4 0 4 4 4 0 0 4 4 4 0 3 4 4 4 4 0 4 4 3 4 0 3 4 4 4 4 4 4 3 0 4 0 4 4 4 4 4 4 4 4 0 4 4 0 4 4 0 4 4 3 0 4 4 4 1 $78,100 $58,849 $34,345 $16,471 $11,035 $13,151 $77,450 $89,029 $17,975 $3,795 $0 $39,466 $2,819 $27,411 $4,366 $84,618 $16,692 $29,511 $38,768 $13,089 $5,124 $19,564 $0 $10,097 $61,582 $20,562 $123,714 $55,682 $121,296 $77,961 $157,034 $58,194 $65,109 $134,683 $11,260 $37,795 $0 $12,084 $11,734 $22,761 $8,561 $118,707 $34,462 $44,090 $21,535 $31,531 $94,700 $73,447 $2,338 $17,825 $16,201 $24,194 $41,117 $14,965 $20,754 $0 $19,713 $126,923 $0 $22,560 8 8 8 8 4 4 8 8 4 4 0 8 4 4 4 8 8 8 8 8 4 8 0 4 8 4 8 8 8 8 8 8 8 7 4 8 0 8 8 8 7 8 8 8 8 8 8 8 4 8 8 4 8 8 4 0 7 8 0 4 $286,844 $245,786 $114,587 $76,223 $0 $71,995 $288,867 $272,942 $0 $2,718 $3,529 $71,741 $4,248 $0 $0 $219,647 $45,957 $56,417 $95,736 $39,197 $25,877 $27,693 $0 $21,786 $169,090 $0 $408,958 $151,194 $516,969 $185,020 $409,717 $177,435 $206,359 $0 $23,725 $94,147 $65,874 $52,675 $28,461 $54,866 $0 $0 $84,424 $210,141 $55,311 $109,914 $315,818 $195,296 $0 $47,343 $48,215 $0 $138,851 $59,519 $74,615 $113,627 $91,354 $274,174 $0 $206,288 16 16 16 16 0 16 16 16 0 6 2 16 6 0 0 16 16 16 16 16 16 16 0 14 16 0 16 16 16 16 16 16 16 0 6 16 16 16 16 16 0 0 16 16 16 16 16 16 0 16 16 0 16 16 16 5 16 16 0 16 $1,102,882 184 $2,396,799 377 $6,541,170 711 ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 35 FINANCIAL ADMINISTRATION OF BOXING total of $8,215 in license fees from these applicants. Since October 1992, the Arizona Department of Racing has had responsibility for the financial administration of the Arizona State Boxing Commission. In this capacity, the Department collects and deposits State receipts associated with boxing. As noted in the Legislative Summary on Page 5, the Legislature has given the Department of Racing responsibilities for the regulation of boxing. From and after August 22, 2002, a division of boxing regulation is established within the Department of Racing to provide staff support for the Arizona State Boxing Commission. The Director of the Department of Racing is authorized to appoint an assistant director for boxing regulation to perform duties prescribed in boxing statutes. The Department collects a fee of four percent of the gross receipts after deduction of any federal, state, and local taxes generated from boxing matches. In FY 2002, the Department collected $20,272.04 in taxes generated from 36 boxing events in the State. The State Boxing Commission issued 438 licenses, and the Department collected a Breakdown – Boxing Revenues Collected FY 00 FY 01 FY 02 No. of Boxing Events 13 20 36 No. of Licenses Issued 279 338 438 $ 17,804.52 $ 4,695.00 $0 $0 $ 22,499.52 $ 49,275.09 $ 6,755.00 $ 443.63 $0 $ 56,473.72 $ 20,272.04 $ 8,215.00 $0 $0 $ 28,487.04 Taxes License Fees Prior Year Receipts Fines Total Revenue Collected ARIZONA DEPARTMENT OF RACING FY 2002 ANNUAL REPORT 36