State of Arizona Department of Racing Annual Report FY 2005 Table Of Contents LETTER TO THE GOVERNOR ARIZONA RACING COMMISSION.............................................................................................................. 1 AWARDS ...................................................................................................................................................... 2 DEPARTMENT OF RACING ........................................................................................................................ 3 Department Organization Chart ....................................................................................................... 3 Commercial and County Fair Racing Chart ..................................................................................... 4 COMMERCIAL RACING .............................................................................................................................. 5 Commercial Racing Permittees, Tracks and Permit Terms Chart ................................................... 5 Commercial Tracks Chart ................................................................................................................ 6 COMMERCIAL HORSE RACING ................................................................................................................ 7 Investigations, Licensing, and Breeders & Stallion Awards Charts ................................................. 7 Commercial Horse Tracks Chart...................................................................................................... 8 Rillito Park Chart .............................................................................................................................. 9 Turf Paradise Chart........................................................................................................................ 10 Yavapai Downs Chart .................................................................................................................... 11 COUNTY FAIR RACING ............................................................................................................................ 12 Betterment Payments to Counties, Investigations, and Licensing Charts ..................................... 13 County Fair Tracks Chart ............................................................................................................... 14 County Fair Racing Schedule and Statistics.................................................................................. 15 COMMERCIAL GREYHOUND RACING.................................................................................................... 16 Investigations. Licensing, and Inspections Charts......................................................................... 16 Breeders’ Awards and Greyhound Adoption Charts...................................................................... 17 Commercial Greyhound Tracks Chart ........................................................................................... 18 Apache Greyhound Park Chart...................................................................................................... 19 Phoenix Greyhound Park Chart ..................................................................................................... 20 Tucson Greyhound Park Chart ...................................................................................................... 21 TELETRACKING ........................................................................................................................................ 22 Teletrack Handle Chart .................................................................................................................. 22 Teletracking Activity – Commercial Horse Meets Chart ................................................................ 23 Teletracking Activity – County Fair Meets Chart............................................................................ 24 Teletracking Activity – Greyhounds Meets Charts......................................................................... 25 RACING REGULATION ............................................................................................................................. 26 Licensing, Civil Penalties/Fines, and Stewards Rulings by Track Charts...................................... 26 Director’s Rulings, Investigations, and Types of Investigations Charts ......................................... 27 Drug/Alcohol Abuse Investigations and Equine & Canine Drug Testing Charts............................ 28 License by Category Chart ............................................................................................................ 29 BOXING REGULATON .............................................................................................................................. 30 Sanctioned Events, Licensing, and Investigations Charts ............................................................. 30 FINANCIAL ISSUES Department of Racing Budget........................................................................................................ 32 Department Budget Chart, Department of Racing Revenues, and Distribution of Revenues to the Eight Separate Funds and Maximum Dollars Allowed Chart ........................................ 33 Distribution of Department of Racing Revenues Chart.................................................................. 35 Department of Racing Revenues by Category Chart .................................................................... 36 Appropriated and Non-Appropriated Funds Chart ......................................................................... 37 Department of Racing Pari-Mutuel Tax and Hardship Tax Credit Projections Chart .................... 38 Hardship Tax Credit Chart ............................................................................................................. 39 Track Capital Improvements Chart ................................................................................................ 40 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT ARIZONA DEPARTMENT OF RACING JANET NAPOLITANO GOVERNOR GEOFFREY E. GONSHER DIRECTOR October 1, 2005 The Honorable Janet Napolitano Governor of the State of Arizona 1700 West Washington Phoenix, Arizona 85007 Dear Governor Napolitano: It is my pleasure to submit the FY 2005 Department of Racing Annual Report. This report reflects statutory requirements as they relate to the Department’s regulatory, fiscal, and administrative responsibilities. Last year, the Department regulated and supervised horse and greyhound racing and pari-mutuel wagering at three commercial horse tracks, three greyhound tracks, fifteen county fair racing meetings, and 82 teletrack locations throughout Arizona. The total pari-mutuel handle for all racing was $264.6 million, an increase of $465,000 or 0.2% from the prior year. The total pari-mutuel tax receipts amounted to $483,901, a decrease of 14.5% from the prior year. FY 2005 continued to be a period of progress for the Department. The Department introduced more management and operational improvements that are consistent with the resources and regulations. With the continued support of your administration, our objective is to build on the following for a more responsive and effective operation in the future. • Regulate and supervise all pari-mutuel racing and wagering in order to protect racing participants and the wagering public. • Strengthen agency management to respect and follow the rules, regulations and statutes that protect the integrity of the racing industry. • Improve relationships with employees, permittees, licensees, and industry organizations to create partnerships to support the racing industry. The Racing Department is committed to performing all statutory and regulatory duties in a manner that brings respect to the agency and the industry. Your continued support is greatly appreciated. Sincerely, Geoffrey E. Gonsher Director 1110 West Washington, Suite 260 Phoenix, AZ 85007 Ph (602) 364-1700 Fax (602) 364-1703 ador@azracing.gov www.azracing.gov “AN EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER” Arizona Racing Commission The Arizona Racing Commission was established in 1949 by the Arizona Legislature. The Racing Commission is responsible for issuing racing dates; preparing and adopting rules to govern racing meetings as may be required to protect and promote the safety and welfare of the animals participating in racing meetings; protecting and promoting public health, safety and the proper conduct of racing and pari-mutuel wagering; conducting hearings on applications for racing permits; reviewing applications for capital improvements at racetracks; and conducting hearings and other legal procedures on matters relating to racing licensees and the racing industry. Arizona Revised Statutes § 5-102 authorizes a five-member Racing Commission, who shall be appointed by the Governor pursuant to A.R.S. § 38-211. Appointment is for a term of five years. Bob Ford, Racing Commission Chairman, was appointed to the Commission in 2001 and served as Vice-Chairman for two years. Serving as a public member, Mr. Ford comes from a family with over 50 years in the horseracing industry. Mr. Ford has worked at tracks in several positions, gaining first-hand knowledge that serves him well on the Commission. Retired from the City of Phoenix Fire Department, Mr. Ford currently serves on the City of Phoenix Planning Commission. Burton Kruglick, Racing Commission Vice-Chairman, is serving as a representative of the Dog Racing Industry. Mr. Kruglick was appointed to the Commission in 1997, and has served one year as Chairman and three years as Vice-Chairman. Mr. Kruglick has been active in Arizona government and politics for many years, serving as Chairman of the Arizona Republican Party from 1985 through 1991. He has been appointed to several Commissions and Boards over the years and is an active participant in community and philanthropic organizations. Michael Vespoli was appointed to the Racing Commission in 2003. Mr. Vespoli is serving as a public member and is Director of Community Affairs for UFCW Local 99. With extensive experience in labor-management relations, Mr. Vespoli brings a wealth of knowledge involving mediation, arbitration and representation to the board. James N. Chilcoat, Sr. was appointed to the Racing Commission in 2005 to serve as a public member. Mr. Chilcoat retired from the Arizona Department of Public Safety after 30 years of service. During his career, he worked in Highway Patrol, Intelligence, Fiscal Management, Legislation, and retired at the rank of Assistant Director. Mr. Chilcoat has attended numerous law enforcement seminars and programs, including the FBI National Academy, to enhance his knowledge and expertise in several areas of criminal justice. Erin Owens-Hall was appointed to the Racing Commission in 2005 to serve as the representative of the Horse Racing Industry. Ms. Owens-Hall was raised in the ranching and racing industry in Arizona. She spent several years in official positions at Canterbury Downs, San Juan Downs, Columbus Racetrack, and Turf Paradise. Ms. Owens-Hall is currently Director of Enrollment and Enrollment Manager at the University of Phoenix and supervises a staff of over 100 employees with responsibility for a total budget of $9.2 Million. ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 1 Awards HORSERACING INDUSTRY AWARDS The Racing Commission adopted a new program to recognize individuals for service to the horseracing industry. The following awards were presented at the September 8, 2004 Commission meeting. Recognition of Excellence Award. Loretta Brasher, Executive Director, AQRA Industry Employee Superior Accomplishment Award. Shawn Swartz, Director of Racing, Turf Paradise Lifetime Achievement Award. Jack Coady, Sr., Founder, Coady Photography Sportsmanship Award. James Kelly, AQRA Board Member Philanthropic Award. Sandra Hall, Horse Owner GREYHOUND INDUSTRY AWARDS The Racing Commission adopted a new greyhound racing industry recognition program. The following awards were presented at the December 15, 2004 Commission meeting. Lifetime Achievement Award. Jack Allen, Track Steward, Phoenix Greyhound Park Recognition of Excellence Award. Arizona Adopt-A-Greyhound Program DEPARTMENT OF RACING EMPLOYEE RECOGNITION AWARDS Governor Janet Napolitano proclaimed State Employee Recognition Day in Arizona to honor the dedication and commitment of all State employees. In the spirit of the Governor’s proclamation, the Department of Racing announced a new Employee Recognition Program. The purpose of the program is to say “thank you,” “well done,” “we value you as an employee,” and to acknowledge exemplary employee service and outstanding employee contributions that support the agency mission. FY 2005 Awards Employee of the Year Award. Kathryn “Katie” Kenfield, Examiner Technician II Supervisor of the Year Award. Bryan Stoyer, Chief Greyhound Steward Team of the Year Award. Andy Carlton, DVM, Veterinarian Supervisor Cynthia Toering, DVM, Veterinarian FY 2004 Awards Employee of the Year Award. Eddie Rosano, Assistant Steward Supervisor of the Year Award. Andy Carlton, DVM, Veterinarian Supervisor Team of the Year Award. Accounting Staff Amy Besco, Fiscal Services Specialist III Karri Hernandez, Fiscal Services Specialist II Pearl Pistiner, Administrative Services Officer I FY 2003 Awards Employee of the Year Award. Norma Rivero, Accounting Technician III Supervisor of the Year Award. Gerry Howard, Chief Horse Racing Steward (posthumous) Team of the Year Award. Tucson Greyhound Park Stewards Mike Brimmer, Chief Steward Eddie Rosano, Assistant Steward Katherine Vasco, Assistant Steward ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 2 Department Of Racing The primary mission of the Department of Racing is to regulate and supervise pari-mutuel horse and greyhound racing and wagering conducted in Arizona in order to protect racing participants and the wagering public. In addition, the Department regulates and supervises boxing events conducted in Arizona to protect participants in these events. GOVERNOR BOXING COMMISSION RACING COMMISSION DIRECTOR BOXING REGULATION ADMINISTRATION ENFORCEMENT & COMPLIANCE ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 3 RACING SERVICES COMMERCIAL AND COUNTY FAIR RACING Commercial Horse, Greyhound and County Fair Racing RACING STATISTICS FY 2001 Race Days/Performances (including 15 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days FY 2005 981 611 1,592 988 605 1,593 897 697 1,594 988 1,005 1,010 988 897 13,915 188,726 202,641 13,534 212,803 226,337 13,534 230,028 243,562 12,871 265,248 278,119 11,778 263,586 275,364 880,614 932,595 1,813,209 810,454 855,374 1,665,828 843,474 838,310 1,681,784 852,987 848,157 1,701,144 768,582 905,002 1,673,584 Pari-Mutuel Handle Average Handle per Race Day $179,253 $107,309,899 $178,599,279 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle FY 2004 1,001 588 1,589 Number of Races Live Races Simulcast Races Total Number of Races Breakdown by location On-Track Handle Off-Track Handle FY 2003 988 607 1,595 Total Live Performances (Matinee & Evening) Attendance On-Track Off-Track Total Attendance FY 2002 $107,074,785 178,834,393 $285,909,178 $172,579 $166,823 $102,322,446 $171,906,178 $98,925,176 $166,657,437 $95,785,970 178,442,654 $274,228,624 $86,628,828 178,953,785 $265,582,613 $165,786 $96,023,226 $168,073,643 $78,573,084 185,523,785 $264,096,869 $165,974 $88,766,221 $175,795,846 $81,251,006 183,311,061 $264,562,067 DISTRIBUTION OF REVENUES Returned to Wagering Public $223,085,133 State Pari-Mutuel Revenues $1,826,665 $214,510,744 $204,188,047 $757,662 $628,564 $203,820,895 $565,191 $204,344,383 $483,901 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 $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 $52,770,892 248,590 116,933 0 69,660 2,230,937 0 1,136,083 $56,573,095 $52,677,260 79,377 0 0 69,895 2,261,865 0 1,175,091 $56,263,488 $53,130,250 88,296 0 0 87,259 2,418,044 0 1,139,347 $56,863,196 Purses $23,590,039 $24,187,316 $20,842,682 $20,497,445 $20,708,997 Racetrack Trends at a Glance On-Track On-Track vs. Off-Track Handle Simulcast $200 $200 $180 $180 $160 $160 $140 $140 Million Million Source of Handle Live Off-Track $120 $100 $80 $120 $100 $80 $60 $60 $40 $40 $20 $20 $ $ FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2001 FY 2002 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 4 FY 2003 FY 2004 FY 2005 Commercial Racing The Department of Racing regulates and supervises all commercial horse and greyhound racing meetings and pari-mutuel wagering conducted on- and off-track in Arizona to enforce laws and regulations and to protect racing participants and the wagering public. In FY 2005, the Arizona Racing Commission approved commercial racing permits for Apache Greyhound Park, Phoenix Greyhound Park, Tucson Greyhound Park and Yavapai Downs. In June 2005, the Arizona Racing Commission approved the merger of Western Racing, Inc. with American Greyhound Racing, Inc. This action terminated the permit for Western Racing, Inc. at Phoenix Greyhound Park and transferred Western’s dates to the permit held by American Greyhound Racing, Inc. Pima County Horsemen’s Association filed a new application for commercial racing at Rillito Park during FY 2005. By statute, PCHA may continue to operate under the permit issued Pima County Fair Horse Racing Commission until the Arizona Racing Commission, upon recommendation by the Department, has finally ruled on the application. Southern Arizona Greyhound Racing, Inc. did not apply to renew its permit to conduct greyhound racing at Yuma Greyhound Park. Commercial Racing Permittees, Tracks and Permit Terms Permittee Track Permit Term American Greyhound Racing, Inc. Apache Greyhound Park 01/01/05 - 12/31/07 American Greyhound Racing, Inc. Phoenix Greyhound Park 01/01/05 - 12/31/07 Pima County Horsemen’s Association Rillito Park application pending Southern Arizona Greyhound Racing, Inc. Yuma Greyhound Park 01/01/02 - 12/31/04 Tucson Greyhound Park, Inc. Tucson Greyhound Park 01/01/05 - 12/31/07 TP Racing, L.L.L.P. Turf Paradise Race Course 06/01/03 - 05/31/06 Western Racing, Inc. Phoenix Greyhound Park 01/01/05 - 06/08/05 Yavapai County Fair Association Yavapai Downs at Prescott Valley 05/29/04 - 09/01/06 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 5 COMMERCIAL TRACKS Commercial Horse and Greyhound Racing RACING STATISTICS FY 2001 Race Days/Performances (including 15 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days FY 2002 FY 2003 FY 2004 FY 2005 927 605 1,532 943 586 1,529 921 609 1,530 927 603 1,530 835 695 1,530 927 947 950 927 835 13,367 186,798 200,165 13,029 211,006 224,035 13,028 227,928 240,956 12,358 262,400 274,758 11,244 260,574 271,818 Attendance On-Track Off-Track Total Attendance 696,600 868,658 1,565,258 691,411 801,961 1,493,372 737,567 780,311 1,517,878 725,228 789,343 1,514,571 640,640 834,294 1,474,934 Pari-Mutuel Handle Average Handle per Race Day $173,444 $167,509 $161,673 $160,457 $159,162 Breakdown by location On-Track Handle Off-Track Handle $98,724,645 $166,991,763 $94,376,373 $161,744,757 $91,610,048 $155,749,842 $88,355,137 $157,143,398 $80,337,461 $163,180,209 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $99,487,061 166,229,347 $265,716,408 $89,292,335 166,828,795 $256,121,130 $80,765,076 166,594,814 $247,359,890 $72,812,408 172,686,127 $245,498,535 $74,986,000 168,531,669 $243,517,669 $207,062,754 $200,150,196 $189,919,817 $189,272,455 $187,771,621 $1,826,665 $757,662 $628,564 $565,191 $483,901 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 $53,399,050 624,772 368,886 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 $49,185,569 248,590 116,933 0 69,660 2,230,937 0 1,046,447 $52,898,136 $49,022,251 79,377 0 0 69,895 2,261,865 0 1,075,131 $52,508,519 $48,956,413 88,296 0 0 87,259 2,418,044 0 1,026,349 $52,576,361 Purses $21,175,708 $20,538,575 $18,842,906 $18,435,371 $18,523,133 Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Off-Track Live On-Track vs. Off-Track Handle $180 $200 $160 $180 $140 $160 $140 Million $120 Million Source of Handle Simulcast $100 $80 $120 $100 $80 $60 $60 $40 $40 $20 $20 $ $ FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2001 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 6 FY 2002 FY 2003 FY 2004 FY 2005 Commercial Horse Racing The Department of Racing is responsible for regulating and supervising all commercial horse racing meetings, conducting investigations, issuing licenses, conducting equine and human drug testing, overseeing wagering, hearing appeals of decisions, conducting hearings on investigation referrals and race incidents, collecting revenues for the State, and distributing awards to program recipients. Investigations The Department investigates possible violations of racing laws and rules and imposes administrative sanctions on those determined to have committed violations. All races are observed and supervised to ensure that all participants comply with the rules of racing. Performance Measures FY 2003 FY 2004 FY 2005 536 59% 565 100% 410 100% 178 261 276 78% 72% 86% Number of rulings issued Percent of original actions upheld on appeal Number of investigations conducted regarding compliance with rules Percent of investigations resulting in disciplinary action Licensing The Department issues licenses to participate in racing to those who are qualified and eligible. Licenses are denied for those who are undesirable or statutorily prohibited from participating. Performance Measures FY 2003 FY 2004 FY 2005 1,905 7 342 15% 3,157 6 337 15% 3,941 4 168 71% 100% 100% 100% Number of licenses issued Number of licenses denied Number of investigations conducted regarding licensing Percentage of background investigations resulting in disciplinary action Percent of license denials upheld on appeal Breeders & Stallion Awards The Department encourages and promotes horse breeding in Arizona through the administration of and distribution to recipients of funds available through Breeders and Stallion Awards Programs. Performance Measures Number of registered breeders Percent of registered breeders winning awards Number of registered horses Percent of registered horses winning awards Quarter Horse Breeders’ Awards Thoroughbred Breeders’ Awards Stallion Awards FY 2003 FY 2004 FY 2005 2,481 7% 4,972 3% $69,258 $348,751 $40,000 3,184 14% 5,239 5% $39,369 $419,357 $40,000 2,491 5% 5,590 5% $38,691 $418,126 $39,991 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 7 COMMERCIAL HORSE TRACKS Rillito Park, Turf Paradise, Yavapai Downs RACING STATISTICS FY 2001 Race Days/Performances (including 3 charity days) Live Race Days Dark Day-Simulcast Only Total Race Days FY 2002 FY 2003 FY 2004 FY 2005 206 238 444 208 235 443 211 236 447 208 232 440 201 242 443 206 208 211 208 201 1,988 13,652 15,640 1,989 32,429 34,418 2,079 37,039 39,118 1,866 44,178 46,044 1,872 46,735 48,607 410,800 534,437 945,237 425,821 513,002 938,823 406,922 511,907 918,829 415,823 543,899 959,722 380,465 581,299 961,764 $347,022 $353,324 $349,557 $364,636 $364,857 $57,801,999 $96,275,856 $58,975,299 $97,547,150 $58,231,225 $98,020,838 $57,798,008 $102,641,830 $55,917,152 $105,714,653 $38,734,372 115,343,483 $154,077,855 $36,360,266 120,162,183 $156,522,449 $32,550,698 123,701,365 $156,252,063 $29,381,769 131,058,069 $160,439,838 $29,905,601 131,726,204 $161,631,805 $121,121,937 $124,128,643 $120,365,579 $124,211,953 $125,373,998 $661,654 $595,011 $528,708 $480,282 $483,901 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement-Non Taxable Charity Day Hardship Tax Credit Breakage Total Track Revenues $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 $30,943,734 93,873 0 12,935 15,498 780,344 $31,846,384 $31,866,767 79,377 0 11,869 16,114 828,287 $32,802,413 $32,537,928 88,296 0 10,949 14,932 796,754 $33,448,859 Purses $14,853,572 $14,974,184 $14,090,151 $13,954,044 $14,130,954 Total Live Performances Number of Races Live Races Simulcast Races Total Number of Races Attendance On-Track Off-Track Total Attendance Pari-Mutuel Handle Average Handle per Race Day Breakdown by location On-Track Handle Off-Track Handle Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Off-Track Live Simulcast On-Track vs. Off-Track Handle $120 $140 $100 $120 Source of Handle $100 Million Million $80 $60 $40 $80 $60 $40 $20 $20 $ $ FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2001 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 8 FY 2002 FY 2003 FY 2004 FY 2005 RILLITO PARK 4502 North First Avenue Tucson, Arizona 85728 Pima County Fair Horse Racing Commission RACING STATISTICS FY 2005 Racing Dates: February 5, 2005 - March 6, 2005 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 8 0 8 6 0 6 10 0 10 9 0 9 9 0 9 8 6 10 9 9 70 0 70 55 0 55 91 0 91 84 0 84 86 0 86 Attendance On-Track Off-Track Total Attendance 19,568 0 19,568 16,446 0 16,446 23,453 0 23,453 24,569 0 24,569 36,238 0 36,238 Pari-Mutuel Handle Average Handle per Race Day $77,827 $85,657 $77,492 $89,521 $82,955 Race Days/Performances Live Race Days Dark Day-Simulcast Only Total Race Days Total Live Performances Number of Races Live Races Simulcast Races Total Number of Races Breakdown by location On-Track Handle Off-Track Handle $622,612 $0 $513,941 $0 $774,915 $0 $805,693 $0 $746,592 $0 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $622,612 0 $622,612 $513,941 0 $513,941 $774,915 0 $774,915 $805,693 0 $805,693 $746,592 0 $746,592 $478,943 $396,671 $597,804 $621,883 $575,682 DISTRIBUTION OF REVENUES Returned to Wagering Public $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 $127,203 0 0 0 12,452 4,014 $143,669 $102,977 0 0 0 10,279 4,014 $117,270 $155,644 0 0 0 15,498 5,969 $177,111 $161,251 0 0 0 16,114 6,445 $183,810 $150,150 0 0 0 14,932 5,828 $170,910 Purses $148,810 $92,922 $173,139 $165,283 $205,624 State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Off-Track On-Track vs. Off-Track Handle Source of Handle Live Simulcast $1 $4 Million Million $3 $2 $1 $ $ FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2001 FY 2002 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 9 FY 2003 FY 2004 FY 2005 TURF PARADISE 1501 West Bell Road Phoenix, Arizona 85023 TP Racing, L.L.L.P. RACING STATISTICS FY 2001 Race Days/Performances (including 3 charity days) Live Race Days Dark Day-Simulcast Only Total Race Days FY 2005 Racing Dates: July 1, 2004-June 30, 2005 FY 2002 FY 2003 FY 2004 FY 2005 150 198 348 151 195 346 152 196 348 154 194 348 144 202 346 150 151 152 154 144 1,528 11,659 13,187 1,492 29,044 30,536 1,551 33,329 34,880 1,388 40,325 41,713 1,356 42,852 44,208 330,615 381,201 711,816 333,776 371,515 705,291 314,606 374,886 689,492 324,061 408,908 732,969 301,100 407,370 708,470 $364,673 $366,969 $366,991 $382,892 $378,807 $55,318,801 $71,587,356 $56,603,892 $70,367,367 $55,788,355 $71,924,499 $55,502,312 $77,744,086 $53,625,809 $77,441,273 $33,082,690 93,823,467 $126,906,157 $30,481,949 96,489,310 $126,971,259 $27,082,151 100,630,703 $127,712,854 $24,607,228 108,639,170 $133,246,398 $24,744,198 106,322,884 $131,067,082 $99,669,190 $100,733,160 $98,413,195 $103,130,018 $101,896,223 $661,654 $595,011 $528,708 $480,282 $483,901 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement-Non Taxable Charity Day Hardship Tax Credit Breakage Total Track Revenues $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 $25,275,721 0 0 12,935 0 632,473 $25,921,129 $26,422,880 0 0 11,869 0 692,750 $27,127,499 $26,370,398 0 0 10,949 0 645,789 $27,027,136 Purses $12,895,787 $12,934,104 $11,878,800 $11,834,760 $11,690,443 Total Live Performances Number of Races Live Races Simulcast Races Total Number of Races Attendance On-Track Off-Track Total Attendance Pari-Mutuel Handle Average Handle per Race Day Breakdown by location On-Track Handle Off-Track Handle Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Off-Track Live On-Track vs. Off-Track Handle Source of Handle Simulcast $120 $90 $80 $100 $80 $60 Million Million $70 $50 $40 $60 $40 $30 $20 $20 $10 $ $ FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2001 FY 2002 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 10 FY 2003 FY 2004 FY 2005 YAVAPAI DOWNS 10501 Hwy. 89A Prescott Valley, Arizona 86314 RACING STATISTICS Yavapai County Fair Association FY 2001 Race Days/Performances Live Race Days Dark Day-Simulcast Only Total Race Days FY 2002 FY 2005 Racing Dates: July 1, 2004 - September 3, 2004 May 28, 2005 - June 30, 2005 FY 2003 FY 2004 FY 2005 48 40 88 51 40 91 49 40 89 45 38 83 48 40 88 48 51 49 45 48 390 1,993 2,383 442 3,385 3,827 437 3,710 4,147 394 3,853 4,247 430 3,883 4,313 60,617 153,236 213,853 75,599 141,487 217,086 68,863 137,021 205,884 67,193 134,991 202,184 43,127 173,929 217,056 $301,694 $319,091 $311,958 $317,925 $338,842 Breakdown by location On-Track Handle Off-Track Handle $1,860,586 $24,688,500 $1,857,466 $27,179,783 $1,667,955 $26,096,339 $1,490,003 $24,897,744 1,544,751 28,273,380 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $5,029,070 21,520,016 $26,549,086 $5,364,376 23,672,873 $29,037,249 $4,693,632 23,070,662 $27,764,294 $3,968,848 22,418,899 $26,387,747 4,414,811 25,403,320 $29,818,131 $20,973,804 $22,998,812 $21,354,580 $20,460,052 $22,902,092 Total Live Performances Number of Races Live Races Simulcast Races Total Number of Races Attendance On-Track Off-Track Total Attendance Pari-Mutuel Handle Average Handle per Race Day DISTRIBUTION OF REVENUES Returned to Wagering Public $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 $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 $5,512,369 93,873 0 0 0 141,902 $5,748,144 $5,282,636 79,377 0 0 0 129,092 $5,491,104 $6,017,380 88,296 0 0 0 145,136 $6,250,812 Purses $1,808,975 $1,947,158 $2,038,212 $1,954,001 $2,234,887 State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Off-Track Live Simulcast On-Track vs. Off-Track Handle $30 $30 $25 $25 $20 Million Million Source of Handle $15 $20 $15 $10 $10 $5 $5 $ $ FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2001 FY 2002 * Prescott Downs through 2001 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 11 FY 2003 FY 2004 FY 2005 County Fair Racing The Department of Racing is responsible for regulating and supervising all county fair horse racing meetings, providing staff to operate race meetings, conducting investigations, issuing licenses, conducting equine and human drug testing, overseeing wagering, conducting hearings on investigation referrals, and collecting revenues for the State. The Department of Racing recognizes that county fair racing is an important component of the Arizona racing industry. The racing fans and general public who attend have an enjoyable time. The horse owners, grooms, jockeys, and others are able to experience a competitive environment. Local communities also benefit from the economic and entertainment value of the races. An economic impact report submitted to the Commission concluded that 36,700 fans attended county fair race events in FY 2002. In addition, this segment of the racing industry had a total economic impact of $22.7 million. In FY 2005, the Commission approved 15 applications for county fair racing. In FY 2005, a total of $1.23 million was available for county fair racing activities. County fair racing is supported by the following two fund sources: County Fair Racing. This appropriated fund, used for the administration of county fair racing, is generated by 9% of all pari-mutuel receipts, license fees, and State unclaimed property up to $300,000 annually. In FY 2005, this fund received $300,000, and $360,900 was spent for the program administration. County Fair Racing Betterment. This non-appropriated fund provides purse subsidy and betterment grants to every eligible county fair association for conducting county fair racing meetings. The fund receives 22% of all pari-mutuel receipts, license fees, and State unclaimed property up to $800,000 annually. In FY 2005, this fund received $800,000, and $861,025 was distributed. Nine of the ten counties conducting a meet in FY 2005 received $51,400 each to subsidize purses, the remaining county received $46,800. Five counties conducted their meets at commercial tracks and did not receive funding for this purpose. Ten counties received either $24,250, $35,825, $37,500, or $38,300 each in Betterment Grants last year. These funds were used for personnel, maintenance, security, emergency medical services, marketing, and other operating expenses. The five counties that conducted their racing at commercial sites were not entitled to the funds. ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 12 County Fair Racing Betterment Payments to Counties Purses $51,400 51,400 51,400 51,400 51,400 46,800 0 0 51,400 0 51,400 0 51,400 51,400 0 Betterment $35,825 38,300 37,500 38,300 38,300 38,300 0 0 38,300 0 24,250 0 38,300 24,250 0 Total $87,225 89,700 88,900 89,700 89,700 85,100 0 0 89,700 0 75,650 0 89,700 75,650 0 $509,400 $351,625 $861,025 County Apache County Cochise County Coconino County Gila County Graham County Greenlee County La Paz County Maricopa County Mohave County Navajo County Pima County Pinal County Santa Cruz County Yavapai County Yuma County Investigations The Department investigates possible violations of racing laws and rules and imposes administrative sanctions on those determined to have committed violations. All races are observed and supervised to ensure that all participants comply with the rules of racing. Performance Measures FY 2003 FY 2004 FY 2005 Number of rulings issued Percent of original actions upheld on appeal Number of investigations conducted regarding compliance with rules 50 75% 64 100% 41 100% 13 19 23 Percentage of background investigations resulting in disciplinary or enforcement action 62% 62% 83% Licensing The Department issues licenses to participate in racing to those who are qualified and eligible. Licenses are denied for those who are undesirable or statutorily prohibited from participating. Performance Measures FY 2003 FY 2004 FY 2005 252 1 48 420 1 43 715 1 23 8% 20% 9% 100% 100% 100% Number of licenses issued Number of licenses denied Number of investigations conducted regarding licensing Percent of background investigations resulting in disciplinary or enforcement action Percent of license denials upheld on appeal ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 13 COUNTY FAIR TRACKS County Fair Racing at Fairs and Commercial Tracks RACING STATISTICS FY 2001 Race Days/Performances Live Race Days Dark Day-Simulcast Only Total Race Days FY 2002 FY 2003 FY 2004 FY 2005 61 2 63 58 2 60 60 2 62 61 2 63 62 2 64 61 58 60 61 62 548 1,928 2,476 505 1,797 2,302 506 2,100 2,606 513 2,848 3,361 534 3,012 3,546 Attendance On-Track Off-Track Total Attendance 184,014 63,937 247,951 119,043 53,413 172,456 105,907 57,999 163,906 127,759 58,814 186,573 127,942 70,708 198,650 Pari-Mutuel Handle Average Handle per Race Day $320,520 $301,792 $293,915 $295,212 $328,819 Total Live Performances Number of Races Live Races Simulcast Races Total Number of Races Breakdown by location On-Track Handle Off-Track Handle $8,585,254 $11,607,516 $7,946,073 $10,161,421 $7,315,128 $10,907,595 $7,668,089 $10,930,245 $8,428,760 $12,615,638 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $7,587,724 12,605,046 $20,192,770 $6,493,635 11,613,859 $18,107,494 $5,863,752 12,358,971 $18,222,723 $5,760,676 12,837,658 $18,598,334 $6,265,006 14,779,392 $21,044,398 $16,022,379 $14,360,548 $14,268,230 $14,548,440 $16,572,761 DISTRIBUTION OF REVENUES Returned to Wagering Public $0 $0 $0 $0 $0 Track Mutuel Revenues Track Commission Breakage Total Track Revenues $4,034,598 135,792 $4,170,390 $3,648,741 98,207 $3,746,948 $3,585,323 89,636 $3,674,959 $3,655,009 99,960 $3,754,969 $4,173,837 112,998 $4,286,835 Purses $2,414,331 $3,648,741 $1,999,776 $2,062,074 $2,185,863 State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Off-Track Source of Handle $16 $14 $14 $12 $12 Million $10 Million Live Simulcast On-Track vs. Off-Track Handle $10 $8 $6 $8 $6 $4 $4 $2 $2 $ $ FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2001 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 14 FY 2002 FY 2003 FY 2004 FY 2005 County Fair Racing Schedule and Statistics FY 2005 Race Days ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 15 Fairs at Non-Commercial Tracks Coconino County Fair at Flagstaff July 1, 2, 3, 4, 5, 6, 2004 Apache County Fair at St. Johns September 18, 19, 25, 26, 2004 Gila County Fair at Globe October 2, 3, 9, 10, 2004 Greenlee County Fair at Duncan March 12, 13, 19, 20, 2005 Graham County Fair at Safford April 2, 3, 9, 10, 2005 Cochise County Fair at Douglas April 16, 17, 23, 24, 2005 Santa Cruz County Fair at Sonoita April 30, May 1, 7, 8, 2005 Mohave County Fair at Kingman May 14, 15, 21, 22, 2005 Subtotal - Fairs at Non-Commercial Tracks Live Races Simulcast Races Total Handle Simulcast Handle Attendance Returned to Public Track Commission Breakage to Track Purses 6 36 244 $2,391,290 $1,829,165 22,051 $1,838,607 $475,022 $12,967 $171,654 4 31 0 39,668 0 1,315 30,856 7,537 483 56,735 4 33 0 75,071 0 2,275 58,313 14,670 587 63,752 4 33 0 86,048 0 1,675 67,035 16,560 733 66,402 4 36 0 127,338 0 6,900 99,128 24,780 884 61,316 4 35 0 116,475 0 4,900 90,617 22,635 893 93,752 4 35 0 175,557 0 10,150 136,615 33,896 1,535 98,876 4 31 0 106,813 0 2,653 83,228 20,289 1,159 63,188 34 270 244 $3,118,260 $1,829,165 51,919 $2,404,397 $615,389 $19,241 $675,675 4 39 144 $1,581,610 $1,200,620 11,334 $1,286,737 $313,633 $8,018 $120,986 4 36 428 2,909,664 1,970,301 24,398 2,250,276 576,026 14,521 248,708 5 45 684 3,866,610 2,825,803 24,646 3,127,807 765,127 20,321 333,934 4 36 0 323,189 0 16,355 249,561 64,835 2,329 72,598 4 27 584 3,533,831 2,835,630 20,513 2,786,622 702,556 19,566 272,869 4 36 618 3,346,902 2,442,811 24,276 2,531,177 665,250 17,144 270,809 1 9 170 914,224 651,245 7,473 774,089 181,832 5,032 76,289 Fairs at Commercial Tracks Yavapai County Fair at Prescott Valley (Yavapai Downs) September 4, 5, 6, 7, 2004 La Paz County Fair at Phoenix (Turf Paradise) January 15, 16, 22, 23, 2005 Maricopa County Fair at Phoenix (Turf Paradise) January 8, 9, 29, 30, April 16, 2005 Pima County Fair at Tucson (Rillito Park) January 22, 23, 29, 30, 2005 Pinal County Fair at Phoenix (Turf Paradise) February 5, 12, 13, 19, 2005 Navajo County Fair at Phoenix (Turf Paradise) March 12, 13, 19, 20, 2005 Graham County Fair at Phoenix (Turf Paradise) March 26, 2005 Yuma County Fair at Prescott Valley (Yavapai Downs) May 28, 29, 30, 31, 2005 Subtotal - Fairs at Commercial Tracks 4 36 140 1,450,107 1,023,816 17,736 1,162,094 289,189 6,826 113,995 30 264 2,768 $17,926,138 $12,950,227 146,731 $14,168,364 $3,558,448 $93,758 $1,510,188 Total - All County Fair Racing 64 534 3,012 $21,044,398 $14,779,392 198,650 $16,572,761 $4,173,837 $112,998 $2,185,863 Commercial Greyhound Racing The Department of Racing is responsible for regulating and supervising all commercial greyhound racing meetings, conducting investigations, issuing licenses, conducting greyhound drug testing, overseeing wagering, hearing appeals of decisions, conducting hearings on investigation referrals and race incidents, collecting revenues for the State, and distributing awards to program recipients. Investigations The Department investigates possible violations of racing laws and rules and imposes administrative sanctions on those determined to have committed violations. All races are observed and supervised to ensure that all participants comply with the rules of racing. Performance Measures FY 2003 FY 2004 FY 2005 Number of rulings issued Percent of original actions upheld on appeal Number of investigations conducted regarding compliance with rules 123 25% 128 122 100% 81 106 100% 58 Percent of investigations resulting in disciplinary action 14% 69% 100% Licensing The Department issues licenses to participate in racing to those who are qualified and eligible. Licenses are denied for those who are undesirable or statutorily prohibited from participating. Performance Measures Number of licenses issued Number of licenses denied Number of investigations conducted regarding licensing Percent of background investigations resulting in disciplinary action Percent of license denials upheld on appeal FY 2003 FY 2004 FY 2005 481 2 92 10% 582 2 98 12% 1,420 2 58 35% 100% 100% 100% Inspections The Department issues licenses to greyhound farms, kennels and other operations after the facilities have been inspected and satisfied requirements. Performance Measures Number of facility licenses issued Number of inspections conducted at facilities Percent of inspections resulting in violations disciplinary action Number of litter inspections FY 2003 FY 2004 FY 2005 7 145 3% 5 37 14% 36 50 6% 130 141 127 and ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 16 Commercial Greyhound Racing Breeders’ Awards The Department encourages and promotes greyhound breeding in Arizona through the administration of and distribution to recipients of funds available through the Breeders’ Awards Programs. Performance Measures Amount of awards Percent of breeders winning awards Number of greyhounds earning awards Number of registered greyhounds FY 2003 FY 2004 FY 2005 $320,570 12% 1,330 7,100 $309,339 14% 800 8,000 $379,768 8% 689 5,321 Greyhound Adoption The Department provides grants to non-profit organizations to promote the adoption of retired racing greyhounds as domestic pets. This fund receives 100% of all fees collected from licensing greyhound racing kennels, breeding farms and other operations where greyhounds are raised for racing purposes. In FY 2005, the fund received $2,827. Performance Measures Number of grants awarded Amount of grants awarded FY 2003 FY 2004 FY 2005 2 $375 0 $0 2 $3,143 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 17 COMMERCIAL GREYHOUND TRACKS Apache Greyhound, Phoenix Greyhound, Tucson Greyhound FY 2001 RACING STATISTICS Race Days/Performances (including 12 charity days) Live Race Days Dark Day-Simulcast only Total Race Days FY 2002 FY 2003 FY 2004 FY 2005 721 367 1,088 735 351 1,086 710 373 1,083 719 371 1,090 634 453 1,087 721 739 739 719 634 Number of Races Live Races Simulcast Races Total Number of Races 11,379 173,146 184,525 11,040 178,577 189,617 10,949 190,889 201,838 10,492 218,222 228,714 9,372 213,839 223,211 Attendance On-Track Off-Track Total Attendance 285,800 334,221 620,021 265,590 288,959 554,549 330,645 268,404 599,049 309,405 245,444 554,849 260,175 252,995 513,170 $102,609 $91,711 $84,125 $78,036 $75,332 $40,922,646 $70,715,907 $35,401,074 $64,197,607 $33,378,823 $57,729,004 $30,557,129 $54,501,568 $24,420,309 $57,465,556 $60,752,689 50,885,864 $111,638,553 $52,932,069 46,666,612 $99,598,681 $48,214,378 42,893,449 $91,107,827 $43,430,639 41,628,058 $85,058,697 $45,080,399 36,805,465 $81,885,864 Returned to Wagering Public $85,940,817 $76,021,553 $69,554,238 $65,060,502 $62,397,624 State Pari-Mutuel Revenues $1,165,011 $162,651 $99,856 $84,909 $0 $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 $18,241,835 154,717 116,933 0 56,725 2,215,439 0 266,103 $21,051,752 $17,155,485 0 0 0 58,026 2,245,751 0 246,844 $19,706,106 $16,418,485 0 0 0 76,310 2,403,112 0 229,595 $19,127,502 $6,322,136 $5,564,391 $4,752,755 $4,481,327 $4,392,179 Total Live Performances (Matinee & Evening) Pari-Mutuel Handle Average Handle per Race Day Breakdown by location On-Track Handle Off-Track Handle Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle DISTRIBUTION OF 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 vs. Off-Track Handle On-Track Off-Track Live Simulcast $80 $70 $70 $60 $60 $50 Million Million $50 $40 Source of Handle $40 $30 $30 $20 $20 $10 $10 $ $ FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2001 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 18 FY 2002 FY 2003 FY 2004 FY 2005 APACHE GREYHOUND PARK 2551 West Apache Trail Apache Junction, Arizona 85220 RACING STATISTICS American Greyhound Racing, Inc. FY 2005 Racing Dates: July 1, 2004-June 30, 2005 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 69 294 363 69 293 362 52 310 362 56 308 364 0 362 362 69 69 52 56 0 Number of Races Live Races Simulcast Races Total Number of Races 1,123 52,035 53,158 932 56,843 57,775 774 59,484 60,258 834 60,250 61,084 0 60,270 60,270 Attendance On-Track Off-Track Total Attendance 38,290 0 38,290 42,600 0 42,600 127,819 0 127,819 126,750 0 126,750 81,353 0 81,353 Race Days/Performances (including 3 charity days) Live Race Days Dark Day-Simulcast only Total Race Days Total Live Performances (Matinee & Evening) Pari-Mutuel Handle Average Handle per Race Day $15,535 $14,684 $14,846 $14,511 $9,629 Breakdown by location On-Track Handle Off-Track Handle $5,639,221 $0 $5,315,494 $0 $5,374,389 $0 $5,281,988 $0 $3,485,747 $0 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $1,911,793 3,727,428 $5,639,221 $1,619,524 3,695,970 $5,315,494 $1,461,493 3,912,896 $5,374,389 $1,544,305 3,737,683 $5,281,988 $0 $3,485,747 $3,485,747 $4,399,937 $4,071,255 $4,092,042 $4,103,541 $2,670,590 $0 $0 $0 $0 $0 $1,103,296 0 0 0 4,418 80,519 0 18,363 $1,206,597 $813,942 0 0 0 0 0 0 8,938 $822,880 $255,152 $160,366 DISTRIBUTION OF REVENUES Returned to Wagering 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 $1,113,932 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 $1,135,328 0 27,383 (27,383) 4,710 75,362 0 17,158 $1,232,558 $382,432 $169,194 $278,658 Racetrack Trends at a Glance PHOENIX GREYHOUND PARK 3801 East Washington Street Phoenix, Arizona 85036 American Greyhound Racing, Inc. and Western Racing, Inc. RACING STATISTICS FY 2001 FY 2002 FY 2005 Racing Dates: July 1, 2004-June 30, 2005 FY 2003 FY 2004 FY 2005 Race Days/Performances (including 9 charity day) Live Race Days Dark Day-Simulcast only Total Race Days 337 26 363 354 8 362 349 10 359 352 11 363 352 10 362 Total Live Performances (Matinee & Evening) 337 358 378 352 352 5,333 47,383 52,716 5,174 46,694 51,868 5,486 57,608 63,094 5,169 74,579 79,748 5,387 67,266 72,653 180,723 234,716 415,439 157,522 197,407 354,929 148,984 183,820 332,804 133,309 165,126 298,435 127,079 165,341 292,420 $214,957 $190,044 $172,202 $160,503 $159,323 Breakdown by location On-Track Handle Off-Track Handle $22,547,761 $55,481,483 $18,742,278 $50,053,671 $18,182,026 $43,638,503 $16,906,712 $41,355,918 $15,080,705 $42,594,136 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $48,595,503 29,433,741 $78,029,244 $42,224,319 26,571,630 $68,795,949 $38,568,181 23,252,348 $61,820,529 $35,263,900 22,998,730 $58,262,630 $37,464,322 20,210,518 $57,674,840 Returned to Wagering Public $60,237,048 $52,487,648 $46,744,353 $44,174,254 $43,953,881 State Pari-Mutuel Revenues $1,165,011 $162,651 $99,856 $84,909 $0 $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 $11,967,747 154,717 89,550 27,383 52,015 1,689,918 0 187,772 $14,169,102 $11,362,412 0 0 0 53,609 1,800,998 0 175,420 $13,392,439 $11,130,623 0 0 0 76,310 1,984,228 0 170,544 $13,361,706 $3,952,833 $3,570,784 $3,317,197 $3,188,597 $3,189,057 Number of Races Live Races Simulcast Races Total Number of Races Attendance On-Track Off-Track Total Attendance Pari-Mutuel Handle Average Handle per Race Day DISTRIBUTION OF 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 $60 $60 $50 $50 $40 $40 Source of Handle Million Million Live Simulcast On-Track vs. Off-Track Handle Off-Track $30 $30 $20 $20 $10 $10 $ $ FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2001 FY 2002 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 20 FY 2003 FY 2004 FY 2005 TUCSON GREYHOUND PARK 2601 South Third Avenue Tucson, Arizona 85713 Tucson Greyhound Park, Inc. RACING STATISTICS FY 2001 Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 2002 FY 2005 Racing Dates: July 1, 2004-June 30, 2005 FY 2003 FY 2004 FY 2005 315 47 362 312 50 362 309 53 362 311 52 363 282 81 363 315 312 309 311 282 4,923 73,728 78,651 4,934 75,040 79,974 4,689 73,797 78,486 4,489 83,393 87,882 3,985 86,303 90,288 Attendance On-Track Off-Track Total Attendance 66,787 99,505 166,292 65,468 91,552 157,020 53,842 84,584 138,426 49,346 80,318 129,664 51,743 87,654 139,397 Pari-Mutuel Handle Average Handle per Race Day $77,265 $70,407 $66,058 $59,267 $57,094 Breakdown by location On-Track Handle Off-Track Handle $12,735,664 $15,234,424 $11,343,302 $14,143,936 $9,822,408 $14,090,501 $8,368,429 $13,145,650 $5,853,857 $14,871,420 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $10,245,393 17,724,695 $27,970,088 $9,088,226 16,399,012 $25,487,238 $8,184,704 15,728,205 $23,912,909 $6,622,434 14,891,645 $21,514,079 $7,616,077 13,109,200 $20,725,277 $21,303,832 $19,462,650 $18,717,843 $16,782,707 $15,773,153 $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 $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 $5,138,760 0 0 0 450,159 61,173 $5,650,092 $4,689,776 0 0 0 364,234 53,061 $5,107,071 $4,473,920 0 0 0 418,883 50,114 $4,942,917 Purses $1,986,871 $1,824,413 $1,156,900 $1,037,578 $1,042,756 Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Off-Track Live On-Track vs. Off-Track Handle $16 $20 $14 $18 $16 $12 $14 $10 Million Million Source of Handle Simulcast $8 $6 $12 $10 $8 $6 $4 $4 $2 $2 $ $ FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2001 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 21 FY 2002 FY 2003 FY 2004 FY 2005 Teletracking The Department of Racing has the authority to approve applications for teletracking (off-track betting) permits, license teletracking sites and their personnel, and monitor compliance for both operational and technical requirements. Coconino County Racing (Fort Tuthill Downs), the Yavapai County Fair Association (Yavapai Downs), Phoenix Greyhound Park and Tucson Greyhound Park each filed teletracking applications approved by the Department in FY 2005. Other permittees have three-year term permits that expire at a later date. A total of 82 off-trackbetting sites were authorized to support both greyhound and horse racing in Arizona. The total handle generated by commercial and county fair racing for teletracking was $173.1 million. This included $115.6 million for horse racing and $57.4 million for greyhound racing. The State of Arizona received $228,498 in revenue from the teletracking handle. The handle at teletracking facilities was up during FY 2005, 3% from the prior year. The Table below summarizes the teletrack handle generated by commercial and county fair meets. Teletrack Handle FY 2004 FY 2005 $77,744,186 $74,473,836 Phoenix Greyhound Park 41,363,291 42,593,968 Yavapai Downs 24,896,743 28,264,640 Tucson Greyhound Park 13,170,992 14,823,435 Turf Paradise (Fair Meets) 6,684,106 7,864,349 Yavapai Downs (Fair Meets) 2,563,940 2,708,144 Fort Tuthill Downs (Fair Meet) 1,682,199 2,329,318 0 0 $168,105,457 $173,057,690 Track Turf Paradise Rillito Park TOTAL ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 22 TELETRACKING ACTIVITY - COMMERCIAL HORSE MEETS YAVAPAI DOWNS City AHWATUKEE APACHE JUNCTION APACHE JUNCTION BISBEE CASA GRANDE CAVE CREEK CHANDLER CHANDLER COTTONWOOD FLAGSTAFF FORT MOHAVE GLENDALE GOODYEAR KINGMAN KINGMAN LAKE HAVASU CITY MARANA NEW RIVER NOGALES PARKER PAYSON PEORIA PEORIA PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PRESCOTT PRESCOTT VALLEY PRESCOTT VALLEY QUARTZSITE ROCK SPRINGS SAFFORD SCOTTSDALE SHOW LOW SIERRA VISTA SURPRISE TEMPE TEMPE TEMPE TEMPE TONOPAH TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON WICKENBERG WICKENBERG WINSLOW YUMA Site PAYTON'S PLACE APACHE GREYHOUND PARK ARIZONA JOE'S BREWERY STEAKHOUSE MCMASHER'S SPORTS BAR SATISFIED FROG DIRTY DRUMMER STADIUM CLUB ZOOMER'S MUSEUM CLUB THUNDER LANES MAX'S SPORTS BAR ROMAN'S OASIS ABC RESTAURANT CERBAT HILLS GALLAGHER'S AGAIN SILVERADO STEAKHOUSE NEW RIVER STATION AMERICANA MOTEL STROKES FAMOUS SAM'S GRAND INN MCDUFFY'S SPORTS GRILL AMERICAN LEGION #7 ARMADILLO GRILL BRENNAN'S CROSSROADS DRAW 10 FINAL SCORE SPORTS GRILL GALLAGHER'S HAM'S RESTAURANT LAS BRIZAS METRO SPORTS BAR NORTH STAR RESTAURANT PADRE MURPHY'S ROMAN'S COUNTY LINE TURF PARADISE MATT'S SALOON ANTELOPE LANES YAVAPAI DOWNS QUARTZSITE YACHT CLUB ROCK SPRINGS CAFE CHALO'S LA CASA REYNOSO CASINO ARIZONA RT'S BLACK BULL P.C.'S LOUNGE RUNNER'S SPORTS BAR DERBY GRILL HORSE & HOUND-BROADWA MCDUFFY'S SPORTS BAR SKIP & JAN'S TIN TOP RESTAURANT AIRPORT INN BRAT'S GRILL FAMOUS SAM'S-CENTRAL FAMOUS SAM'S-EAST FAMOUS SAM'S-SOUTH GOLDEN PIN LANES JEFF'S PUB MAVERICK KING OF CLUBS RILLITO PARK TOUCHDOWN'S TUCSON GREYHOUND PARK MECCA RESTAURANT UP YOUR ALLEY PT'S COCKTAILS FAMOUS SAM'S Sub-Total County Fairs ST. JOHNS SONOITA Sub-Total TOTAL Handle APACHE COUNTY FAIR SANTA CRUZ COUNTY FAIR Revenue TURF PARADISE Performances $347,517 637,764 356,537 35,845 256,262 234,746 1,178,588 1,009,663 280,781 335,266 37,925 1,073,752 151,262 186,444 87,288 469,969 203,630 85,943 102,734 139,634 732,719 664,661 772,364 772,122 1,420,296 105,426 57,639 464,865 810,805 509,283 131,505 109,712 802,976 1,685,785 666,488 543,988 246,153 267,650 105,972 142,603 243,702 1,037,451 337,277 391,013 389,606 475,619 1,039,429 619,324 973,761 2,048 125,446 36,958 251,475 197,110 180,710 759,599 437,298 147,596 126,487 956,794 54,233 66,745 19,543 1,170,854 - 88 88 88 58 87 59 88 88 88 87 29 88 88 59 29 88 40 59 88 88 88 88 88 88 88 29 29 59 88 88 46 29 88 88 88 48 88 88 56 88 88 88 88 88 88 88 88 88 88 5 88 64 88 88 88 88 88 50 29 88 29 59 29 88 $28,264,640 - 4,676 - - - - - - $28,264,640 - 4,676 Handle 974,985 2,264,658 1,027,836 814,179 1,215,842 3,519,352 2,856,910 599,144 724,714 52,951 3,203,000 356,412 814,825 1,035,387 302,420 186,913 274,418 348,562 2,263,257 1,981,407 2,118,836 2,045,490 4,950,043 271,322 309,887 596,449 1,803,109 1,341,391 431,536 481,633 2,117,787 4,437,369 1,805,136 661,078 776,225 472,469 629,686 366,627 637,586 408,262 934,657 1,155,486 1,710,583 2,883,002 1,978,015 2,704,380 11,622 271,346 109,376 772,268 512,655 469,550 2,180,341 1,140,226 39,531 72,801 767,171 2,509,504 192,164 21,723 249,448 2,288,090 Revenue Performances 2,992 6,950 3,154 2,499 3,731 10,801 8,768 1,839 2,224 163 9,830 1,094 2,501 3,178 928 574 842 1,070 6,946 6,081 6,503 6,278 15,192 833 951 1,831 5,534 4,117 1,324 1,478 6,500 13,618 5,540 2,029 2,382 1,450 1,933 1,125 1,957 1,253 2,868 3,546 5,250 8,848 6,071 8,300 36 833 336 2,370 1,573 1,441 6,692 3,499 121 223 2,354 7,702 590 67 766 7,022 243 241 243 240 240 242 243 239 240 68 241 242 241 242 184 156 236 242 243 242 240 242 241 106 191 100 242 241 163 118 243 243 242 242 241 225 241 241 240 241 243 243 242 243 243 243 26 240 178 242 241 241 242 241 13 6 191 241 216 21 214 241 $74,453,032 $228,498 13,042 6,926 13,878 - 20,804 - 8 $74,473,836 $228,498 13,050 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 23 4 4 TELETRACKING ACTIVITY - COUNTY FAIR MEETS FORT TUTHILL DOWNS (Coconino) YAVAPAI DOWNS (Yavapai & Yuma) TURF PARADISE (La Paz, Maricopa, Navajo Pinal, and Graham) City AHWATUKEE APACHE JUNCTION APACHE JUNCTION BISBEE CASA GRANDE CAVE CREEK CHANDLER CHANDLER COTTONWOOD FLAGSTAFF FORT MOHAVE GLENDALE GOODYEAR KINGMAN KINGMAN LAKE HAVASU CITY MARANA NEW RIVER NOGALES PARKER PAYSON PEORIA PEORIA PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PRESCOTT PRESCOTT VALLEY PRESCOTT VALLEY QUARTZSITE ROCK SPRINGS SAFFORD SCOTTSDALE SHOW LOW SIERRA VISTA SURPRISE TEMPE TEMPE TEMPE TEMPE TONOPAH TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON WICKENBERG WICKENBERG WINSLOW YUMA TOTAL Site Handle Performances Handle Performances Handle Performances PAYTON'S PLACE APACHE GREYHOUND PARK ARIZONA JOE'S BREWERY STEAKHOUSE MCMASHER'S SPORTS BAR SATISFIED FROG DIRTY DRUMMER STADIUM CLUB ZOOMER'S SPORTS BAR MUSEUM CLUB THUNDER LANES MAX'S SPORTS BAR ROMAN'S OASIS ABC RESTAURANT CERBAT HILLS GALLAGHER'S AGAIN SILVERADO STEAKHOUSE NEW RIVER STATION AMERICANA MOTEL STROKES FAMOUS SAM'S GRAND INN MCDUFFY'S SPORTS BAR ARMADILLO GRILL AMERICAN LEGION #7 BRENNAN'S CROSSROADS DRAW 10 FINAL SCORE SPORTS GRILL GALLAGHER'S HAM'S RESTAURANT METRO SPORTS BAR NORTH STAR RESTAURANT LAS BRIZAS PADRE MURPHY'S ROMAN'S COUNTY LINE TURF PARADISE MATT"S SALOON ANTELOPE LANES YAVAPAI DOWNS QUARTZSITE YACHT CLUB ROCK SPRINGS CAFE CHALO'S LA CASA REYNOSO CASINO ARIZONA RT'S BLACK BULL P.C.'S LOUNGE RUNNER'S SPORTS BAR DERBY GRILL HORSE & HOUND-BROAD'Y MCDUFFY'S SPORTS BAR SKIP & JAN'S TIN TOP RESTAURANT AIRPORT INN BRAT'S BAR & GRILL FAMOUS SAM'S-EAST FAMOUS SAM'S-CENTRAL FAMOUS SAM'S-SOUTH GOLDEN PIN LANES JEFF'S PUB MAVERICK KING OF CLUBS RILLITO PARK TOUCHDOWNS TUCSON GREYHOUND PARK MECCA RESTAURANT UP YOUR ALLEY PT'S COCKTAILS FAMOUS SAM'S 20,745 52,668 30,766 2,488 20,515 23,412 77,861 90,261 22,756 27,124 636 80,366 8,457 18,834 3,145 36,099 42,395 12,346 13,685 22,438 58,012 35,754 84,937 74,085 84,319 3,023 1,889 51,972 65,667 32,069 5,666 53,997 142,588 61,801 48,997 35,042 27,244 36,004 3,316 10,160 18,331 91,138 44,642 34,188 28,138 29,580 84,446 53,826 79,732 535 14,484 648 20,595 18,181 14,529 50,746 39,040 25,734 70 78,105 541 5,218 465 72,867 7 7 7 6 7 6 7 7 6 7 1 7 7 5 1 7 6 6 7 7 7 7 7 7 6 1 1 6 7 6 1 7 7 7 4 7 7 7 1 7 7 7 7 7 7 7 7 7 7 1 7 5 7 7 7 7 7 4 1 7 1 5 1 7 36,403 70,722 35,389 4,279 27,043 19,092 104,433 97,395 19,120 29,954 6,149 119,086 16,627 19,651 12,258 28,954 5,628 13,167 11,453 61,527 55,579 67,918 68,791 169,105 13,946 5,043 37,063 93,517 35,921 12,721 64,030 11,531 167,350 70,404 93,256 23,896 22,353 16,573 12,648 26,104 106,951 26,443 39,319 33,386 40,053 74,910 42,221 96,273 9,663 2,036 20,076 21,756 20,412 78,174 52,213 3,957 23,908 106,549 4,830 3,824 2,916 92,195 8 8 8 4 8 4 8 8 6 8 4 8 8 4 4 8 4 8 8 8 8 8 8 8 4 4 4 8 6 4 8 3 8 8 8 8 8 4 8 8 8 8 8 8 8 8 8 8 8 4 8 8 8 8 8 2 4 8 4 4 4 8 103,129 287,448 107,722 85,068 143,508 368,346 303,870 63,846 66,410 1,775 372,104 51,153 93,905 125,753 36,363 35,602 35,994 47,920 261,508 196,018 166,300 195,792 545,368 30,672 25,919 160,784 150,102 64,231 211,690 52,067 471,390 195,296 67,741 73,916 75,796 85,532 38,945 58,808 30,741 76,337 113,702 143,792 249,540 177,584 235,443 17,891 15,398 37,003 53,540 64,797 235,225 96,847 107,789 83,359 274,877 27,405 46,416 318,872 18 18 18 18 18 18 18 18 18 3 18 18 18 18 17 18 18 18 18 18 18 18 18 12 17 18 18 16 18 11 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 7 18 18 18 18 18 368 $2,708,144 417 $7,864,349 1,001 $2,329,318 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 24 TELETRACKING ACTIVITY - GREYHOUND MEETS TUCSON GREYHOUND PARK PHOENIX GREYHOUND PARK City APACHE JUNCTION CASA GRANDE CAVE CREEK CHANDLER CHANDLER CHANDLER FLAGSTAFF GLENDALE HOLBROOK KINGMAN LITCHFIELD PARK MARANA PEORIA PEORIA PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PRESCOTT SCOTTSDALE SIERRA VISTA SURPRISE TEMPE TEMPE TEMPE TEMPE TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON YUMA TOTAL Site Handle APACHE GREYHOUND PARK MCMASHER'S SPORTS BAR SATISFIED FROG GALLAGHER'S DIRTY DRUMMER STADIUM CLUB JOE'S PLACE MAX'S SPORTS BAR MESA GRILL & SPORTS BAR DAMBAR & STEAKHOUSE LIGHTHOUSE RESTAURANT SILVERADO STEAKHOUSE GALLAGHER'S GRAND INN BIG DADDY'S BRENNAN'S BRENNAN'S PUB & GRUB GALLAGHER'S HAM'S RESTAURANT METRO SPORTS BAR PADRE MURPHY'S PHOENIX GREYHOUND PARK PURPLE TURTLE PLAZA BOWL CASINO ARIZONA COCHISE HEALTH & RACQUET RUNNER'S SPORTS BAR BOSTON'S BAR & GRILLE HORSE & HOUND-OFF BROADWAY MCDUFFY'S SPORTS BAR SKIP & JAN'S AIRPORT INN BRAT'S GRILL FAMOUS SAM'S - CENTRAL FAMOUS SAM'S - EAST FAMOUS SAM'S - SOUTH GOLDEN PIN LANES JEFF'S PUB MAVERICK KING OF CLUBS TOUCHDOWNS TUCSON GREYHOUND PARK YUMA GREYHOUND PARK Revenue Performances Handle Revenue Performanc $1,186,102 453,822 324,434 573,228 2,674,415 1,649,120 244,850 5,159,670 77,400 258,943 2,424,674 9,245 1,624,286 491,938 815,822 2,284,864 1,174,211 1,642,383 1,737,869 1,465,737 5,024,133 119,045 308,847 2,887,020 499,539 480,342 486,115 1,395,619 826,658 946,015 65,915 43,017 203,342 181,227 121,064 527,635 372,347 21,959 302,956 740,617 767,543 - 352 301 252 361 361 361 193 361 111 197 359 17 361 94 360 357 349 361 357 361 361 155 306 361 299 360 361 361 359 361 321 230 323 323 323 322 323 44 233 323 236 $0 0 0 14,821 332,472 130,901 0 484,013 0 0 212,844 187,491 188,618 46,535 27,732 314,870 33,999 169,601 270,203 0 304,269 864,482 0 0 0 0 0 0 0 15,157 0 681,285 144,001 1,371,700 1,560,620 734,689 2,974,899 2,367,702 144,194 1,246,337 0 0 - 63 256 249 256 254 46 255 55 62 255 64 256 254 256 256 61 360 254 362 362 360 362 362 70 242 - $42,593,968 - 12,111 $14,823,435 - 5,632 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 25 - Racing Regulation The Department of Racing’s regulatory responsibilities ensure that all participants and permittees involved in commercial horse racing, greyhound racing, and county fair horse racing operate and perform in compliance with applicable Arizona statutes, rules and regulations. This is accomplished through the investigation and licensing activities of the Department. Licensing The Department processes and investigates all license applications in a timely manner while ensuring only those eligible receive licenses. Performance Measures FY 2003 FY 2004 FY 2005 2,638 9 4,164 9 6,112 7 Number of licenses issued Number of licenses denied Civil Penalties/Fines The Boards of Stewards have the authority to impose penalties and fines up to a maximum of a 60-day suspension and/or $500. The Director has the authority to affirm, reverse or modify the Stewards’ Rulings, including license revocation. Performance Measures FY 2003 FY 2004 FY 2005 Number of disciplinary actions Percent total licensees with disciplinary action Amount of fines imposed Amount of fines collected 709 5% $50,645 $50,748 743 11% $60,255 $42,930 557 9% $54,661 $41,921 FY 2003 FY 2004 FY 2005 372 167 26 56 11 45 66 341 173 22 50 22 44 57 266 114 30 41 0 29 77 743 709 557 Stewards Rulings by Track Track Turf Paradise Yavapai Downs Rillito Park All County Fairs Apache Greyhound Park Phoenix Greyhound Park Tucson Greyhound Park Total ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 26 Racing Regulation Director’s Rulings The Director may conduct hearings of appeals or Stewards’ referrals or may assign a case that has been appealed or referred to the Arizona Office of Administrative Hearings. The Administrative Law Judge provides the Director findings of fact, conclusions of law and a proposed order. The Director may accept or modify any decision proposed by the Judge. The table below summarizes hearings and cases by the Director, the Office of Administrative Hearings, and the Racing Commission. Summary of Hearings and Orders FY 2003 FY 2004 FY 2005 Director’s Hearings Referrals Appeals Sua Sponte Director Review Administrative Law Judge Hearings Racing Commission Hearings Cases Withdrawn/Dismissed Total Number of Hearings Total Number of Director’s Orders* 112 110 25 7 23 7 28 135 200 191 168 15 17 4 4 8 199 244 217 56 10 35 1 2 2 220 293 * (Includes orders for action taken not requiring a hearing, i.e. stays, reinstatements, cases dismissed, etc.) Investigations The Department investigates all possible violations of racing laws and rules. investigations are conducted in connection with license applications. Performance Measures In addition, FY 2003 FY 2004 FY 2005 319 51% 482 13% 380 51% 478 23% 293 65% 335 59% Number of Investigations Regarding Violations Percentage of Investigations Resulting in Disciplinary Action Number of Investigations Regarding Licensing Percentage of Investigations Resulting in Disciplinary Action Types of Investigations Offenses Criminal Records Received Inspection-Kennels Interviews False Application Human Drug Testing Animal Drug Testing Horse Rule Violation Miscellaneous Undesirables Greyhound Rule Violation Possession of Contraband Criminal Violation Illegal Gambling Total Total Denied Referred Pending Warning No Violation 88 50 37 202 41 37 237 13 3 58 14 3 0 750 0 0 4 0 0 0 0 0 0 0 0 0 0 4 0 5 0 186 31 37 230 13 3 55 14 0 0 574 0 0 0 0 0 0 4 0 0 0 0 3 0 7 0 0 0 0 0 0 0 0 0 0 0 0 0 0 58 45 33 16 10 0 3 0 0 3 0 0 0 168 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 27 Racing Regulation Drug/Alcohol Abuse Investigations The Department of Racing is authorized to require persons licensed to submit to testing when there is reason to believe they may be under the influence of or unlawfully in possession of any prohibited substance regulated by Title 13, Chapter 34, or has consumed alcohol in violation of A.A.C. R19-2-112(8) or (10) or R19-2-311(9). Testing Summary FY 2003 FY 2004 FY 2005 45 4 6 22% 5 2 40% 41 9 11 21% 1 1 100% 41 11 4 27% 0 0 0% Human Drug Tests Positive Drug Tests Licensee Refused to Test Percent Positive Breath/Alcohol Tests Positive Breath/Alcohol Tests Percent Positive Equine & Canine Drug Testing The Department contracts with independent laboratories for the analysis of equine urine and blood samples and canine urine samples. This analysis is required to enforce the rules of racing that prohibit animals from racing while under the influence of foreign substances. Testing Summary Equine Drug Testing Number positive equine drug tests Percent positive equine drug tests Canine Drug Testing Number positive canine tests Percent positive canine tests Totals Total Positive tests Percent Total positive tests FY 2003 FY 2004 FY 2005 40 1.6% 44 1.4% 37 1.3% 2 .03% 1 .02% 5 .10% 42 0.50% 45 0.55% 42 0.53% ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 28 Boxing Regulation The Boxing Commission regulates and supervises all boxing events conducted in Arizona to protect the participants in these events and to ensure compliance with the Boxing laws and regulations. The events include traditional boxing, kickboxing, tough man contests, and mixed martial arts. In 1992, the Arizona Department of Racing assumed responsibility for the financial administration of the Arizona State Boxing Commission. In this capacity, the Department collects and deposits State receipts associated with boxing. 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 2005, the Department collected $62,822 in taxes generated from 40 boxing events in the State. The State Boxing Commission issued 651 licenses, and the Department collected a total of $10,080 in license fees from these applicants. Additionally, the State Boxing Commission entered into intergovernmental agreements with Tribal organizations to supervise Boxing events conducted on Tribal land. The Arizona State Boxing Commission receives an average of $3,000 per event subject to these agreements. During FY 2005, the Boxing Commission regulated seven of these events and collected $21,000 for their regulation. All Boxing Commission revenues are deposited into the General Fund. Sanctioned Events The Boxing Commission ensures that all events under Commission jurisdiction held in the State are sanctioned by the Arizona State Boxing Commission and that all participants are duly licensed. Performance Measures FY 2003 FY 2004 FY 2005 100% 26 130 335 99% 100% 40 200 784 99% 100% 40 200 651 98% Percent of bouts without serious injury to contestants Number of events sanctioned Number of bouts Number of licenses issued Percent of licenses issued for all applications Licensing The Boxing Commission issues licenses to participate in Boxing to those who are qualified and eligible. Licenses are denied for those who are undesirable or statutorily prohibited from participating. Revenue Summary FY 2003 FY 2004 FY 2005 Taxes License Fees Fines Other (Tribal Agreements) $21,531 8,905 0 0 $21,929 12,855 0 9,000 $62,822 10,080 1,700 21,000 Total Revenue Collected $30,436 $43,784 $95,602 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 30 Boxing Regulation Investigations The Boxing Commission investigates all allegations of statutory and rule violations that may harm the athlete or the public. Performance Measures FY 2003 FY 2004 FY 2005 2 0% 0 N/A 6 33% Number of investigations conducted Percent of investigations resulting in disciplinary action ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 31 Financial Issues ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT Department Of Racing Budget The Department of Racing’s expenditures for the last three fiscal years, the appropriated funds for FY 2006 and FY 2007, including a summary of full-time and seasonal positions are included below. A continuation of the current budget level will enable the Department to provide the services required to regulate and support the racing industry in Arizona. Several administrative changes and modernization of the Department’s rules, policies, and procedures have been implemented or are being developed to allow the Department to provide better services to its customers while using resources as currently appropriated. The total Department of Racing budget for FY 2005 was $2,953,400. This was an increase of $69,200, or 3%, from the prior budget period to pay for part of the increased employee benefits, scheduled rent increase, and other scheduled cost increases. Nearly 85% of the Department’s budget was appropriated from the State General Fund. OPERATING BUDGET Full Time Equivalent Positions (FTE) Actual Exp Actual Exp Actual Exp Appropriation Appropriation FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 46.5 46.5 46.5 46.5 46.5 Full Time 33.0 33.0 33.0 33.0 33.0 Seasonal 13.5 13.5 13.5 13.5 13.5 Personal Services $1,611,000 $1,494,585 $1,686,092 $1,728,200 $1,702,100 Employee Related Expenses (ERE) 394,500 357,095 418,555 466,400 423,200 Professional & Outside Services 323,500 278,767 330,557 358,300 358,300 Travel - In State 150,700 153,743 165,147 116,700 116,700 3,200 4,983 3,851 2,500 2,500 214,300 246,668 246,096 241,700 241,700 2,700 109,043 92,602 $2,699,900 $2,644,884 $2,942,900 $2,913,800 $2,844,500 $2,294,645 $2,504,796 $2,568,800 $2,499,500 300,683 360,969 300,000 300,000 Travel - Out of State Other Operating Equipment AGENCY TOTAL - - FUND SOURCES General Fund $2,366,400 Other Appropriated Funds County Fair Racing Fund 295,300 Administration of Betterment & Breeders' Awards Fund SUBTOTAL AGENCY TOTAL 38,200 52,556 77,135 45,000 45,000 333,500 $2,699,900 353,239 $2,644,884 438,104 $2,942,900 345,000 $2,913,800 345,000 $2,844,500 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 32 Department Budget 2,942,900 2,913,800 2,950,000 2,900,000 2,844,500 2,850,000 2,800,000 2,750,000 2,699,900 2,700,000 2,644,884 2,650,000 2,600,000 2,550,000 2,500,000 2,450,000 FY 2003 FY 2004 FY 2005 FY2006 FY 2007 Department Of Racing Revenues The Department of Racing collects pari-mutuel taxes, license fees and fines that are deposited into eight separate funds, the State General Fund and the Greyhound and Retired Race Horse Adoption Fund. Pari-mutuel taxes and license fees collected are deposited into eight separate funds as described below. Fines are deposited directly into the State General Fund, license fees collected from dog breeders and racing kennels are deposited into the Greyhound Adoption fund and revenues collected from the 5% Retired Race Horse surcharge added to each horse racing-related fine are deposited into the Retired Race Horse Adoption fund. See tables and charts on page 35. Distribution of Revenues to the Eight Separate Funds and Maximum Dollars Allowed Fund Distribution County Fairs Livestock & Agriculture Promotion County Fairs Racing Betterment Breeders' Award Exposition and State Fair County Fair Racing Stallion Award Administration of Betterment & Breeders Awards Agricultural Consulting and Training 33% 22% 22% 11% 9% 1% 1% 1% Total Maximum Funding Allowed 100% ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 33 Annual Maximum $1,200,000 800,000 800,000 400,000 300,000 40,000 45,000 N/A $3,585,000 Revenues from pari-mutuel taxes continued to decline in FY 2005. They declined 14.4% or $81,290 when compared to FY 2004. Several tax breaks have been provided to the racing industry since 1995. The tax breaks listed below contribute, in part, to the continued reduction in pari-mutuel tax revenues from the racing industry. • • • • Tax reductions for greyhound tracks. Exemption from State tax on dollars wagered on simulcast. Hardship tax credit for tracks, which have suffered a decline in business. Capital improvement program tax reduction. Additional funds are received from the Arizona Department of Revenue transfer of unclaimed property funds to the Department of Racing. During FY 2005, the transfer was for $8,706,424. These dollars are distributed among the eight separate funds and enables the Department of Racing to reach the statutorily authorized levels for each fund. The dollars remaining are deposited into the General Fund, which received $5,807,008, from the Department of Racing’s portion of unclaimed property dollars in FY 2005. As the pari-mutuel tax revenues continue to decline, the contributions from the unclaimed property fund to each of the eight funds increase. This in turn, reduces the funds available for the State’s General Fund. Therefore, the unclaimed property funds become increasingly more important to the continuation of the programs supported by these eight funds and the State’s General Fund. See tables and charts on page 36. The seven funds summarized on page 37 are the funds administered by the Department of Racing for various programs. The County Fairs Livestock & Agriculture Promotion Fund, the Exposition and State Fair Fund, and the Agricultural Consulting and Training Fund are administered by other State programs, as described below. • County Fairs Livestock & Agriculture Promotion Fund …………………Governor’s Office • Exposition and State Fair Fund ………………………..Arizona Exposition and State Fair • Agricultural Consulting and Training Fund ……………Arizona Department of Agriculture ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 34 Distribution of Department of Racing Revenues General Fund Breeders' Award County Fairs Racing Betterment Agriculture Promotion Exposition and State Fair County Fair Racing Administration of Betterment and Breeders' Award Stallion Award Agricultural Consulting/Training Horse Adoption Greyhound Adoption Total Distribution FY 2001 $2,575,970 800,000 800,000 1,200,000 400,000 300,000 FY 2002 $4,444,693 800,000 800,000 1,200,000 400,000 300,000 FY 2003 $3,657,354 800,000 800,000 1,200,000 400,000 300,000 FY 2004 $4,640,891 800,000 800,000 1,200,000 400,000 300,000 FY 2005 $5,807,008 800,000 800,000 1,200,000 400,000 300,000 45,000 40,000 61,771 45,000 40,000 80,951 45,000 40,000 72,508 45,000 40,000 82,006 45,000 40,000 94,480 1,186 2,825 $9,490,499 N/A N/A N/A N/A 75 $6,222,816 3,400 $8,114,044 75 $7,314,937 150 $8,308,047 Distribution of Department of Racing Revenues FY 2005 General Fund 61.2% Agricultural Consulting/Training Fund 1% Breeders' Award Fund 8.4% Greyhound Adoption Fund 0.0% County Fairs Racing Betterment Fund 8.4% Horse Adoption 0.0% Agriculture Promotion Fund 12.6% Stallion Award Fund 0.4% Exposition and State Fair Fund 4.2% Administration of Betterment & Breeders' Awards Fund 0.5% County Fair Racing Fund 3.2% Total Department Revenues by Fiscal Year $9,490,499 $10,000,000 $9,000,000 $5,807,008 $6,000,000 $8,308,047 $8,114,044 $5,000,000 $7,314,937 $8,000,000 $7,000,000 General Fund Revenues by Fiscal Year $4,640,891 $4,444,693 $6,222,816 $3,657,354 $4,000,000 $6,000,000 $5,000,000 $3,000,000 $2,575,970 $4,000,000 $2,000,000 $3,000,000 $2,000,000 $1,000,000 $1,000,000 $0 $0 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2001 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 35 FY 2002 FY 2003 FY 2004 FY 2005 Department of Racing Revenues by Category FY 2001 State Unclaimed Property Pari-Mutuel Tax License Fees Fines Boxing Tax Other Total FY 2002 FY 2003 FY 2004 FY 2005 $4,266,855 1,802,280 91,558 42,502 49,275 19,621 $7,186,030 750,354 158,988 56,315 13,929 (37,643) $6,527,513 628,564 111,750 50,748 21,531 (25,169) $7,530,279 565,191 130,900 50,748 21,929 9,000 $8,706,424 483,901 193,974 58,073 29,116 19,011 $6,272,091 $8,127,973 $7,314,937 $8,308,047 $9,490,499 Department of Racing Revenues by Category FY 2005 State Unclaimed Property 91.7% Pari-Mutuel Tax 4.9% Other 0.2% Boxing Tax 0.3% State Unclaimed Property Transfers by Fiscal Year Pari-Mutuel Tax Revenue by Fiscal Year $2,000,000 License Fees 2.1% Fines 0.8% $8,706,424 $9,000,000 $1,802,280 $1,800,000 $8,000,000 $1,600,000 $7,000,000 $1,400,000 $7,530,279 $7,186,030 $6,527,513 $6,000,000 $1,200,000 $5,000,000 $1,000,000 $750,354 $4,266,855 $4,000,000 $628,564 $800,000 $565,191 $3,000,000 $460,960 $600,000 $2,000,000 $400,000 $1,000,000 $200,000 $0 $0 2001 2002 2003 2004 2001 2005 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 36 2002 2003 2004 2005 FY 2005 Appropriated and Non-Appropriated Funds DESCRIPTION OF FUNDS FY 2004 County Fair Racing (RCA2170 / A.R.S. 5-113) APPROPRIATED Source of Revenue: Receives 9% of revenue derived from pari-mutuel receipts, license fees, and unclaimed property (maximum of $300,000). Purpose of Fund: For the administration of county fair racing. FUNDS EXPENDED FY 2005 $300,683 $360,969 Administration of County Fair Racing & Breeders Awards Fund (RCA2018 / A.R.S. 5-113) APPROPRIATED Source of Revenue: Receives 1% of revenue derived from pari-mutuel receipts, license fees, and unclaimed property (maximum of $45,000). Purpose of Fund: To administer the Arizona County Fairs Racing Betterment Fund, the Arizona Breeders' Award Fund, the Arizona Stallion Award Fund, and the Greyhound Adoption Fund. FUNDS EXPENDED $52,556 $77,135 Arizona Breeders Award (RCA2206 / A.R.S. 5-113) NON-APPROPRIATED Source of Revenue: Receives 22% of revenue derived from pari-mutuel receipts, license fees, and unclaimed property (maximum of $800,000). Purpose of Fund: To award the breeder of every winning horse or greyhound foaled or whelped in this state. FUNDS EXPENDED $714,903 $797,403 County Fair Racing Betterment (RCA2207 / A.R.S. 5-113) NON-APPROPRIATED Source of Revenue: Receives 22% of revenue derived from pari-mutuel receipts, license fees, and unclaimed property (maximum of $800,000). Purpose of Fund: To provide a grant to each eligible county fair association conducting a county fair racing meeting. FUNDS EXPENDED $845,700 $861,025 Greyhound Adoption (RCA2015 / A.R.S. 5-113) NON-APPROPRIATED Source of Revenue: License fees collected from dog breeders, racing kennels, and other operations where greyhounds are raised for dog racing. Purpose of Fund: To provide grants to non-profit organizations to promote the adoption of retired racing greyhounds as domestic pets. FUNDS EXPENDED $0 $3,143 Retired Horse Adoption (RCA2015 / A.R.S. 5-113) NON-APPROPRIATED Source of Revenue: A 5% Retired Race Horse Surcharge is levied against each horse racing-related fine Purpose of Fund: To provide grants to non-profit organizations to promote the adoption of retired racing horses. FUNDS EXPENDED N/A $0 $40,000 $39,992 Stallion Award (RCA2315 / A.R.S. 5-113) NON-APPROPRIATED Source of Revenue: Receives 1% of revenue derived from pari-mutuel receipts, license fees, and unclaimed property (maximum of $40,000). Purpose of Fund: To award owners or lessees of stallions that bred winning horses in this state. FUNDS EXPENDED ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 37 Department of Racing Pari-Mutuel Tax and Hardship Tax Credit Projections The revenue projections developed by the Department of Racing and included in the tables below are based on historical levels and industry trends and assume the continued operation of each of Arizona’s commercial race tracks. These tables indicate anticipated State pari-mutuel taxes from dollars wagered over the next three fiscal years. The tables also provide actual and estimated amounts for the Hardship Tax Credit during the next three fiscal years. FY 2007 Estimated Pari-Mutuel Tax and Hardship Tax Credit ESTIMATED TRACK BASE BASE YEAR YEAR AMOUNT ESTIMATED ESTIMATED FY 2006 AMOUNT FY 2006 % PARI-MUTUEL WAGERED DECREASE TAX DUE TAX DUE ESTIMATED BASED ON FY 2007 CARRYOVER FY 2007 FROM FY 2006 TAX CREDIT WITH % DECREASE HARDSHIP CREDIT HARDSHIP TAX FY 2006 CREDIT CARRYOVER HORSE TRACKS: Fort Tuthill Downs FY 1994 $798,671 $0 -100.00% $0 $0 $0 $7,320 $7,320 Rillito Park FY 1990 3,887,981 746,592 -80.80% 14,932 12,065 36,194 127,175 163,369 Turf Paradise FY 1994 101,467,993 Yavapai Downs FY 1994 131,067,082 29.17% 494,850 0 0 0 0 17,490,826 29,818,131 70.48% 88,296 0 0 0 0 Apache Greyhound Park FY 1990 $12,262,396 $3,485,747 -71.57% $0 $0 $0 $360,850 $360,850 Phoenix Greyhound Park FY 1990 57,674,840 -39.72% 2,060,538 818,578 2,455,733 1,045,606 3,501,339 FY 1994 46,293,967 Tucson Greyhound Park FY 1990 38,110,346 20,725,277 -45.62% 418,883 191,072 573,216 1,550,184 2,123,400 GREYHOUND TRACKS: 49,391,582 FY 2008 Estimated Pari-Mutuel Tax and Hardship Tax Credit ESTIMATED TRACK BASE BASE YEAR YEAR AMOUNT ESTIMATED ESTIMATED FY 2007 AMOUNT FY 2007 % PARI-MUTUEL WAGERED DECREASE TAX DUE TAX DUE ESTIMATED BASED ON FY 2008 CARRYOVER FY 2008 FROM FY 2007 TAX CREDIT WITH % DECREASE HARDSHIP CREDIT HARDSHIP TAX FY 2007 CREDIT CARRYOVER HORSE TRACKS: Fort Tuthill Downs FY 1994 $798,671 $0 -100.00% $0 $0 $0 $7,320 $7,320 Rillito Park FY 1990 3,887,981 727,927 -81.28% 14,559 11,833 35,499 148,810 184,309 Turf Paradise FY 1994 101,467,993 Yavapai Downs FY 1994 132,377,753 30.46% 499,799 0 0 0 0 17,490,826 29,072,678 66.22% 86,089 0 0 0 0 Apache Greyhound Park FY 1990 $12,262,396 $3,398,603 -72.28% $0 $0 $0 $360,850 $360,850 Phoenix Greyhound Park FY 1990 56,232,969 -41.23% 2,009,025 828,388 2,485,163 1,492,314 3,977,478 FY 1994 46,293,967 Tucson Greyhound Park FY 1990 38,110,346 20,207,145 -46.98% 408,411 191,847 575,542 1,714,989 2,290,531 GREYHOUND TRACKS: 49,391,582 FY 2009 Estimated Pari-Mutuel Tax and Hardship Tax Credit ESTIMATED TRACK BASE BASE YEAR YEAR AMOUNT ESTIMATED ESTIMATED FY 2008 AMOUNT FY 2008 % PARI-MUTUEL WAGERED DECREASE TAX DUE TAX DUE ESTIMATED BASED ON FY 2009 CARRYOVER FY 2009 FROM FY 2008 TAX CREDIT WITH % DECREASE HARDSHIP CREDIT HARDSHIP TAX FY 2008 CREDIT CARRYOVER HORSE TRACKS: Fort Tuthill Downs FY 1994 $798,671 $0 -100.00% $0 $0 $0 $7,320 $7,320 Rillito Park FY 1990 3,887,981 709,729 -81.75% 14,195 11,604 34,811 170,114 204,925 Turf Paradise FY 1994 101,467,993 Yavapai Downs FY 1994 133,701,530 31.77% 504,796 0 0 0 0 17,490,826 28,345,861 62.06% 83,936 0 0 0 0 Apache Greyhound Park FY 1990 $12,262,396 $3,313,638 -72.98% $0 $0 $0 $360,850 $360,850 Phoenix Greyhound Park FY 1990 49,391,582 54,827,145 -42.70% 1,958,799 836,458 2,509,374 2,018,679 4,528,053 FY 1994 46,293,967 Tucson Greyhound Park FY 1990 38,110,346 19,701,966 -48.30% 398,201 192,329 576,988 1,892,330 2,469,318 GREYHOUND TRACKS: ________________________________________________________________ ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 38 Hardship Tax Credit The Department of Racing determines the amount, if any, of a Hardship Tax Credit available to the commercial horse and greyhound permittees. This credit supports the pari-mutuel industry by responding to the reduction in wagering that has occurred and offsetting the tax due the State. Determination of the FY 2006 Hardship Tax Credit Based on the FY 2005 Dollars Wagered FY 2005 TRACK FY 2005 FY 2005 TAX DUE FY 2006 BASE BASE YEAR AMOUNT % PARI-MUTUEL BASED ON HARDSHIP YEAR AMOUNT WAGERED DECREASE TAX DUE % DECREASE TAX CREDIT CARRYOVER FY 2006 FROM FY 2005 TAX CREDIT WITH HARDSHIP TAX FY 2005 CREDIT CARRYOVER HORSE TRACKS: Fort Tuthill Downs FY 1994 $798,671 $0 -100.00% $0 $0 $0 $7,320 $7,320 Rillito Park FY 1990 3,887,981 746,592 -80.80% 14,932 12,065 36,194 127,175 163,369 Turf Paradise FY 1994 29.17% 494,850 0 0 0 0 Yavapai Downs FY 1994 17,490,826 70.48% 88,296 0 0 0 0 Apache Greyhound Park FY 1990 $12,262,396 $3,485,747 -71.57% $0 $0 Phoenix Greyhound Park FY 1990 49,391,582 57,674,840 -39.72% 2,060,538 FY 1994 46,293,967 FY 1990 38,110,346 20,725,277 -45.62% 418,883 101,467,993 131,067,082 29,818,131 GREYHOUND TRACKS: Tucson Greyhound Park $0 $360,850 $360,850 818,578 2,455,733 1,045,606 3,501,339 191,072 1,550,184 2,123,400 573,216 Department of Racing Pari-Mutuel Tax Revenue - FY 2005 TRACK ALLOWABLE FY 2005 FY 2005 HARDSHIP CREDITS HANDLE PARI-MUTUEL TAX DUE $0 $14,932 IN FY 2005 FY 2005 CAPITAL FY 2005 AGP FY 2005 FY 2005 IMPROVEMENT HARDSHIP CREDITS CHARITY PARI-MUTUEL TAX WITHHOLDINGS TAX CREDIT to PGP DAYS REVENUE HORSE TRACKS: Rillito Park $142,107 $746,592 $14,932 Turf Paradise 0 131,067,082 494,850 0 Yavapai Downs 0 29,818,131 88,296 88,296 $142,107 $161,631,805 $598,078 $88,296 Subtotal Horse Tracks $0 $0 $0 0 0 10,949 483,901 0 0 0 0 $14,932 $0 $10,949 $483,901 GREYHOUND TRACKS: Apache Greyhound Park $296,317 $3,485,747 $0 $0 $0 $0 $0 $0 Phoenix Greyhound Park 3,029,834 57,674,840 2,060,538 0 1,984,228 0 76,310 0 Tucson Greyhound Park 1,969,067 20,725,277 418,883 0 418,883 0 0 0 Subtotal Greyhound Tracks $5,359,751 $81,885,864 $2,479,421 $0 $2,403,111 $0 $76,310 $0 GRAND TOTAL $5,501,858 $243,517,669 $3,077,499 $88,296 $2,418,043 $0 $87,259 $483,901 ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 39 Track Capital Improvements The Department was authorized by statute to encourage the improvement of racing facilities by reducing the pari-mutuel tax due the State. The percentages paid the State by the permittee was reduced by 1% of the total amount wagered in counties with a population over 500,000 and 27% in all other counties. This program continues to benefit the racing industry and the public by supporting completed capital improvement projects, which should result in increased revenue from pari-mutuel wagering. Prior approval of the Racing Commission for the capital improvement proposed was required to qualify for the reduction. This provision expired on June 30, 1992 for counties with populations of 500,000 or more and on June 30, 1999 for counties with populations of less than 500,000 according to the previous United States decennial census. The capital improvement dollars for projects approved before the expiration date may continue to be deducted from the pari-mutuel tax due until exhausted. The following table show dollars deducted by all racetracks during FY 2005. The only racetrack which has not exhausted the dollars approved is Yavapai Downs. Permittee Prescott Downs (Yavapai Downs) Other Permittees Project Description Grandstand & Clubhouse Structure, etc. Improvement Dollars Cumulative Dollars Deducted Dollars Approved FY 2005 Deducted Remaining Dollars Approved $52,196,636 $88,296 $385,409 $51,722,931 $0 $0 $0 $0 This table excludes permittees that have used all approved capital improvements dollars. ARIZONA DEPARTMENT OF RACING FY 2005 ANNUAL REPORT 40