ARIZONA
DEPARTMENT OF RACING
ANNUAL REPORT
FY-2009

Table of Contents
LETTER TO THE GOVERNOR
ARIZONA RACING COMMISSION

1

DEPARTMENT OF RACING
Department Organization Chart

2

RACING REGULATION
Investigations and Licensing Charts
Stewards, Director and Drug/Alcohol Testing Charts
Horse & Dog Drug Testing Charts and Teletracking
License by Category Chart
Commercial and County Fair Racing Chart

3
4
5
6
7

COMMERCIAL RACING
Commercial Racing Permittees, Tracks and Permit Terms Chart
Commercial Tracks Chart

8
9

COMMERCIAL HORSE RACING
Investigations, Licensing and Stewards Charts
Director Chart, Breeders’ & Stallion Awards and Racehorse Adoption Charts
Commercial Horse Tracks Chart
Rillito Park Chart
Turf Paradise Chart
Yavapai Downs Chart

10
11
12
13
14
15

COUNTY FAIR RACING
Betterment Payments to Counties
Investigations and Licensing Charts
Stewards and Director Charts
County Fair Tracks Chart
County Fair Racing Schedule and Statistics

16
17
18
19
20

COMMERCIAL GREYHOUND RACING
Investigations, Licensing and Stewards Charts
Director, Inspections, Breeders’ Awards, and Adoption Charts
Commercial Greyhound Tracks Chart
Apache Greyhound Park Chart
Phoenix Greyhound Park Chart
Tucson Greyhound Park Chart

21
22
23
24
25
26

ARIZONA BOXING COMMISSION
BOXING REGULATION
Sanctioned Events, Licensing and Investigations Charts

28

FINANCIALS
Department of Racing Budget
Department Budget Chart, Department of Racing Revenues
Distribution of Department of Racing Revenues Chart
Department of Racing Revenues by Category Chart
Appropriated and Non-Appropriated Funds Chart
Hardship Tax Credit Chart
Track Capital Improvements Chart

29
30
32
33
34
35
36

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT

27

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.
Erin Owens, Racing Commission Chair, was appointed to the Racing Commission in 2005 to serve
as the representative of the Horse Racing Industry. Ms. Owens was raised in the thoroughbred
racing industry in Arizona and her family actively participates in the Arizona Racing and Breeding
Program. She spent several years in official positions at Canterbury Downs, San Juan Downs,
Columbus Racetrack, and Turf Paradise. She currently serves as Secretary/Treasurer of the
Association of Racing Commissioners International (ARCI) and owns her own business.
Commissioner Owens’ term expires January 18, 2010.
Leslie A. Wootten, Racing Commission Vice-Chair, was appointed to the Racing Commission in
2007 to serve as the representative of the Greyhound Racing Industry. Ms. Wootten’s family
experience with greyhound racing dates back to the 1800s. Ms. Wootten is a historian of the sport
and a regular contributor to the monthly magazine of the National Greyhound Association, as well as
in Arizona Player: Gaming and Entertainment Guide. Ms. Wootten has taught creative writing at
Central Arizona College and coordinated its Visiting Writers Series, a program supported by the
Arizona Commission on the Arts. Commissioner Wootten’s term expires January 16, 2012.
Paul Ulan was appointed to the Racing Commission in 2005 to serve as a public member. Mr. Ulan
is the principal of Primary Consultants, L.L.C., a Phoenix-based market research consulting firm
specializing in political campaign management, phone banks, public affairs and issue management.
Mr. Ulan has specialized in bond and override elections for school districts and tax-related elections,
performing a variety of services including polling, demographics and public relations. Commissioner
Ulan’s term expires January 17, 2011.
A. Melvin McDonald was appointed to the Racing Commission in 2009 to serve as a public
member to fill the seat vacated by Bob Ford. Mr. McDonald is a partner of the law firm of Jones,
Skelton & Hochuli since 1985 and practices in the areas of criminal defense and major civil litigation.
He is a former United States Attorney for the District of Arizona (1981-1985), a former Superior
Court Judge for Maricopa County (1974-1981), and has taught Criminal Justice at Arizona State
University. Mr. McDonald is admitted to practice in Arizona state and federal courts. He is a fellow
with the American College of Trial Lawyers. Commissioner McDonald’s term expires January 21,
2013.
Burton S. Kruglick was appointed to the Commission in 2009 to serve as a public member to fill
the seat vacated by James Chilcoat, Sr. Mr. Kruglick has been active in Arizona government and
politics for many years. He is a former Chairman of the Arizona Republican Party (1985-1991) and
served as Co-Chair for Senator John McCain’s presidential campaign. He has been appointed to
several Commissions and Boards over the years and is an active participant in community and
philanthropic organizations. Commissioner Kruglick’s term expires January 20, 2014.
ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT

1

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

MANAGEMENT
REVIEW

INVESTIGATIONS

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT
2

HORSE
RACING

GREYHOUND
RACING

Racing Regulation Summary
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.
Investigations
The Department investigates all possible violations of racing laws and rules. Investigation
numbers listed below reflect the total number of investigations conducted for every incident,
inspection, and background investigation, which includes processing of fingerprints and any
resulting false applications. A background investigation is conducted for each license applicant
who submits fingerprints as required by Department policy.
Performance Measures

FY 2007

Number of incident investigations
Number of background investigations
Total number of investigations conducted

363
2,086
2,449

FY 2008

FY 2009

414
3,425
3,839

209
1,608
1,817

Types of Investigations
Offenses
False application
Disorderly conduct/assault
Human drug -testing
Animal drug testing
Kennel inspection
Whelping inspection
Vehicle inspection
License denial/ineligible
Information only
Total

Total

Referred

97
8
25
35
19
66
31
1
30
312

97
4
15
35
1
0
1
1
25
178

No Violation
0
4
10
0
18
66
30
0
5
134

Licensing
The Department processes and investigates all license applications in a timely manner while
ensuring only those eligible receive licenses.
Performance Measures
Number of licenses issued
Number of licenses denied
Number of licenses revoked

FY 2007

FY 2008

FY 2009

3,999
14
243

5,848
11
213

2,292
5
27

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT
3

Racing Regulation
Stewards
The Board of Stewards is present on the permittee grounds on each day entries are being taken
or racing is being conducted, representing the Department in all matters pertaining to the
enforcement and interpretation of the rules adopted by the Department. The Stewards may
impose civil penalties up to $1,000, license suspensions up to 60 days, and refer matters to the
Director with recommendations of further action, including license revocation.
FY 2007

FY 2008

FY 2009

644
*
*

521
9
77%

562
10
70%

Total rulings issued
Total Stewards Rulings Appealed
Percentage of Stewards’ rulings upheld on appeal to the
Director
* Measure not tracked this fiscal year.

Director
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 2007

FY 2008

FY 2009

349
19
12
533
82%

431
117
5
419
75%

115
12
6
118
83%

Director’s hearings
Administrative Law Judge hearings
Racing Commission hearings
Total number of Director’s orders*
Percentage of orders upheld on appeal to the Commission

* Does not include orders for action taken such as stays, reinstatements, cases dismissed, etc.

Drug/Alcohol Testing
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
Human Drug Tests
Positive Drug Tests
Licensee Refused to Test
Percent Positive
Breath/Alcohol Tests
Positive Breath/Alcohol Tests
Percent Positive

FY 2007

FY 2008

FY 2009

68
31
2
51%
2
2
100%

54
8
5
23%
2
1
50%

40
14
1
35%
5
1
20%

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT
4

Racing Regulation
Horse & Dog Drug Testing
The Department contracts with independent laboratories for the analysis of horse urine and
blood samples and dog 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
Horse Drug Testing
Number positive equine drug tests
Percent positive equine drug tests
Dog Drug Testing
Number positive canine tests
Percent positive canine tests
Totals
Total Positive tests
Percent Total positive tests

FY 2007

FY 2008

FY 2009

33
1.3%

33
1.4%

33
1.93%

0
.00%

5
.11%

4
0.18%

33
0.44%

38
0.5%

37
0.86%

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), Turf
Paradise, Yavapai County Fair Association (Yavapai Downs), Phoenix Greyhound Park, and
Tucson Greyhound Park each held teletracking permits approved by the Arizona Racing
Commission to operate off-track wagering sites in FY 2009. A total of 64 off-track-betting 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
$149.1 million. This included $112.8 million for horse racing and $36.3 million for greyhound
racing. The State of Arizona received $216,692 in revenue from the teletracking handle, all of
which was generated from the Turf Paradise handle at off-track sites.
The handle at teletracking facilities declined 15.1% during FY 2009 when compared to the prior
year.

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT
5

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 2009, the Arizona Racing Commission approved three-year commercial racing permits for
Tucson Greyhound Park, Inc. and Pima County Horsemen’s Association. TP Racing, L.L.L.P.
filed a new application for commercial racing for fiscal years 2010, 2011 and 2012. By statute,
Turf Paradise may continue to operate under their current permit until the Arizona Racing
Commission, upon recommendation by the Department, has finally ruled on the application.

Commercial Racing Permittees, Tracks and Permit Terms
Permittee

Track

Permit Term

American Greyhound Racing, Inc.

Apache Greyhound Park

01/01/08 - 12/31/10

American Greyhound Racing, Inc.

Phoenix Greyhound Park

01/01/08 - 12/31/10

Pima County Horsemen’s Association

Rillito Park

01/01/08 - 12/31/10

Tucson Greyhound Park, Inc.

Tucson Greyhound Park

01/01/08 - 12/31/10

TP Racing, L.L.L.P.

Turf Paradise Race Course

Yavapai County Fair Association

Yavapai Downs at Prescott Valley

* application pending

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT
8

*06/01/09 - 05/31/12
05/26/07 - 09/04/09

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
Investigation numbers listed below reflect the total number of investigations conducted for
every incident and background investigation, which includes processing of fingerprints and any
resulting false applications.
Performance Measures
Number of incident investigations
Number of background investigations
Total number of investigations conducted

FY 2007

FY 2008

FY 2009

140

146

21

1,379
1,519

1,876
2,022

1,154
1,175

Licensing
The Department issues licenses to participate in racing to those who are qualified and eligible.
Performance Measures
Number of licenses issued
Number of licenses denied
Number of licenses revoked

FY 2007

FY 2008

FY 2009

2,817
11
207

3,692
7
99

1,530
4
14

Stewards
The Board of Stewards is present on the permittee grounds on each day entries are being
taken or racing is being conducted, representing the Department in all matters pertaining to the
enforcement and interpretation of the rules adopted by the Department. All races are observed
and supervised to ensure that all participants comply with the rules of racing.
Performance Measures

FY 2007

FY 2008

FY 2009

458
*

347
6

395
9

*

66%

66%

Turf Paradise

324

222

268

Yavapai Downs

134

125

127

0

0

0

Number of rulings issued
Total steward rulings appealed
Percentage of rulings upheld on appeal to the Director
Rulings by Track

Rillito Park (no commercial racing in FY 2007, FY 2008
and FY 2009)
* Measure not tracked for this fiscal year.

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT
10

Commercial Horse Racing
Director
The Director of the Department is required by statute to review all rulings issued by the
Stewards. Individual licensees may also appeal a Stewards' ruling to the Director, and if not
satisfied with the Director's order, to the Racing Commission. The Office of Administrative
Hearings also hears matters referred by the Director.
Performance Measures

FY 2007

FY 2008

FY 2009

277
19
11
458
96%

236
116
4
234
100%

69
10
5
67
80%

Turf Paradise

324

160

44

Yavapai Downs

134

74

23

0

0

0

Number of Director’s hearings
Number of Administrative Law Judge hearings
Number of Racing Commission hearings
Total number of Director’s orders *
Percentage of orders upheld on appeal to the Commission
Orders by Track

Rillito Park (no commercial racing in FY 2007, FY 2008
and FY 2009)
* Does not include orders for action such as stays, reinstatements, cases dismissed, etc.

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 active registered breeders
Percentage of registered breeders winning awards
Number of registered horses
Percentage of registered horses winning awards
Quarter Horse Breeders’ Awards
Thoroughbred Breeders’ Awards
Stallion Awards

FY 2007

FY 2008

FY 2009

3,380
3.5%
6,347
3.9%
$82,260
$683,863
$35,388

3,459
2.5%
6,682
1.0%
$99,928
$749,500
$96,369

3,504
4%
6,944
1.2%
$84,267
$649,903
$59,417

Racehorse Adoption
The Department provides grants to non-profit organizations to promote the adoption of retired
racehorses in Arizona. The funds for this program are generated from a surcharge against all
civil penalties assessed in connection with horseracing in Arizona. The program went into
effect in 2005 and the first award was made in 2006.
Performance Measures
Number of grants awarded
Amount of grants awarded

FY 2007

FY 2008

FY 2009

1
$1,890

1
$1,496

1
$1,647

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT
11

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.
In FY 2009, a total of $1.27 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, authorized for the administration of county
fair racing, is generated by 9% of all pari-mutuel receipts, license fees, and State
unclaimed property up to $450,000 annually. In FY 2009, this fund received $450,000,
but, after budgetary adjustments legislated to balance the State’s budget, $446,800 was
appropriated for operating and regulatory expenses. In FY 2009, the Department spent
$434,900 for this program.
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 $1.2 million annually. Due to transfers needed to
balance the State’s budget in FY 2009, this fund received $1.2 million in revenues, but
$800,000 was available for distribution.
Six counties conducting a meet in FY 2009 received $55,000 each to subsidize purses, three
counties received $40,000 for this purpose. Five counties conducted their meets at commercial
tracks and did not receive funding for this purpose, while one county decided not to conduct a
meet in FY 2009.
Betterment Payments to Counties
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

Purses
$55,000
0
40,000
55,000
55,000
55,000
0
0
40,000
0
55,000
0
40,000
55,000
0

Betterment
$47,500
0
29,200
47,500
47,500
47,500
0
0
30,000
0
35,400
0
30,000
35,400
0

Total
$102,500
0
69,200
102,500
102,500
102,500
0
0
70,000
0
90,400
0
70,000
90,400
0

$450,000

$350,000

$800,000

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT
16

County Fair Racing
Investigations
Investigation numbers listed below reflect the total number of investigations conducted for
every incident and background investigation, which includes processing of fingerprints and any
resulting false applications.
Performance Measures

FY 2007

FY 2008

FY 2009

22
333
355

21
586
607

49
141
190

Number of incident investigations
Number of background investigations
Total number of investigations conducted
Licensing

The Department issues licenses to participate in racing to those who are qualified and eligible.
Performance Measures

FY 2007

FY 2008

FY 2009

660
2
*

892
1
38

409
0
6

Number of licenses issued
Number of licenses denied
Number of licenses revoked
* Measure not tracked for this fiscal year.

Stewards
The Board of Stewards is present on the permittee grounds on each day entries are being
taken or racing is being conducted, representing the Department in all matters pertaining to the
enforcement and interpretation of the rules adopted by the Department. All races are observed
and supervised to ensure that all participants comply with the rules of racing.
Performance Measures

FY 2007

FY 2008

FY 2009

33
*

28
3

38
0

*

100%

NA

4
3
2
4
2
0
0
16
2

3
4
2
2
4
1
4
5
3

3
0
2
2
11
4
1
12
3

Number of Stewards’ rulings issued
Total Stewards’ rulings appealed
Percentage of Stewards’ rulings upheld on appeal to the
Director
Rulings by Track
Apache County Fair, St. Johns
Cochise County Fair, Douglas
Coconino County Fair, Flagstaff
Gila County Fair, Globe
Graham County Fair, Safford
Greenlee County Fair, Duncan
Mohave County Fair, Kingman
Pima County Fair, Rillito Park in Tucson
Santa Cruz County Fair, Sonoita
* Measure not tracked for this fiscal year.

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT
17

County Fair Racing
Director
The Director of the Department is required by statute to review all rulings issued by the
Stewards. Individual licensees may also appeal a Stewards' ruling to the Director, and if not
satisfied with the Director's order, to the Racing Commission. The Office of Administrative
Hearings also hears matters referred by the Director.
Performance Measures

FY 2007

FY 2008

FY 2009

38
0
1
38
100%

74
1
0
69
NA

23
2
0
22
NA

0
0
17
2
3
2
6
0
8

6
8
18
3
2
3
4
16
9

1
2
2
2
1
1
2
10
1

Number of Director’s hearings
Number of Administrative Law Judge hearings
Number of Racing Commission hearings
Total number of Director’s orders*
Percentage of orders upheld on appeal to the Commission
Orders by Track
Apache County Fair, St. Johns
Cochise County Fair, Douglas
Coconino County Fair, Flagstaff
Gila County Fair, Globe
Graham County Fair, Safford
Greenlee County Fair, Duncan
Mohave County Fair, Kingman
Pima County Fair, Rillito Park in Tucson
Santa Cruz County Fair, Sonoita
* Does not include orders for action such as stays, reinstatements, cases dismissed, etc.

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT
18

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
Investigation numbers listed below reflect the total number of investigations conducted for every
incident, inspection, and background investigation, which includes processing of fingerprints and any
resulting false applications.

Performance Measures

FY 2007

FY 2008

FY 2009

201
374
575

247
963
1,210

139
259
398

Number of incident investigations
Number of background investigations
Total number of investigations conducted
Licensing

The Department issues licenses to participate in racing to those who are qualified and eligible.

Performance Measures

FY 2007

FY 2008

FY 2009

522
1
36

1,264
3
66

353
1
7

Number of licenses issued
Number of licenses denied
Number of licenses revoked

Stewards
The Board of Stewards is present on the permittee grounds on each day entries are being taken or
racing is being conducted, representing the Department in all matters pertaining to the enforcement and
interpretation of the rules adopted by the Department. All races are observed and supervised to ensure
that all participants comply with the rules of racing.

Performance Measures

FY 2007

FY 2008

FY 2009

153
*

146
0

141
1

*

NA

100%

91
62

36
110

60
81

Number of Stewards’ rulings issued
Total Stewards’ rulings appealed
Percentage of Stewards’ rulings upheld on appeal to the
Director
Rulings by Track
Phoenix Greyhound Park
Tucson Greyhound Park
* Measure not tracked for this fiscal year.

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT
21

Commercial Greyhound Racing
Director
The Director of the Department is required by statute to review all rulings issued by the Stewards.
Individual licensees may also appeal a Stewards' ruling to the Director, and if not satisfied with the
Director's ruling, to the Racing Commission. The Office of Administrative Hearings also hears matters
referred by the Director.

Performance Measures

FY 2007

FY 2008

FY 2009

34
0
0
37
n/a

121
0
1
116
100%

23
0
1
29
100%

Phoenix Greyhound Park

17

60

13

Tucson Greyhound Park

20

56

16

Number of Director’s hearings
Number of Administrative Law Judge hearings
Number of Racing Commission hearings
Total number of Director’s orders *
Percentage of orders upheld on appeal to the Commission
Orders by Track

* Does not include orders for action such as stays, reinstatements, cases dismissed, etc.

Inspections
The Department inspects greyhound farms, kennels, vehicles that haul greyhounds and other operations
after the facilities have satisfied requirements.

Performance Measures
Number of facility licenses issued
Number of inspections conducted at facilities
Percentage of inspections resulting in violations and
disciplinary action
Number of whelping inspections
Number of vehicle inspections

FY 2007

FY 2008

FY 2009

8
87
1.2%

58
35
1%

6
20
5%

104
45

81
36

66
31

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
Percentage of breeders winning awards
Number of greyhounds earning awards
Number of registered greyhounds

FY 2007

FY 2008

FY 2009

$455,259
49%
639
9,909

$311,191
93%
604
10,313

$223,112
6%
612
10,664

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 2009, the fund received $0.

Performance Measures

FY 2007

FY 2008

FY 2009

0
$0

1
$1,250

0
$0

Number of grants awarded
Amount of grants awarded

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT
22

Arizona

Boxing
Commission

Arizona State Boxing Commission
Commissioners

Michael Preston Green – Arizona State Boxing Commission Chair. Mr.
Green was appointed to the Boxing Commission on June 16, 2009. His Boxing
Commission term expires on January 16, 2012.

Richard P. Saunders – Arizona State Boxing Commissioner. Mr. Saunders
was reappointed to the Boxing Commission on January 15, 2007 serving his
second term. His Boxing Commission term expires on January 18, 2010.

Lionel D. Ruiz – Arizona State Boxing Commissioner. Mr. Ruiz was
reappointed to the Boxing Commission on May 28, 2008 serving his second
term. Mr. Ruiz is a County Supervisor for Pinal County. His Boxing Commission
term expires on January 17, 2011.

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT
27

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.
Additionally, the State Boxing Commission entered into intergovernmental agreements with three 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 2009, the
Boxing Commission regulated 9 of these events and collected $27,000 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.
The Commission was authorized to approve up to 30 events in FY 2007.
Performance Measures

FY 2007

FY 2008

FY 2009

100%
30
240

100%
25
200

100%
29
232

Percent of bouts without serious injury to contestants
Number of events sanctioned
Number of bouts

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.
FY 2007

FY 2008

FY 2009

791
99%

458
99%

664
99.5%

Revenue Summary
Taxes
License Fees
Fines
Unarmed Combat Fees
Other (Tribal Agreements)

$24,731
11,595
1,200
N/A
33,000

$10,750
8,255
400
N/A
45,000

$13,048
10,620
400
18,000
27,000

Total Revenue Collected

$67,526

$64,405

$69,068

Performance Measures
Number of licenses issued
Percent of licenses issued for all applications

Investigations
The Boxing Commission investigates all allegations of statutory and rule violations that may harm
the athlete or the public.

Performance Measures
Number of investigations conducted
Percent of investigations resulting in disciplinary action

FY 2007
8
99%

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT
28

FY 2008
1
100%

FY 2009
0
N/A

Financial Issues

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT

Department Of Racing Budget
Additional funds are necessary to enable the Department to provide the services required to
regulate and support the racing industry in Arizona. The Department of Racing’s expenditures
for the last three fiscal years and the appropriated funds for FY 2010, including a summary of
full-time and seasonal positions, are included below.
The total Department of Racing budget for FY 2009 was $3,175,200. Included in this amount is
$356,400 transferred to the General Fund due to Legislative mandate, this caused a decrease
of 12% to the Department’s operating budget. Nearly 82.6% of the Department’s FY 2009
budget was appropriated from the State General Fund.
OPERATING BUDGET
Actual Exp

Actual Exp

Actual Exp

Appropriation

FY 2007

FY 2008

FY 2009

FY2010

Full Time Equivalent Positions (FTE)

46.5

46.5

46.5

42.5

Full Time

33.0

33.0

33.0

33.0

Seasonal

13.5

13.5

13.5

9.5

Personal Services

$1,829,900

$1,838,000

$1,507,700

$1,689,700

Employee Related Expenses (ERE)

580,700

583,300

535,200

557,000

Professional & Outside Services

231,200

207,200

144,500

24,800

Travel - In State

185,400

161,000

123,000

92,800

8,300

3,200

3,200

1,000

297,300

319,800

298,200

234,300

9,400

52,000

38,100

0

$3,164,500

$2,749,900

$2,502,500

Travel - Out of State
Other Operating
Equipment
SUBTOTAL

$3,093,600

Racing Programs

N/A

N/A

N/A

1,800,000

Other Programs

N/A

N/A

N/A

1,779,500

AGENCY TOTAL

$3,093,600

$3,164,500

$2,749,900

$6,082,000

$2,749,100

$2,661,600

$2,269,200

$2,035,500

299,700

440,200

434,900

400,000

FUND SOURCES
General Fund
Other Appropriated Funds
County Fair Racing Fund
Administration of Betterment
44,800

62,700

45,800

67,000

Arizona Breeders Awards

& Breeders' Awards Fund

0

0

0

800,000

Arizona Stallion Awards

0

0

0

100,000

County Fair Betterment

0

0

0

900,000

Livestock Promotion

0

0

0

1,779,500

344,500

502,900

480,700

4,046,500

$3,093,600

$3,164,500

$2,749,900

$6,082,000

SUBTOTAL
AGENCY TOTAL

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT
29

Department Budget
3,500,000

3,095,700

3,093,600

3,164,500

2,749,900

3,000,000

2,502,500

2,500,000
2,000,000
1,500,000
1,000,000
500,000
FY 2006

FY 2007

FY 2008

FY 2009

FY 2010*

* Note: FY 2010 includes monies appropriated for operating expenses only.

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. Fines are deposited 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 racingrelated fine are deposited into the Retired Race Horse Adoption Fund. See tables and charts on
page 32.
Revenues from pari-mutuel taxes decreased in FY 2009. They decreased 37% or $159,271
when compared to FY 2008. Several tax breaks have been provided to the racing industry since
1995. The tax breaks listed below contribute, in part, to the current reduction in pari-mutuel tax
revenues received from the racing industry when compared to revenues received a few years
ago.





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 derived from the Arizona Department of Revenue transfer of unclaimed
property funds to the Department of Racing. During FY 2009, the transfer was for $10.3 million.
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 $5.5 million in FY 2009, from the Department
of Racing’s portion of unclaimed property dollars.
ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT
30

As the pari-mutuel tax revenues 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 33.
The seven funds summarized on page 34 are the funds administered by the Department of
Racing for various programs. The funds listed below 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 2009 ANNUAL REPORT
31

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.
Determination of the FY 2010 Hardship Tax Credit
Based on the FY 2009 Dollars Wagered

TRACK

FY 2009

FY 2009

FY 2009

TAX DUE

FY 2010

CARRYOVER

FY 2010

BASE

BASE YEAR

AMOUNT

%

PARI-MUTUEL

BASED ON

HARDSHIP

FROM FY 2009

TAX CREDIT WITH

YEAR

AMOUNT

WAGERED

DECREASE

TAX DUE

% DECREASE

TAX CREDIT

HARDSHIP TAX

FY 2009

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

0

-100.00%

0

0

0

165,088

165,088

Turf Paradise

FY 1994

6.43%

335,084

0

0

0

0

Yavapai Downs

FY 1994

17,490,826

29,436,790

68.30%

80,474

0

0

0

0

FY 1990

$12,262,396

$3,150,048

-74.31%

$0

$0

$0

$360,850

$360,850

Phoenix Greyhound Park FY 1990

49,391,582

36,239,748

-62.13%

1,297,201

805,902 2,417,705

4,571,563

6,989,268

FY 1994

46,293,967

FY 1990

38,110,346

13,372,923

-64.91%

232,750

151,078

2,420,180

2,873,414

101,467,993 107,997,451

GREYHOUND TRACKS:
Apache Greyhound Park

Tucson Greyhound Park

453,234

Department of Racing Pari-Mutuel Tax Revenue - FY 2009

TRACK

ALLOWABLE

FY 2009

FY 2009

FY 2009 CAPITAL

FY 2009

FY2009

FY 2009

FY 2009

HARDSHIP CREDITS

HANDLE

PARI-MUTUEL

IMPROVEMENT

HARDSHIP

COUNTY FAIR

CHARITY

PARI-MUTUEL TAX

TAX DUE

WITHHOLDINGS

TAX CREDIT

CREDITS

DAYS

REVENUE

IN FY 2009

HORSE TRACKS:
Rillito Park

$165,088

$0

$0

$0

$0

$0

$0

$0

Turf Paradise

0

107,997,451

335,084

0

0

0

8,494

326,590

Yavapai Downs

0

29,436,790

80,474

80,474

0

0

0

0

$165,088 $137,434,241

$415,558

$80,474

$0

$0

$8,494

$326,590

Subtotal Horse Tracks
GREYHOUND TRACKS:
Apache Greyhound Park

$360,850

$3,150,048

$0

$0

$0

$0

$0

$0

Phoenix Greyhound Park

4,423,417

36,239,748

1,297,201

0

1,265,053

0

32,148

0

13,372,923

232,750

0

Tucson Greyhound Park

2,432,446

232,750

0

0

0

Subtotal Greyhound Tracks

$7,216,713

$57,762,719 $1,529,951

$0 $1,497,803

$0

$32,148

$0

GRAND TOTAL

$7,381,801 $190,196,960 $1,945,509

$80,474 $1,497,803

$0

$40,642

$326,590

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT
35

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.
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 2009. 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 2009 Deducted

$51,520,282 $80,474
$0

ARIZONA DEPARTMENT OF RACING
FY 2009 ANNUAL REPORT
36

$0

Remaining
Dollars
Approved

$756,828

$50,763,454

$0

$0