ARIZONA DEPARTMENT OF RACING ANNUAL REPORT FY-2010 Table of Contents LETTER TO THE GOVERNOR MEET THE DIRECTOR 1 ARIZONA RACING COMMISSION 1a DEPARTMENT OF RACING Department Organizational Chart 2 RACING REGULATION Investigations and Licensing Stewards, Director and Drug/Alcohol Testing Horse & Dog Drug Testing and Teletracking License by Category Commercial and County Fair Racing 3 4 5 6 7 COMMERCIAL RACING Commercial Racing Permittees, Tracks and Permit Terms Commercial Tracks 8 9 COMMERCIAL HORSE RACING Investigations, Licensing and Stewards Director, Breeders’ & Stallion Awards and Racehorse Adoption Commercial Horse Tracks Rillito Park Turf Paradise Yavapai Downs 10 11 12 13 14 15 COUNTY FAIR RACING Betterment, Investigations, Licensing and Stewards Director County Fair Tracks County Fair Racing Schedule and Statistics 16 17 18 19 COMMERCIAL GREYHOUND RACING Investigations, Licensing and Stewards Director, Inspections, Breeders’ Awards, and Adoption Commercial Greyhound Tracks Apache Greyhound Park Phoenix Greyhound Park Tucson Greyhound Park 20 21 22 23 24 25 ARIZONA BOXING COMMISSION 26 BOXING REGULATION Sanctioned Events, Licensing and Investigations 27 FINANCIALS Department of Racing Budget Hardship Tax Credit Track Capital Improvements 28 29 30 ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT MEET THE DIRECTOR: LONNY POWELL Director Powell arrived via Lexington, Kentucky in order to begin his ADOR tenure January 2010 at the conclusion of a national search. Born in California and raised primarily in Idaho as part of a horse racing family, Powell began his racing career as an assistant starter, jockey valet and maintenance worker at Boise’s Les Bois Park and Tucson’s Rillito Downs. He attended and graduated from the University of Arizona’s Race Track Industry Program within the Department of Animal Sciences and later would become the Coordinator and Director of the Program. Years later, he returned to Arizona once again in order to serve as president of the State’s largest track, Turf Paradise in Phoenix where he presided over a number of record-breaking business years which saw the track become a national player on the simulcast front, greatly expand its in-state OTB system and elevate the quality and competitiveness of its live racing program. In addition to his considerable background in Arizona racing, Powell has extensive knowledge and expertise in the National racing scene having served as president, CEO or COO at a number of acclaimed and successful race tracks including: Santa Anita, Longacres and Multnomah Greyhound Park. In addition, he was hired as the first Executive Vice President-Operations for the largest owner of race tracks at the time, Magna Entertainment Corp. He also was named president and CEO of Racing Commissioners International (RCI) as well as Senior VP-Public Affairs at Youbet.com. He also served as the principal and Chairman of his own management and consulting company, L. Powell Strategy & Solutions of Kentucky where he represented such entities as the NTRA, Racing Medication & Testing Consortium, Multi-Media Games, Inc., Advance Monitoring Systems and many others. As an adjunct to his career dedicated to racing, Powell was recruited to serve on a number of Boards including: NTRA, AQHA Racing Council, TRA, Los Angeles Turf Club (Santa Anita), Pacific Racing Association (Golden Gate Fields), Emerald Racing Association, Gulfstream Park, Remington Park, Race Track Chaplaincy of America, Bluegrass Farms Chaplaincy, University of Arizona RTIP College of Ag Advisory Council, Lone Mountain Vista of Scottsdale Home Owners Association and the Arizona 4-H State Board of Trustees. During his course of duty Powell has received of number of awards and industry recognitions including: RCI’s May Award for Distinguished National Service, Arizona Racing Commission Recognition of Service, Race Track Industry Program Distinguished Service, University of Arizona Presidents Club, AQHA Winners Circle Award and the John K. Goodman University of Arizona RTIP Outstanding Alumni Award. ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 1 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. The following Commissioners were serving on the Racing Commission during FY 2010. Paul Ulan Chair Paul Ulan. Mr. Ulan, Chair, 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. Melvin McDonald, Jr. Vice-Chair Melvin McDonald, Jr. Mr. McDonald, Vice-Chair, 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. ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 1a E. Kelly, D.V.M. Racing Commissioner Thomas E. Kelly, D.V.M. Mr. Kelly, Racing Commissioner, has worked as a veterinarian at Arizona’s greyhound racing tracks since the mid 1960’s through the present. He was raised and received his pre-professional education in Arizona, his Veterinary Medicine Degree from Washington State University in 1961, and a Masters Degree of Public Health in 1965 from the University of California, Los Angles. He retired in 1989, from 27 years as a Public Health Veterinarian for Maricopa County. Burton S. Kruglick former Racing Commission Chairman Burton S. Kruglick. Mr. Kruglick, former Racing Commission Chairman, 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. Erin Owens former Racing Commission Chair Erin Owens. Ms. Owens, former Racing Commission Chair, was raised in a Thoroughbred breeding and racing family in Arizona. She spent many years as an official at many racetracks. Some of her positions included Steward, Director of Racing and Racing Secretary, all of which has extended her knowledge of the horse racing industry. For 10 years, Ms. Owens was a Director at the University of Phoenix where she also completed her Master’s degree. Ms. Owens is currently the Chair of the Association of Racing Commissioners International (RCI) and will conclude her term in April 2010. ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 1a The following are the terms of the current Commission members: Name Erin Owens Paul Ulan Thomas E. Kelly, D.V.M. A. Melvin McDonald Burton S. Kruglick Member Designation Horse Racing Industry Public Greyhound Racing Industry Public Public ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 1a Expiration Date 1/18/2010(month to month) 1/17/2011 1/16/2012 1/21/2013 1/20/2014 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 and mixed martial arts events conducted in Arizona to protect participants in these events. GOVERNOR BOXING COMMISSION RACING COMMISSION DIRECTOR BOXING DIVISION ADMINISTRATION DIVISION RULES & POLICY DIVISION ENFORCEMENT & OPERATIONS DIVISION ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 2 HORSE RACING DIVISION GREYHOUND RACING DIVISION 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 2008 Number of incident investigations Number of background investigations Total number of investigations conducted 414 3,425 3,839 FY 2009 FY 2010 209 1,608 1,817 120 1,104 1,224 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 33 4 35 45 25 68 25 3 37 275 33 2 7 45 0 0 0 3 2 92 No Violation 0 2 28 0 25 68 25 0 35 183 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 2008 FY 2009 FY 2010 5,848 11 213 2,292 5 27 2,971 2 6 ARIZONA DEPARTMENT OF RACING FY 2010 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 2008 FY 2009 FY 2010 521 9 77% 562 10 70% 463 4 72% Total rulings issued Total Stewards Rulings Appealed Percentage of Stewards’ rulings upheld on appeal to the Director 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 2008 FY 2009 FY 2010 431 117 5 419 75% 5 12 6 118 83% 61 5 3 47 100% 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 FY 2008 FY 2009 FY 2010 54 8 5 23% 2 1 50% 40 14 1 35% 5 1 20% 35 6 2 17% 7 0 0% Human Drug Tests Positive Drug Tests Licensee Refused to Test Percent Positive Breath/Alcohol Tests Positive Breath/Alcohol Tests Percent Positive ARIZONA DEPARTMENT OF RACING FY 2010 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 FY 2008 FY 2009 FY 2010 33 1.4% 33 1.93% 37 2.54% 5 .11% 4 .18% 1 0.06% 38 0.5% 37 0.86% 38 1.2% 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 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. Turf Paradise, Yavapai County Fair Association (Yavapai Downs), Apache Greyhound Park, Phoenix Greyhound Park, and Tucson Greyhound Park each held teletracking permits approved by the Arizona Racing Commission to operate offtrack wagering sites in FY 2010. A total of 67 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 $129.4 million. This included $102.8 million for horse racing and $26.6 million for greyhound racing. The State of Arizona received $161,499 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 13.2% during FY 2010 when compared to the prior year. ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 5 LICENSE BY CATEGORY HORSES ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 6 CATEGORY 1 YR CONCESSION 1 YR MUTUEL 1 YR PEACE OFFICER 3 YR COOLOUT 3 YR MUTUEL 3 YR PEACE OFFICER APPRENTICE JOCKEY ASSISTANT STARTER ASSISTANT TRAINER AUTH. AGENT-FULL AUTH. AGENT-PARTIAL BREED FARM/OTHER OP COMBINATION OPER DUPLICATE/NO FEE EXERCISE RIDER GROOM INELIGIBLE JOCKEY JOCKEY AGENT KENNEL-NEW KENNEL-RENEWAL OCCUPATIONAL OFFICIAL OTB OUTRIDER OWNER OWNER-TRAINER PADDOCK EMPLOYEE PERMITTEE DIR/BD MBR PLATER PONY RIDER RACING KENNEL SECURITY STABLE-NEW STABLE-RENEWAL TEMP. CLAIM TEMP. OWNER TEMP. STABLE TRAINER VENDOR-BUSINESS VENDOR-EMPLOYEE VETERINARIAN VOIDS LICENSES ISSUED FINGERPRINTS TAKEN LICENSING FEES FINGERPRINT FEES TOTAL FEES TURF PARADISE YAVAPAI DOWNS GREYHOUNDS COUNTY FAIR TOTAL 5 5 PHOENIX 4 5 19 6 84 41 1 7 3 2 12 22 2 2 0 5 0 5 0 0 0 15 15 163 3 7 108 11 14 2 602 80 40 39 16 136 17 9 3 275 96 32 195 0 0 7 0 7 14 0 14 4 26 4 8 0 8 3 105 0 0 0 0 0 0 2 2 126 0 126 299 0 299 2 0 2 39 0 39 7 0 7 0 0 0 0 0 0 22 334 6 35 5 28 3 102 15 59 1 68 1 312 29 23 2 4 5 38 13 1 3 9 5 2 5 98 35 975 1 20 5 10 16 991 0 211 5 40 45 45 9 0 9 22 0 22 0 92 92 1 0 29 3 1 0 6 211 0 5 16 34 12 25 0 22 6 GRAND TOTAL TOTAL 5 0 71 201 2 22 7 RBO 5 0 100 TUCSON 1 1 10 72 65 0 65 30 0 30 9 0 9 9 0 9 3 0 3 3 3 88 0 5 2 2 50 0 0 12 0 166 107 $1,701 $2,568 $4,269 2,971 2,167 $73,596 $52,008 $125,604 15 60 11 9 9 3 42 1 16 6 18 2 18 31 4 30 3 12 85 2 3 48 1,565 1,161 $36,603 $27,864 $64,467 850 600 $25,558 $14,400 $39,958 390 299 $9,734 $7,176 $16,910 2,805 2,060 $71,895 $49,440 $121,335 62 5 5 5 12 0 43 32 $493 $768 $1,261 122 75 $1,158 $1,800 $2,958 1 $50 $50 COMMERCIAL AND COUNTY FAIR RACING Commercial Horse, Greyhound and County Fair Racing RACING STATISTICS FY 2006 Race Days/Performances (including 4 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days FY 2007 FY 2008 FY 2009 FY 2010 933 662 1,595 909 681 1,590 852 744 1,596 840 740 1,580 685 719 1,404 933 909 852 840 685 12,513 262,275 274,788 11,791 284,597 296,388 10,205 287,415 297,620 10,793 269,318 280,111 8,353 234,679 243,032 Attendance On-Track Off-Track Total Attendance 819,425 1,022,623 1,842,048 723,879 887,078 1,610,957 693,553 892,026 1,585,579 652,807 771,745 1,424,552 578,212 692,624 1,270,836 Pari-Mutuel Handle Average Handle per Race Day Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races $178,946 $167,667 $158,359 $133,970 $128,880 Breakdown by location On-Track Handle Off-Track Handle $90,944,292 $194,474,484 $84,486,049 $182,104,065 $77,268,017 $175,472,915 $62,574,674 $149,097,386 $51,550,249 $129,397,125 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $87,686,434 197,732,342 $285,418,776 $77,780,820 188,809,295 $266,590,114 $66,643,403 186,097,529 $252,740,932 $54,856,192 156,815,868 $211,672,059 $39,392,293 141,555,081 $180,947,374 $219,060,582 $203,766,212 $193,921,658 $162,095,753 $138,400,642 $527,860 $431,437 $429,592 $326,590 $314,021 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 $57,052,294 89,991 0 0 71,464 2,653,989 0 1,221,958 $61,089,696 $53,620,670 100,917 0 0 55,863 2,353,026 0 1,085,469 $57,215,946 $51,074,270 100,037 0 0 51,415 1,768,623 0 1,026,555 $54,020,900 $42,834,032 80,474 0 0 40,641 1,497,803 0 857,514 $45,310,464 $37,013,892 68,254 0 0 13,438 835,919 0 746,129 $38,677,632 Purses $22,314,331 $21,133,206 $22,246,607 $18,902,895 $15,997,406 DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance Source of Handle On-Track vs. Off-Track Handle On-Track Live $250 $250 $200 $200 $150 $150 Million Million Off-Track $100 $50 Simulcast $100 $50 $ $ FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2006 FY 2007 ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 7 FY 2008 FY 2009 FY 2010 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 2010, the Arizona Racing Commission approved three-year commercial and teletracking permits for TP Racing, L.L.L.P., and a temporary permit to conduct teletracking at Apache Greyhound Park (American Greyhound Racing, Inc.). Yavapai County Fair Association filed a new application for commercial racing for fiscal years 2010, 2011 and 2012. By statute, Yavapai 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 06/01/09 - 05/31/12 Yavapai County Fair Association Yavapai Downs at Prescott Valley * application pending ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 8 *05/26/07 - 09/04/09 COMMERCIAL TRACKS Commercial Horse and Greyhound Racing RACING STATISTICS FY 2006 Race Days/Performances (including 4 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days FY 2007 FY 2008 FY 2009 FY 2010 874 659 1,533 845 679 1,524 788 742 1,530 775 738 1,513 631 717 1,348 874 845 788 775 631 11,994 259,747 271,741 11,219 281,048 292,267 9,637 283,889 293,526 10,229 265,027 275,256 7,885 230,939 238,824 Attendance On-Track Off-Track Total Attendance 690,948 949,002 1,639,950 570,571 818,825 1,389,396 547,912 822,795 1,370,707 491,439 702,087 1,193,526 448,235 646,780 1,095,015 Pari-Mutuel Handle Average Handle per Race Day $172,643 $160,357 $150,869 $125,708 $123,583 Breakdown by location On-Track Handle Off-Track Handle $82,814,154 $181,847,949 $75,031,996 $169,352,518 $68,590,356 $162,238,621 $54,334,827 $135,862,133 $45,779,534 $120,810,375 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $81,471,551 183,190,552 $264,662,103 $70,820,823 173,563,691 $244,384,514 $59,962,992 170,865,985 $230,828,978 $48,594,826 141,602,133 $190,196,960 $34,862,474 131,727,434 $166,589,908 $203,192,511 $186,927,263 $177,373,642 $145,736,829 $127,231,702 $527,860 $431,437 $429,592 $326,590 $314,021 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 $52,948,454 89,991 0 0 71,464 2,653,989 0 1,110,798 $56,874,696 $49,230,357 100,917 0 0 55,863 2,353,026 0 968,928 $52,709,092 $46,717,237 100,037 0 0 51,415 1,768,623 0 917,242 $49,554,554 $38,540,728 80,474 0 0 40,641 1,497,803 0 752,862 $40,912,508 $34,129,931 68,254 0 0 13,438 835,919 0 677,382 $35,724,923 Purses $20,107,799 $18,520,580 $19,323,512 $16,208,760 $14,033,433 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 On-Track vs. Off-Track Handle Live $200 $200 $180 $180 $160 $160 $140 $140 $120 $120 Million Million Off-Track $100 $80 Source of Handle Simulcast $100 $80 $60 $60 $40 $40 $20 $20 $ $ FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2006 ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 9 FY 2007 FY 2008 FY 2009 FY 2010 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 2008 FY 2009 FY 2010 146 21 90 1,876 2,022 1,154 1,175 914 1,004 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 2008 FY 2009 FY 2010 3,692 7 99 1,530 4 14 2415 2 4 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 2008 FY 2009 FY 2010 347 6 395 9 362 2 66% 66% 72% Turf Paradise 222 268 263 Yavapai Downs 125 127 99 Number of rulings issued Total steward rulings appealed Percentage of rulings upheld on appeal to the Director Rulings by Track ARIZONA DEPARTMENT OF RACING FY 2010 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 2008 FY 2009 FY 2010 236 116 4 234 100% 69 10 5 67 80% 39 5 3 29 100% 160 44 21 74 23 8 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 Turf Paradise Yavapai Downs * 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 2008 FY 2009 FY 2010 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 3,548 4% 7,230 1.0% $53,585 $221.970 $39,162 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 2008 FY 2009 FY 2010 1 $1,496 1 $1,647 1 $1,244 ARIZONA DEPARTMENT OF RACING FY 2009 ANNUAL REPORT 11 COMMERCIAL HORSE TRACKS Rillito Park, Turf Paradise, Yavapai Downs RACING STATISTICS FY 2006 Race Days/Performances (including 3 charity days) Live Race Days Dark Day-Simulcast Only Total Race Days FY 2007 FY 2008 FY 2009 FY 2010 207 239 446 185 252 437 188 252 440 181 251 432 181 261 442 207 185 188 181 181 1,875 47,514 49,389 1,674 48,881 50,555 1,706 50,688 52,394 1,620 50,382 52,002 1,624 57,041 58,665 Attendance On-Track Off-Track Total Attendance 432,654 683,821 1,116,475 328,492 592,070 920,562 324,079 614,599 938,678 289,381 523,798 813,179 290,388 496,143 786,531 Pari-Mutuel Handle Average Handle per Race Day $402,987 $372,843 $370,672 $318,135 $290,986 Breakdown by location On-Track Handle Off-Track Handle $58,639,790 $121,092,552 $50,914,112 $112,018,399 $46,415,601 $116,680,191 $37,880,820 $99,553,421 $34,441,647 $94,173,951 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $32,503,981 147,228,362 $179,732,342 $27,254,506 135,678,005 $162,932,511 $27,094,443 136,001,349 $163,095,792 $20,777,540 116,656,700 $137,434,240 $19,594,567 109,021,031 $128,615,598 $138,105,510 $124,571,918 $125,299,914 $105,457,399 $98,157,491 $527,860 $431,437 $429,592 $326,590 $314,021 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement-Non Taxable Charity Day Hardship Tax Credit Breakage Total Track Revenues $36,050,363 89,991 0 15,413 16,825 889,107 $37,061,698 $32,688,941 100,917 0 12,743 0 768,659 $33,571,259 $32,744,518 100,037 0 12,268 0 759,954 $33,616,777 $27,789,057 80,474 0 8,494 0 629,086 $28,507,112 $26,094,321 68,254 0 9,623 0 586,731 $26,758,929 Purses $15,515,306 $14,260,653 $15,828,636 $13,448,044 $12,474,952 Total Live Performances 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 Source of Handle Simulcast $140 $160 $120 $140 $120 $100 Million $100 Million $80 $60 $80 $60 $40 $40 $20 $20 $ $ FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2006 ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 12 FY 2007 FY 2008 FY 2009 FY 2010 RILLITO PARK 4502 North First Avenue Tucson, Arizona 85728 Pima County Fair Horse Racing Commission RACING STATISTICS FY 2006 Race Days/Performances Live Race Days Dark Day-Simulcast Only Total Race Days FY 2007 FY 2008 FY 2010 Racing Dates: None (see county fairs) FY 2009 FY 2010 9 0 9 0 0 0 0 0 0 0 0 0 0 0 0 9 0 0 0 0 83 0 83 0 0 0 0 0 0 0 0 0 0 0 0 40,705 0 40,705 0 0 0 0 0 0 0 0 0 0 0 0 $93,470 $0 $0 $0 $0 Breakdown by location On-Track Handle Off-Track Handle $841,230 $0 $0 $0 $0 $0 $0 $0 $0 $0 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $841,230 0 $841,230 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $643,248 $0 $0 $0 $0 $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 $175,287 0 0 0 16,825 5,871 $197,982 $0 0 0 0 0 0 $0 $0 0 0 0 0 0 $0 $0 0 0 0 0 0 $0 $0 0 0 0 0 0 $0 Purses $189,054 $0 $0 $0 $0 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 State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track On-Track vs. Off-Track Handle Live Source of Handle Simulcast Off-Track $1 $4 Million Million $3 $2 $1 $ $ FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2006 FY 2007 ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 13 FY 2008 FY 2009 FY 2010 TURF PARADISE 1501 West Bell Road Phoenix, Arizona 85023 TP Racing, L.L.L.P. RACING STATISTICS FY 2006 Race Days/Performances (including 3 charity days) Live Race Days Dark Day-Simulcast Only Total Race Days FY 2010 Racing Dates: July 1, 2009 - June 30, 2010 FY 2007 FY 2008 FY 2009 FY 2010 151 197 348 133 211 344 133 212 345 131 208 339 129 214 343 151 133 133 131 129 1,375 43,371 44,746 1,205 44,605 45,810 1,211 46,485 47,696 1,175 46,112 47,287 1,164 50,334 51,498 331,511 473,525 805,036 282,764 420,788 703,552 281,137 441,130 722,267 255,374 376,924 632,298 258,241 352,858 611,099 $419,562 $373,056 $371,605 $318,577 $291,383 $56,037,345 $89,970,068 $48,856,296 $79,475,014 $44,483,207 $83,720,553 $36,350,503 $71,646,948 $32,995,111 $66,949,360 $27,163,223 118,844,190 $146,007,413 $22,208,647 106,122,663 $128,331,310 $22,092,609 106,111,151 $128,203,760 $16,753,833 91,243,618 $107,997,451 $16,181,894 83,762,576 $99,944,470 $112,372,468 $98,117,698 $98,508,381 $83,068,015 $76,074,976 $527,860 $431,437 $429,592 $326,590 $314,021 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement-Non Taxable Charity Day Hardship Tax Credit Breakage Total Track Revenues $29,267,373 0 0 15,413 0 721,384 $30,004,169 $25,747,068 0 0 12,743 0 600,244 $26,360,055 $25,770,861 0 0 12,268 0 605,819 $26,388,947 $21,843,282 0 0 8,494 0 500,393 $22,352,169 $20,257,041 0 0 9,623 0 458,532 $20,725,197 Purses $12,841,141 $11,532,280 $13,008,498 $11,053,240 $9,941,897 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 On-Track vs. Off-Track Handle Live Off-Track Source of Handle Simulcast $140 $100 $90 $120 $70 $100 $60 $80 Million Million $80 $50 $40 $30 $60 $40 $20 $20 $10 $ $ FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2006 ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 14 FY 2007 FY 2008 FY 2009 FY 2010 YAVAPAI DOWNS 10501 Hwy. 89A Prescott Valley, Arizona 86314 RACING STATISTICS Yavapai County Fair Association FY 2006 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 Attendance On-Track Off-Track Total Attendance Pari-Mutuel Handle Average Handle per Race Day FY 2007 FY 2010 Racing Dates: July 1, 2009 - September 4, 2009 May 29, 2010 - June 30, 2010 FY 2008 FY 2009 FY 2010 47 42 89 52 41 93 55 40 95 50 43 93 52 47 99 47 52 55 50 52 417 4,143 4,560 469 4,276 4,745 495 4,203 4,698 445 4,270 4,715 460 6,707 7,167 60,438 210,296 270,734 45,728 171,282 217,010 42,942 173,469 216,411 34,007 146,874 180,881 32,147 143,285 175,432 $369,480 $372,056 $367,285 $316,525 $289,607 Breakdown by location On-Track Handle Off-Track Handle $1,761,215 $31,122,484 $2,057,817 $32,543,385 $1,932,394 $32,959,639 $1,530,316 $27,906,473 $1,446,536 $27,224,591 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $4,499,528 28,384,172 $32,883,699 $5,045,859 29,555,342 $34,601,201 $5,001,835 29,890,198 $34,892,032 $4,023,707 25,413,082 $29,436,790 $3,412,672 25,258,455 $28,671,127 $25,089,795 $26,454,220 $26,791,533 $22,389,384 $22,082,514 DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues $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 $6,607,704 89,991 0 0 0 161,852 $6,859,546 $6,941,873 100,917 0 0 0 168,414 $7,211,204 $6,973,658 100,037 0 0 0 154,136 $7,227,830 $5,945,775 80,474 0 0 0 128,693 $6,154,943 $5,837,279 68,254 0 0 0 128,199 $6,033,732 Purses $2,485,110 $2,728,373 $2,820,139 $2,394,804 $2,533,056 Racetrack Trends at a Glance On-Track On-Track vs. Off-Track Handle Live Off-Track $35 $35 $30 $30 $25 Million Million Source of Handle Simulcast $20 $15 $25 $20 $15 $10 $10 $5 $5 $ $ FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2006 FY 2007 * Prescott Downs through 2001 ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 15 FY 2008 FY 2009 FY 2010 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. County fair racing is supported by the following two fund sources, the County Fair Racing Fund and the County Fair Racing Betterment Fund. The County Fair Racing Fund is authorized for the administration of county fair racing; the County Fair Racing Betterment Fund provides purse subsidy and betterment grants to every eligible county fair association for conducting county fair racing meetings. In FY 2010, the Department spent $340,200 from the County Fair Racing Fund for this program, and distributed $519,400 in Betterment payments to counties. 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 2008 FY 2009 FY 2010 21 586 607 49 141 190 12 75 87 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 2008 FY 2009 FY 2010 892 1 38 409 0 6 390 0 0 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 2008 FY 2009 FY 2010 28 3 38 0 11 1 100% NA 0% 3 4 2 2 4 1 4 5 3 3 0 2 2 11 4 1 12 3 1 6 0 0 0 1 0 2 1 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 ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 16 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 2008 FY 2009 FY 2010 74 1 0 69 NA 23 2 0 22 NA 3 0 0 3 NA 6 8 18 3 2 3 4 16 9 1 2 2 2 1 1 2 10 1 0 0 1 0 1 0 0 1 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 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 2010 ANNUAL REPORT 17 COUNTY FAIR TRACKS County Fair Racing at Fairs and Commercial Tracks RACING STATISTICS FY 2006 Race Days/Performances Live Race Days Dark Day-Simulcast Only Total Race Days FY 2007 FY 2008 FY 2009 FY 2010 59 3 62 64 2 66 64 2 66 65 2 67 54 2 56 59 64 64 65 54 519 2,528 3,047 572 3,549 4,121 568 3,526 4,094 564 4,291 4,855 468 3,740 4,208 128,477 73,621 202,098 153,308 68,253 221,561 145,641 69,231 214,872 161,368 69,658 231,026 129,977 45,844 175,821 $334,785 $336,448 $331,999 $320,524 $256,383 Breakdown by location On-Track Handle Off-Track Handle $8,130,138 $12,626,535 $9,454,053 $12,751,547 $8,677,661 $13,234,294 $8,239,847 $13,235,253 $5,770,715 $8,586,751 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $6,214,883 14,541,789 $20,756,673 $6,959,997 15,245,603 $22,205,600 $6,680,411 15,231,544 $21,911,955 $6,261,365 15,213,734 $21,475,100 $4,529,820 9,827,646 $14,357,466 $15,868,071 $16,838,949 $16,548,016 $16,358,923 $11,168,940 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 Breakage Total Track Revenues $4,103,839 111,160 $4,214,999 $4,390,313 116,542 $4,506,854 $4,357,033 109,312 $4,466,346 $4,293,304 104,652 $4,397,956 $2,883,962 68,748 $2,952,709 Purses $2,206,532 $2,612,626 $2,923,095 $2,694,134 $1,963,973 State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track On-Track vs. Off-Track Handle Live Source of Handle Simulcast Off-Track $14 $12 Million Million $10 $8 $6 $4 $2 $ FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 $18 $16 $14 $12 $10 $8 $6 $4 $2 $ FY 2006 ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 18 FY 2007 FY 2008 FY 2009 FY 2010 County Fair Racing Schedule and Statistics FY 2010 Race Days Live Races ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 19 Fairs at Non-Commercial Tracks Coconino County Fair at Flagstaff 4 July 2, 3, 4, 5, 2009 Apache County Fair at St. Johns 3 September 11, 12, 13, 2009 Gila County Fair at Globe 4 September 26, 27, October 3, 4, 2009 Pima County Fair at Tucson 11 January 16, 17, 23, 24, 30, 31, February 6, 13, 14, 20, 21, 2010 Greenlee County Fair at Duncan 4 March 6, 7, 13, 14, 2010 Graham County Fair at Safford 2 March 20, 21, 2010 Cochise County Fair at Douglas 2 April 10, 11, 2010 Santa Cruz County Fair at Sonoita 4 April 24, 25, May 1, 2, 2010 Subtotal - Fairs at Non-Commercial Tracks 34 Fairs at Commercial Tracks Yavapai County Fair at Prescott Valley (Yavapai Downs) September 5, 6, 7, 8, 2009 Maricopa County Fair at Phoenix (Turf Paradise) January 2, 3, 30, 31, 2010 La Paz County Fair at Phoenix (Turf Paradise) January 16, 17, 23, 24, 2010 Pinal County Fair at Phoenix (Turf Paradise) February 6, 7, 13, 14, 2010 Navajo County Fair at Phoenix (Turf Paradise) March 6, 7, 13, 14, 2010 Yuma County Fair at Phoenix (Turf Paradise) April 23, 24, 25, 26, 2010 Subtotal - Fairs at Commercial Tracks Total - All County Fair Racing Simulcast Races Total Handle Simulcast Handle Attendance Returned to Public Track Commission Breakage to Track Purses 33 - 252,432 - 9,750 195,656 49,466 2,261 78,532 24 - 34,260 - 1,164 26,617 6,549 410 54,107 32 - 56,313 - 1,760 43,693 10,951 542 69,563 83 - 795,853 - 47,616 609,094 165,232 5,610 256,500 28 - 79,931 - 1,918 62,181 15,485 666 71,146 20 - 63,698 - 4,550 49,504 12,360 560 33,184 20 - 64,638 - 3,600 50,266 12,538 541 29,082 29 - 142,695 - 8,500 111,145 27,402 1,287 106,450 269 0 $1,489,820 $0 78,858 $1,148,155 $299,984 $11,878 $698,562 4 37 218 1,383,060 1,120,517 9,493 1,085,007 279,693 6,385 134,838 4 36 617 2,346,848 1,752,939 17,305 1,837,050 470,014 10,332 250,540 4 27 697 1,987,570 1,633,968 15,823 1,568,692 397,987 9,872 178,978 4 27 570 2,339,637 1,741,361 18,729 1,768,940 473,112 9,683 227,015 4 36 802 2,828,180 2,123,589 19,441 2,235,758 566,585 11,360 264,121 4 36 836 1,982,350 1,455,272 16,172 1,525,338 396,585 9,239 209,920 24 199 3,740 $12,867,646 $9,827,646 96,963 $10,020,785 $2,583,977 $56,870 $1,265,411 58 468 3,740 $14,357,466 $9,827,646 175,821 $11,168,940 $2,883,962 $68,748 $1,963,973 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 Number of incident investigations Number of background investigations Total number of investigations conducted FY 2008 FY 2009 FY 2010 247 963 1,210 139 259 398 18 115 133 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 2008 FY 2009 FY 2010 1,264 3 66 353 1 7 166 0 2 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 2008 FY 2009 FY 2010 Number of Stewards’ rulings issued Total Stewards’ rulings appealed 146 0 141 1 90 1 Percentage of Stewards’ rulings upheld on appeal to the Director NA 100% 100% 36 110 60 81 *18 71 Rulings by Track Phoenix Greyhound Park Tucson Greyhound Park * PGP last day of live racing was December 19, 2009 ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 20 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 2008 FY 2009 FY 2010 121 0 1 116 100% 23 0 1 29 100% 19 0 0 15 N/A Phoenix Greyhound Park 60 13 6 Tucson Greyhound Park 56 16 9 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 FY 2008 FY 2009 FY 2010 58 35 1% 6 20 5% 6 25 0% 81 36 66 31 68 25 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 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 2008 FY 2009 FY 2010 $311,191 93% 604 10,313 $223,112 6% 612 10,664 $77,227 21% 1,027 10,959 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 Number of grants awarded Amount of grants awarded FY 2008 FY 2009 FY 2010 1 $1,250 0 $0 3 $375 ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 21 COMMERCIAL GREYHOUND TRACKS Apache Greyhound, Phoenix Greyhound, Tucson Greyhound RACING STATISTICS FY 2006 Race Days/Performances (including 1 charity days) Live Race Days Dark Day-Simulcast only Total Race Days FY 2007 FY 2008 FY 2009 FY 2010 667 420 1,087 660 427 1,087 600 490 1,090 594 487 1,081 450 456 906 667 660 600 594 450 Number of Races Live Races Simulcast Races Total Number of Races 10,119 212,233 222,352 9,545 232,167 241,712 7,931 233,201 241,132 8,609 214,645 223,254 6,261 173,898 180,159 Attendance On-Track Off-Track Total Attendance 258,294 265,181 523,475 242,079 226,755 468,834 223,833 208,196 432,029 202,058 178,289 380,347 157,847 150,637 308,484 Pari-Mutuel Handle Average Handle per Race Day $78,132 $74,933 $62,141 $48,809 $41,914 Breakdown by location On-Track Handle Off-Track Handle $24,174,364 $60,755,397 $24,117,884 $57,334,119 $22,174,756 $45,558,430 $16,454,007 $36,308,712 $11,337,887 $26,636,424 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $48,967,570 35,962,191 $84,929,761 $43,566,317 37,885,687 $81,452,003 $32,868,549 34,864,637 $67,733,186 $27,817,286 24,945,433 $52,762,719 $15,267,907 22,706,403 $37,974,311 $65,087,000 $62,355,345 $52,073,727 $40,279,431 $29,074,212 $0 $0 $0 $0 $0 $16,898,092 0 0 0 56,052 2,637,164 0 221,691 $19,812,998 $16,541,416 0 0 0 43,121 2,353,026 0 200,269 $19,137,832 $13,972,719 0 0 0 39,147 1,768,623 0 157,288 $15,937,777 $10,751,671 0 0 0 32,148 1,497,803 0 123,775 $12,405,397 $8,035,610 0 0 0 3,815 835,919 0 90,650 $8,965,995 $4,592,493 $4,259,927 $3,494,876 $2,760,716 $1,558,481 Total Live Performances (Matinee & Evening) 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 Racetrack Trends at a Glance On-Track vs. Off-Track Handle On-Track Off-Track Live $70 $60 $60 $50 $40 $40 Million Million $50 Source of Handle Simulcast $30 $30 $20 $20 $10 $10 $ $ FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2006 ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 22 FY 2007 FY 2008 FY 2009 FY 2010 APACHE GREYHOUND PARK 2551 West Apache Trail Apache Junction, Arizona 85220 American Greyhound Racing, Inc. RACING STATISTICS FY 2006 Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 2010 Racing Dates: July 1, 2009 - June 30, 2010 FY 2007 FY 2008 FY 2009 FY 2010 0 362 362 0 362 362 0 363 363 0 362 362 0 362 362 0 0 0 0 0 Number of Races Live Races Simulcast Races Total Number of Races 0 64,529 64,529 0 72,968 72,968 0 73,490 73,490 0 71,625 71,625 0 72,965 72,965 Attendance On-Track Off-Track Total Attendance 82,160 0 82,160 79,200 0 79,200 79,013 0 79,013 78,565 0 78,565 78,698 41,406 120,104 $11,329 $12,191 $13,957 $8,702 $25,949 Breakdown by location On-Track Handle Off-Track Handle $4,101,136 $0 $4,413,071 $0 $5,066,332 $0 $3,150,048 $0 $3,963,410 $5,430,189 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $0 4,101,136 $4,101,136 $0 4,413,071 $4,413,071 $0 5,066,332 $5,066,332 $0 3,150,048 $3,150,048 $0 9,393,598 $9,393,598 $3,223,463 $3,441,643 $3,886,753 $2,402,290 $7,002,240 $0 $0 $0 $0 $0 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 $942,979 0 0 0 0 0 0 8,810 $951,789 $1,032,928 0 0 0 0 0 0 9,110 $1,042,037 $1,192,917 0 0 0 0 0 0 8,235 $1,201,152 $732,497 0 0 0 0 0 0 6,572 $739,069 $2,216,286 0 0 0 0 0 0 21,773 $2,238,059 Purses $187,587 $201,092 $228,396 $147,643 $78,122 Total Live Performances (Matinee & Evening) Pari-Mutuel Handle Average Handle per Race Day DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track On-Track vs. Off-Track Handle Live $10 $10 $9 $9 $8 $8 $7 $7 Million Million Off-Track $6 $5 $4 $3 Source of Handle Simulcast $6 $5 $4 $3 $2 $2 $1 $1 $ $ FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2006 ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 23 FY 2007 FY 2008 FY 2009 FY 2010 PHOENIX GREYHOUND PARK 3801 East Washington Street Phoenix, Arizona 85036 American Greyhound Racing, Inc. RACING STATISTICS FY 2006 FY 2007 FY 2010 Racing Dates: July 1, 2009 - December 31, 2009 FY 2008 FY 2009 FY 2010 Race Days/Performances (including 3 charity day) Live Race Days Dark Day-Simulcast only Total Race Days 362 0 362 362 0 362 348 15 363 338 20 358 168 13 181 Total Live Performances (Matinee & Evening) 362 362 348 338 168 5,770 63,841 69,611 5,733 70,123 75,856 5,019 70,116 75,135 5,422 64,302 69,724 2,399 31,413 33,812 123,617 171,657 295,274 122,821 150,734 273,555 106,100 127,862 233,962 93,234 103,594 196,828 43,059 43,962 87,021 $166,511 $153,588 $127,816 $101,228 $74,824 Breakdown by location On-Track Handle Off-Track Handle $15,043,286 $45,233,757 $14,071,955 $41,526,811 $12,822,684 $33,574,550 $9,945,695 $26,294,053 $3,935,117 $9,608,030 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $40,908,294 19,368,749 $60,277,043 $37,733,613 17,865,152 $55,598,765 $28,922,407 17,474,827 $46,397,234 $23,585,459 12,654,289 $36,239,748 $8,507,773 5,035,374 $13,543,147 $45,922,489 $42,367,781 $35,372,281 $27,301,010 $10,241,002 $0 $0 $0 $0 $0 $11,577,368 0 0 0 56,052 2,193,905 0 163,624 $13,990,948 $10,757,869 0 0 0 43,121 2,032,228 0 143,872 $12,977,090 $9,151,719 0 0 0 39,147 1,551,585 0 115,733 $10,858,184 $7,113,441 0 0 0 32,148 1,265,053 0 89,620 $8,500,261 $2,663,706 0 0 0 3,815 464,112 0 36,144 $3,167,778 $3,352,976 $3,095,274 $2,545,527 $1,997,810 $744,968 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 State Pari-Mutuel Revenues Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Capital Improvement AGP Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit AGP-Hardship Tax (Transferred to PGP) Breakage Total Track Revenues Purses Racetrack Trends at a Glance On-Track On-Track vs. Off-Track Handle Live Source of Handle Simulcast $45 $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $ $40 $35 $30 Million Million Off-Track $25 $20 $15 $10 $5 $ FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2006 FY 2007 ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 24 FY 2008 FY 2009 FY 2010 TUCSON GREYHOUND PARK 2601 South Third Avenue Tucson, Arizona 85713 Tucson Greyhound Park, Inc. RACING STATISTICS FY 2006 Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 2007 FY 2010 Racing Dates: July 1, 2009 - June 30, 2010 FY 2008 FY 2009 FY 2010 305 58 363 298 65 363 252 112 364 256 105 361 282 81 363 305 298 252 256 282 4,349 83,863 88,212 3,812 89,076 92,888 2,912 89,595 92,507 3,187 78,718 81,905 3,862 69,520 73,382 Attendance On-Track Off-Track Total Attendance 52,517 93,524 146,041 40,058 76,021 116,079 38,720 80,334 119,054 30,259 74,695 104,954 36,090 65,269 101,359 Pari-Mutuel Handle Average Handle per Race Day $56,616 $59,064 $44,697 $37,044 $41,426 Breakdown by location On-Track Handle Off-Track Handle $5,029,942 $15,521,640 $5,632,858 $15,807,308 $4,285,739 $11,983,880 $3,358,264 $10,014,659 $3,439,361 $11,598,205 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $8,059,276 12,492,307 $20,551,582 $5,832,704 15,607,463 $21,440,167 $3,946,142 12,323,477 $16,269,619 $4,231,828 9,141,096 $13,372,923 $6,760,135 8,277,431 $15,037,565 $15,941,049 $16,545,921 $12,814,693 $10,576,130 $11,830,969 Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races Returned to Wagering Public State Pari-Mutuel Revenues $0 $0 $0 $0 $0 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit Breakage Total Track Revenues $4,377,744 0 0 0 443,259 49,257 $4,870,261 $4,750,619 0 0 0 320,798 47,288 $5,118,705 $3,628,084 0 0 0 217,037 33,320 $3,878,441 $2,905,733 0 0 0 232,750 27,583 $3,166,066 $3,155,618 0 0 0 371,807 32,734 $3,560,158 Purses $1,051,930 $963,561 $720,953 $615,264 $735,391 Racetrack Trends at a Glance On-Track On-Track vs. Off-Track Handle Live $18 $18 $16 $16 $14 $14 $12 $12 Million Million Off-Track $10 $8 Source of Handle Simulcast $10 $8 $6 $6 $4 $4 $2 $2 $ $ FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2006 ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 25 FY 2007 FY 2008 FY 2009 FY 2010 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. 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. Joe Pennington – Arizona State Boxing Commissioner. Mr. Pennington was appointed to the Boxing Commission on January 18, 2010. His Boxing Commission term expires on January 21, 2013. ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 26 Boxing and Mixed Martial Arts Regulation The Boxing and MMA Commission regulates and supervises Boxing and Mixed Martial Arts Events conducted in Arizona to protect the participants in these events and to ensure compliance with the applicable laws and regulations. In 1992, the Arizona Department of Racing assumed responsibility for the financial administration of the Arizona State Boxing Commission. (Note: In July 2010 the name was changed to the Arizona State Boxing and Mixed Martial Arts Commission). In this capacity, the Department collects and deposits State receipts associated with the sports. The Department collects a fee of four percent of the gross receipts after deduction of any federal, state, and local taxes generated from Boxing and MMA matches. Additionally, the Boxing and MMA Commission has entered into intergovernmental agreements with certain Tribal organizations to supervise Boxing events conducted on Tribal land. The Arizona State Boxing and MMA Commission receives an average of $3,000 per event subject to these agreements. During FY 2010, the Boxing Commission regulated 9 of these events and collected $27,000 for their regulation. The revenues collected for taxes and Tribal fees were deposited into the General Fund. Sanctioned Events The Boxing and MMA 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 2008 FY 2009 FY 2010 100% 25 200 100% 29 232 100% 26 257 Percent of bouts without serious injury to contestants Number of events sanctioned Number of bouts Licensing The Boxing and MMA 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 2008 FY 2009 FY 2010 458 99% 664 99.5% 560 99% Revenue Summary Taxes License Fees Fines Unarmed Combat Fees Other (Tribal Agreements) $10,750 8,255 400 N/A 45,000 $13,048 10,620 400 18,000 27,000 $10,700 $7,655 0 $20,000 $27,000 Total Revenue Collected $64,405 $69,068 $65,355 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 2008 1 100% ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 27 FY 2009 0 N/A FY 2010 1 100% Department of Racing Budget As with most agencies, the budget for the Department of Racing has been greatly reduced. The total Department of Racing budget for FY 2010 was $5,676,000. Included in this amount are appropriation reductions amounting to $462,100, a 7.5% reduction. Also included in the Department's budget is $1,779,500, which is deposited to the County Fairs Livestock and Agricultural Promotion Fund, a fund administered by the Governor's Office to promote the livestock and agricultural resources of the State and for conducting an annual Arizona livestock fair by the Arizona Exposition and State Fair Board to further livestock resources. The Department no longer receives fees generated by its industry to offset much of the cost of regulation; 100% of the Department's FY 2010 budget was appropriated from the State General Fund. The Department's FY 2011 appropriation has been reduced even further. Additional funds are necessary to enable the Department to provide the services required to regulate and support the racing industry in Arizona. The Department will be seeking additional funding for FY 2012 through the Legislative process. The Department of Racing's expenditures for the last three fiscal years and the appropriated funds for FY 2011, including a summary of full-time and part-time positions, are included below. OPERATING BUDGET Actual Exp Actual Exp Actual Exp Appropriation FY 2008 FY 2009 FY 2010 FY 2011 Full Time Equivalent Positions (FTE) Full Time Part Time 46.5 33.0 13.5 Personal Services Employee Related Expenses (ERE) Professional & Outside Services Travel - In State Travel - Out of State Other Operating Equipment SUBTOTAL 46.5 33.0 13.5 42.5 29.0 13.5 $ 1,838,000 583,300 207,200 161,000 3,200 319,800 52,000 $ 3,164,500 $ 1,567,700 535,200 144,500 123,000 3,200 339,200 52,700 $ 2,765,500 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A AGENCY TOTAL $ 3,164,500 $ 2,765,500 $ 4,963,500 $ 3,863,600 FUND SOURCES General Fund $ 2,661,600 $ 2,278,900 $ 4,963,500 $ 3,863,600 $ 427,700 - - $ 58,900 486,600 - - SPECIAL LINE ITEMS: Breeder's Award County Fair Racing County Fairs Livestock & Agricultural Promotio County Fair Betterment Racing Administration Stallion Award 5th Special Session Reduction Line Items Subtotal Other Appropriated Funds County Fair Racing Fund Administration of Betterment & Breeders' Awards Fund Arizona Breeders Awards Arizona Stallion Awards County Fair Betterment Livestock Promotion SUBTOTAL $ 440,200 $ 62,700 502,900 AGENCY TOTAL $ 3,164,500 $ 2,765,500 ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 28 $ 1,153,500 476,500 103,400 77,900 1,600 220,500 1,500 $ 2,034,900 40.5 $ $ 246,700 340,200 1,779,500 519,400 42,800 2,928,600 $ $ 4,963,500 1,312,300 466,100 21,000 78,600 1,000 198,500 2,077,500 400,000 1,779,500 67,000 (460,400) 1,786,100 $ $ 3,863,600 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 2011 Hardship Tax Credit Based on the FY 2010 Dollars Wagered TRACK FY 2010 FY 2010 FY 2010 TAX DUE FY 2011 CARRYOVER FY 2011 BASE BASE YEAR AMOUNT % PARI-MUTUEL BASED ON HARDSHIP FROM FY 2010 TAX CREDIT WITH YEAR AMOUNT WAGERED DECREASE TAX DUE % DECREASE TAX CREDIT HARDSHIP TAX FY 2010 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 $219,826 $219,826 Turf Paradise FY 1994 $101,467,993 $99,944,470 -1.50% $323,638 $4,855 $14,564 $0 $14,564 Yavapai Downs FY 1994 $17,490,826 $28,671,127 63.92% $68,253 $0 $0 $0 $0 Apache Greyhound Park FY 1990 $12,262,396 $9,393,598 -23.40% $0 $0 $0 $360,850 $360,850 Phoenix Greyhound Park FY 1990 $49,391,582 $13,543,147 -85.85% $467,928 $401,716 $1,205,147 $6,507,229 $7,712,376 FY 1994 $46,293,967 FY 1990 $38,110,346 $15,037,565 -60.54% $371,807 $225,092 $2,501,607 $3,176,884 GREYHOUND TRACKS: Tucson Greyhound Park $675,277 Department of Racing Pari-Mutuel Tax Revenue - FY 2010 TRACK ALLOWABLE FY 2010 FY 2010 FY 2010 CAPITAL FY 2010 FY2010 FY 2010 FY 2010 HARDSHIP CREDITS HANDLE PARI-MUTUEL IMPROVEMENT HARDSHIP COUNTY FAIR CHARITY PARI-MUTUEL TAX TAX DUE WITHHOLDINGS TAX CREDIT CREDITS DAYS REVENUE IN FY 2010 HORSE TRACKS: Rillito Park $219,826 $0 $0 $0 $0 $0 $0 $0 Turf Paradise 0 99,944,470 323,638 0 0 0 9,623 314,021 Yavapai Downs 0 28,671,127 68,253 68,254 0 0 0 0 $219,826 $128,615,597 $391,891 $68,254 $0 $0 $9,623 $314,021 Subtotal Horse Tracks GREYHOUND TRACKS: Apache Greyhound Park $360,850 $9,393,598 $0 $0 $0 $0 $0 $0 Phoenix Greyhound Park 6,971,341 13,543,147 467,928 0 464,112 0 3,815 0 Tucson Greyhound Park 2,873,414 15,037,565 371,807 0 371,807 0 0 0 Subtotal Greyhound Tracks $10,205,605 $37,974,310 $839,735 $0 $835,919 $0 $3,815 $0 GRAND TOTAL $10,425,431 $166,589,907 $1,231,626 $68,254 $835,919 $0 $13,438 $314,021 ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 29 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 were reduced by 1% of the total amount wagered in counties with a population over 500,000 and 2% 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 shows 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 2010 Deducted Remaining Dollars Approved $52,196,636 $68,254 $834,001 $51,362,635 $0 $0 $0 $0 ARIZONA DEPARTMENT OF RACING FY 2010 ANNUAL REPORT 30