ARIZONA DEPARTMENT OF RACING ANNUAL REPORT FY-2011 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 2011 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 2011 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 parimutuel 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 2011. Erin Owens Chair Erin Owens. Ms. Owens 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. 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. Thomas 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. ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 1a ARIZONA RACING COMMISSION 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. Jay C. McClintock Racing Commissioner Jay C. McClintock. Mr. McClintock has worked as a financial advisor for Moran Financial Services since 2001 helping clients plan for investment and insurance needs to prepare for retirement, estate and complete financial planning. Mr. McClintock was a thoroughbred owner in Arizona, California, and Kentucky for over 15 years.. The following are the terms of the current Commission members: Name Thomas E. Kelly, D.V.M. A. Melvin McDonald Burton S. Kruglick Erin Owens Jay C. McClintock Member Designation Greyhound Racing Industry Public Public Horse Racing Industry Public Expiration Date 01/16/2012 01/21/2013 01/20/2014 01/19/2015 01/18/2016 ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 1a 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 & MIXED MARTIAL ARTS COMMISSION RACING COMMISSION DIRECTOR BOXING & MIXED MARTIAL ARTS DIVISION ADMINISTRATION DIVISION RACING & WAGERING DIVISION ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 2 ENFORCEMENT & OPERATIONS 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 2009 Number of incident investigations Number of background investigations Total number of investigations conducted 209 1,608 1,817 FY 2010 FY 2011 120 1,104 1,224 215 844 1,059 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 No Violation 23 6 20 41 24 10 24 3 19 170 23 5 4 41 0 0 1 3 0 77 0 1 16 0 24 10 23 0 19 93 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 2009 FY 2010 FY 2011 2,292 5 27 2,971 2 6 3,721 2 6 ARIZONA DEPARTMENT OF RACING FY 2011 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 2009 FY 2010 FY 2011 562 10 70% 463 4 72% 370 10 90% 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 2009 FY 2010 FY 2011 5 12 6 118 83% 61 5 3 47 100% 90 7 0 99 n/a 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 2009 FY 2010 FY 2011 40 14 1 35% 5 1 20% 35 6 2 17% 7 0 0% 20 4 5 20% 1 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 2011 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 2009 FY 2010 FY 2011 33 1.93% 37 2.54% 37 4% 4 .18% 1 0.06% 0 0% 37 0.86% 38 1.2% 37 2% 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), American Greyhound Racing, Inc. and Tucson Greyhound Park each held teletracking permits approved by the Arizona Racing Commission to operate off-track wagering sites in FY 2011. A total of 70 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 $125.7 million. This included $103.1 million for horse racing and $22.6 million for greyhound racing. The State of Arizona received $137,492 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 decreased 2.9% during FY 2011 when compared to the prior year. ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 5 LICENSE BY CATEGORY HORSES 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 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 APACHE / PHOENIX TOTAL TUCSON RBO 0 0 0 0 5 31 4 95 15 47 2 6 1 1 7 8 6 0 0 0 0 14 14 100 249 0 0 0 3 0 3 0 18 11 43 14 58 0 87 GRAND TOTAL TOTAL 0 149 42 18 11 32 4 1 4 2 109 0 1 0 11 5 4 113 2 2 1 1 12 102 0 154 2 378 78 125 290 2 49 12 9 24 34 3 5 52 2 0 2 11 1 17 1 77 0 77 14 0 14 153 11 48 3 877 129 25 5 48 7 226 204 36 3 128 32 1,209 4 17 71 3 10 3 4 17 24 8 2 11 23 3 4 90 1 1 154 2 376 2 5 32 23 30 0 0 23 48 25 2 21 6 1 125 3 49 1 197 0 7 2 98 7 16 1 0 8 56 47 7 6 2 39 8 1 2 5 5 57 283 25 48 51 99 0 6 126 1,335 3 200 49 49 3 10 0 24 0 98 8 8 24 63 1 62 62 0 62 7 0 7 6 0 0 0 0 12 115 61 77 3 29 7 12 1 3 1 14 1 5 5 103 2,331 1,618 432 308 436 355 3,199 2,281 111 107 411 339 $72,345 $46,822 $119,167 $14,399 $8,671 $23,070 $13,040 $10,295 $23,335 $99,784 $65,788 $165,572 $1,724 $3,103 $4,827 $10,379 $9,398 $19,777 5 37 12 1 7 1 6 9 46 1 0 14 0 2 0 524 446 3,723 2,727 $150 $0 $150 $12,253 $12,501 $24,754 $112,037 $78,289 $190,326 2 1 13 0 ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 6 6 COMMERCIAL AND COUNTY FAIR RACING Commercial Horse, Greyhound and County Fair Racing FY 2007 RACING STATISTICS Race Days/Performances (including 4 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days FY 2008 FY 2009 FY 2010 FY 2011 909 681 1,590 852 744 1,596 840 740 1,580 685 717 1,402 516 659 1,175 909 852 840 685 516 11,791 284,597 296,388 10,205 287,415 297,620 10,793 269,318 280,111 8,353 234,679 243,032 5,957 190,857 196,814 Attendance On-Track Off-Track Total Attendance 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 1,270,836 483,787 344,774 828,561 Pari-Mutuel Handle Average Handle per Race Day Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races $167,667 $158,359 $133,970 $129,064 $143,970 Breakdown by location On-Track Handle Off-Track Handle $84,486,049 $182,104,065 $77,268,017 $175,472,915 $62,574,674 $149,097,386 $51,550,249 $129,397,125 $43,479,479 $125,685,106 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $29,734,049 139,430,537 $169,164,585 $203,766,212 $193,921,658 $162,095,753 $138,400,642 $128,364,878 $431,437 $429,592 $326,590 $314,021 $284,807 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Capital Improvement AGP Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit AGP-Hardship Tax (Transferred to PGP) Breakage Total Track Revenues $53,620,670 100,917 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 $35,132,296 32,506 0 0 8,203 472,604 0 697,899 $36,343,507 Purses $21,133,206 $22,246,607 $18,902,895 $15,997,406 $13,980,881 DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track vs. Off-Track Handle Source of Handle Live Simulcast $200 $200 $180 $180 $160 $160 $140 $140 $120 $120 Million Million On-Track Off-Track $100 $80 $100 $80 $60 $60 $40 $40 $20 $20 $ $ FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2007 ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 7 FY 2008 FY 2009 FY 2010 FY 2011 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 2011, the Arizona Racing Commission approved three-year commercial and teletracking permits for American Greyhound Racing, Inc. and a three-year commercial permit for Pima County Horsemen’s Association. Tucson Greyhound Park, Inc. filed renewal applications for commercial racing and teletracking for the years 2011, 2012 and 2013. By statute, Tucson Greyhound Park may continue to operate under their current permit until the Arizona Racing Commission, upon recommendation by the Department, has finally ruled on the application. The renewal application submitted by Yavapai County Fair Association is still pending. Yavapai Downs did not open for racing in May 2011. Commercial Racing Permittees, Tracks and Permit Terms Permittee Track Permit Term American Greyhound Racing, Inc. Apache Greyhound Park 01/01/11 - 12/31/13 American Greyhound Racing, Inc. Phoenix Greyhound Park 01/01/11 - 12/31/13 Pima County Horsemen’s Association Rillito Park 01/01/11 - 12/31/13 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 2011 ANNUAL REPORT 8 06/01/09 - 05/31/12 *05/26/07 - 09/04/09 COMMERCIAL TRACKS Commercial Horse and Greyhound Racing FY 2007 RACING STATISTICS Race Days/Performances (including 4 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days FY 2008 FY 2009 FY 2010 FY 2011 845 679 1,524 788 742 1,530 775 738 1,513 631 717 1,348 472 657 1,129 845 788 775 631 472 11,219 281,048 292,267 9,637 283,889 293,526 10,229 265,027 275,256 7,885 230,939 238,824 5,569 185,332 190,901 Attendance On-Track Off-Track Total Attendance 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 1,095,015 372,327 278,295 650,622 Pari-Mutuel Handle Average Handle per Race Day Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races $160,357 $150,869 $125,708 $123,583 $132,991 Breakdown by location On-Track Handle Off-Track Handle $75,031,996 $169,352,518 $68,590,356 $162,238,621 $54,334,827 $135,862,133 $45,779,534 $120,810,375 $37,092,808 $113,053,837 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $24,868,205 125,278,440 $150,146,645 $186,927,263 $177,373,642 $145,736,829 $127,231,702 $113,849,638 $431,437 $429,592 $326,590 $314,021 $284,807 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Capital Improvement AGP Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit AGP-Hardship Tax (Transferred to PGP) Breakage Total Track Revenues $49,230,357 100,917 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 $31,226,891 32,506 0 0 8,203 472,604 0 602,667 $32,342,871 Purses $18,520,580 $19,323,512 $16,208,760 $14,033,433 $12,063,670 DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Off-Track On-Track vs. Off-Track Handle Live $180 $200 $160 $180 $140 $160 $140 Million $120 Million Source of Handle Simulcast $100 $80 $120 $100 $80 $60 $60 $40 $40 $20 $20 $ $ FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2007 ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 9 FY 2008 FY 2009 FY 2010 FY 2011 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 2009 FY 2010 FY 2011 21 90 174 1,154 1,175 914 1,004 719 893 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 2009 FY 2010 FY 2011 1,530 4 14 2415 2 4 2761 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 2009 FY 2010 FY 2011 395 9 362 2 340 8 66% 72% 88% Turf Paradise 268 263 274 Yavapai Downs 127 99 66 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 2011 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 2009 FY 2010 FY 2011 69 10 5 67 80% 39 5 3 29 100% 81 5 0 87 n/a Turf Paradise 44 21 32 Yavapai Downs 23 8 55 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. 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 2009 FY 2010 FY 2011 90 4% 6,944 1.2% $84,267 $649,903 $59,417 92 4% 7,230 1.0% $53,585 $221.970 $39,162 88 n/a *4,114 n/a n/a n/a n/a *Database purged of horses certified more than 14 years ago 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 2009 FY 2010 FY 2011 1 $1,647 1 $1,244 1 $1,483 ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 11 COMMERCIAL HORSE TRACKS Rillito Park, Turf Paradise, Yavapai Downs FY 2007 RACING STATISTICS Race Days/Performances (including 3 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days Total Live Performances (Matinee & Evening) 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 2008 FY 2009 FY 2010 FY 2011 185 252 437 188 252 440 181 251 432 181 261 442 162 242 404 185 188 181 181 162 1,674 48,881 50,555 1,706 50,688 52,394 1,620 50,382 52,002 1,624 57,041 58,665 1,452 58,139 59,591 328,492 592,070 920,562 324,079 614,599 938,678 289,381 523,798 813,179 290,388 496,143 786,531 272,810 123,356 396,166 $372,843 $370,672 $318,135 $290,986 $298,956 Breakdown by location On-Track Handle Off-Track Handle $50,914,112 $112,018,399 $46,415,601 $116,680,191 $37,880,820 $99,553,421 $34,441,647 $94,173,951 $30,361,770 $90,416,538 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $16,275,398 104,502,909 $120,778,307 $124,571,918 $125,299,914 $105,457,399 $98,157,491 $91,338,754 $431,437 $429,592 $326,590 $314,021 $284,807 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit Breakage Total Track Revenues $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 $24,787,523 32,506 0 8,203 0 535,899 $25,364,130 Purses $14,260,653 $15,828,636 $13,448,044 $12,474,952 $11,254,252 DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Off-Track On-Track vs. Off-Track Handle Simulcast $140 $160 $120 $140 $120 Million $100 Million Source of Handle Live $80 $60 $100 $80 $60 $40 $40 $20 $20 $ $ FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2007 ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 12 FY 2008 FY 2009 FY 2010 FY 2011 RILLITO PARK 4502 North First Avenue Tucson, Arizona 85728 Pima County Fair Horse Racing Commission RACING STATISTICS FY 2007 Race Days/Performances Live Race Days Dark Day-Simulcast Only Total Race Days FY 2011 Racing Dates: None (see county fairs) FY 2008 FY 2009 FY 2010 FY 2011 - - - - - - - - - - Number of Races Live Races Simulcast Races Total Number of Races - - - - - Attendance On-Track Off-Track Total Attendance - - - - - Total Live Performances Pari-Mutuel Handle Average Handle per Race Day $0 $0 $0 $0 $0 Breakdown by location On-Track Handle Off-Track Handle $0 0 $0 0 $0 0 $0 0 $0 0 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 Returned to Wagering Public $0 $0 $0 $0 $0 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 $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 $0 0 0 0 0 0 $0 Purses $0 $0 $0 $0 $0 DISTRIBUTION OF REVENUES Racetrack Trends at a Glance On-Track vs. Off-Track Handle Source of Handle Live Simulcast $4 $4 $3 $3 Million Million On-Track Off-Track $2 $2 $1 $1 $ $ FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2007 FY 2008 ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 13 FY 2009 FY 2010 FY 2011 TURF PARADISE 1501 West Bell Road Phoenix, Arizona 85023 TP Racing, L.L.L.P. RACING STATISTICS FY 2007 Race Days/Performances (including 3 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days FY 2009 FY 2010 FY 2011 133 212 345 131 208 339 129 214 343 132 207 339 133 133 131 129 132 1,205 44,605 45,810 1,211 46,485 47,696 1,175 46,112 47,287 1,164 50,334 51,498 1,187 51,979 53,166 282,764 420,788 703,552 281,137 441,130 722,267 255,374 376,924 632,298 258,241 352,858 611,099 253,595 39,226 292,821 $373,056 $371,605 $318,577 $291,383 $306,587 $48,856,296 $79,475,014 $44,483,207 $83,720,553 $36,350,503 $71,646,948 $32,995,111 $66,949,360 $29,500,978 $74,431,872 $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 $14,650,115 89,282,734 $103,932,849 $98,117,698 $98,508,381 $83,068,015 $76,074,976 $78,526,009 Total Live Performances (Matinee & Evening) Attendance On-Track Off-Track Total Attendance Pari-Mutuel Handle Average Handle per Race Day Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle FY 2008 133 211 344 Number of Races Live Races Simulcast Races Total Number of Races Breakdown by location On-Track Handle Off-Track Handle FY 2011 Racing Dates: July 1, 2010 - June 30, 2011 DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues $431,437 $429,592 $326,590 $314,021 $284,807 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit Breakage Total Track Revenues $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 $21,331,382 0 0 8,203 0 462,766 $21,802,351 Purses $11,532,280 $13,008,498 $11,053,240 $9,941,897 $9,874,607 Racetrack Trends at a Glance On-Track Off-Track On-Track vs. Off-Track Handle Source of Handle Live Simulcast $120 $90 $80 $100 $70 $80 Million Million $60 $50 $40 $60 $40 $30 $20 $20 $10 $ $ FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2007 ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 14 FY 2008 FY 2009 FY 2010 FY 2011 YAVAPAI DOWNS 10501 Hwy. 89A Prescott Valley, Arizona 86314 Yavapai County Fair Association FY 2007 RACING STATISTICS Race Days/Performances (including 4 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days Total Live Performances (Matinee & Evening) 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 2011 Racing Dates: July 1, 2010 - September 3, 2010 May 28, 2011 - June 30, 2011 (no racing offered) FY 2008 FY 2009 FY 2010 FY 2011 52 41 93 55 40 95 50 43 93 52 47 99 30 35 65 52 55 50 52 30 469 4,276 4,745 495 4,203 4,698 445 4,270 4,715 460 6,707 7,167 265 6,160 6,425 45,728 171,282 217,010 42,942 173,469 216,411 34,007 146,874 180,881 32,147 143,285 175,432 19,215 84,130 103,345 $372,056 $367,285 $316,525 $289,607 $259,161 Breakdown by location On-Track Handle Off-Track Handle $2,057,817 $32,543,385 $1,932,394 $32,959,639 $1,530,316 $27,906,473 $1,446,536 $27,224,591 $860,792 $15,984,666 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $1,625,284 15,220,175 $16,845,458 $26,454,220 $26,791,533 $22,389,384 $22,082,514 $12,812,745 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 Days-Revenues Withheld Hardship Tax Credit Breakage Total Track Revenues $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 $3,456,141 32,506 0 0 0 73,133 $3,561,780 Purses $2,728,373 $2,820,139 $2,394,804 $2,533,056 $1,379,645 Racetrack Trends at a Glance On-Track vs. Off-Track Handle Source of Handle Live Simulcast $35 $35 $30 $30 $25 $25 Million Million On-Track Off-Track $20 $15 $20 $15 $10 $10 $5 $5 $ $ FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2007 FY 2008 ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 15 FY 2009 FY 2010 FY 2011 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. No monies were appropriated for these funds in FY 2011; therefore, racing at county fairs saw a sharp decline. Only four fairs conducted live racing in FY 2011, compared to nine fairs that raced in FY 2010. 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 2009 FY 2010 FY 2011 49 141 190 12 75 87 27 78 105 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 2009 FY 2010 FY 2011 409 0 6 390 0 0 436 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 2009 FY 2010 FY 2011 Number of Stewards’ rulings issued Total Stewards’ rulings appealed 38 0 11 1 0 0 Percentage of Stewards’ rulings upheld on appeal to the Director NA 0% n/a 3 0 2 2 11 4 1 12 3 1 6 0 0 0 1 0 2 1 0 0 0 0 0 0 0 0 0 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 2011 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 2009 FY 2010 FY 2011 23 2 0 22 NA 3 0 0 3 NA 4 0 0 5 n/a 1 2 2 2 1 1 2 10 1 0 0 1 0 1 0 0 1 0 0 3 0 0 1 1 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 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 2011 ANNUAL REPORT 17 COUNTY FAIR TRACKS County Fair Racing at Fairs and Commercial Tracks FY 2007 FY 2008 FY 2009 64 2 66 64 2 66 65 2 67 54 54 44 2 46 64 64 65 54 44 572 3,549 4,121 568 3,526 4,094 564 4,291 4,855 468 3,740 4,208 388 5,525 5,913 153,308 68,253 221,561 145,641 69,231 214,872 161,368 69,658 231,026 129,977 45,844 175,821 111,460 66,479 177,939 $336,448 $331,999 $320,524 $265,879 $413,433 Breakdown by location On-Track Handle Off-Track Handle $9,454,053 $12,751,547 $8,677,661 $13,234,294 $8,239,847 $13,235,253 $5,770,715 $8,586,751 $6,386,671 $12,631,269 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $4,865,844 14,152,097 $19,017,940 $16,838,949 $16,548,016 $16,358,923 $11,168,940 $14,515,240 $0 $0 $0 $0 $0 Track Mutuel Revenues Track Commission Breakage Total Track Revenues $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 $3,905,405 95,232 $4,000,637 Purses $2,612,626 $2,923,095 $2,694,134 $1,963,973 $1,917,210 RACING STATISTICS 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 2010 FY 2011 DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track On-Track Off-Track Off-Track On-Track vs. Off-Track Handle Live Live Simulcast Simulcast $ $14 $18 $ $12 $ $16 $ $14 $10 $12 $ Million Million Million $ $8 $ $6 $ Source of Handle $10 $ $8 $$6 $4 $4 $ $ $2 $ $2 $ $ $ FY 2007 FY 2008 FY1 2009 FY 2010 FY 2011 FY 2007 FY 2008 ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 18 FY12009 FY 2010 FY 2011 COUNTY FAIR RACING Schedule and Statistics FY 2011 Race Days ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 19 Fairs at Non-Commercial Tracks Coconino County Fair at Flagstaff June 30, July 1 (dark) July 2, 3, 4, 5, 2010 (live) Apache County Fair at St. Johns September 18, 19, 25, 26, 2010 (did not run) Gila County Fair at Globe October 2, 3, 9, 10, 2010 (did not run) Pima County Fair at Tucson Jan. 15, 16, 22, 23, 29, 30, Feb. 12, 13, 19, 20, 2011 Greenlee County Fair at Duncan March 5, 6, 12, 13, 2011 (did not run) Graham County Fair at Safford March 19, 20, 26, 27 (did not run) Santa Cruz County Fair at Sonoita May 7, 8, 2011 Subtotal - Fairs at Non-Commercial Tracks 6 Live Races 36 Simulcast Races 517 Total Handle Simulcast Handle $ 2,102,890 $ 1,684,663 Returned to Public Attendance 15,891 $ 1,607,850 Track Commission Breakage to Track $ $ - - - - - - - - - - - - 39,919 - - 10 92 - 960,978 - 424,239 - 733,733 9,961 Purses $ - 199,655 105,231 - 8,371 243,700 - - - - - - - - - - - - 76,966 - 5,000 60,025 14,670 732 22,947 $2,401,608 $638,564 $19,064 $371,878 2 17 18 145 4 36 4 517 - - $3,140,834 $1,684,663 60,810 272 $ 1,356,153 $ 1,101,833 9,603 36 678 2,309,181 1,832,972 16,699 1,782,063 481,259 10,431 231,781 4 36 737 2,503,419 1,940,447 19,245 1,862,884 515,028 12,654 251,051 4 27 620 2,257,980 1,821,299 15,235 1,700,746 466,360 10,926 217,946 4 36 862 2,614,903 2,025,942 19,013 1,936,364 537,896 13,142 255,525 4 36 857 2,486,970 1,860,849 20,385 1,912,839 513,394 12,384 251,337 479,560 11,355 226,339 76,168 $ 1,545,332 $95,232 $1,917,210 Fairs at Commercial Tracks Yavapai County Fair at Prescott Valley (Yavapai Downs) September 4, 5, 6, 7, 2010 Maricopa County Fair at Phoenix (Turf Paradise) January 7, 8, 29, 30, 2011 La Paz County Fair at Phoenix (Turf Paradise) January 14, 15, 22, 28, 2011 Pinal County Fair at Phoenix (Turf Paradise) February 5, 6, 12, 13, 2011 Navajo County Fair at Phoenix (Turf Paradise) March 5, 6, 12, 13, 2011 Yuma County Fair at Phoenix (Turf Paradise) March 19, 20, 26, 27, 2011 Cochise County Fair at Phoenix (Turf Paradise) April 16, 17, 30, May 1, 2011 Subtotal - Fairs at Commercial Tracks 4 36 982 2,348,501 1,884,093 16,949 1,882,828 28 243 5,008 $15,877,106 $ 12,467,434 117,129 $ 12,113,632 Total - All County Fair Racing 46 388 5,525 $19,017,940 $14,152,097 177,939 $14,515,240 $ 1,035,908 $ $ 273,344 3,266,841 $3,905,405 $ $ 5,276 $ 111,354 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 2009 FY 2010 FY 2011 139 259 398 18 115 133 14 47 61 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 2009 FY 2010 FY 2011 353 1 7 166 0 2 524 0 1 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 2009 FY 2010 FY 2011 141 1 90 1 30 2 100% 100% 100% 60 81 *18 71 n/a 2 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 * PGP last day of live racing was December 19, 2009 ARIZONA DEPARTMENT OF RACING FY 2011 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 2009 FY 2010 FY 2011 23 0 1 29 100% 19 0 0 15 N/A 5 2 0 7 n/a Phoenix Greyhound Park 13 **6 **1 Tucson Greyhound Park 16 9 6 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. **PGP last day of live racing was December 19, 2009 Inspections The Department inspects greyhound farms, kennels, vehicles that haul greyhounds and other operations after the facilities have satisfied requirements. Performance Measures FY 2009 FY 2010 FY 2011 6 20 5% 6 25 0% 4 24 0% 66 31 68 25 10 24 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 2009 FY 2010 FY 2011 $223,112 6% 612 10,664 $77,227 21% 1,027 10,959 n/a n/a n/a *2,642 * Database purged of greyhounds certified more than 8 years ago 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 2009 FY 2010 FY 2011 0 $0 3 $375 2 $600 Number of grants awarded Amount of grants awarded ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 21 COMMERCIAL GREYHOUND TRACKS Apache Greyhound, Phoenix Greyhound, Tucson Greyhound FY 2007 RACING STATISTICS Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days Total Live Performances (Matinee & Evening) FY 2008 FY 2009 FY 2010 FY 2011 660 427 1,087 600 490 1,090 594 487 1,081 450 456 906 310 415 725 660 600 594 450 310 Number of Races Live Races Simulcast Races Total Number of Races 9,545 232,167 241,712 7,931 233,201 241,132 8,609 214,645 223,254 6,261 173,898 180,159 4,117 127,193 131,310 Attendance On-Track Off-Track Total Attendance 242,079 226,755 468,834 223,833 208,196 432,029 202,058 178,289 380,347 157,847 150,637 308,484 99,517 154,939 254,456 Pari-Mutuel Handle Average Handle per Race Day $74,933 $62,141 $48,809 $41,914 $40,508 Breakdown by location On-Track Handle Off-Track Handle $24,117,884 $57,334,119 $22,174,756 $45,558,430 $16,454,007 $36,308,712 $11,337,887 $26,636,424 $6,731,038 $22,637,299 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $8,592,807 20,775,531 $29,368,337 $62,355,345 $52,073,727 $40,279,431 $29,074,212 $22,510,885 $0 $0 $0 $0 $0 $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 $6,439,368 0 0 0 0 472,604 0 66,769 $6,978,740 $4,259,927 $3,494,876 $2,760,716 $1,558,481 $809,418 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 Off-Track On-Track vs. Off-Track Handle Live $50 $70 $45 $60 $40 $50 $35 $40 $30 Million Million Source of Handle Simulcast $30 $25 $20 $15 $20 $10 $10 $5 $ $ FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2007 FY 2008 ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 22 FY 2009 FY 2010 FY 2011 APACHE GREYHOUND PARK 2551 West Apache Trail Apache Junction, Arizona 85220 American Greyhound Racing, Inc. RACING STATISTICS FY 2007 Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days Total Live Performances (Matinee & Evening) FY 2011 Racing Dates: July 1, 2010 - June 30, 2011 FY 2008 FY 2009 FY 2010 FY 2011 362 362 363 363 362 362 362 362 362 362 - - - - - Number of Races Live Races Simulcast Races Total Number of Races 72,968 72,968 73,490 73,490 71,625 71,625 72,965 72,965 63,197 63,197 Attendance On-Track Off-Track Total Attendance 79,200 79,200 79,013 79,013 78,565 78,565 78,698 41,406 120,104 71,772 79,709 151,481 Pari-Mutuel Handle Average Handle per Race Day $12,191 $13,957 $8,702 $25,949 $37,247 Breakdown by location On-Track Handle Off-Track Handle $4,413,071 $0 $5,066,332 $0 $3,150,048 $0 $3,963,410 $5,430,189 $3,670,711 $9,812,658 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $0 13,483,368 $13,483,368 $3,441,643 $3,886,753 $2,402,290 $7,002,240 $10,148,935 $0 $0 $0 $0 $0 $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 $3,173,539 0 0 0 0 0 0 31,895 $3,205,434 $201,092 $228,396 $147,643 $78,122 $0 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 Source of Handle Simulcast $10 $16 $9 $14 $8 $12 $6 Million Million $7 $5 $4 $10 $8 $6 $3 $4 $2 $2 $1 $ $ FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2007 FY 2008 ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 23 FY 2009 FY 2010 FY 2011 PHOENIX GREYHOUND PARK 3801 East Washington Street Phoenix, Arizona 85036 American Greyhound Racing, Inc. RACING STATISTICS FY 2007 Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 2009 FY 2010 FY 2011 348 15 363 338 20 358 168 13 181 - 362 348 338 168 - 5,733 70,123 75,856 5,019 70,116 75,135 5,422 64,302 69,724 2,399 31,413 33,812 - 122,821 150,734 273,555 106,100 127,862 233,962 93,234 103,594 196,828 43,059 43,962 87,021 - Total Live Performances (Matinee & Evening) Pari-Mutuel Handle Average Handle per Race Day FY 2008 362 362 Number of Races Live Races Simulcast Races Total Number of Races Attendance On-Track Off-Track Total Attendance FY 2011 Racing Dates: None $153,588 $127,816 $101,228 $74,824 $0 Breakdown by location On-Track Handle Off-Track Handle $14,071,955 $41,526,811 $12,822,684 $33,574,550 $9,945,695 $26,294,053 $3,935,117 $9,608,030 $0 $0 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $0 0 $0 $42,367,781 $35,372,281 $27,301,010 $10,241,002 $0 $0 $0 $0 $0 $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 $0 0 0 0 0 0 0 0 $0 $3,095,274 $2,545,527 $1,997,810 $744,968 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 Simulcast $45 $40 $40 $35 $35 $30 Million Million $30 $25 $20 Source of Handle Live $25 $20 $15 $15 $10 $10 $5 $5 $ $ FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2007 FY 2008 ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 24 FY 2009 FY 2010 FY 2011 TUCSON GREYHOUND PARK 2601 South Third Avenue Tucson, Arizona 85713 Tucson Greyhound Park, Inc. RACING STATISTICS FY 2007 Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 2011 Racing Dates: July 1, 2010 - June 30, 2011 FY 2008 FY 2009 FY 2010 FY 2011 298 65 363 252 112 364 256 105 361 282 81 363 310 53 363 298 252 256 282 310 3,812 89,076 92,888 2,912 89,595 92,507 3,187 78,718 81,905 3,862 69,520 73,382 4,117 63,996 68,113 Attendance On-Track Off-Track Total Attendance 40,058 76,021 116,079 38,720 80,334 119,054 30,259 74,695 104,954 36,090 65,269 101,359 27,745 75,230 102,975 Pari-Mutuel Handle Average Handle per Race Day Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races $59,064 $44,697 $37,044 $41,426 $43,760 Breakdown by location On-Track Handle Off-Track Handle $5,632,858 $15,807,308 $4,285,739 $11,983,880 $3,358,264 $10,014,659 $3,439,361 $11,598,205 $3,060,328 $12,824,642 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $8,592,807 7,292,163 $15,884,969 $16,545,921 $12,814,693 $10,576,130 $11,830,969 $12,361,949 $0 $0 $0 $0 $0 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 3,265,829 0 0 0 472,604 34,873 $3,773,306 $963,561 $720,953 $615,264 $735,391 $809,418 DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit Breakage Total Track Revenues Purses Racetrack Trends at a Glance On-Track vs. Off-Track Handle Live $18 $18 $16 $16 $14 $14 $12 $12 $10 $8 $10 $8 $6 $6 $4 $4 $2 $2 $ Source of Handle Simulcast Million Million On-Track Off-Track $ FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2007 FY 2008 ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 25 FY 2009 FY 2010 FY 2011 Arizona Boxing & Mixed Martial Arts Commission ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT Arizona State Boxing and MMA Commission Commissioners Michael Preston Green – Chairman. Mr. Green was appointed to the Boxing Commission on June 16, 2009. His Boxing Commission term expires on January 16, 2012. Joe Pennington – Commissioner. Mr. Pennington was appointed to the Boxing Commission on January 18, 2010. His Boxing Commission term expires on January 21, 2013. Scott B. Fletcher – Commissioner. Mr. Fletcher was appointed to the Boxing Commission on February 23, 2011. His Boxing Commission term expires on January 20, 2014. Executive Director Dennis R. O’Connell – Mr. O’Connell was appointed as the Boxing Executive Director on September 21, 2009. ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 26 Boxing and Mixed Martial Arts Regulation The Boxing and MMA Commission regulate and supervise 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 MMA 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 receive an average of $2,500 per event subject to these agreements. During FY 2011, the Boxing Commission regulated 11 of these events and collected $28,000 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 2009 FY 2010 FY 2011 100% 29 232 100% 26 257 100% 24 221 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 2009 FY 2010 FY 2011 664 99.5% 560 99% 685 98% Revenue Summary Taxes License Fees Fines Unarmed Combat Fees Other (Tribal Agreements) $13,048 10,620 400 18,000 27,000 $10,700 7,655 0 20,000 27,000 $25,805 11,795 0 17,000 28,000 Total Revenue Collected $69,068 $65,355 $82,600 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 2009 0 N/A ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 27 FY 2010 1 100% FY 2011 0 N/A Financial Information ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT Department of Racing Budget The Department of Racing receives 100% of its funding from the General Fund. As with most agencies, the budget for the Department has been greatly reduced. The total Department of Racing budget for FY 2011 was $3,863,600. 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. In FY 2011, the Department's appropriation was again reduced, which placed the agency's ability to effectively regulate in jeopardy. To alleviate the burden on the General Fund, the Department pursued legislation through the budget process to transition from General Fund support to "self-funding" from the racing industry. The Legislature approved the budget request and effective July 20, 2011, the Department of Racing will receive approximately half of its funding from the General Fund and half from the newly created Racing Regulation Fund. In FY 2013, the Department will be totally funded from the Racing Regulation Fund. The Department of Racing's expenditures for the last three fiscal years and the appropriated funds for FY 2012, are included below. OPERATING BUDGET Actual Exp FY 2009 Full Time Equivalent Positions (FTE) Full Time Part Time Actual Exp FY 2010 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 $ $ 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 1,567,700 535,200 144,500 123,000 3,200 339,200 52,700 2,765,500 Actual Exp FY 2011 42.5 29.0 13.5 $ $ N/A N/A N/A N/A N/A N/A N/A N/A 1,153,500 476,500 103,400 77,900 1,600 220,500 1,500 2,034,900 Appropriation FY 2012 40.5 $ $ 246,700 340,200 1,779,500 519,400 42,800 2,928,600 1,065,200 492,100 105,600 76,500 5,900 260,500 37,200 2,043,000 40.5 $ $ 1,779,500 1,779,500 1,434,400 600,000 235,300 21,000 4,900 140,800 2,436,400 1,779,500 1,779,500 AGENCY TOTAL $ 2,765,500 $ 4,963,500 $ 3,822,500 $ 4,215,900 FUND SOURCES General Fund Racing Regulation Fund $ 2,278,900 - $ 4,963,500 - $ 3,822,500 - $ $ 2,781,600 1,434,300 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 $ 427,700 - - - $ 58,900 486,600 $ - - - AGENCY TOTAL $ 2,765,500 $ 4,963,500 ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 28 $ $ 3,822,500 $ $ 4,215,900 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 2012 Hardship Tax Credit Based on the FY 2011 Dollars Wagered FY 2011 TRACK FY 2011 FY 2011 CAPITAL TAX DUE FY 2012 CARRYOVER FY 2012 TAX CREDIT WITH BASE BASE YEAR AMOUNT % PARI-MUTUEL BASED ON HARDSHIP FROM FY 2011 YEAR AMOUNT WAGERED DECREASE TAX DUE % DECREASE TAX CREDIT HARDSHIP TAX FY 2011 CREDIT CARRYOVER HORSE TRACKS: Fort Tuthill Downs FY 1994 $ 798,671 $ - -100.00% $ - $ - $ - $ 7,320 $ 7,320 Rillito Park FY 1990 $ 3,887,981 $ - -100.00% $ - $ - $ - $ 219,826 $ 219,826 Turf Paradise FY 1994 $ 101,467,993 Yavapai Downs FY 1994 $ 17,490,826 $ $ 103,932,849 16,845,458 2.43% $ 293,002 $ - $ - $ 14,564 $ 14,564 -3.69% $ 32,506 $ 1,199 $ 3,598 $ - $ 3,598 360,850 GREYHOUND TRACKS: Apache Greyhound Park FY 1990 $ 12,262,396 $ 13,483,368 9.96% $ - $ - $ - $ $ 360,850 Phoenix Greyhound Park FY 1990 $ 49,391,582 $ - -100.00% $ - $ - $ - $ 7,712,376 $ 7,712,376 FY 1994 $ 46,293,967 Tucson Greyhound Park FY 1990 $ 38,110,346 $ 15,884,969 -58.32% $ 472,604 $ 275,623 $ 826,869 $ 2,704,280 $ 3,531,149 Department of Racing Pari-Mutuel Tax Revenue - FY 2011 TRACK ALLOWABLE FY 2011 FY 2011 FY 2011 CAPITAL FY 2011 FY2011 FY 2011 FY 2011 HARDSHIP CREDITS HANDLE PARI-MUTUEL IMPROVEMENT HARDSHIP COUNTY FAIR CHARITY PARI-MUTUEL TAX TAX DUE WITHHOLDINGS TAX CREDIT CREDITS DAYS REVENUE IN FY 2011 HORSE TRACKS: Rillito Park $ Turf Paradise Yavapai Downs Subtotal Horse Tracks $ 219,826 $ - $ - $ - $ - $ - $ - $ - 14,564 103,932,849 293,002 - - - 8,203 284,799 - 16,845,458 32,506 32,506 - - - - 234,390 $ 120,778,307 $ 360,850 $ 325,508 $ 32,506 $ - $ - $ - $ - $ - $ 8,203 $ - $ 284,799 GREYHOUND TRACKS: Apache Greyhound Park $ Phoenix Greyhound Park 7,712,376 Tucson Greyhound Park 13,483,368 $ - 3,176,884 - 15,884,969 472,604 29,368,337 $ 472,604 Subtotal Greyhound Tracks $ 11,250,110 $ GRAND TOTAL $ 11,484,500 $ 150,146,645 $ $ - - - - - - 472,604 $ - $ 472,604 $ - $ - $ - 798,112 $ 32,506 $ 472,604 $ - $ 8,203 $ 284,799 ARIZONA DEPARTMENT OF RACING FY 2011 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 was 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 show dollars deducted by all racetracks during FY 2011. 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 Approved Dollars Deducted FY 2011 Cumulative Dollars Deducted Remaining Dollars Approved $52,196,636 $32,506 $866,507 $51,330,129 $0 $0 ARIZONA DEPARTMENT OF RACING FY 2011 ANNUAL REPORT 30 $0 $0