ARIZONA DEPARTMENT OF RACING ANNUAL REPORT FY-2012 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 Licenses 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 & MIXED MARTIAL ARTS COMMISSION 26 BOXING & MIXED MARTIAL ARTS 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 2012 ANNUAL REPORT MEET THE DIRECTOR: WILLIAM J. WALSH Governor Janice Brewer appointed William J. Walsh as Director of the Department of Racing in March 2012. As Director, Mr. Walsh is responsible for the regulation of pari-mutuel horse and greyhound racing in Arizona. Mr. Walsh has more than four decades of professional experience in the racing industry. He began his career working as a pari-mutuel clerk in New York. He taught elementary school for several years, and then served as a Patrol and Placing Judge at Arlington Park in Arlington Heights, Illinois. He worked for the Horsemen’s Benevolent & Protective Association (HBPA) in Rockville, Maryland, and in Spokane, Washington, followed by a stint as Executive Director of the Alabama Horsemen’s Racing Association in Birmingham, Alabama. Mr. Walsh joined the Department of Racing in 1993, taking on the oversight of simulcasting and off–track wagering in Arizona, as well as rules development. Mr. Walsh has served as the Department’s authorized public lobbyist and most recently, Chief Horse Steward/Supervisor of Officials & Wagering. In January, Governor Brewer appointed Bill as Interim Director due to the resignation of the Department’s former Director, Lonny Powell. Mr. Walsh earned his undergraduate and master’s degrees from the State University of New York and completed the Race Track Industry Program at the University of Arizona, Tucson. Mr. Walsh is also accredited through the Senior Steward Racing Officials Accreditation Program, Lexington, Kentucky. ARIZONA DEPARTMENT OF RACING FY 2012 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 2012. Melvin McDonald, Jr. 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. Burton S. Kruglick Vice-Chair 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 Commissioner 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. Jay C. McClintock ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 1a ARIZONA RACING COMMISSION 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. Rory S. Goreé Racing Commissioner Rory S. Goreé. Mr. Goreé was honorably discharged from the United States Navy in 1993. After 10 years of service he discovered greyhounds. Since then Mr. Goreé has been involved in several capacities and positions working with the Greyhound Racing Industry and greyhound adoption and has been invited to speak at numerous greyhound adoption events as well as university, veterinarian and racing symposiums across the country and at both the American Greyhound Track Operators Association and the Association of Racing Commissioners conferences. Mr. Goreé served on the Arizona Department of Racing's committee to review and recommend greyhound racing welfare related rules. When not involved with greyhounds Mr. Goreé works as an Information Security Analyst specializing in SAP. The following are the terms of the current Commission members: Name A. Melvin McDonald Burton S. Kruglick Erin Owens Jay C. McClintock Rory S. Goreé Member Designation Public Public Horse Racing Industry Public Greyhound Racing Industry Expiration Date 01/21/2013 01/20/2014 01/19/2015 01/18/2016 01/16/2017 ARIZONA DEPARTMENT OF RACING FY 2012 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 DIVISION ARIZONA DEPARTMENT OF RACING FY 2012 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 2010 Number of incident investigations Number of background investigations Total number of investigations conducted 120 1,104 1,224 FY 2011 FY 2012 215 844 1,059 47 1,175 1,222 Types of Investigations Offenses False application Disorderly conduct/assault Human drug -testing Kennel inspection Whelping inspection Vehicle inspection License denial/ineligible Information only Total Total Referred No Violation 6 6 11 4 8 1 1 10 47 6 2 6 0 0 0 1 0 15 0 4 5 4 8 1 0 10 32 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 2010 FY 2011 FY 2012 2,971 2 6 3,721 2 6 1,676 1 0 ARIZONA DEPARTMENT OF RACING FY 2012 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 2010 FY 2011 FY 2012 463 4 72% 370 10 90% 265 12 92% Total rulings issued Total Stewards Rulings Appealed Percentage of Stewards’ rulings upheld on appeal to the Director Director The Director may conduct hearings on appeals of 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 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** FY 2010 FY 2011 FY 2012 61 5 3 47 90 7 0 99 43 0 4 43 100% n/a 100% *Does not include orders for action taken such as stays, reinstatements, cases dismissed, etc. ** Includes orders that were modified 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 2010 FY 2011 FY 2012 35 6 2 17% 7 0 0% 20 4 5 20% 1 0 0% 11 6 1 55% 0 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 2012 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 total equine drug tests Number positive equine drug tests Percent positive equine drug tests Dog Drug Testing Number total canine drug tests Number positive canine drug tests Percent positive canine drug tests Totals Total drug tests Number total positive drug tests Percent total positive drug tests FY 2010 FY 2011 FY 2012 1455 37 2.54% 838 37 4% 1998 72 4% 1668 1 0.06% 1087 0 0% 2130 10 0.47% 3123 38 1.2% 1925 37 2% 4128 82 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, 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 2012. A total of 63 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 $129.8 million. This included $106.3 million for horse racing and $23.4 million for greyhound racing. The State of Arizona received $126,460 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 increased 3.2% during FY 2012 when compared to the prior year. ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 5 LICENSES BY CATEGORY HORSES COUNTY RILLITO TURF FAIR PARK PARADISE 5 1 6 CATEGORY APPRENTICE JOCKEY ASSISTANT STARTER/VALET ASSISTANT TRAINER AUTHORIZED AGENT-FULL AUTHORIZED AGENT-PARTIAL COMBINATION RBO (RACING & BREEDING) COOLOUT COUNTY FAIR MGR, TREASURER DUPLICATE LICENSE EXERCISE RIDER GREYHOUND HAULER GROOM JOCKEY JOCKEY AGENT MUTUEL (INCLUDING OTB) OCCUPATIONAL OFFICIAL OTB (OWNERS, MANAGERS) OUTRIDER OWNER OWNER-TRAINER PADDOCK EMPLOYEE PLATER/FARRIER PONY PERSON RBO (KENNEL/RACING OR BREEDING) SECURITY EMPLOYEE STABLE TEMPORARY CLAIM TO OWNER TRACK (LIVE RACING) TRACK (NO LIVE RACING) TRACK GM, ASST GM, CFO TRACK OWNER (10% + OWNER) TRAINER VENDOR-TOTE COMPANY VENDOR EMPLOYEES VENDOR - ALL OTHERS VETERINARIAN LICENSES ISSUED FINGERPRINTS TAKEN LICENSING FEES FINGERPRINT FEES TOTAL FEES 35 4 4 5 1 6 0 49 0 0 3 99 55 0 443 45 4 50 78 2 16 0 454 34 0 3 25 0 27 38 2 2 0 0 0 37 0 35 5 4 49 2 13 1 1 20 3 7 1 9 20 1 3 22 2 1 85 54 416 41 4 38 58 1 16 19 1 413 31 5 1 3 19 8 1 1 1 1 1 TOTAL 18 37 2 1 36 GREYHOUNDS AMERICAN TUCSON GREYHOUND GREYHOUND TOTAL 2 8 17 5 3 18 15 5 1 26 22 2 6 1 2 2 1 2 1 15 0 0 0 0 2 0 8 0 17 0 0 0 0 0 23 18 5 1 0 26 0 22 0 0 2 6 0 0 1 2 2 1 2 1 15 0 0 GRAND TOTAL 5 1 6 0 51 0 8 3 116 55 0 443 45 4 73 96 7 17 0 480 34 22 3 25 2 33 38 2 3 2 2 1 39 1 50 5 4 108 79 37 25 1,377 948 1,522 1,052 30 17 124 73 154 90 1,676 1,142 $7,521 $2,256 $9,777 $6,457 $690 $7,147 $120,529 $26,988 $147,517 $134,507 $29,934 $164,441 $5,510 $472 $5,982 $9,653 $2,012 $11,665 $15,163 $2,484 $17,647 149,670 32,418 182,088 ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 6 COMMERCIAL AND COUNTY FAIR RACING Commercial Horse, Greyhound and County Fair Racing RACING STATISTICS FY 2008 Race Days/Performances (including 4 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days FY 2009 FY 2010 FY 2011 FY 2012 852 744 1,596 840 740 1,580 685 717 1,402 516 659 1,175 478 629 1,107 852 840 685 516 478 10,205 287,415 297,620 10,793 269,318 280,111 8,353 234,679 243,032 5,957 190,857 196,814 5,770 184,589 190,359 Attendance On-Track Off-Track Total Attendance 693,553 892,026 1,585,579 652,807 771,745 1,424,552 578,212 692,624 1,270,836 483,787 697,574 1,181,361 461,642 714,776 1,176,418 Pari-Mutuel Handle Average Handle per Race Day Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races $158,359 $133,970 $129,064 $143,970 $154,199 Breakdown by location On-Track Handle Off-Track Handle $77,268,017 $175,472,915 $62,574,674 $149,097,386 $51,550,249 $129,397,125 $43,479,479 $125,685,106 $40,907,185 $129,790,965 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $26,758,799 143,939,351 $170,698,149 $193,921,658 $162,095,753 $138,400,642 $128,364,878 $128,888,265 $429,592 $326,590 $314,021 $284,807 $254,801 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 $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 $35,622,231 0 0 0 7,413 507,099 0 706,906 $36,843,649 Purses $22,246,607 $18,902,895 $15,997,406 $13,980,881 $13,147,561 DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track On-Track vs. Off-Track Handle Source of Handle Live Simulcast $200 $200 $180 $180 $160 $160 $140 $140 $120 $120 Million Million Off-Track $100 $80 $100 $80 $60 $60 $40 $40 $20 $20 $ $ FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2008 ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 7 FY 2009 FY 2010 FY 2011 FY 2012 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 2012, the Arizona Racing Commission approved three-year commercial and teletracking permits for Tucson Greyhound Racing, Inc. TP Racing, L.L.L.P. filed renewal applications for commercial racing and teletracking for the years 2013, 2014 and 2015. On June 22, 2012, the Racing Commission approved a temporary permit for TP Racing which will remain in effect during the permit application background investigation and until such time as the Commission has made a final determination to approve or deny the application for a commercial racing permit. The Yavapai County Fair Association renewal application review was closed by the Racing Commission on April 11, 2012 due to the applicant’s failure to file a substantively complete application package. Yavapai Downs did not open for racing in May 2011 and subsequently filed for bankruptcy in July 2011. The Bankruptcy Court is currently seeking a buyer for the racetrack property. Commercial Racing Permittees, Tracks and Permit Terms Permittee Track 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 01/01/11 - 12/31/13 TP Racing, L.L.L.P. Turf Paradise Race Course *06/01/12 - 05/31/15 Yavapai County Fair Association Yavapai Downs at Prescott Valley **05/26/07 - 09/04/09 * application pending ** application review closed ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 8 Permit Term COMMERCIAL TRACKS Commercial Horse and Greyhound Racing RACING STATISTICS FY 2008 Race Days/Performances (including 4 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days FY 2009 FY 2010 FY 2011 FY 2012 788 742 1,530 775 738 1,513 631 717 1,348 472 657 1,129 448 629 1,077 788 775 631 472 448 9,637 283,889 293,526 10,229 265,027 275,256 7,885 230,939 238,824 5,569 185,332 190,901 5,512 179,763 185,275 Attendance On-Track Off-Track Total Attendance 547,912 822,795 1,370,707 491,439 702,087 1,193,526 448,235 646,780 1,095,015 372,327 631,095 1,003,422 365,423 649,698 1,015,121 Pari-Mutuel Handle Average Handle per Race Day Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races $150,869 $125,708 $123,583 $132,991 $141,289 Breakdown by location On-Track Handle Off-Track Handle $68,590,356 $162,238,621 $54,334,827 $135,862,133 $45,779,534 $120,810,375 $37,092,808 $113,053,837 $34,743,092 $117,425,663 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $22,919,478 129,249,277 $152,168,755 $177,373,642 $145,736,829 $127,231,702 $113,849,638 $114,479,892 $429,592 $326,590 $314,021 $284,807 $254,801 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 $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 $31,871,941 0 0 0 7,413 507,099 0 614,212 $33,000,664 Purses $19,323,512 $16,208,760 $14,033,433 $12,063,670 $11,571,752 DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track On-Track vs. Off-Track Handle Source of Handle Live Simulcast $180 $180 $160 $160 $140 $140 $120 $120 Million Million Off-Track $100 $80 $100 $80 $60 $60 $40 $40 $20 $20 $ $ FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2008 ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 9 FY 2009 FY 2010 FY 2011 FY 2012 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 2010 FY 2011 FY 2012 90 174 25 914 1,004 719 893 973 998 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 2010 FY 2011 FY 2012 2415 2 4 2761 2 4 1414 1 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 2010 FY 2011 FY 2012 362 2 340 8 164 9 72% 88% 89% 0 263 0 274 19 145 99 66 0 Number of rulings issued Total steward rulings appealed Percentage of rulings upheld on appeal to the Director Rulings by Track Rillito Park Turf Paradise Yavapai Downs ARIZONA DEPARTMENT OF RACING FY 2012 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 2010 FY 2011 FY 2012 39 5 3 29 100% 81 5 0 87 n/a 31 0 3 31 100% Rillito Park n/a n/a 0 Turf Paradise 21 32 31 8 55 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 Yavapai Downs * Does not include orders for action such as stays, reinstatements, cases dismissed, etc. Breeders & Stallion Awards When monies are available, the Department promotes horse breeding in Arizona through the administration and distribution of funds available through Breeders and Stallion Awards Programs. No monies were appropriated for these funds in FY 2011 and FY 2012. 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 2010 FY 2011 FY 2012 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 79 n/a *3,681 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 2010 FY 2011 FY 2012 1 $1,244 1 $1,483 2 $1,796 ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 11 COMMERCIAL HORSE TRACKS Rillito Park, Turf Paradise, Yavapai Downs RACING STATISTICS FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Race Days/Performances (including 3 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days 188 252 440 181 251 432 181 261 442 162 242 404 142 208 350 Total Live Performances (Matinee & Evening) 188 181 181 162 142 1,706 50,688 52,394 1,620 50,382 52,002 1,624 57,041 58,665 1,452 58,139 59,591 1,268 52,344 53,612 324,079 614,599 938,678 289,381 523,798 813,179 290,388 496,143 786,531 272,810 476,156 748,966 293,403 494,570 787,973 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 $370,672 $318,135 $290,986 $298,956 $349,028 Breakdown by location On-Track Handle Off-Track Handle $46,415,601 $116,680,191 $37,880,820 $99,553,421 $34,441,647 $94,173,951 $30,361,770 $90,416,538 $28,181,407 $93,978,514 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $14,036,164 108,123,757 $122,159,921 $125,299,914 $105,457,399 $98,157,491 $91,338,754 $91,407,944 $429,592 $326,590 $314,021 $284,807 $254,801 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit Breakage Total Track Revenues $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 $25,325,994 0 0 7,413 18,516 549,871 $25,901,795 Purses $15,828,636 $13,448,044 $12,474,952 $11,254,252 $10,572,243 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 $100 $100 $80 Million Million Source of Handle Live $60 $80 $60 $40 $40 $20 $20 $ $ FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2008 ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 12 FY 2009 FY 2010 FY 2011 FY 2012 RILLITO PARK 4502 North First Avenue Tucson, Arizona 85728 Pima County Fair Horse Racing Commission RACING STATISTICS FY 2012 Racing Dates: February 18, 2012 - March 25, 2012 FY 2008 FY 2009 FY 2010 FY 2011 - - - - 12 12 - - - - 12 Number of Races Live Races Simulcast Races Total Number of Races - - - - 99 99 Attendance On-Track Off-Track Total Attendance - - - - 42,685 42,685 Race Days/Performances Live Race Days Dark Day-Simulcast Only Total Race Days Total Live Performances Pari-Mutuel Handle Average Handle per Race Day FY 2012 $0 $0 $0 $0 $77,151 Breakdown by location On-Track Handle Off-Track Handle $0 0 $0 0 $0 0 $0 0 $925,817 $0 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $925,817 0 $925,817 Returned to Wagering Public $0 $0 $0 $0 $698,817 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 $200,925 0 0 0 18,516 7,559 $227,000 Purses $0 $0 $0 $0 DISTRIBUTION OF REVENUES Racetrack Trends at a Glance On-Track vs. Off-Track Handle On-Track Source of Handle Live Simulcast $4 $4 $3 $3 Million Million Off-Track $2 $2 $1 $1 $ $ FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2008 FY 2009 ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 13 FY 2010 FY 2011 FY 2012 TURF PARADISE 1501 West Bell Road Phoenix, Arizona 85023 TP Racing, L.L.L.P. FY 2008 RACING STATISTICS FY 2012 Racing Dates: July 1, 2011 - June 30, 2012 FY 2009 FY 2010 FY 2011 FY 2012 Race Days/Performances (including 3 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days 133 212 345 131 208 339 129 214 343 132 207 339 130 208 338 Total Live Performances (Matinee & Evening) 133 131 129 132 130 1,211 46,485 47,696 1,175 46,112 47,287 1,164 50,334 51,498 1,187 51,979 53,166 1,169 52,344 53,513 281,137 441,130 722,267 255,374 376,924 632,298 258,241 352,858 611,099 253,595 392,026 645,621 250,718 494,570 745,288 $371,605 $318,577 $291,383 $306,587 $358,681 $44,483,207 $83,720,553 $36,350,503 $71,646,948 $32,995,111 $66,949,360 $29,500,978 $74,431,872 $27,255,590 $93,978,514 $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 $13,110,347 108,123,757 $121,234,104 $98,508,381 $83,068,015 $76,074,976 $78,526,009 $90,709,127 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 $429,592 $326,590 $314,021 $284,807 $254,801 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit Breakage Total Track Revenues $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 $25,125,069 0 0 7,413 0 542,313 $25,674,795 Purses $13,008,498 $11,053,240 $9,941,897 $9,874,607 $10,572,243 Racetrack Trends at a Glance On-Track Off-Track On-Track vs. Off-Track Handle Source of Handle Live Simulcast $120 $100 $90 $100 $80 $80 $60 Million Million $70 $50 $40 $60 $40 $30 $20 $20 $10 $ $ FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2008 ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 14 FY 2009 FY 2010 FY 2011 FY 2012 YAVAPAI DOWNS 10501 Hwy. 89A Prescott Valley, Arizona 86314 Yavapai County Fair Association FY 2008 RACING STATISTICS FY 2012 Racing Dates: None FY 2009 FY 2010 FY 2011 FY 2012 Race Days/Performances (including 4 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days 55 40 95 50 43 93 52 47 99 30 35 65 - Total Live Performances (Matinee & Evening) 55 50 52 30 - 495 4,203 4,698 445 4,270 4,715 460 6,707 7,167 265 6,160 6,425 - 42,942 173,469 216,411 34,007 146,874 180,881 32,147 143,285 175,432 19,215 84,130 103,345 - 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 $367,285 $316,525 $289,607 $259,161 $0 Breakdown by location On-Track Handle Off-Track Handle $1,932,394 $32,959,639 $1,530,316 $27,906,473 $1,446,536 $27,224,591 $860,792 $15,984,666 $0 $0 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $0 0 $0 $26,791,533 $22,389,384 $22,082,514 $12,812,745 $0 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 $6,973,658 100,037 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 $0 0 0 0 0 0 $0 Purses $2,820,139 $2,394,804 $2,533,056 $1,379,645 $0 Racetrack Trends at a Glance On-Track On-Track vs. Off-Track Handle Source of Handle Live Simulcast $35 $35 $30 $30 $25 $25 $20 $20 Million Million Off-Track $15 $15 $10 $10 $5 $5 $ $ FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2008 ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 15 FY 2009 FY 2010 FY 2011 FY 2012 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. When funding is available, County Fair racing receives funding from the County Fair Racing Fund and the County Fair Racing Betterment Fund. No monies have been appropriated for these funds since FY 2010. Only two fairs conducted live racing in FY 2012. 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 2010 FY 2011 FY 2012 12 75 87 27 78 105 2 108 110 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 2010 FY 2011 FY 2012 390 0 0 436 0 0 108 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 2010 FY 2011 FY 2012 11 1 0 0 4 2 0% n/a 100% 1 6 0 0 0 1 0 2 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 0 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 2012 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 2010 FY 2011 FY 2012 3 0 0 3 N/A 4 0 0 5 N/A 2 0 0 2 N/A 0 0 1 0 1 0 0 1 0 0 3 0 0 1 1 0 0 0 0 0 0 0 0 0 0 2 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 2012 ANNUAL REPORT 17 COUNTY FAIR TRACKS County Fair Racing at Fairs and Commercial Tracks RACING STATISTICS FY 2008 Race Days/Performances Live Race Days Dark Day-Simulcast Only Total Race Days FY 2009 FY 2010 FY 2011 FY 2012 64 2 66 65 2 67 54 54 44 2 46 30 30 64 65 54 44 30 568 3,526 4,094 564 4,291 4,855 468 3,740 4,208 388 5,525 5,913 258 4,826 5,084 145,641 69,231 214,872 161,368 69,658 231,026 129,977 45,844 175,821 111,460 66,479 177,939 96,219 65,078 161,297 $331,999 $320,524 $265,879 $413,433 $617,646 Breakdown by location On-Track Handle Off-Track Handle $8,677,661 $13,234,294 $8,239,847 $13,235,253 $5,770,715 $8,586,751 $6,386,671 $12,631,269 $6,164,093 $12,365,302 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $3,839,321 14,690,073 $18,529,394 $16,548,016 $16,358,923 $11,168,940 $14,515,240 $14,408,373 $0 $0 $0 $0 $0 Track Mutuel Revenues Track Commission Breakage Total Track Revenues $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 $3,750,291 92,694 $3,842,985 Purses $2,923,095 $2,694,134 $1,963,973 $1,917,210 $1,575,809 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 Off-Track Off-Track On-Track vs. Off-Track Handle Simulcast Simulcast $ $14 $$16 $12 $ $14 $ $12 $ $10 $10 $8 Million Million Million $ $ $6 $ Source of Handle Live Live $ $8 $ $4 $6 $4 $ $ $2 $2 $ $ $ $ FY 2008 FY 2009 FY1 2010 FY 2011 FY 2012 FY 2008 ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 18 FY 2009 FY12010 FY 2011 FY 2012 COUNTY FAIR RACING Schedule and Statistics FY 2012 Race Days Fairs at Non-Commercial Tracks Santa Cruz County Fair at Sonoita May 5, 6, 2012 Subtotal - Fairs at Non-Commercial Tracks ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 19 Fairs at Commercial Tracks La Paz County Fair at Phoenix (Turf Paradise) January 13, 14, 20, 21, 28, 2011 Pima County Fair at Tucson (Rillito Park) January 28, 29, February 11, 12, 2012 Pinal County Fair at Phoenix (Turf Paradise) February 10, 11, 12, 20, 2012 Maricopa County Fair at Phoenix (Turf Paradise) February 18, 19, 25, 26, 2012 Navajo County Fair at Phoenix (Turf Paradise) March 3, 4, 10, 11, 2012 Yuma County Fair at Phoenix (Turf Paradise) March 17, 18, 24, 25, 2012 Coconino County Fair at Phoenix (Turf Paradise) April 28, 29, May 4, 5, 2012 Subtotal - Fairs at Commercial Tracks Total - All County Fair Racing 2 2 Live Races 16 Simulcast Races Total Handle - 16 $ 0 79,305 Simulcast Handle $ - $79,305 4 36 740 $ 2,505,381 4 32 - 4 36 676 2,590,387 4 36 768 4 36 4 382,742 $ Returned to Public Attendance $ 6,000 $0 $6,000 1,958,039 19,937 - $ 59,925 Track Commission $ $59,925 $ 1,923,449 16,926 Breakage to Track $ $16,926 $ 515,698 868 Purses $ $868 $ 11,922 8,463 $8,463 $ 233,840 19,629 289,153 82,996 2,938 41,498 2,046,975 18,960 1,982,130 531,067 14,230 246,375 2,787,825 2,142,617 21,367 2,161,173 573,703 15,402 246,709 852 2,786,352 2,258,205 20,421 2,085,530 574,894 14,674 244,337 28 803 2,452,302 1,963,028 20,334 1,804,736 504,622 12,198 211,661 4 38 987 4,945,100 4,321,208 34,649 4,102,277 950,384 20,463 342,927 28 242 4,826 $18,450,089 $14,690,073 $155,297 $14,348,448 $3,733,365 $91,827 $1,567,346 30 258 4,826 $18,529,394 $14,690,073 $161,297 $14,408,373 $3,750,291 $92,694 $1,575,809 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 2010 FY 2011 FY 2012 18 115 133 14 47 61 16 94 110 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 2010 FY 2011 FY 2012 166 0 2 524 0 1 154 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 2010 FY 2011 FY 2012 90 1 30 2 97 1 100% 100% 100% *18 71 n/a 2 n/a 97 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 2012 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 2010 FY 2011 FY 2012 19 0 0 15 N/A 5 2 0 7 N/A 10 0 1 10 100% Apache Greyhound Park 0 0 0 Phoenix Greyhound Park **6 **1 N/A 9 6 10 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 Tucson Greyhound Park * 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 2010 FY 2011 FY 2012 6 25 0% 4 24 0% 2 4 0% 68 25 10 24 8 1 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 When monies are available, the Department promotes greyhound breeding in Arizona through the administration and distribution of funds available through the Breeders’ Awards Program. No monies were appropriated for this fund in FY 2011 and 2012. Performance Measures FY 2010 FY 2011 FY 2012 Amount of awards Percentage of breeders winning awards Number of greyhounds earning awards Number of registered greyhounds $77,227 21% 1,027 10,959 n/a n/a n/a 2,642 n/a n/a n/a 2,496 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 2012 the fund received $349. These monies will carry forward to FY 2013 for a larger grant. Performance Measures FY 2010 FY 2011 FY 2012 3 $375 2 $600 0 0 Number of grants awarded Amount of grants awarded * ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 21 COMMERCIAL GREYHOUND TRACKS Apache Greyhound, Phoenix Greyhound, Tucson Greyhound RACING STATISTICS FY 2008 Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 2009 FY 2010 FY 2011 FY 2012 600 490 1,090 594 487 1,081 450 456 906 310 415 725 306 421 727 600 594 450 310 306 Number of Races Live Races Simulcast Races Total Number of Races 7,931 233,201 241,132 8,609 214,645 223,254 6,261 173,898 180,159 4,117 127,193 131,310 4,244 127,419 131,663 Attendance On-Track Off-Track Total Attendance 223,833 208,196 432,029 202,058 178,289 380,347 157,847 150,637 308,484 99,517 154,939 254,456 72,020 155,128 227,148 Pari-Mutuel Handle Average Handle per Race Day Total Live Performances (Matinee & Evening) $62,141 $48,809 $41,914 $40,508 $41,278 Breakdown by location On-Track Handle Off-Track Handle $22,174,756 $45,558,430 $16,454,007 $36,308,712 $11,337,887 $26,636,424 $6,731,038 $22,637,299 $6,561,685 $23,447,149 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $8,883,314 21,125,521 $30,008,835 $52,073,727 $40,279,431 $29,074,212 $22,510,885 $23,071,947 $0 $0 $0 $0 $0 $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 $6,545,947 0 0 0 0 488,582 0 64,341 $7,098,870 $3,494,876 $2,760,716 $1,558,481 $809,418 $999,509 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 Source of Handle Live Simulcast $50 $40 $45 $35 $40 $30 $25 $30 Million Million $35 $25 $20 $15 $20 $15 $10 $10 $5 $5 $ $ FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2008 ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 22 FY 2009 FY 2010 FY 2011 FY 2012 APACHE GREYHOUND PARK 2551 West Apache Trail Apache Junction, Arizona 85220 American Greyhound Racing, Inc. FY 2008 RACING STATISTICS Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 2012 Racing Dates: July 1, 2011 - June 30, 2012 FY 2009 FY 2010 FY 2011 FY 2012 363 363 362 362 362 362 362 362 363 363 - - - - - Number of Races Live Races Simulcast Races Total Number of Races 73,490 73,490 71,625 71,625 72,965 72,965 63,197 63,197 65,975 65,975 Attendance On-Track Off-Track Total Attendance 79,013 79,013 78,565 78,565 78,698 41,406 120,104 71,772 79,709 151,481 41,147 72,155 113,302 Total Live Performances (Matinee & Evening) Pari-Mutuel Handle Average Handle per Race Day $13,957 $8,702 $25,949 $37,247 $38,963 Breakdown by location On-Track Handle Off-Track Handle $5,066,332 $0 $3,150,048 $0 $3,963,410 $5,430,189 $3,670,711 $9,812,658 $3,574,994 $10,568,497 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $0 14,143,491 $14,143,491 $3,886,753 $2,402,290 $7,002,240 $10,148,935 $10,686,939 $0 $0 $0 $0 $0 $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 $3,295,119 0 0 0 0 0 0 31,016 $3,326,135 $228,396 $147,643 $78,122 $0 $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 Off-Track On-Track vs. Off-Track Handle Source of Handle Live Simulcast $10 $16 $9 $14 $8 $12 $10 $6 Million Million $7 $5 $4 $3 $8 $6 $4 $2 $2 $1 $ $ FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2008 ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 23 FY 2009 FY 2010 FY 2011 FY 2012 PHOENIX GREYHOUND PARK 3801 East Washington Street Phoenix, Arizona 85036 American Greyhound Racing, Inc. FY 2008 RACING STATISTICS Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 2010 FY 2011 FY 2012 338 20 358 168 13 181 - - 348 338 168 - - 5,019 70,116 75,135 5,422 64,302 69,724 2,399 31,413 33,812 - - 106,100 127,862 233,962 93,234 103,594 196,828 43,059 43,962 87,021 - - Number of Races Live Races Simulcast Races Total Number of Races Pari-Mutuel Handle Average Handle per Race Day FY 2009 348 15 363 Total Live Performances (Matinee & Evening) Attendance On-Track Off-Track Total Attendance FY 2012 Racing Dates: None $127,816 $101,228 $74,824 $0 $0 Breakdown by location On-Track Handle Off-Track Handle $12,822,684 $33,574,550 $9,945,695 $26,294,053 $3,935,117 $9,608,030 $0 $0 $0 $0 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $0 0 $0 $35,372,281 $27,301,010 $10,241,002 $0 $0 $0 $0 $0 $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 $0 0 0 0 0 0 0 0 $0 $2,545,527 $1,997,810 $744,968 $0 $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 Source of Handle Live Simulcast $40 $35 $35 $30 $30 $25 $25 Million Million Off-Track $20 $20 $15 $15 $10 $10 $5 $5 $ $ FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2008 ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 24 FY 2009 FY 2010 FY 2011 FY 2012 TUCSON GREYHOUND PARK 2601 South Third Avenue Tucson, Arizona 85713 Tucson Greyhound Park, Inc. RACING STATISTICS FY 2008 Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 2012 Racing Dates: July 1, 2011 - June 30, 2012 FY 2009 FY 2010 FY 2011 FY 2012 252 112 364 256 105 361 282 81 363 310 53 363 306 58 364 252 256 282 310 306 2,912 89,595 92,507 3,187 78,718 81,905 3,862 69,520 73,382 4,117 63,996 68,113 4,244 61,444 65,688 Attendance On-Track Off-Track Total Attendance 38,720 80,334 119,054 30,259 74,695 104,954 36,090 65,269 101,359 27,745 75,230 102,975 30,873 82,973 113,846 Pari-Mutuel Handle Average Handle per Race Day Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races $44,697 $37,044 $41,426 $43,760 $43,586 Breakdown by location On-Track Handle Off-Track Handle $4,285,739 $11,983,880 $3,358,264 $10,014,659 $3,439,361 $11,598,205 $3,060,328 $12,824,642 $2,986,691 $12,878,652 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $8,883,314 6,982,030 $15,865,343 $12,814,693 $10,576,130 $11,830,969 $12,361,949 $12,385,008 $0 $0 $0 $0 $0 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 3,250,828 0 0 0 488,582 33,325 $3,772,735 $720,953 $615,264 $735,391 $809,418 $999,509 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 On-Track Simulcast $14 $14 $12 $12 $10 $10 $8 $8 $6 Source of Handle Live Million Million Off-Track $6 $4 $4 $2 $2 $ $ FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2008 ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 25 FY 2009 FY 2010 FY 2011 FY 2012 Arizona Boxing & Mixed Martial Arts Commission ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT Arizona State Boxing and MMA Commission Commissioners Scott B. Fletcher – Chairman. Mr. Fletcher was appointed to the Boxing Commission on February 23, 2011. His Boxing Commission term expires on January 20, 2014. Joe Pennington – Commissioner. Mr. Pennington was appointed to the Boxing Commission on January 18, 2010. His Boxing Commission term expires on January 21, 2013. Michael Preston Green – Commissioner. Mr. Green was appointed to the Boxing Commission on June 16, 2012. His Boxing Commission term expires on January 16, 2015. 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 2012 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 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 regulated events held on non-tribal land. Additionally, the Boxing and MMA Commission has entered into intergovernmental agreements with certain Tribal organizations to supervise events conducted on Tribal land. The Arizona State Boxing and MMA Commission receives an average of $2,000 per event subject to these agreements. During FY 2012, the Boxing and MMA Commission regulated 14 of these events and collected $28,000 for their regulation. The revenues collected for taxes were deposited into the General Fund while revenues from IGA fees went into the Boxing and MMA 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 and MMA Commission and that all participants are duly licensed. Performance Measures FY 2010 FY 2011 FY 2012 100% 26 257 100% 24 221 100% 32 276 Percent of bouts without serious injury to contestants Number of events sanctioned Number of bouts Licensing The Boxing and MMA Commission issues licenses to contestants, officials, cornermen, promoters, managers and trainers who are qualified and eligible. Licenses are denied for those who do not meet applicable requirements or are statutorily prohibited from participating. FY 2010 FY 2011 FY 2012 560 99% 685 98% 753 98% Revenue Summary Taxes License Fees Fines Unarmed Combat Fees Other (Tribal Agreements) $10,700 7,655 0 20,000 27,000 $25,805 11,795 0 17,000 28,000 $14,702 21,835 100 20,000 28,000 Total Revenue Collected $65,355 $82,600 $84,637 Performance Measures Number of licenses issued Percent of licenses issued for all applications Investigations The Boxing and MMA 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 2010 1 100% ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 27 FY 2011 0 N/A FY 2012 0 N/A Financial Information ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT Department of Racing Budget The Department of Racing is no longer using General Fund monies for its day-to-day operations. Beginning in FY 2013, employees’ salaries and benefits are all paid with monies in the new Racing Regulation Fund. Revenues in this fund come primarily from the regulatory wagering assessment. All other operational expenses, including drug testing, are also paid with monies in the Regulation Fund. We expect to receive enough revenue in the Regulation Fund to cover the $2.8 million appropriation from the fund. The Department has also received two General Fund appropriations for specific purposes. In the past, we’ve transferred $1.8 million for county fairs livestock and agricultural promotion to a fund administered by the Governor’s Office. We did that again in FY 2013. The Department also has a $250,000 General Fund appropriation intended solely for Arizona breeders' awards. Those monies will be distributed quarterly throughout FY 2013. In the table below, we’ve included expenditures for the last three fiscal years and the Department's FY 2013 appropriations. OPERATING BUDGET Actual Exp FY 2010 Full Time Equivalent Positions (FTE) Full Time Part Time Actual Exp FY 2011 42.5 29.0 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 1,153,500 476,500 103,400 77,900 1,600 220,500 1,500 2,034,900 Actual Exp 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 5,900 255,400 37,200 2,037,900 Appropriation FY 2013 40.5 $ $ 1,779,500 1,779,500 1,022,800 394,600 232,500 43,200 4,300 217,100 6,300 1,920,800 40.5 $ $ 1,779,500 1,779,500 1,592,700 681,000 289,000 78,700 5,700 184,100 2,831,200 250,000 1,779,500 2,029,500 AGENCY TOTAL $ 4,963,500 $ 3,817,400 $ 3,700,300 $ 4,860,700 FUND SOURCES General Fund Racing Regulation Fund $ 4,963,500 - $ 3,817,400 - $ 2,814,800 885,500 $ $ 2,029,500 2,831,200 Other Appropriated Funds None SUBTOTAL $ AGENCY TOTAL $ 4,963,500 $ $ 3,817,400 ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 28 $ $ 3,700,300 $ $ 4,860,700 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 2013 Hardship Tax Credit Based on the FY 2012 Dollars Wagered FY 2012 TRACK FY 2012 FY 2012 TAX DUE FY 2013 CARRYOVER FY 2013 TAX CREDIT WITH BASE BASE YEAR AMOUNT % PARI-MUTUEL BASED ON HARDSHIP FROM FY 2012 YEAR AMOUNT WAGERED DECREASE TAX DUE % DECREASE TAX CREDIT HARDSHIP TAX FY 2012 CREDIT CARRYOVER HORSE TRACKS: Fort Tuthill Downs FY 1994 $ 798,671 $ - -100.00% $ - $ - $ - $ 7,320 $ 7,320 Rillito Park FY 1990 $ 3,887,981 $ 925,817 -76.19% $ 18,516 $ 14,108 $ 42,323 $ 201,310 $ 243,632 Turf Paradise FY 1994 $ 101,467,993 19.48% $ 262,207 $ - $ - $ 14,564 $ 14,564 Yavapai Downs FY 1994 $ 17,490,826 $ - -100.00% $ - $ - $ - $ 3,598 $ 3,598 Apache Greyhound Park FY 1990 $ 12,262,396 $ 14,143,491 15.34% $ - $ - $ - $ 360,850 $ 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 $ 15,865,343 -58.37% $ $ 3,042,566 $ 3,898,123 $ 121,234,104 0.00% GREYHOUND TRACKS: 0.00% 488,582 $ 285,185 $ - $ 855,556 Department of Racing Pari-Mutuel Tax Revenue - FY 2013 TRACK ALLOWABLE FY 2012 FY 2012 FY 2012 CAPITAL FY 2012 FY2012 FY 2012 FY 2012 HARDSHIP CREDITS HANDLE PARI-MUTUEL IMPROVEMENT HARDSHIP COUNTY FAIR CHARITY PARI-MUTUEL TAX TAX DUE WITHHOLDINGS TAX CREDIT CREDITS DAYS REVENUE $ $ IN FY 2012 HORSE TRACKS: Rillito Park $ Turf Paradise Yavapai Downs Subtotal Horse Tracks $ 219,826 $ $ Phoenix Greyhound Park 18,516 $ - $ - $ - - - - 7,413 254,794 - - - - - - - - 234,390 $ 122,159,921 360,850 $ 7,712,376 Tucson Greyhound Park - 262,207 $ $ 18,516 121,234,104 GREYHOUND TRACKS: Apache Greyhound Park 925,817 14,564 3,176,884 14,143,491 280,723 $ $ - - $ 18,516 $ - $ $ - - $ $ - 7,413 $ 254,794 $ - $ - - - - - - - - - - - - - - - - - 488,582 Subtotal Greyhound Tracks $ 11,250,110 $ 30,008,835 15,865,343 $ 488,582 488,582 $ - $ 488,582 $ - $ - $ - GRAND TOTAL $ 11,484,500 $ 152,168,755 $ 769,306 $ - $ 507,099 $ - $ 7,413 $ 254,794 ARIZONA DEPARTMENT OF RACING FY 2012 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 2012. 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 2012 Cumulative Dollars Deducted Remaining Dollars Approved $52,196,636 $0 $834,001 $51,362,635 $0 $0 $0 $0 ARIZONA DEPARTMENT OF RACING FY 2012 ANNUAL REPORT 30