ARIZONA DEPARTMENT OF RACING ANNUAL REPORT FY-2013 1 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 2013 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. 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 2013 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 2013. Burton S. Kruglick 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. Jay C. McClintock Vice-Chair 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. Erin Owens Racing Commissioner 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. ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 1a ARIZONA RACING COMMISSION 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. William “Bill” Feldmeier Racing Commissioner William “Bill” Feldmeier. Mr. Feldmeier, an Arizona native, received his bachelor's degree from Arizona State University and his master's from Prescott College. As a Yavapai County resident, he was a County Supervisor for 11 years, served on Governor Hull's staff and was a licensed Arizona contractor. He is the owner of rental properties and has been involved in the public policy process for a number of years. He has also served as Interim Director for State Parks and as a member of the State Transportation Board. The following are the terms of the current Commission members: Name Burton S. Kruglick Erin Owens Jay C. McClintock Rory S. Goreé William “Bill” Feldmeier Member Designation Public Horse Racing Industry Public Greyhound Racing Industry Public Expiration Date 01/20/2014 01/19/2015 01/18/2016 01/16/2017 01/15/2018 ARIZONA DEPARTMENT OF RACING FY 2013 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 DIRECTOR Boxing & MMA Division DEPUTY DIRECTOR Racing Division Horse Racing Administration Division Greyhound Racing ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 2 Racing Commission 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 2011 Number of incident investigations Number of background investigations Total number of investigations conducted 215 844 1,059 FY 2012 FY 2013 43 1,175 1,218 205 3,963 4,168 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 5 11 33 24 1 0 0 132 206 5 2 10 0 0 0 0 0 17 9 23 0 0 0 0 0 0 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 2011 FY 2012 FY 2013 3,721 2 6 1,676 1 2 3,963 0 0 ARIZONA DEPARTMENT OF RACING FY 2013 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 2011 FY 2012 FY 2013 370 10 90% 265 12 92% 249 0 n/a 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 FY 2011 FY 2012 FY 2013 90 7 0 99 43 0 4 43 16 1 5 13 n/a 100% 100% Director’s hearings Administrative Law Judge hearings Racing Commission hearings Total number of Director’s orders* Percentage of orders upheld on appeal to the Commission** *Does not include orders for action taken such as stays, reinstatements, cases dismissed, etc. ** 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 2011 FY 2012 FY 2013 20 4 5 20% 1 0 0% 11 6 1 55% 0 0 0% 33 5 1 15% 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 2013 ANNUAL REPORT 4 Racing Regulation Horse & Dog Drug Testing The Department contracts with independent laboratories for the analysis of horse urine and blood samples and dog urine samples. This analysis is required to enforce the rules of racing that prohibit animals from racing while under the influence of foreign substances. Testing Summary FY 2011 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 2012 FY 2013 838 37 4.00% 1998 72 4.00% 1951 50 3.00% 1087 0 0.00% 2130 10 0.47% 2116 8 0.38% 1925 37 2.00% 4128 82 2.00% 4067 58 1.40% 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 2013. A total of 62 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 $126.6 million. This included $106 million for horse racing and $20.6 million for greyhound racing. The State of Arizona received $111,140 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 2.5% during FY 2013 when compared to the prior year. ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 5 LICENSES BY CATEGORY HORSES COUNTY RILLITO TURF FAIR PARK PARADISE 27 9 25 14 3 5 1 46 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 GREYHOUNDS AMERICAN TUCSON GRAND GREYHOUND GREYHOUND TOTAL TOTAL 0 27 0 34 0 14 1 1 9 1 1 48 0 0 78 78 78 0 4 1 14 15 19 0 191 1 1 1 0 566 0 64 0 16 5 154 159 184 6 43 49 361 26 26 58 24 13 37 37 0 8 148 148 1,329 12 12 313 0 0 0 28 0 126 3 3 3 2 28 30 87 0 121 0 1 0 0 0 0 0 3 0 2 11 11 112 1 19 20 21 21 21 78 0 10 0 10 1 3 2 92 1 38 10 9 TOTAL 27 34 14 8 47 0 0 4 4 191 0 566 64 16 25 312 32 0 8 1,181 301 0 28 126 0 57 121 1 0 0 3 2 101 1 57 10 10 21 17 358 214 2,972 1,760 3,351 1,991 60 59 552 124 612 183 3,963 2,174 $709 $374 $1,083 $22,455 $4,708 $27,163 $282,736 $38,720 $321,456 $305,900 $43,802 $349,702 $2,822 $1,012 $3,834 $5,117 $2,860 $7,977 $7,939 $3,872 $11,811 313,839 47,674 361,513 1 2 1 3 2 5 5 1 56 6 2 1 83 12 505 57 16 24 229 18 5 1 2 79 19 6 1,097 281 17 28 109 1 1 31 2 8 19 185 26 118 1 ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 6 COMMERCIAL AND COUNTY FAIR RACING Commercial Horse, Greyhound and County Fair Racing RACING STATISTICS FY 2009 Race Days/Performances (including 4 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days FY 2010 FY 2011 FY 2012 FY 2013 840 740 1,580 685 717 1,402 516 659 1,175 478 629 1,107 425 680 1,105 840 685 516 478 425 10,793 269,318 280,111 8,353 234,679 243,032 5,957 190,857 196,814 5,770 184,589 190,359 4,996 186,129 191,125 Attendance On-Track Off-Track Total Attendance 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 1,176,418 426,430 698,093 1,124,523 Pari-Mutuel Handle Average Handle per Race Day $133,970 $129,064 $143,970 $154,199 $149,687 Breakdown by location On-Track Handle Off-Track Handle $62,574,674 $149,097,386 $51,550,249 $129,397,125 $43,479,479 $125,685,106 $40,907,185 $129,790,965 $38,841,584 $126,562,871 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $21,817,939 143,586,516 $165,404,455 $162,095,753 $138,400,642 $128,364,878 $128,888,265 $124,798,503 $326,590 $314,021 $284,807 $254,801 $234,628 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 $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 $34,600,729 0 0 0 5,452 339,038 0 657,480 $35,602,699 Purses $18,902,895 $15,997,406 $13,980,881 $13,251,803 $12,696,055 Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Off-Track On-Track vs. Off-Track Handle Live Simulcast $160 $180 $140 $160 $140 $120 $120 $100 Million Million Source of Handle $80 $60 $100 $80 $60 $40 $40 $20 $20 $ $ FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2009 ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 7 FY 2010 FY 2011 FY 2012 FY 2013 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 2013, the Department of Racing received an application for new commercial racing and teletrack wagering permits from Prescott Valley Race Course, LLC, to operate what was formerly known as Yavapai Downs. The application review process is still pending. No racing was held in Prescott Valley in FY 2013. Pima County Horsemen’s Association submitted a renewal permit application for the years 2014, 2015 and 2016. Their application is being reviewed. The renewal permit applications submitted by TP Racing, L.L.L.P. in FY 2012 are still pending, but are expected to go before the Racing Commission in FY 2014. TP Racing was granted a temporary permit in FY 2012. Renewal application packets have been forwarded to American Greyhound Racing, Inc., and Tucson Greyhound Park, Inc. 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 *Prescott Valley Race Course, LLC Prescott Valley Race Course Tucson Greyhound Park, Inc. Tucson Greyhound Park **TP Racing, L.L.L.P. Turf Paradise Race Course * application pending ** temporary permit issued, application pending ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 8 Permit Term pending 01/01/11 - 12/31/13 *06/01/12 - 05/31/15 COMMERCIAL TRACKS Commercial Horse and Greyhound Racing RACING STATISTICS FY 2009 Race Days/Performances (including 4 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days FY 2010 FY 2011 FY 2012 FY 2013 775 738 1,513 631 717 1,348 472 657 1,129 448 629 1,077 398 678 1,076 775 631 472 448 398 10,229 265,027 275,256 7,885 230,939 238,824 5,569 185,332 190,901 5,512 179,763 185,275 4,759 181,282 186,041 Attendance On-Track Off-Track Total Attendance 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 1,015,121 347,458 628,781 976,239 Pari-Mutuel Handle Average Handle per Race Day $125,708 $123,583 $132,991 $141,289 $136,290 Breakdown by location On-Track Handle Off-Track Handle $54,334,827 $135,862,133 $45,779,534 $120,810,375 $37,092,808 $113,053,837 $34,743,092 $117,425,663 $33,255,930 $113,392,414 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $18,716,705 127,931,639 $146,648,344 $145,736,829 $127,231,702 $113,849,638 $114,479,892 $110,854,929 $326,590 $314,021 $284,807 $254,801 $234,628 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 $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 $30,808,789 0 0 0 5,452 339,038 0 577,807 $31,731,085 Purses $16,208,760 $14,033,433 $12,063,670 $11,675,994 $11,125,099 Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Simulcast $160 $160 $140 $140 $120 $120 $100 $100 Million Million Off-Track Live On-Track vs. Off-Track Handle $80 Source of Handle $80 $60 $60 $40 $40 $20 $20 $ $ FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2009 ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 9 FY 2010 FY 2011 FY 2012 FY 2013 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 FY 2011 FY 2012 FY 2013 174 25 176 719 893 973 998 3330 3506 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 Number of licenses issued Number of licenses denied Number of licenses revoked FY 2011 FY 2012 FY 2013 2761 2 4 1414 1 2 3330 0 0 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 2011 FY 2012 FY 2013 Number of rulings issued 340 164 183 8 9 0 88% 89% n/a 0 19 12 274 145 171 66 0 0 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 2013 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 2011 FY 2012 FY 2013 81 5 0 87 n/a 31 0 3 31 100% 14 1 5 11 100% Rillito Park n/a 0 0 Turf Paradise 32 31 16 Yavapai Downs 55 0 n/a 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 Awards When monies are available, the Department promotes horse breeding in Arizona through the administration and distribution of funds available through the Breeders’ Award Program. No monies were appropriated for this fund in FY 2011 and FY 2012. Performance Measures Amount of awards Number of active breeders Percentage of breeders winning awards Number of registered horses FY 2011 FY 2012 FY 2013 n/a 88 n/a 4,114 n/a 79 n/a 3,681 $206,000 138 33% 3,495 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 2011 FY 2012 FY 2013 1 $1,483 2 $1,796 2 $2,293 ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 11 COMMERCIAL HORSE TRACKS Rillito Park, Turf Paradise, Yavapai Downs RACING STATISTICS FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Race Days/Performances (including 3 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days 181 251 432 181 261 442 162 242 404 142 208 350 140 211 351 Total Live Performances (Matinee & Evening) 181 181 162 142 140 1,620 50,382 52,002 1,624 57,041 58,665 1,452 58,139 59,591 1,268 52,344 53,612 1,247 52,321 53,568 289,381 523,798 813,179 290,388 496,143 786,531 272,810 476,156 748,966 293,403 494,570 787,973 287,831 488,245 776,076 $318,135 $290,986 $298,956 $349,028 $339,886 $37,880,820 $99,553,421 $34,441,647 $94,173,951 $30,361,770 $90,416,538 $28,181,407 $93,978,514 $26,531,355 $92,768,573 $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 $12,865,955 106,433,974 $119,299,928 $105,457,399 $98,157,491 $91,338,754 $91,407,944 $89,887,194 $326,590 $314,021 $284,807 $254,801 $234,628 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit Breakage Total Track Revenues $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 $24,757,266 0 0 5,452 17,246 521,354 $25,301,318 Purses $13,448,044 $12,474,952 $11,254,252 $10,676,484 $10,306,289 Number of Races Live Races Simulcast Races Total Number of Races Attendance On-Track Off-Track Total Attendance Pari-Mutuel Handle Average Handle per Race Day Breakdown by location On-Track Handle Off-Track Handle Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Off-Track On-Track vs. Off-Track Handle Live Simulcast $120 $140 $100 $120 $100 Million $80 Million Source of Handle $60 $40 $80 $60 $40 $20 $20 $ $ FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2009 ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 12 FY 2010 FY 2011 FY 2012 FY 2013 RILLITO PARK 4502 North First Avenue Tucson, Arizona 85728 Pima County Fair Horse Racing Commission RACING STATISTICS FY 2013 Racing Dates: February 18, 2012 - March 25, 2012 FY 2009 FY 2010 FY 2011 - - - 12 12 12 12 - - - 12 12 Number of Races Live Races Simulcast Races Total Number of Races - - - 99 99 98 98 Attendance On-Track Off-Track Total Attendance - - - 42,685 42,685 45,899 45,899 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 FY 2013 $0 $0 $0 $77,151 $71,860 Breakdown by location On-Track Handle Off-Track Handle $0 0 $0 0 $0 0 $925,817 0 $862,314 $0 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $0 0 $0 $0 0 $0 $0 0 $0 $925,817 0 $925,817 $862,314 0 $862,314 Returned to Wagering Public $0 $0 $0 $698,817 $651,013 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 $200,925 0 0 0 18,516 7,559 $227,000 $186,959 0 0 0 17,246 7,096 $211,301 Purses $0 $0 $0 $104,242 $97,027 DISTRIBUTION OF REVENUES Racetrack Trends at a Glance On-Track Live Source of Handle Simulcast $4 $4 $3 $3 Million Million Off-Track On-Track vs. Off-Track Handle $2 $2 $1 $1 $ $ FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2009 FY 2010 ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 13 FY 2011 FY 2012 FY 2013 TURF PARADISE 1501 West Bell Road Phoenix, Arizona 85023 TP Racing, L.L.L.P. RACING STATISTICS FY 2009 FY 2013 Racing Dates: July 1, 2012 - June 30, 2013 FY 2010 FY 2011 FY 2012 FY 2013 Race Days/Performances (including 3 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days 131 208 339 129 214 343 132 207 339 130 208 338 128 211 339 Total Live Performances (Matinee & Evening) 131 129 132 130 128 1,175 46,112 47,287 1,164 50,334 51,498 1,187 51,979 53,166 1,169 52,344 53,513 1,149 52,321 53,470 255,374 376,924 632,298 258,241 352,858 611,099 253,595 392,026 645,621 250,718 494,570 745,288 241,932 488,245 730,177 $318,577 $291,383 $306,587 $358,681 $349,373 $36,350,503 $71,646,948 $32,995,111 $66,949,360 $29,500,978 $74,431,872 $27,255,590 $93,978,514 $25,669,041 $92,768,573 $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 $12,003,641 106,433,974 $118,437,614 $83,068,015 $76,074,976 $78,526,009 $90,709,127 $89,236,181 $326,590 $314,021 $284,807 $254,801 $234,628 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit Breakage Total Track Revenues $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 $24,570,307 0 0 5,452 0 514,258 $25,090,017 Purses $11,053,240 $9,941,897 $9,874,607 $10,572,243 $10,209,261 Number of Races Live Races Simulcast Races Total Number of Races Attendance On-Track Off-Track Total Attendance Pari-Mutuel Handle Average Handle per Race Day Breakdown by location On-Track Handle Off-Track Handle Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Off-Track On-Track vs. Off-Track Handle Live Simulcast Source of Handle $120 $100 $90 $100 $80 $80 $60 Million Million $70 $50 $40 $60 $40 $30 $20 $20 $10 $ $ FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2009 ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 14 FY 2010 FY 2011 FY 2012 FY 2013 YAVAPAI DOWNS 10501 Hwy. 89A Prescott Valley, Arizona 86314 Yavapai County Fair Association RACING STATISTICS FY 2009 FY 2013 Racing Dates: None FY 2010 FY 2011 FY 2012 FY 2013 Race Days/Performances (including 4 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days 50 43 93 52 47 99 30 35 65 - - Total Live Performances (Matinee & Evening) 50 52 30 - - 445 4,270 4,715 460 6,707 7,167 265 6,160 6,425 - - 34,007 146,874 180,881 32,147 143,285 175,432 19,215 84,130 103,345 - - $316,525 $289,607 $259,161 $0 $0 Breakdown by location On-Track Handle Off-Track Handle $1,530,316 $27,906,473 $1,446,536 $27,224,591 $860,792 $15,984,666 $0 $0 $0 $0 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $0 0 $0 $22,389,384 $22,082,514 $12,812,745 $0 $0 $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 $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 $0 0 0 0 0 0 $0 Purses $2,394,804 $2,533,056 $1,379,645 $0 $0 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 Simulcast $30 $30 $25 $25 $20 $20 Million Million Off-Track Live On-Track vs. Off-Track Handle $15 $15 $10 $10 $5 $5 $ $ FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Source of Handle FY 2009 ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 15 FY 2010 FY 2011 FY 2012 FY 2013 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 2013. 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 2011 FY 2012 FY 2013 27 78 105 2 108 110 10 21 31 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 2011 FY 2012 FY 2013 436 0 0 108 0 0 21 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 2011 FY 2012 FY 2013 0 0 4 2 3 0 n/a 100% n/a 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 0 0 0 0 0 0 0 0 2 1 Number of Stewards’ rulings issued Total Stewards’ rulings appealed Percentage of Stewards’ rulings upheld on appeal to the Director Rulings by Track Apache County Fair, St. Johns Cochise County Fair, Douglas Coconino County Fair, Flagstaff Gila County Fair, Globe Graham County Fair, Safford Greenlee County Fair, Duncan Mohave County Fair, Kingman Pima County Fair, Rillito Park in Tucson Santa Cruz County Fair, Sonoita ARIZONA DEPARTMENT OF RACING FY 2013 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 2011 FY 2012 FY 2013 4 0 0 5 N/A 2 0 0 2 N/A 0 0 0 0 N/A 0 3 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 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 2013 ANNUAL REPORT 17 COUNTY FAIR TRACKS County Fair Racing at Fairs and Commercial Tracks RACING STATISTICS FY 2009 Race Days/Performances Live Race Days Dark Day-Simulcast Only Total Race Days FY 2010 FY 2011 FY 2012 FY 2013 65 2 67 54 54 44 2 46 30 30 27 2 29 65 54 44 30 27 564 4,291 4,855 468 3,740 4,208 388 5,525 5,913 258 4,826 5,084 237 4,847 5,084 161,368 69,658 231,026 129,977 45,844 175,821 111,460 66,479 177,939 96,219 65,078 161,297 78,972 69,312 148,284 $320,524 $265,879 $413,433 $617,646 $694,671 Breakdown by location On-Track Handle Off-Track Handle $8,239,847 $13,235,253 $5,770,715 $8,586,751 $6,386,671 $12,631,269 $6,164,093 $12,365,302 $5,585,654 $13,170,457 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $3,101,234 15,654,878 $18,756,111 $16,358,923 $11,168,940 $14,515,240 $14,408,373 $13,943,574 $0 $0 $0 $0 $0 Track Mutuel Revenues Track Commission Breakage Total Track Revenues $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 $3,791,940 79,673 $3,871,613 Purses $2,694,134 $1,963,973 $1,917,210 $1,575,809 $1,570,956 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 Off-Track On-Trackvs. vs.Off-Track Off-Track On-Track Handle Handle Live Simulcast $$14 $$18 $$12 $16 $ $14 $10 $$12 $8 Million Million Million $ $ $6 $ Source of Handle Source of Handle $10 $ $8 $ $6 $4 $4 $ $ $2 $2 $ $ $ $ FY 2009 FY 2010 FY1 2011 FY 2012 FY 2013 FY 2009 ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 18 FY 2010 FY12011 FY 2012 FY 2013 COUNTY FAIR RACING Schedule and Statistics FY 2013 Race Days Fairs at Non-Commercial Tracks Santa Cruz County Fair at Sonoita May 4, 5, 2013 Subtotal - Fairs at Non-Commercial Tracks ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 19 Fairs at Commercial Tracks Maricopa County Fair at Phoenix (Turf Paradise) January 4, 5, 26, 27, 2013 La Paz County Fair at Phoenix (Turf Paradise) January 11, 12, 18, 19, 2013 Pima County Fair at Tucson (Rillito Park) January 19, 20, 26, 27, 2013 Pinal County Fair at Phoenix (Turf Paradise) February 2, 8, 9, 10, 2013 Navajo County Fair at Phoenix (Turf Paradise) March 2, 3, 9, 10, 2013 Yuma County Fair at Phoenix (Turf Paradise) March 16, 17, 23, 24, 2013 Coconino County Fair at Phoenix (Turf Paradise) April 27, 28, May 3, 4, 2013 Total - All County Fair Racing 2 2 Live Races 16 Simulcast Races - 16 Total Handle $ 0 78,912 Simulcast Handle $ - $78,912 $ 2,304,658 5,050 $ 59,669 Track Commission $ $59,669 16,904 Breakage to Track $ $ 5,050 2,089,618 14,703 2,032,884 19,859 1,878,365 523,664 11,854 241,126 9,511 136,734 39,377 1,595 19,688 696 4 36 801 3 23 - 4 36 739 2,698,074 2,193,637 18,615 2,000,434 557,387 11,619 259,757 4 36 793 2,772,888 2,328,220 19,443 2,101,068 570,836 13,084 244,549 4 36 787 2,741,912 2,082,504 25,157 1,984,159 566,669 12,629 249,483 4 36 1,031 5,444,999 4,928,016 35,946 4,017,152 1,040,928 17,451 353,413 27 221 4,847 $18,677,199 $15,654,878 143,234 $13,883,905 $3,775,036 $78,912 $1,562,504 29 237 4,847 $18,756,111 $15,654,878 148,284 $13,943,574 $3,791,940 $79,673 $1,570,956 - $ 476,176 $ 10,680 $8,452 18 181,333 1,765,994 $761 8,452 $0 $ $16,904 761 Purses 4 2,533,335 $ Returned to Public Attendance $ 194,487 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 2011 FY 2012 FY 2013 14 47 61 16 94 110 19 612 631 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 2011 FY 2012 FY 2013 524 0 1 154 0 0 612 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 2011 FY 2012 FY 2013 30 2 97 1 63 0 100% 100% n/a n/a 30 n/a 97 n/a 63 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 2013 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 2011 FY 2012 FY 2013 5 2 0 7 N/A 10 0 1 10 100% 2 0 0 2 N/A Apache Greyhound Park 0 0 0 Phoenix Greyhound Park **1 N/A N/A 6 10 2 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 2011 FY 2012 FY 2013 4 24 0% 2 4 0% 2 24 0% 10 24 8 1 0 0 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 Amount of awards Number of active breeders Percentage of breeders winning awards Number of registered greyhounds FY 2011 FY 2012 FY 2013 n/a 4 n/a 2,642 n/a 4 n/a 2,496 $44,000 3 45% 640 Greyhound Adoption The Department provides grants to non-profit organizations to promote the adoption of retired racing greyhounds as domestic pets. This account 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 account received $399. These monies carried forward to FY 2013 for a larger grant. Performance Measures FY 2011 FY 2012 FY 2013 2 $600 0 0 2 $859 Number of grants awarded Amount of grants awarded * ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 21 COMMERCIAL GREYHOUND TRACKS Apache Greyhound, Phoenix Greyhound, Tucson Greyhound RACING STATISTICS FY 2009 Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 2010 FY 2011 FY 2012 FY 2013 594 487 1,081 450 456 906 310 415 725 306 421 727 258 467 725 594 450 310 306 258 Number of Races Live Races Simulcast Races Total Number of Races 8,609 214,645 223,254 6,261 173,898 180,159 4,117 127,193 131,310 4,244 127,419 131,663 3,512 128,961 132,473 Attendance On-Track Off-Track Total Attendance 202,058 178,289 380,347 157,847 150,637 308,484 99,517 154,939 254,456 72,020 155,128 227,148 59,627 140,536 200,163 Pari-Mutuel Handle Average Handle per Race Day $48,809 $41,914 $40,508 $41,278 $37,722 Breakdown by location On-Track Handle Off-Track Handle $16,454,007 $36,308,712 $11,337,887 $26,636,424 $6,731,038 $22,637,299 $6,561,685 $23,447,149 $6,724,575 $20,623,841 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $5,850,750 21,497,665 $27,348,415 $40,279,431 $29,074,212 $22,510,885 $23,071,947 $20,967,735 $0 $0 $0 $0 $0 $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 $6,051,523 0 0 0 0 321,791 0 56,453 $6,429,767 $2,760,716 $1,558,481 $809,418 $999,509 $818,810 Total Live Performances (Matinee & Evening) DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Capital Improvement AGP Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit AGP-Hardship Tax (Transferred to PGP) Breakage Total Track Revenues Purses Racetrack Trends at a Glance On-Track Off-Track On-Track vs. Off-Track Handle Live Simulcast Source of Handle $30 $40 $35 $25 $20 $25 Million Million $30 $20 $15 $15 $10 $10 $5 $5 $ $ FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2009 ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 22 FY 2010 FY 2011 FY 2012 FY 2013 APACHE GREYHOUND PARK 2551 West Apache Trail Apache Junction, Arizona 85220 American Greyhound Racing, Inc. RACING STATISTICS FY 2009 Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 2013 Racing Dates: July 1, 2012 - June 30, 2013 FY 2010 FY 2011 FY 2012 FY 2013 362 362 362 362 362 362 363 363 362 362 - - - - - Number of Races Live Races Simulcast Races Total Number of Races 71,625 71,625 72,965 72,965 63,197 63,197 65,975 65,975 66,696 66,696 Attendance On-Track Off-Track Total Attendance 78,565 78,565 78,698 41,406 120,104 71,772 79,709 151,481 41,147 72,155 113,302 23,995 58,845 82,840 Pari-Mutuel Handle Average Handle per Race Day $8,702 $25,949 $37,247 $38,963 $40,783 Breakdown by location On-Track Handle Off-Track Handle $3,150,048 $0 $3,963,410 $5,430,189 $3,670,711 $9,812,658 $3,574,994 $10,568,497 $4,105,563 $10,657,984 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $0 14,763,547 $14,763,547 $2,402,290 $7,002,240 $10,148,935 $10,686,939 $11,252,847 $0 $0 $0 $0 $0 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Capital Improvement AGP Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit AGP-Hardship Tax (Transferred to PGP) Breakage Total Track Revenues $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 $3,408,467 0 0 0 0 0 0 30,525 $3,438,993 Purses $147,643 $78,122 $0 $0 $0 Total Live Performances (Matinee & Evening) 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 Simulcast $10 $16 $9 $14 $8 Source of Handle $12 $10 $6 Million Million $7 $5 $4 $3 $8 $6 $4 $2 $2 $1 $ $ FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2009 ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 23 FY 2010 FY 2011 FY 2012 FY 2013 PHOENIX GREYHOUND PARK 3801 East Washington Street Phoenix, Arizona 85036 American Greyhound Racing, Inc. RACING STATISTICS FY 2009 Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 2010 FY 2013 Racing Dates: None FY 2011 FY 2012 FY 2013 338 20 358 168 13 181 - - - 338 168 - - - 5,422 64,302 69,724 2,399 31,413 33,812 - - - 93,234 103,594 196,828 43,059 43,962 87,021 - - - $101,228 $74,824 $0 $0 $0 Breakdown by location On-Track Handle Off-Track Handle $9,945,695 $26,294,053 $3,935,117 $9,608,030 $0 $0 $0 $0 $0 $0 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $23,585,459 12,654,289 $36,239,748 $8,507,773 5,035,374 $13,543,147 $0 0 $0 $0 0 $0 $0 0 $0 $27,301,010 $10,241,002 $0 $0 $0 $0 $0 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Capital Improvement AGP Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit AGP-Hardship Tax (Transferred to PGP) Breakage Total Track Revenues $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 $0 0 0 0 0 0 0 0 $0 Purses $1,997,810 $744,968 $0 $0 $0 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 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 Simulcast $30 $25 $25 $20 Source of Handle Million Million $20 $15 $15 $10 $10 $5 $5 $ $ FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2009 ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 24 FY 2010 FY 2011 FY 2012 FY 2013 TUCSON GREYHOUND PARK 2601 South Third Avenue Tucson, Arizona 85713 Tucson Greyhound Park, Inc. RACING STATISTICS FY 2009 Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 2013 Racing Dates: July 1, 2012 - June 30, 2013 FY 2010 FY 2011 FY 2012 FY 2013 256 105 361 282 81 363 310 53 363 306 58 364 258 105 363 256 282 310 306 258 3,187 78,718 81,905 3,862 69,520 73,382 4,117 63,996 68,113 4,244 61,444 65,688 3,512 62,265 65,777 Attendance On-Track Off-Track Total Attendance 30,259 74,695 104,954 36,090 65,269 101,359 27,745 75,230 102,975 30,873 82,973 113,846 35,632 81,691 117,323 Pari-Mutuel Handle Average Handle per Race Day $37,044 $41,426 $43,760 $43,586 $34,669 Breakdown by location On-Track Handle Off-Track Handle $3,358,264 $10,014,659 $3,439,361 $11,598,205 $3,060,328 $12,824,642 $2,986,691 $12,878,652 $2,619,012 $9,965,856 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $5,850,750 6,734,118 $12,584,868 $10,576,130 $11,830,969 $12,361,949 $12,385,008 $9,714,888 $0 $0 $0 $0 $0 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 2,643,056 0 0 0 321,791 25,928 $2,990,775 $615,264 $735,391 $809,418 $999,509 $818,810 Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues 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 Off-Track On-Track vs. Off-Track Handle Live Simulcast $10 $14 $9 $12 $8 $10 $7 $8 Million Million Source of Handle $6 $6 $5 $4 $3 $4 $2 $2 $1 $ $ FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2009 ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 25 FY 2010 FY 2011 FY 2012 FY 2013 Arizona Boxing & Mixed Martial Arts Commission ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT ARIZONA BOXING and MMA COMMISSION COMMISSIONERS SCOTT B. FLETCHER – Mr. Fletcher was appointed to the Arizona Boxing and MMA Commission by Governor Brewer in February 2011. He became Commission Chairman in January 2012. His term will expire on January 20, 2014. MICHAEL PRESTON GREEN – Mr. Green is a long time member and former Chairman of the Commission. He was appointed to three-year terms of service by Governor Symington in 1995 and then by Governor Hull. He served as Chairman of the Commission for three of those six years. Following a hiatus from the Commission, he was appointed by Governor Brewer to the Commission in 2009 and served as Chairman until January 2012. In January 2012 he was reappointed to the Commission by Governor Brewer and his current term will expire on January 19, 2015. JOE PENNINGTON – Mr. Pennington is also a veteran of Commission Service. He first served on the Commission in 2001 following his appointment by Governor Hull. He was Chairman of the Commission from 2002 – 2004. He returned to the Commission in January 2010 by appointment of Governor Brewer. In early 2013 he was re-appointed by Governor Brewer to a second term which will expire on January 18, 2016. 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 2013 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 received an average of $2,000 per event subject to these agreements. During FY 2013, the Boxing and MMA Commission regulated 9 of these events and collected $18,000 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 2011 FY 2012 FY 2013 100% 24 221 100% 32 276 100% 25 202 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 2011 FY 2012 FY 2013 685 98% 753 98% 875 98% Revenue Summary Taxes License Fees Fines Unarmed Combat Fees Other (Tribal Agreements) $25,805 11,795 0 17,000 28,000 $14,702 21,835 100 20,000 28,000 $11,400 21,600 550 18,000 23,000 Total Revenue Collected $82,600 $84,637 $74,550 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 2011 0 n/a ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 27 FY 2012 0 n/a FY 2013 0 n/a Financial Information ARIZONA DEPARTMENT OF RACING FY 2013 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 were all paid with monies in the Racing Regulation Fund. Revenues in this fund come primarily from the regulatory wagering assessment (RWA). 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 $2.9 million appropriation from the fund. In FY 2013, the RWA handle was $331.6 million, down from $332.8 million in FY 2012 (-0.4%). Our revenues improved toward the end of the fiscal year. Between January and June, the RWA handle was up 0.8%, and between April and June, it was up 2.8%. 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 2014. The Department also has a $250,000 General Fund appropriation intended solely for Arizona breeders' awards. Those monies will be distributed quarterly throughout FY 2014. In the table below, we’ve included expenditures for the last three fiscal years and the Department's FY 2014 appropriations. OPERATING BUDGET Actual Exp FY 2011 Full Time Equivalent Positions (FTE) Personal Services Employee Related Expenses Professional & Outside Services Travel - In State Travel - Out of State Other Operating Expenditures Equipment Operating Budget Subtotal SPECIAL LINE ITEMS Arizona Breeders' Award County Fairs Livestock and Agricultural Promotion Special Line Items Subtotal AGENCY TOTAL Actual Exp FY 2012 Actual Exp FY 2013 Appropriation FY 2014 40.5 40.5 40.5 40.5 1,065,200 492,100 105,600 76,500 5,900 255,400 37,200 $2,037,900 1,022,800 394,600 232,500 43,200 4,300 217,100 6,300 $1,920,800 1,280,100 462,800 295,600 48,000 10,100 308,400 160,400 $2,565,400 1,664,100 628,500 293,000 78,700 5,700 225,900 0 $2,895,900 250,000 250,000 - - 1,779,500 1,779,500 1,779,500 1,779,500 1,779,500 2,029,500 1,779,500 2,029,500 $3,817,400 $3,700,300 $4,594,900 $4,925,400 3,817,400 0 2,814,800 885,500 2,029,500 2,565,400 2,029,500 2,895,900 $3,817,400 $3,700,300 $4,594,900 $4,925,400 FUND SOURCES Appropriated Funds General Fund Racing Regulation Fund AGENCY TOTAL ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 28 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 2014 Hardship Tax Credit Based on the FY 2013 Dollars Wagered TRACK FY2013 FY2013 FY2013 TAX DUE FY2014 CARRYOVER FY2014 BASE BASE YEAR AMOUNT % PARI-MUTUEL BASED ON HARDSHIP FROM FY2013 TAX CREDIT WITH YEAR AMOUNT WAGERED DECREASE TAX DUE % DECREASE TAX CREDIT HARDSHIP TAX FY2013 CREDIT CARRYOVER HORSE TRACKS: Fort Tuthill Downs FY 1994 $ 798,671 $ - -100.00% $ - $ - $ - $ 7,320 $ 7,320 Rillito Park FY 1990 $ 3,887,981 $ 862,314 -77.82% $ 17,246 $ 13,421 $ 40,263 $ 226,386 $ 266,649 Turf Paradise FY 1994 $ 101,467,993 $ 118,437,614 16.72% $ 240,073 $ - $ - $ 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 $ 14,763,547 20.40% $ - $ - $ 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 FY 1990 $ 38,110,346 $ 12,584,868 -66.98% $ 321,791 $ 3,576,331 $ 4,222,939 GREYHOUND TRACKS: Tucson Greyhound Park $ 215,536 $646,607 Department of Racing Pari-Mutuel Tax Revenue - FY 2013 TRACK ALLOWABLE FY2013 FY2013 FY2013 CAPITAL FY2013 FY2013 FY2013 FY2013 HARDSHIP CREDITS HANDLE PARI-MUTUEL IMPROVEMENT HARDSHIP COUNTY FAIR CHARITY PARI-MUTUEL TAX TAX DUE WITHHOLDINGS TAX CREDIT CREDITS DAYS REVENUE $ $ FY2013 HORSE TRACKS: Rillito Park $ Turf Paradise $ 862,314 $ 17,246 - 17,246 $ - $ - $ - 14,564 118,437,614 240,073 - - - 5,452 234,621 3,598 - - - - - - - $ 261,794 $ 119,299,928 $ 257,319 $ - $ 17,246 $ - $ 5,452 $ 234,621 $ 360,850 $ $ - $ - $ - $ - $ - $ - Yavapai Downs Subtotal Horse Tracks 243,632 GREYHOUND TRACKS: Apache Greyhound Park 14,763,547 Phoenix Greyhound Park 7,712,376 - - - - - - - Tucson Greyhound Park 3,898,123 12,584,868 321,791 - 321,791 - - - Subtotal Greyhound Tracks $ 11,971,349 $ 27,348,415 $ 321,791 $ - $ 321,791 $ - $ - $ - GRAND TOTAL $ 12,233,144 $ 146,648,344 $ 579,110 $ - $ 339,038 $ - $ 5,452 $ 234,621 ARIZONA DEPARTMENT OF RACING FY 2013 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 2013. 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 2013 Cumulative Dollars Deducted Remaining Dollars Approved $52,196,636 $0 $866,507 $51,330,129 $0 $0 $0 $0 ARIZONA DEPARTMENT OF RACING FY 2013 ANNUAL REPORT 30