ANNUAL REPORT FY-2014 Table of Contents LETTER TO THE GOVERNOR 1 MEET THE DIRECTOR 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’ 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 Greyhound 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 2014 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 2014 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; 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 2014. Erin Owens Chair Erin Owens. Ms. Owens was raised in a Thoroughbred breeding and racing family in Arizona. She spent many years as an official at many racetracks. Some of her positions included Steward, Director of Racing and Racing Secretary, all of which has extended her knowledge of the horse racing industry. For 10 years, Ms. Owens was a Director at the University of Phoenix where she also completed her Master’s degree. 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. 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. ARIZONA DEPARTMENT OF RACING FY 2014 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. Tom Lawless Racing Commissioner Tom Lawless. Mr. Lawless is a shareholder in the Phoenix law firm of Milligan Lawless PC, specializing in estate planning and corporate law. He graduated magna cum laude from the University of Santa Clara Law School in 1982 and also holds a master’s degree in Accounting from the University of Denver as well as a bachelor’s degree from Santa Clara University. An enthusiastic fan of thoroughbred racing, Mr. Lawless is also a life member of the Phoenix Thunderbirds. The following are the terms of the current Commission members: Name Erin Owens Jay C. McClintock Rory S. Goreé William “Bill” Feldmeier Tom Lawless Member Designation Horse Racing Industry Public Greyhound Racing Industry Public Public Expiration Date 01/19/2015 01/18/2016 01/16/2017 01/15/2018 01/21/2019 ARIZONA DEPARTMENT OF RACING FY 2014 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 ŽdžŝŶŐΘDŝdžĞĚDĂƌƚŝĂů ƌƚƐŽŵŵŝƐƐŝŽŶ /ZdKZ ŽdžŝŶŐΘDDŝǀŝƐŝŽŶ Whdz/ZdKZ ZĂĐŝŶŐŝǀŝƐŝŽŶ ,ŽƌƐĞZĂĐŝŶŐ ĚŵŝŶŝƐƚƌĂƚŝŽŶŝǀŝƐŝŽŶ 'ƌĞLJŚŽƵŶĚZĂĐŝŶŐ ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 2 ZĂĐŝŶŐŽŵŵŝƐƐŝŽŶ ŶĨŽƌĐĞŵĞŶƚΘKƉĞƌĂƚŝŽŶƐŝǀŝƐŝŽŶ 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 2012 Number of incident investigations Number of background investigations Total number of investigations conducted 43 1,175 1,218 FY 2013 FY 2014 205 3,963 4,168 246 2202 2448 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 5 5 24 0 11 3 6 59 5 2 1 0 0 0 3 0 11 0 3 4 0 0 0 0 6 13 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 2012 FY 2013 FY 2014 1,676 1 2 3,963 0 0 2202 4 5 ARIZONA DEPARTMENT OF RACING FY 2014 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 $2,500, license suspensions up to 6 months, rule off a licensee violating Arizona statutes or rules and refer matters to the Director with recommendations of further action, including license revocation. FY 2012 FY 2013 FY 2014 265 12 92% 249 0 n/a 211 9 89% 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 2012 FY 2013 FY 2014 43 0 4 43 16 1 5 13 18 2 2 20 100% 100% 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 the rules. Testing Summary FY 2012 FY 2013 FY 2014 11 6 1 55% 0 0 0% 33 5 1 15% 0 0 0% 5 1 1 20% 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 2014 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 2012 FY 2013 FY 2014 1998 72 3.60% 1951 50 2.56% 1910 28 1.47% 2130 10 0.47% 2116 8 0.38% 2624 2 0.08% 4128 82 1.99% 4067 58 1.43% 4534 30 0.66% Teletracking The Department of Racing has the authority to approve applications for teletracking (off-track betting) permits, license teletracking 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 2014. A total of 64 off-track-betting sites were authorized to support both greyhound and horse racing in Arizona. The total handle generated by commercial and county fair racing for teletracking was $125.1 million. This included $105.4 million for horse racing and $19.8 million for greyhound racing. The State of Arizona received $101,268 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 1.1% during FY 2014 when compared to the prior year. ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 5 \                                              !     )       *       )       *  .                ^ _ "      . / 0     1 2 3  4 5  6        0 8 8 9 3 4 5 a   7 _ b c ^ d e  #  a    ` _ f g h c    ]                    $  % % $ $ ,                                   A                             =             &    #   .   F   F         !  . 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' < = + G + = ? + @ = ' = ' - - + = @ ' B = - - ' < ' ' G @ < - ( B COMMERCIAL AND COUNTY FAIR RACING Commercial Horse, Greyhound and County Fair Racing RACING STATISTICS FY 2010 Race Days/Performances (including 4 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days FY 2011 FY 2012 FY 2013 FY 2014 685 717 1,402 516 659 1,175 478 629 1,107 425 680 1,105 374 730 1,104 685 516 478 425 374 8,353 234,679 243,032 5,957 190,857 196,814 5,770 184,589 190,359 4,996 186,129 191,125 4,469 187,482 191,951 Attendance On-Track Off-Track Total Attendance 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 1,124,523 443,432 693,322 1,136,754 Pari-Mutuel Handle Average Handle per Race Day $129,064 $143,970 $154,199 $149,687 $147,753 Breakdown by location On-Track Handle Off-Track Handle $51,550,249 $129,397,125 $43,479,479 $125,685,106 $40,907,185 $129,790,965 $38,841,584 $126,562,871 $37,984,955 $125,134,535 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $20,584,372 142,535,118 $163,119,490 $138,400,642 $128,364,878 $128,888,265 $124,798,503 $122,832,588 $314,021 $284,807 $254,801 $234,628 $215,525 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 $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 34,217,106 0 0 0 7,594 304,483 $0 $666,705 $35,195,888 Purses $15,997,406 $13,980,881 $13,251,803 $12,696,055 $11,725,018 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 $140 $160 $120 $140 $120 $100 $100 $80 Million Million Source of Handle $60 $80 $60 $40 $40 $20 $20 $ $ FY 20010 FY 2011 FY 2012 FY 2013 FY 2014 FY 20010 ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 7 FY 2011 FY 2012 FY 2013 FY 2014 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. FY 2014 Activity: • • • • A three-year permit for commercial racing and teletrack wagering was approved for TP Racing, L.L.L.P. A one-year permit was approved for Pima County Horsemen’s Association pending the County’s award of a lease agreement. Two groups have applied to the county for the lease. Renewal applications for commercial racing and teletrack wagering were submitted by American Greyhound Racing, Inc., and Tucson Greyhound Park, Inc. Both permittees were given temporary permits. The applications are still pending. Prescott Valley Race Course, LLC requested approval to withdraw their applications due to lack of funding. The Commission will consider the request in early FY 2015. Commercial Racing Permittees, Tracks and Permit Terms Permittee Track *American Greyhound Racing, Inc. Apache Greyhound Park 01/01/14 - 12/31/16 *American Greyhound Racing, Inc. Phoenix Greyhound Park 01/01/14 - 12/31/16 Pima County Horsemen’s Association Rillito Park 01/01/14 - 12/31/14 Prescott Valley Race Course, LLC Prescott Valley Race Course *Tucson Greyhound Park, Inc. Tucson Greyhound Park 01/01/14 - 12/31/16 TP Racing, L.L.L.P. Turf Paradise Race Course 06/01/12 - 05/31/15 * temporary permit issued, application pending ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 8 Permit Term Request to withdraw COMMERCIAL TRACKS Commercial Horse and Greyhound Racing RACING STATISTICS FY 2010 Race Days/Performances (including 4 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days FY 2011 FY 2012 FY 2013 FY 2014 631 717 1,348 472 657 1,129 448 629 1,077 398 678 1,076 344 730 1,074 631 472 448 398 344 7,885 230,939 238,824 5,569 185,332 190,901 5,512 179,763 185,275 4,759 181,282 186,041 4,226 182,528 186,754 Attendance On-Track Off-Track Total Attendance 448,235 646,780 1,095,015 372,327 631,095 1,003,422 365,423 649,698 1,015,121 347,458 628,781 976,239 343,789 623,252 967,041 Pari-Mutuel Handle Average Handle per Race Day $123,583 $132,991 $141,289 $136,290 $133,861 Breakdown by location On-Track Handle Off-Track Handle $45,779,534 $120,810,375 $37,092,808 $113,053,837 $34,743,092 $117,425,663 $33,255,930 $113,392,414 $31,946,632 $111,820,247 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $17,114,223 126,652,656 $143,766,879 $127,231,702 $113,849,638 $114,479,892 $110,854,929 $108,069,762 $314,021 $284,807 $254,801 $234,628 $215,525 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 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 30,239,114 0 0 0 7,594 304,483 $0 $565,990 $31,117,181 Purses $14,033,433 $12,063,670 $11,675,994 $11,125,099 $10,139,454 Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track On-Track vs. Off-Track Handle Live Simulcast $140 $140 $120 $120 $100 $100 $80 $80 Million Million Off-Track $60 Source of Handle $60 $40 $40 $20 $20 $ $ FY 20010 FY 2011 FY 2012 FY 2013 FY 2014 FY 20010 ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 9 FY 2011 FY 2012 FY 2013 FY 2014 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 2012 FY 2013 FY 2014 25 176 170 973 998 3330 3506 1325 1495 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 2012 FY 2013 FY 2014 1414 1 2 3330 0 0 1325 4 1 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 2012 FY 2013 FY 2014 Number of rulings issued 164 183 184 9 0 8 89% n/a 88% 19 12 14 145 171 170 0 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 2014 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 2012 FY 2013 FY 2014 31 0 3 31 100% 14 1 5 11 100% 9 2 2 11 100% 0 0 0 31 16 11 0 n/a 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 Rillito Park Turf Paradise Yavapai Downs * 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 2012. Performance Measures Amount of awards Number of active breeders Percentage of breeders winning awards Number of registered horses FY 2012 FY 2013 FY 2014 n/a 79 n/a 3,681 $206,000 138 33% 3,495 $208700. 169 28% 3313 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 2012 FY 2013 FY 2014 2 $1,796 2 $2,293 2 $1,955 ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 11 COMMERCIAL HORSE TRACKS Rillito Park, Turf Paradise, Yavapai Downs RACING STATISTICS FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Race Days/Performances (including 3 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days 181 261 442 162 242 404 142 208 350 140 211 351 137 212 349 Total Live Performances (Matinee & Evening) 181 162 142 140 137 1,624 57,041 58,665 1,452 58,139 59,591 1,268 52,344 53,612 1,247 52,321 53,568 1,185 52,500 53,685 290,388 496,143 786,531 272,810 476,156 748,966 293,403 494,570 787,973 287,831 488,245 776,076 276,531 484,234 760,765 $290,986 $298,956 $349,028 $339,886 $335,987 $34,441,647 $94,173,951 $30,361,770 $90,416,538 $28,181,407 $93,978,514 $26,531,355 $92,768,573 $25,215,613 $92,043,783 $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 $11,819,635 105,439,761 $117,259,396 $98,157,491 $91,338,754 $91,407,944 $89,887,194 $87,719,084 $314,021 $284,807 $254,801 $234,628 $215,525 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit Breakage Total Track Revenues 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 24,369,222 0 0 7,594 13,280 511,011 $24,901,107 Purses $12,474,952 $11,254,252 $10,676,484 $10,306,289 $9,359,342 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 $100 Source of Handle $120 $90 $100 $80 $80 $60 Million Million $70 $50 $40 $60 $40 $30 $20 $20 $10 $ $ FY 20010 FY 2011 FY 2012 FY 2013 FY 2014 FY 20010 ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 12 FY 2011 FY 2012 FY 2013 FY 2014 RILLITO PARK 4502 North First Avenue Tucson, Arizona 85728 FY 2014 Racing Dates: February 8, 2014 - March 30, 2014 Pima County Fair Horse Racing Commission RACING STATISTICS Race Days/Performances Live Race Days Dark Day-Simulcast Only Total Race Days Total Live Performances FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 - - 12 12 12 12 10 10 - - 12 12 10 Number of Races Live Races Simulcast Races Total Number of Races - - 99 99 98 98 73 73 Attendance On-Track Off-Track Total Attendance - - 42,685 42,685 45,899 45,899 37,124 37,124 Pari-Mutuel Handle Average Handle per Race Day $0 $0 $77,151 $71,860 $66,402 Breakdown by location On-Track Handle Off-Track Handle $0 $0 $0 $0 $925,817 $0 $862,314 $0 $664,023 $0 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $0 0 $0 $0 0 $0 $925,817 0 $925,817 $862,314 0 $862,314 $664,023 0 $664,023 DISTRIBUTION OF REVENUES Returned to Wagering Public $0 $0 $698,817 $651,013 $497,140 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 $0 200,925 0 0 0 18,516 7,559 $227,000 186,959 0 0 0 17,246 7,096 $211,301 148,212 0 0 0 13,280 5,390 $166,883 Purses $0 $0 $104,242 $97,027 $75,370 Racetrack Trends at a Glance On-Track On-Track vs. Off-Track Handle Live Source of Handle Simulcast $4 $4 $3 $3 Million Million Off-Track $2 $2 $1 $1 $ $ FY 20010 FY 2011 FY 2012 FY 2013 FY 2014 FY 20010 FY 2011 ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 13 FY 2012 FY 2013 FY 2014 TURF PARADISE 1501 West Bell Road Phoenix, Arizona 85023 FY 2014 Racing Dates: July 1, 2013 - June 30, 2014 TP Racing, L.L.L.P. RACING STATISTICS FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Race Days/Performances (including 3 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days 129 214 343 132 207 339 130 208 338 128 211 339 127 212 339 Total Live Performances (Matinee & Evening) 129 132 130 128 127 1,164 50,334 51,498 1,187 51,979 53,166 1,169 52,344 53,513 1,149 52,321 53,470 1,112 52,500 53,612 258,241 352,858 611,099 253,595 392,026 645,621 250,718 494,570 745,288 241,932 488,245 730,177 239,407 484,234 723,641 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 $291,383 $306,587 $358,681 $349,373 $343,939 Breakdown by location On-Track Handle Off-Track Handle $32,995,111 $66,949,360 $29,500,978 $74,431,872 $27,255,590 $93,978,514 $25,669,041 $92,768,573 $24,551,590 $92,043,783 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $11,155,612 105,439,761 $116,595,373 $76,074,976 $78,526,009 $90,709,127 $89,236,181 $87,221,944 $314,021 $284,807 $254,801 $234,628 $215,525 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 24,221,010 0 0 7,594 0 505,620 $24,734,225 $9,941,897 $9,874,607 $10,572,243 $10,209,261 $9,283,972 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 Source of Handle $120 $100 $90 $100 $80 $80 $60 Million Million $70 $50 $40 $60 $40 $30 $20 $20 $10 $ $ FY 20010 FY 2011 FY 2012 FY 2013 FY 2014 FY 20010 ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 14 FY 2011 FY 2012 FY 2013 FY 2014 YAVAPAI DOWNS 10501 Hwy. 89A Prescott Valley, Arizona 86314 FY 2014 Racing Dates: None Yavapai County Fair Association RACING STATISTICS FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Race Days/Performances (including 4 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days 52 47 99 30 35 65 - - - Total Live Performances (Matinee & Evening) 52 30 - - - 460 6,707 7,167 265 6,160 6,425 - - - 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 $289,607 $259,161 $0 $0 $0 Breakdown by location On-Track Handle Off-Track Handle $1,446,536 $27,224,591 $860,792 $15,984,666 $0 $0 $0 $0 $0 $0 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $3,412,672 25,258,455 $28,671,127 $1,625,284 15,220,175 $16,845,458 $0 0 $0 $0 0 $0 $0 0 $0 $22,082,514 $12,812,745 $0 $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 5,837,279 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 0 0 0 0 0 0 $0 Purses $2,533,056 $1,379,645 $0 $0 $0 DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Live On-Track vs. Off-Track Handle Simulcast $30 $30 $25 $25 $20 $20 Million Million Off-Track $15 Source of Handle $15 $10 $10 $5 $5 $ $ FY 20010 FY 2011 FY 2012 FY 2013 FY 2014 FY 20010 ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 15 FY 2011 FY 2012 FY 2013 FY 2014 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 2014. 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 2012 FY 2013 FY 2014 2 108 110 10 21 31 14 176 190 Number of incident investigations Number of background investigations Total number of investigations conducted Licensing The Department issues licenses to participate in racing to those who are qualified and eligible. Performance Measures FY 2012 FY 2013 FY 2014 108 0 0 21 0 0 176 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 2012 FY 2013 FY 2014 4 2 3 0 0 1 100% n/a 100% 0 0 0 0 0 0 0 4 0 0 0 0 0 0 0 0 2 1 0 0 0 0 0 0 0 0 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 2014 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 2012 FY 2013 FY 2014 2 0 0 2 N/A 0 0 0 0 N/A 2 0 0 2 N/A 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 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 2014 ANNUAL REPORT 17 COUNTY FAIR TRACKS County Fair Racing at Fairs and Commercial Tracks RACING STATISTICS FY 2010 Race Days/Performances Live Race Days Dark Day-Simulcast Only Total Race Days FY 2011 FY 2012 FY 2013 FY 2014 54 54 44 2 46 30 30 27 2 29 30 30 54 44 30 27 30 468 3,740 4,208 388 5,525 5,913 258 4,826 5,084 237 4,847 5,084 243 4,954 5,197 129,977 45,844 175,821 111,460 66,479 177,939 96,219 65,078 161,297 78,972 69,312 148,284 99,643 70,070 169,713 $265,879 $413,433 $617,646 $694,671 $645,087 $5,770,715 $8,586,751 $6,386,671 $12,631,269 $6,164,093 $12,365,302 $5,585,654 $13,170,457 $6,038,323 $13,314,289 $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 $3,470,149 15,882,463 $19,352,612 $11,168,940 $14,515,240 $14,408,373 $13,943,574 $14,762,826 $0 $0 $0 $0 $0 Track Mutuel Revenues Track Commission Breakage Total Track Revenues $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 $3,977,992 100,716 $4,078,707 Purses $1,963,973 $1,917,210 $1,575,809 $1,570,956 $1,585,563 Total Live Performances Number of Races Live Races Simulcast Races Total Number of Races Attendance On-Track Off-Track Total Attendance Pari-Mutuel Handle Average Handle per Race Day Breakdown by location On-Track Handle Off-Track Handle Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track 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 $ $10 $ $8 $ $6 $4 $ $ $2 $ $ Source of Handle Source of Handle $4 $2 $ $ FY 20010 FY 2011 FY1 2012 FY 2013 FY 2014 FY 20010 ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 18 FY 2011 FY12012 FY 2013 FY 2014 ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 19 Total - All County Fair Racing Fairs at Commercial Tracks Maricopa County Fair at Phoenix (Turf Paradise) January 3, 4, 11, 26, 2014 La Paz County Fair at Phoenix (Turf Paradise) January 17, 18, 24, 25, 2014 Pima County Fair at Tucson (Rillito Park) February 8, 9, 15, 16, 2014 Pinal County Fair at Phoenix (Turf Paradise) February 1, 7, 8, 15, 2014 Navajo County Fair at Phoenix (Turf Paradise) March 1, 2, 8, 9, 2014 Yuma County Fair at Phoenix (Turf Paradise) March 15, 16, 22, 23, 2014 Coconino County Fair at Phoenix (Turf Paradise) April 19, 26, May 2, 3, 2014 Fairs at Non-Commercial Tracks Santa Cruz County Fair at Sonoita May 3, 4, 2014 Subtotal - Fairs at Non-Commercial Tracks 30 32 33 32 35 226 4 4 4 4 4 28 243 32 4 30 32 17 2 4 17 Live Races 2 Race Days 0 4,954 4,954 1,160 830 784 780 - 729 671 - Simulcast Races $ $ $ $ $ $ $ $ $19,352,612 $19,268,097 5,855,474 2,626,069 2,836,511 2,880,428 331,827 2,556,850 2,180,939 $84,515 84,515 Total Handle $ $ $ $ $ $ $ $ $0 $15,882,463 $15,882,463 5,284,024 2,028,827 2,369,447 2,323,018 - 2,078,139 1,799,009 Simulcast Handle Schedule and Statistics FY 2014 COUNTY FAIR RACING 169,713 165,013 38,229 23,657 20,226 22,932 21,167 20,313 18,489 4,700 4,700 Attendance $ $ $ $ $ $ $ $ $14,762,826 $14,698,743 4,507,159 1,984,869 2,143,377 2,150,559 249,246 1,972,120 1,691,413 $64,083 64,083 Returned to Public $ $ $ $ $ $ $ $ $3,977,992 $3,960,011 1,187,631 538,723 583,467 593,567 73,614 529,295 453,713 $17,980 17,980 Track Commission $ $ $ $ $ $ $ $ $100,716 $99,955 33,139 13,103 13,584 15,000 2,331 12,398 10,400 $761 761 Breakage to Track $ $ $ $ $ $ $ $ $1,585,563 $1,576,573 400,154 232,066 235,755 255,965 37,972 222,648 192,014 $8,990 8,990 Purses 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 2012 FY 2013 FY 2014 16 94 110 19 612 631 62 701 763 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 2012 FY 2013 FY 2014 154 0 0 612 0 0 701 0 4 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 2012 FY 2013 FY 2014 97 1 63 0 27 0 100% n/a n/a n/a 97 n/a 63 n/a 27 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 2014 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 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 FY 2012 FY 2013 FY 2014 10 0 1 10 100% 2 0 0 2 N/A 7 0 0 7 N/A 0 0 0 N/A N/A N/A 10 2 7 Orders by Track Apache Greyhound Park **Phoenix Greyhound Park 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 2012 FY 2013 FY 2014 2 4 0% 2 24 0% 0 24 0% 8 1 0 0 0 11 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 2012. Performance Measures Amount of awards Number of active breeders Percentage of breeders winning awards Number of registered greyhounds FY 2012 FY 2013 FY 2014 n/a 4 n/a 2,496 $44,000 3 67% 640 $41,300 3 60% 644 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 2012 FY 2013 FY 2014 0 0 2 $859 1 $1,350 Number of grants awarded Amount of grants awarded * ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 21 COMMERCIAL GREYHOUND TRACKS Apache Greyhound, Phoenix Greyhound, Tucson Greyhound RACING STATISTICS FY 2010 Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 2011 FY 2012 FY 2013 FY 2014 450 456 906 310 415 725 306 421 727 258 467 725 207 518 725 450 310 306 258 207 Number of Races Live Races Simulcast Races Total Number of Races 6,261 173,898 180,159 4,117 127,193 131,310 4,244 127,419 131,663 3,512 128,961 132,473 3,041 130,028 133,069 Attendance On-Track Off-Track Total Attendance 157,847 150,637 308,484 99,517 154,939 254,456 72,020 155,128 227,148 59,627 140,536 200,163 67,258 139,018 206,276 Pari-Mutuel Handle Average Handle per Race Day $41,914 $40,508 $41,278 $37,722 $36,562 Breakdown by location On-Track Handle Off-Track Handle $11,337,887 $26,636,424 $6,731,038 $22,637,299 $6,561,685 $23,447,149 $6,724,575 $20,623,841 $6,731,019 $19,776,463 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $5,294,588 21,212,894 $26,507,482 $29,074,212 $22,510,885 $23,071,947 $20,967,735 $20,350,678 $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 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 5,869,892 0 0 0 0 291,202 $0 $54,979 $6,216,074 Purses $1,558,481 $809,418 $999,509 $818,810 $780,113 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 $30 $25 $25 $20 Million Million $20 $15 Source of Handle $15 $10 $10 $5 $5 $ $ FY 20010 FY 2011 FY 2012 FY 2013 FY 2014 FY 20010 ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 22 FY 2011 FY 2012 FY 2013 FY 2014 APACHE GREYHOUND PARK 2551 West Apache Trail Apache Junction, Arizona 85220 FY 2014 Racing Dates: July 1, 2013 - June 30, 2014 American Greyhound Racing, Inc. RACING STATISTICS FY 2010 Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 2011 FY 2012 FY 2013 FY 2014 362 362 362 362 363 363 362 362 362 362 - - - - - 72,965 72,965 63,197 63,197 65,975 65,975 66,696 66,696 68,712 68,712 Attendance On-Track Off-Track Total Attendance 78,698 41,406 120,104 71,772 79,709 151,481 41,147 72,155 113,302 23,995 58,845 82,840 22,746 55,878 78,624 Pari-Mutuel Handle Average Handle per Race Day $25,949 $37,247 $38,963 $40,783 $40,551 Breakdown by location On-Track Handle Off-Track Handle $3,963,410 $5,430,189 $3,670,711 $9,812,658 $3,574,994 $10,568,497 $4,105,563 $10,657,984 $3,943,379 $10,736,137 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $0 14,679,516 $14,679,516 $7,002,240 $10,148,935 $10,686,939 $11,252,847 $11,063,497 $0 $0 $0 $0 $0 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 3,379,557 0 0 0 0 0 $0 $31,685 $3,411,242 $78,122 $0 $0 $0 $0 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 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 $10 $16 $9 $14 $8 Source of Handle $12 $10 $6 Million Million $7 $5 $4 $3 $8 $6 $4 $2 $2 $1 $ $ FY 20010 FY 2011 FY 2012 FY 2013 FY 2014 FY 20010 ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 23 FY 2011 FY 2012 FY 2013 FY 2014 PHOENIX GREYHOUND PARK 3801 East Washington Street Phoenix, Arizona 85036 FY 2014 Racing Dates: None American Greyhound Racing, Inc. RACING STATISTICS FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 168 13 181 - - - - 168 - - - - Number of Races Live Races Simulcast Races Total Number of Races 2,399 31,413 33,812 - - - - Attendance On-Track Off-Track Total Attendance 43,059 43,962 87,021 - - - - Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days Total Live Performances (Matinee & Evening) Pari-Mutuel Handle Average Handle per Race Day $74,824 $0 $0 $0 $0 $3,935,117 $9,608,030 $0 $0 $0 $0 $0 $0 $0 $0 $8,507,773 5,035,374 $13,543,147 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 $0 $0 $0 $0 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 0 0 0 0 0 0 $0 $0 $0 $744,968 $0 $0 $0 $0 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 $10,241,002 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 $9 $12 $8 $10 $7 $6 Million Million $8 $6 $5 $4 $3 $4 $2 $2 $1 $ $ FY 20010 FY 2011 FY 2012 FY 2013 FY 2014 FY 20010 ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 24 FY 2011 FY 2012 FY 2013 FY 2014 TUCSON GREYHOUND PARK 2601 South Third Avenue Tucson, Arizona 85713 FY 2014 Racing Dates: July 1, 2013 - June 30, 2014 Tucson Greyhound Park, Inc. RACING STATISTICS FY 2010 Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 2011 FY 2012 FY 2013 FY 2014 282 81 363 310 53 363 306 58 364 258 105 363 207 156 363 282 310 306 258 207 3,862 69,520 73,382 4,117 63,996 68,113 4,244 61,444 65,688 3,512 62,265 65,777 3,041 61,316 64,357 Attendance On-Track Off-Track Total Attendance 36,090 65,269 101,359 27,745 75,230 102,975 30,873 82,973 113,846 35,632 81,691 117,323 44,512 83,140 127,652 Pari-Mutuel Handle Average Handle per Race Day Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races $41,426 $43,760 $43,586 $34,669 $32,584 Breakdown by location On-Track Handle Off-Track Handle $3,439,361 $11,598,205 $3,060,328 $12,824,642 $2,986,691 $12,878,652 $2,619,012 $9,965,856 $2,787,641 $9,040,326 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $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 $5,294,588 6,533,379 $11,827,967 $11,830,969 $12,361,949 $12,385,008 $9,714,888 $9,287,181 $0 $0 $0 $0 $0 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 2,490,335 0 0 0 291,202 23,294 $2,804,832 $735,391 $809,418 $999,509 $818,810 $780,113 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 20010 FY 2011 FY 2012 FY 2013 FY 2014 FY 20010 ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 25 FY 2011 FY 2012 FY 2013 FY 2014 Arizona Boxing & Mixed Martial Arts Commission ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT ARIZONA BOXING and MMA COMMISSION COMMISSIONERS MICHAEL PRESTON GREEN – Mr. Green is a long time member and 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. SCOTT B. FLETCHER – Mr. Fletcher was appointed to the Arizona Boxing and MMA Commission by Governor Brewer in February 2011. He was Commission Chairman from January 2012 to January 2014. He was reappointed in 2014 by Governor Brewer to a second term that will end January 16, 2017. EXECUTIVE DIRECTOR MATTHEW VALENZUELA – Mr. Valenzuela was appointed as the Arizona Boxing and MMA Commission Executive Director on January 18, 2014. ARIZONA DEPARTMENT OF RACING FY 2014 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 (IGA) 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 2014, the Boxing and MMA Commission regulated 12 of these events and collected $24,000 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 2012 FY 2013 FY 2014 100% 32 276 100% 25 202 100% 29 290 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 2012 FY 2013 FY 2014 753 98% 875 98% 995 98% Revenue Summary Taxes License Fees Fines Unarmed Combat Fees Other (Tribal Agreements) $14,702 21,835 100 20,000 28,000 $11,400 21,600 550 18,000 23,000 $11,400 28,500 1,350 24,000 24,000 Total Revenue Collected $84,637 $74,550 $89,250 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 2012 1 n/a * Does not include investigations that did not rise to Commission level. ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 27 FY 2013 1 n/a FY 2014 1 n/a Financial Information ARIZONA DEPARTMENT OF RACING FY 2014 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 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 2014, the RWA handle was $336.9 million, up from $331.6 million in FY 2013 (1.6%). Our revenues improved toward the end of the fiscal year. Between July and December, the RWA handle was down 4.1%. During the last six months of the fiscal year, the RWA handle was up 6.0%. 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 were distributed quarterly throughout FY 2014. In the table below, we’ve included expenditures for the last three fiscal years and the Department's projected expenditures for FY 2015 appropriations. OPERATING BUDGET Actual Exp FY 2012 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 2013 Actual Exp FY 2014 Appropriation FY 2015 40.5 40.5 40.5 40.5 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 1,489,700 604,000 420,800 54,600 15,200 216,400 12,000 $2,812,700 1,589,300 636,700 358,800 78,700 7,500 229,700 0 $2,900,700 250,000 250,000 250,000 1,779,500 1,779,500 1,779,500 2,029,500 1,779,500 2,029,500 1,779,500 2,029,500 $3,700,300 $4,594,900 $4,842,200 $4,930,200 2,814,800 885,500 2,029,500 2,565,400 2,029,500 2,812,700 2,029,500 2,900,700 $3,700,300 $4,594,900 $4,842,200 $4,930,200 - FUND SOURCES Appropriated Funds General Fund Racing Regulation Fund AGENCY TOTAL ARIZONA DEPARTMENT OF RACING FY 2014 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 2015 Hardship Tax Credit Based on the FY 2014 Dollars Wagered FY2014 TRACK FY2014 FY2014 TAX DUE FY2015 CARRYOVER FY2015 TAX CREDIT WITH BASE BASE YEAR AMOUNT % PARI-MUTUEL BASED ON HARDSHIP FROM FY2014 YEAR AMOUNT WAGERED DECREASE TAX DUE % DECREASE TAX CREDIT HARDSHIP TAX FY2014 CREDIT CARRYOVER HORSE TRACKS: Fort Tuthill Downs FY 1994 $ 798,671 $ - -100.00% $ - $ - $ - $ 7,320 $ 7,320 Rillito Park FY 1990 $ 3,887,981 $ 664,023 -82.92% $ 13,280 $ 11,012 $ 33,036 $ 253,369 $ 286,405 Turf Paradise FY 1994 $ 101,467,993 Yavapai Downs FY 1994 $ 17,490,826 $ - Apache Greyhound Park FY 1990 $ 12,262,396 $ Phoenix Greyhound Park FY 1990 $ 49,391,582 $ FY 1994 $ 46,293,967 FY 1990 $ 38,110,346 $ $ 116,595,373 14.91% $ 223,112 $ - $ - $ 14,564 $ 14,564 -100.00% $ - $ - $ - $ 3,598 $ 3,598 14,679,516 19.71% $ - $ - $ 360,850 $ 360,850 - -100.00% $ - $ - $ 7,712,376 $ 7,712,376 11,827,967 -68.96% $ 291,202 $ 3,931,736 $ 4,534,176 GREYHOUND TRACKS: Tucson Greyhound Park $ 200,813 $602,439 Department of Racing Pari-Mutuel Tax Revenue - FY 2014 TRACK ALLOWABLE FY2014 FY2014 FY2014 CAPITAL FY2014 FY2014 FY2014 FY2014 HARDSHIP CREDITS HANDLE PARI-MUTUEL IMPROVEMENT HARDSHIP COUNTY FAIR CHARITY PARI-MUTUEL TAX TAX DUE WITHHOLDINGS TAX CREDIT CREDITS DAYS REVENUE $ $ FY2014 HORSE TRACKS: Rillito Park $ Turf Paradise Yavapai Downs Subtotal Horse Tracks $ 266,649 $ 664,023 $ 13,280 - 13,280 $ - $ - $ - 14,564 116,595,373 223,112 - - - 7,594 215,518 3,598 - - - - - - - 284,811 $ 117,259,396 $ 236,393 $ - $ 13,280 $ - $ 7,594 $ 360,850 $ $ - $ - $ - $ - $ - $ 215,518 GREYHOUND TRACKS: Apache Greyhound Park $ Phoenix Greyhound Park 7,712,376 Tucson Greyhound Park 14,679,516 - 4,222,939 - 11,827,967 - 291,202 - - - - 291,202 Subtotal Greyhound Tracks $ 12,296,165 $ 26,507,482 $ 291,202 $ - $ 291,202 $ - $ - $ - GRAND TOTAL $ 12,580,976 $ 143,766,879 $ 527,595 $ - $ 304,483 $ - $ 7,594 $ 215,518 ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 29 - - - - Track Capital Improvements Capital Improvement tax breaks were first introduced into law in 1978 to encourage the improvement of racing facilities for the benefit of the public, breeders and owners, and to increase revenue to the State from the increase in pari-mutuel wagering resulting from the improvements. All Capital Improvement projects required approval from the Arizona Racing Commission. 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. New Capital Improvement projects can no longer be submitted. 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 2014. 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 2014 Cumulative Dollars Deducted Remaining Dollars Approved $52,196,636 $0 $866,507 $51,330,129 $0 $0 $0 $0 ARIZONA DEPARTMENT OF RACING FY 2014 ANNUAL REPORT 30