HOT SPRINGS, Ark. — Starting at the top, Arkansas’ pari-mutuel
industry was spotlighted at Wednesday’s luncheon kicking off the Association of
Racing Commissioners International’s 84th annual Conference on Equine Welfare
and Racing Integrity at the Hotel Hot Springs.
Gov. Asa Hutchinson lauded Oaklawn Park; the track’s influential
owner Charles Cella, who died in December, was remembered, and Cecil Alexander,
who spent 24 years on the Arkansas State Racing Commission, most as chairman
before stepping down two years ago at age 80, was presented the "William
May" Award, the ARCI’s highest award and which recognizes an individual or
entity that has had a profound positive effect on racing and racing integrity.
The conference attendees also heard state of the industry updates
from leaders of pari-mutuel racing’s four major groups.
Hutchinson said that, behind agriculture, Arkansas’ No. 2 industry
is tourism, for which he said travel-related expenses in the state have
increased 32 percent the last five years.
“The venues of Oaklawn and Southland are two historic venues
providing premium racing for our state,” he said, referencing the 114-year-old
thoroughbred track and Southland Park Gaming and Racing greyhound track in West
Memphis. “We’re proud of it and we protect it and want to make sure (they) are
the premium venues for racing in our country. They are success stories. Oaklawn
is the top commercial tourist attraction in Arkansas, with 2.8 million visitors
last year, 1,500 employees during racing season, a $250 million economic impact
for the state of Arkansas.”
Hutchinson then acknowledged “the incredible work of Cecil
Alexander” and his varying careers as a restaureur, in real estate and as vice
president of governmental affairs from 1980-2000. The governor said the futures
of Oaklawn and Southland were in great jeopardy when Alexander joined the
Arkansas State Racing Commission in 1993.
“He oversaw a resurgence in both Oaklawn and Southland,” Hutchinson
said. “… Cecil used every legislative trick in the book to get it done. From ‘Instant
Racing’ he was able to get installed, to games of skill being passed through
the legislature that reinvigorated Oaklawn and Southland, he has made a
difference in our racing environment and success of racing in Arkansas every
step of the way.”
Hutchinson planned to go with daughter Sarah to Oaklawn that
afternoon, joking, “You can’t give me any trips, but feel to help Sarah out.
She’ll keep it very confidential.”
In the remembrance of Cella, ARCI chief executive officer Ed
Martin said, “We lost one of the greats of racing this past year when Charles
Cella passed away. The Cella family has meant much to racing, not only here in
Arkansas but everywhere. Challenges put out and the product put out week after
week is second to none. We’re just sorry that we can’t stay for the Arkansas
Derby.”
Louis Cella, who took over as the Oaklawn Jockey Club’s president
after his father’s death Dec. 6, said that while the track dates to 1904 “our
renaissance really started with my father. For 50 years he maintained a single
goal: aim high strive to be the best.
“It took more than just a sportsman; it took a team,” he said. “That
team included government, commissioners, horsemen, the 1,500 loyal employees
that by the way equates to one employee for every stall we have on the
backstretch. Because of this team effort, today we’re allowed to offer open
maidens for more than $80,000, allowance races as high as $85,000. We typically
have 20,000 people in the grandstands. Two weeks ago on our Rebel (stakes day)
we had nearly 40,000 and next week at our Derby we’ll have maybe 60,000,
70,000. As the governor said, we’re the largest commercial tourism attraction
in the state, making Hot Springs the top tourist destination of the state.
“When you’re in a smaller location a little bit off the beaten
path, you have to work harder and be creative to survive.”
Louis Cella said the Arkansas racing commission was instrumental
when Oaklawn offered the first merged-pool interstate simulcast wagering in
1990 when the track took Arlington Park’s full card. As casino boats on the
Mississippi River flooded Oaklawn’s market, “It staggered us, but we knew we
had to do something to survive.”
Under Alexander’s regulatory leadership, Oaklawn invented Instant
Racing, also known as historical horse racing — an electronic parimutuel
wagering product utilizing hundreds of thousands of previously run races.
“We didn’t know if it would work, but we knew if we didn’t try
something, we would not make it,” Cella said. “From its inception in 2000,
Instant Racing turned us around…. Suddenly we were picking ourselves up off the
canvas and getting back in the game…. Working with the commission and the
(horsemen), we believed we developed the best racing model for racing and
gaming, just as my father had hoped for.”
He said the Oaklawn Foundation channels millions of dollars into
Hot Spring for college scholarships, educational programs and initiatives for
senior citizens.
“Oaklawn has gone from trying to fill races to becoming one of the
leading, brightest lights in racing,” Cella said. “This could not have been
without people like Gov. Hutchinson, like our racing commission, our horsemen
and breeders, our loyal fans and so many others who have a stake and care about
how Oaklawn operates. By working together, setting aside agendas, there isn’t
any question we are continuing to do what my father set out to do 50 years ago:
aim high, do it right and be the best.”
Updates on parimutuel racing’s four major groups
NTRA’s Waldrop: ‘Nothing more important to future than investing
in facilities’
Alex Waldrop, president and CEO of the National Thoroughbred
Racing Association, reported on thoroughbred racing’s recent successes with betting
and purses up in 2017; the explosive rise of online and account betting; the
victory in getting the Treasury Department to adopt modernized regulations
regarding the withholding and reporting of pari-mutuel proceeds, allowing
horseplayers to keep more of their winnings; increasing popularity of the
big-event days; robust sales at the top end at horse auctions, and new programs
and favorable tax policy for horse owners.
“Our big race days are at an all-time high, no question,” Waldrop
said, including the Breeders’ Cup bringing on new host sites Keeneland and Del
Mar and Gulfstream Park creating the $16 million Pegasus World Cup. “… The
popularity of these big events has led most of our big tracks — NYRA, Churchill
Downs, the Stronach Group, Oaklawn Park — to invest millions of dollars in
their facilities. I think nothing is more important to the future of the
thoroughbred industry than the reinvestment of dollars in our facilities. We
need convenient, state-of-the-art facilities if we’re going to compete in this
very challenging sports entertainment environment.”
But Waldrop said challenges include the vastly-shrunk foal crop,
horse auctions’ middle and lower market and the potential added competition of
sports betting.
“You don’t really have a horse shortage; you have an owner
shortage,” he said. “We do need new owners. We have programs in place to do
that…. On multiple fronts, we’re working to addresses public concerns about
safety and welfare. We’re looking to find new homes and second careers for
off-track thoroughbreds… The past decade there’s been a commitment to improving
the safety of human and equine athletes, and it’s starting to show significant
results.
“Even with many challenges, thoroughbred racing is alive and well
today, and we’re very optimistic that it will remain so for many years to
come.”
USTA’s Tanner: ‘Never been a better time to own a standardbred racehorse’
Mike Tanner, executive vice president of the United States
Trotting Association, said the standardbred industry’s status largely mirrors
those of thoroughbred racing but on a smaller scale. He said his membership is
holding steady at about 15,800, down from 1986 when it approached 50,000.
“We were slightly down in handle last year, about 4 percent,” said
Tanner, who started out in thoroughbred racing. “We handled about $1.4 billion.
We were flat in terms of per-race handle. But the number of races were down,
number of race days were down, owing to foal-crop size. Purses were very
strong, up 2 percent. We gave away $432 million in purses last year.
“I go around the country telling people there’s never been a
better time to own a standardbred racehorse, and it’s the truth. The financial
incentives are quite generous. Our costs of training are relatively-speaking
lower (than thoroughbreds), our horses race more frequently and it’s a hands-on
sport as well. When I was a kid I wanted to be a jockey. Genetics and my love
of food obviously conspired against me. However, I can and am able to hop on a
race bike to help train standardbreds. It’s a great breed.”
Tanner said the breed is creating the Standardbred Transition
Alliance, similar to the Thoroughbred Aftercare Alliance to guarantee care for
retired racehorses. The proposal is pursuing a $1 per-start fee paid by owners,
which would have reaped more than $330,00 starts last year, and a $1 fee on
every transaction processed by the USTA, which would have raised $110,000 last
year.
AQHA’s VanBebber: Breed-specific rules boost move toward
uniformity
Jane VanBebber, the chief racing officer for the American Quarter
Horse Association, said the sprint breed is making great strides toward
uniformity of regulations among states, giving a shout-out to ARCI having
breed-specific model rules that allow the quarter horse industry to address
issues that aren’t as problematic in the other racing breeds.
“Several of our jurisdictions have made plenty of improvements
this year,” VanBebber said. “We are invigorated by new ownership at Ruidoso
Downs, with a partnership of gentlemen who have been very involved in quarter
horse racing and are very committed to our sport. We have different
jurisdictions that have enjoyed growth. Wyoming just boasted $1.7 million in
breeders awards in their state, much due in part to historical horse racing.
Colorado in 2017 offered fewer quarter-horse races at Arapaho Park. They found
they missed us, and in 2018 they brought back all the races.
“Oklahoma just kicked off their Meeting of Champions and had the
first futurity where every entrant into the race was hair-tested as a condition
of entry. Between the Futurity and Derby there were roughly 170 horses tested
and only three positives and those were from the Derby, in 3-year-olds that had
competed in a jurisdiction that allowed a level of Clenbuterol.
“So we feel the work we’re doing enhancing integrity in that area
through hair testing is proving a very viable alternative. Talking about the
anti-doping, all jurisdictions are coming on board with uniformity…. thanks in
part to the breed-specific rules passed here last year. I’m really proud of
that for our association, because we can use that as a tool to combat some of
the problems that are specific to quarter-horse racing.”
She said reduced racing opportunities are a concern, along with
funding and sponsorship support and the issue of “program” trainers, where a
horse might in reality be trained by someone not listed in the official
entries.
“I’m real pleased that the good outweighs the bad,” VanBebber
said. “I think the future is bright for quarter-horse racing.”
National Greyhound Association’s Ward: ‘We battle to survive on a
daily basis'
Julie Ward, president of the National Greyhound Association, gave
props to Arkansas’ Southland Park Gaming and Racing in West Memphis for its
purses, promotion of the sport and quality and care of the animals. But said
the sport of greyhound racing is under siege.
“The greyhound business is in a constant battle with the
animal-rights activists, unfortunately with some racetracks and state
legislators,” Ward said. “So we battle to survive on a daily basis. We try to
stay positive internally, to stay upbeat, and we do. We’re able to show that
through the quality and care of the animals. But we’re under a lot of pressure
and scrutiny.
“We still feel our product is very viable…. Several auctions have
reached $1 million of sales. But what is going on down in Florida right now is
going to be a big factor in where our industry goes. There is an amendment
trying, by animal-rights activists, to let the general public be able to vote
to get rid of greyhound racing and simulcasting. It is very scary…. Greyhound
racing has been around since the pharaohs, and we would love for it to continue
and be a part of this. We’re just going through a big battle and we need
everyone’s support.”
