State of Indiana
Indiana Horse Racing Commission
Frank O'Bannon, Governor
Letter to the Govenor
March 15, 1998
The Honorable Frank O'Bannon
Governor of the State of Indiana
Room 206, The Statehouse
Indianapolis, IN 46206
Dear Governor O'Bannon:
The pari-mutuel horse racing industry moved forward at a rapid pace in 1997. Hoosier Park in Anderson was able to attract some of the top equine athletes throughout the Midwest to its live standardbred and thoroughbred meets. The prize money or purses offered to attract these quality horses were greatly increased over prior years. This was primarily due to the revenue generated by the portion of riverboat admission tax that is allocated to the racing industry. This revenue has proved vital to Hoosier Park's success and has propelled the track into the upper echelon of the pari-mutuel horse racing industry in the United States. Hoosier Park now ranks second in the country in average daily purse distribution for standardbred racing.
As in the past, the Commission continues to focus its energies on diligently regulating the pari-mutuel industry. The results of our regulatory efforts, along with statistics of interest, are highlighted in this report.
I am pleased to report that Indiana has gained a reputation throughout the Midwest for clean, honest and competitive racing. The Indiana Horse Racing Commission is determined to provide the strong leadership that is needed to assist in the continued success and maintain the integrity of our new pari-mutuel racing industry. Each Commissioner is proud and grateful to have the opportunity to serve you in this endeavor.
Michael G. Schaefer, Chairman
Indiana Horse Racing Commission
Table Of Contents
- Letter to Governor O'Bannon
- Commission and Staff
- Year in Review
- Live Racing at Hoosier Park
- Simulcast Wagering by Location
- Distribution of the Wagering Dollar
- State Revenues
- Breakdown of Handle by Breed and Type
- Purses Paid
- Purse Trends
- Purses Earned by Type
- Simulcast Handle - Hoosier Park as Host Track
- Simulcast Handle - Hoosier Park as Receiving Track
- Occupational Licensing
- Equine Drug Testing
- Human Drug Testing
- Standardbred Breed Development Program
- Thoroughbred Breen Development Program
- Blood Gas Analysis Program
- Riverboat Revenue
- 1998 Live Racing Dates
Indiana Horse Racing Commission
| Michael Schaefer | Chairman * (2000) |
| K. Clay Smith | Vice-Chairman * (1998) |
| Janet Bozzelli | Secretary * (2001) |
| Pete Beck | Member * (2001) |
| Robert Ossenberg | Member * (1999) |
| * Term expires September 1st of year indicated. | |
| Joe Gorajec | Executive Director |
| Kay Roberts | Assistant Executive Director |
| Robert Smith | Director of Security |
| Deena Pitman | Director of Licensing |
| Kristen Perrel | Controller |
| Ron Adams | Investigator |
| Shirley England | Licensing Supervisor |
| Jacki Brown | Administrative Secretary |
| Carmen Willoughby | Breed Development Clerk |
To further assist the Commission with its regulatory responsibilities, the following individuals provided professional or technical service at Hoosier Park during the 1997 racing season.
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Year In Review
July
On July 11, Hot Lead, with Tony Morgan in the bike, wins the $150,000 Dan Patch Invitational Pace. The 6,023 fans in attendance represent the second largest crowd in track history.
August
Extreme Velocity, the winningest horse in Hoosier Park history, puts Indiana in the national spotlight with an explosive stretch rally to win the $282,000 Breeders' Crown final at the Meadowlands. The 1997 ISA Horse of the Year is owned by Dave and Merrill Stohler of Markleville, Indiana and trained by Trent Stohler.
On August 22, Perfect Art driven by George Brennan, captures the inaugural $500,000 Hoosier Cup. The half-million dollar purse is the largest in track history. A total of $676,900 in prize money paid during the night establishes a Hoosier Park record for most purses paid on a single card.
Tony Morgan and Ernie Gaskin earn top standardbred driving and training honors respectively. Both Morgan's 137 wins and Gaskin's 56 visits to the winner's circle establishes single season records at Hoosier Park.
The Racing Commission switches to a digital licensing system. A digital photo is taken of each licensee and stored in the licensing database while simultaneously printing onto a credit card size plastic badge. Photographs are immediately available for recall or reprinting of badges with no additional picture taking. The new system will be more cost effective and provide greater convenience for all licensees.
September
National racing icon trainer D. Wayne Lucas and Hall of Fame jockey Pat Day participate in the second Indiana Championship Day held on September 14. Ten races filled with Indiana bred or owned horses are contested and over $400,000 in purse money is awarded.
On September 29, Richard A. "Pete" Beck and Janet Bozzelli are appointed by Governor O'Bannon to serve four year terms on the Racing Commission. Beck and Bozzelli replace outgoing Commissioners Dick Darko and Tom Wetterer, both of whom served the Commission with distinction since its inception in 1989. Chairman Michael G. Schaefer, Vice-Chairman Clay Smith and Robert Ossenberg are reappointed to staggered terms.
October
On October 4, Dubai Dust trained by D. Wayne Lucas captures the third running of the Indiana Derby.
For the first time in Indiana pari-mutuel history, Quarter Horse racing is held at Hoosier Park on Sunday, October 26. Three $10,000 stake races were carded. The first Quarter Horse race, the Governor's Stakes, is won by Easy Night Beat, which is owned by Mary Jo Renihan of Martinsville, Indiana and piloted by Carter Riley of Walton, Indiana.
Jon Court (65 wins) and Earl Murphy (18 wins) capture the thoroughbred riding and training titles respectively. Court's title is all the more noteworthy as he is unable to compete during the last three weeks of the meet when he suffers a broken leg after the 2nd race on November 10.
Live Racing At Hoosier Park
| Number of Dates | 85 |
| Total Handle | $5,647,918 |
| Average Daily Handle | $66,446 |
| Total Attendance | 95,809 |
| Average Daily Attendance | 1,127 |
Thoroughbred
| Number of Dates | 57 |
| Total Handle | $5,264,793 |
| Average Daily Handle | $92,365 |
| Total Attendance | 73,900 |
| Average Daily Attendance | 1,296 |
Combined Standardbred and Thoroughbred
| Number of Dates | 142 |
| Total Handle | $10,912,711 |
| Average Daily Handle | $76,850 |
| Total Attendance | 169,709 |
| Average Daily Attendance | 1,195 |
The statistics above represent attendance and handle at Hoosier Park on live racing only. Thoroughbred handle includes $38,907 wagered on Quarter Horse races. Additional wagering on Hoosier Park's live racing at Indiana OTB's is as follows - Standardbred ($1,807,099), Thoroughbred ($1,796,915) totaling ($3,604,014). Such wagering is included in OTB handle statistics on the next page.
Simulcast Wagering by Location
| Hoosier Park | Merrillville OTB | |
| Simulcast Dates | 320 | 311 |
| Total Handle | $29,610,464 | $32,799,091 |
| Average Daily Handle | $92,533 | $105,463 |
| Ft. Wayne OTB | Indianapolis OTB | |
| Simulcast Dates | 260 | 324 |
| Total Handle | $15,315,618 | $58,319,245 |
| Average Daily Handle | $58,906 | $179,998 |
Hoosier Park statistics represent all wagering on out-of-state simulcasts (no live racing). The number of simulcast dates at Hoosier Park reflect any dates on which full card simulcasting took place. Special race simulcasting at Hoosier Park is included in the handle, but not in the number of dates. All OTB statistics represent all wagers at each location on both in-state and out-of-state simulcasting.
Admission is not charged at the Indianapolis OTB, the Ft. Wayne OTB and at Hoosier Park for simulcasting. Consequently, attendance is not counted. Attendance at the Merrillville OTB was 94,905.
Distribution of the Wagering Dollar
The following is a breakdown of the distribution of all monies wagered at Hoosier Park and its satellite facilities:
| Returned to Bettors | $ 117,450,503.00 |
| Track Share | 16,884,476.00 |
| Purses Earned | 7,688,001.74 |
| Pari-Mutuel Tax | 4,048,175.85 |
| Breakage | 885,972.41 |
| $146,957,129.00 |
State Revenues
The following are the direct state revenues collected in accordance with the pari-mutuel statute IC 4-31:| Pari-Mutuel Tax | $4,048,175.85 |
| Track Reimbursement for Officials | 189,201.43 |
| Admission Tax | 32,372.78 |
| Fines and Civil Penalties Paid | 27,375.00 |
| Track Permit and License Fees | 8,000.00 |
| $4,305,125.06 |
The direct revenue received by the State of Indiana exceeded the cost of regulation. Indiana Horse Racing Commission expenditures for calendar year 1997 were $1,388,466.15.
Breakdown of Handle by Breed and Type
| Breed | Live Handle | % | Simulcast Handle | % | Total Handle | % |
| Standardbred | $7,455,017 | 5.1 | $23,167,361 | 15.7 | $30,622,378 | 20.8 |
| Thoroughbred | $7,061,708 | 4.8 | $109,272,643 | 74.4 | $116,334,351 | 79.2 |
| Combined Breeds | $14,516,725 | 9.9 | $132,440,404 | 90.1 | $146,957,129 | 100.0 |
The handle above represents all money wagered at all Indiana locations.
Purses Paid
| Breed | Dates | Purse Paid | Average Daily Purse Distribution |
| Standardbred | 85 | $9,558,420 | $112,452 |
| Thoroughbred | 57 | $8,703,640 | $152,695 |
The following is a breakdown by breed of purses paid at Hoosier Park. Breed Development purse supplements and some horsemen's fees are included. Purse monies from Breed Development bonuses for Indiana sired or Indiana owned are not included. The Kentucky Sales Company's and Hambletonian Society's contributions ($1,002,030) are not included.
Purses Trends
Standardbred Purses
Average Daily Distribution
Source: The United States Trotting Association
Note: The average daily purse distribution is calculated by multiplying the average purse by eleven.
Thoroughbred Purses
Average Daily Distribution
Source: The Jockey Club
Purses Earned by Type
| Type | ||
| Riverboats(*) | $8,880,900 | 48.4% |
| Simulcast - Receiving | 6,802,221 | 37.0% |
| Breakage & Outs (*) | 1,235,999 | 6.7% |
| Live Racing (Intrastate) | 885,780 | 4.8% |
| Simulcast - Host (Interstate) | 558,622 | 3.1% |
| Total | $18,363,522 | 100% |
| (*) Assumes 75% fo breed development funds are allocated to purses. | ||
Simulcast Handle - Hoosier Park as Host Track
The following is a breakdown, by breed and track, of monies wagered out-of-state on Hoosier Park's live race meets.
| Illinois* | $5,888,084 |
| Ohio* | 4,793,862 |
| Kentucky* | 3,122,563 |
| Penn National | 1,735,799 |
| New Jersey Hub | 1,525,050 |
| Philadelphia Park | 1,422,367 |
| The Meadows | 1,442,367 |
| Lone Star Park | 1,356,165 |
| Sam Houston | 1,227,000 |
| Laurel Rase Course | 817,343 |
| Ponoco Downs | 738,289 |
| Calder Race Course | 726,297 |
| Nebraska* | 602,863 |
| New England Hub | 542,865 |
| Faor Grounds | 456,824 |
| Prairie Meadows | 443,833 |
| Atlantic City | 411,126 |
| Delaware Park | 392,256 |
| Canterbury Park | 354,632 |
| Connecticut OTB | 330,994 |
| Evangeline Downs | 329,898 |
| Wisconsin* | 318,784 |
| Tri-State Greyhound | 229,702 |
| Mobile Greyhound | 219,546 |
| Michigan Hub | 189,525 |
| Arizona* | 184,515 |
| Fairplex | 163,652 |
| Wyoming OTB | 162,850 |
| Blue Robon Downs | 150,016 |
| Emerald Downs | 113,979 |
| Freehold Raceway | 113,860 |
| Sunland Park | 44,263 |
| $30,647,240 |
| * statewide system | |
| Ohio* | $2,953,888 |
| Illinois* | 1,455,422 |
| Detroit Race Course | 1,040,958 |
| Kentucky (TB)* | 504,331 |
| Philadelphia Park | 409,235 |
| Penn National | 341,248 |
| The Red Mile | 332,716 |
| Michigan* | 274,366 |
| The Meadows | 239,496 |
| Ponoco Downs | 216,210 |
| Pompano park | 213,082 |
| New Jersey* | 172,734 |
| New England Hub | 158,839 |
| Delaware Park | 131,388 |
| Freehold Raceway | 111,024 |
| Yonkers Raceway | 62,340 |
| Cal-Expo(Calif.) | 56,293 |
| Foxboro Park | 45,112 |
| Dover Downs | 19,390 |
| Eureka Downs | 173 |
| $8,738,245 |
| * statewide system | |
Thoroughbred Daily Average (57 dates) Standardbred Daily Average (85 dates) $537,671 $102,803 Simulcast Handle - Hoosier Park as Receiving Track
The following is a breakdown, by breed and track, of monies wagered at all in-state locations on simulcasts originating from out of state.
Thoroughbred Aqueduct $8,149,451 Churchhill Downs 7,819,415 Turfway Park 7,575,532 Calder Race Course 6,268,079 Santa Anita Park 5,453,007 Arlington International 4,607,850 Gulfstream Park 4,531,708 Hollywood Park 4,390,879 Ohio 7 & 7 4,069,566 Belmont Park 4,050,770 Fair Grounds 3,297,658 Hawthorne 3,277,690 Penn National 2,910,176 Ellis Park 2,897,907 Oaklawn Park 2,859,627 Sportsman's Park 2.800,263 Sam Houston Race Park 2,545,996 Delaware Park 2,491,215 Keeneland 2,203,784 Laurel Race Course 2,201,826 Hialeah Park 2,071,345 Del Mar Race Course 1,907,210 Evangeline Downs 1,806,224 Saratoga Race Course 1,648,960 Monmouth Park 1,624,595 Retama Park 1,536,780 Suffolk Downs 1,493,232 Meadowlands 1,459,514 Pimlico 1,354,330 Remington Park 1,330,681 Detroit Race Course 1,115,020 Philadelphia Park 814,838 Turf Paradice 738,834 Prairie Meadows 675,607 Rockingham Park 607,380 Garden State Park 595,996 Colonial Downs 467,480 Canterbury Park 414,749 Beulah Park 364,010 Playfair Race Course 226,462 Fairplex Park 159,061 Fairmount Park 105,021 Delta Downs 89,573 Total $109,272,643 Standardbred Balmoral $3,921,906 Meadowlands 3,559,266 Northfield Park 3,367,629 Sportsman's Park 2,928,251 Maywood 2,221,970 Hawthorne 1,922,973 Meadows 1,219,714 Garden State Park 947,596 Pompano Park 726,401 Scioto Downs 688,312 Northville Downs 533,804 Ponoco Downs 402,781 Freehold Raceway 248,916 Fairmount Park 207,307 Foxboro 138,045 Delaware, OH (LBJ) 77,873 Red Mile 36,618 Harrington Raceway 17,998 Total $23,167,361 Hoosier's Top 5 Simulcast Circuit Choices Kentucky(TB) - (CD,TP,EIP, &Kee)
$20,496,638 New York(TB) - (Aqu, Bel & Sar)
13,849,181 Southern Florida(TB) - (GP, Hia &Crc)
12,871,141 Southern California(TB) - (SA,Hol, & Dmr)
11,751,096 Chicago(SB) - (Spk, Bal, May & Haw)
10,995,100 Occupational Licensing
Pursuant to IC 4-31-6 and 71 IAC 5-1-1, all persons participating in pari-mutuel racing under the jurisdiction of the Commission are required to be licensed. The licensing process is the backbone of the Commission's regulatory efforts. Each prospective licensee is fingerprinted. The Federal Bureau of Investigation (FBI) and the Indiana State Police provide the Commission with criminal histories of all applicants. The Commission may refuse or deny the application for licensure of any person whose criminal or racing violation record is contrary to the public's best interest.
Category Count Owner, Standardbred 1,471 Owner, Thoroughbred 1,422 Groom 1,045 Vendor Employee 352 Owner/Trainer, 330 Trainer, Thoroughbred 329 Stable Name 318 Owner/Trainer/Driver 299 Track Employee 223 Pari-Mutuel Clerk 200 Owner/Trainer, Standardbred 185 Driver/Trainer 147 Trainer, Standardbred 108 Jockey 104 Track Security 87 Asst. Trainer, Thoroughbred 79 Driver 63 Exercise Rider 48 Vendor/Contractor 38 Category Count Commission Staff 37 Track Management 35 Racing Official 31 Farrier 31 Jockey Agent 20 Veterinarian 18 Owner, Quarter Horse 17 Authorized Agent 15 Asst. Trainer, Standardbred 15 Gate Crew 15 Pony Rider 15 Apprentice Jockey 12 Valet 12 Other 10 Owner/Trainer, Quarter Horse 8 Trainer, Quarter Horse 5 Vet. Assistant 4 Farrier's Assistant 3 Stable Employee 1 Total Licenses Issued: 7,152 1994 1995 1996 1997 Licenses Issued 1,922 5,269 6,292 7,152 Probationary Licenses Issued 21 54 53 68 Licenses Refused 16 10 29 26 Equine Drug Testing
Pari-mutuel horse racing can succeed as a legitimate major league sport only if its races are perceived by the wagering public to be honest, competitive contests, free from manipulation by man or drugs. With the exception of furosemide (lasix) and phenylbutazone (bute), under regulatory restrictions, state law and Commission rules prohibit the presence of any drug in horses racing at a pari-mutuel track. The Commission's drug detection program is one of the nation's most comprehensive and its laboratory one of the most respected in the racing industry. Truesdail Laboratory in Tustin, California, serves as the primary testing laboratory for the Indiana Horse Racing Commission. Truesdail Lab has been a leader in racing chemistry and drug-related research for over 50 years. The following table indicates, by breed, the number of samples analyzed and the number of positive tests reported. In each instance, the offending horse was disqualified and placed last. In accordance with the pari-mutuel statute, all purse money earned is ordered returned and redistributed.
Breed Race Dates Urine Blood Positive Tests Standardbred 85 1351 1679 2 Thoroughbred 58 1003 1141 7 Totals 143 2354 2820 9 The table below represents a further breakdown, by breed, of the name and types of drugs reported by the laboratory.
Number of Violations Standardbred Thoroughbred ARCI Drug Classification Type 2 6 Banamine (Class 4) non-steroidal anti-inflammatory - 1 Lasix diuretic - 1 Prednisolone (Class 4) corticosteroid Human Drug Testing
Commission regulations provide that a licensee or an applicant for licensure may be required, if reasonable suspicion exists, to submit to a drug test. Commission rules require a minimum suspension of thirty (30) days for a positive test for an illegal drug.
Human Drug Testing 1994 1995 1996 1997 Number of Samples Tested 1 14 15 33 Number of Positive Tests 0 3 8 14 Breed Development Programs
OverviewPursuant to IC 4-31-11, breed development funds have been established to promote the breeding of horses while stimulating the agri-business sector of the state's economy. All breakage and unclaimed winning tickets are statutorily earmarked for breed development. In addition, twenty percent (20%) of the riverboat admission tax allocated to the racing industry is distributed to breed development funds. Standardbred and thoroughbred breed development advisory committees make recommendations to the Commission regarding the distribution of these monies.
Standardbred
In 1997 the Standardbred Breed Development Advisory Committee established a new series of Early/Late Closing Events held at Hoosier Park. This series created races for Indiana sired, owned and/or bred horses to compete for over $1.6 million in purse money. The Genesis Series for trotting and pacing fillies also expanded in 1997 to include three-year olds for the first time.
The successful county and state fair purse supplement programs were continued as were the purse bonuses for breeders and stallion owners. The stallion owner and breeder awards were expanded in 1997 to include horses who won a heat of the Indiana Sired Stakes. Through these and other efforts, the Standardbred Breed Development Program hopes to develop and promote a high quality Standardbred industry in the state of Indiana.
1997 Distribution of Awards Purse supplements - Hoosier Park $1,423,402 Purse supplements - County Fairs 245,500 Purse supplements - State Fair 120,000 Indiana Sired & misc. awards 61,294 Total $1,850,196 Breed Development Programs
ThoroughbredThe Thoroughbred Breed Development Advisory Committee has concentrated their resources in designing a program that will increase both the quality and quantity of Indiana breds that will compete at Hoosier Park in the future.
The highlight of the 1997 Thoroughbred racing season was "Indiana Championship Day" held on September 14. Ten stake races for Indiana owned and foaled horses were contested and purse money totaled in excess of $400,000. Trainer D. Wayne Lucas and jockeys Pat Day and Shane Sellers appeared in conjunction with the festivities for the day's events sponsored by the Thoroughbred Breed Development Program.
1997 Distribution of Awards Purse Supplements $ 1,250,044 Owners Awards 103,268 Breeders Awards 85,661 Stallion Owner Awards 10,121 Total $1,449,094 Purse supplements include $364,000 distributed on Indiana Championship Day. 1997 Breed Development Fund Revenue
Breed Breakage Outstanding Tickets * Riverboat Revenue Total Standardbred 442,986.21 381,012.87 1,658,457.31 2,482,456.39 Thouroughbred 442,986.20 381,012.88 1,570,961.03 2,394,960.11 Total 885,972.41 762,025.75 3,229,418.35 4,877,416.51 * Outstanding ticket revenue is based on tickets purchased in 1996 which expired in 1997. Blood Gas Analysis Program
The purpose of the Blood Gas Analysis (BGA) program is to deter and detect the practice of "bicarbonate loading" or what is known in the racing business as "milkshaking." This practice generally entails giving a horse a large quantity of an alkaline substance, usually baking soda, prior to a race. The alkaline substance neutralizes the lactic acid that is produced during exercise and, as a consequence, delays the onset of fatigue. Research has demonstrated that this practice induces some horses to race faster times. Bicarbonate loading can give a horse an unfair competitive edge and thus compromise the integrity of the sport. This practice is strictly prohibited by the rules of the Commission.
The BGA Program is operated by the Commission in a small laboratory located in the paddock at Hoosier Park. Blood samples of selected horses are analyzed prior to the race on a state-of-the-art blood gas analysis machine. Each sample is analyzed by a certified lab technician under contract through St. John's Hospital in Anderson.
Riverboat Revenue
The statute permitting riverboat gaming in Indiana earmarks sixty-five (65) cents of the three dollar admission tax to the pari-mutuel horse racing industry. These funds are distributed to various segments of the racing industry in accordance with Commission rule 71 IAC 12-2-15.
1997 Riverboat Revenue Allocation to Racing From Admission Tax (65 cents)
Purses - Standardbred
- Thoroughbred
40% $3,316,914.62
3,141,922,08$6,458,836.70 Track 30% 4,844,127.52 Breed Development - Standardbred
- Thoroughbred
20% $1,658,457.31
1,570,961.033,229,418.34 Promotion Fund 10% 1,614,709.17 Total 100% $16,147,091.73 Pursuant to Commission rule, the allocation between breeds for purses and breed development is determined based upon the percentage of pari-mutuel handle on each breed on live racing at all Indiana locations. Based on 1997 handle, 51.35% of available funds were distributed to standardbreds, while 48.65% was distributed to thoroughbreds.
1998 Hoosier Park Live Race Dates
Standardbred - 94 dates (April 17 - August 23)
Thoroughbred - 58 dates (September 11 - November 28)
Red indicates Standardbred Dates
Green indicates Thoroughbred Dates
Post Times
5:00 p.m. Sundays
7:00 p.m. Weekdays & Sundays
* Denotes Special Post TimesIHRC Approval - December 3, 1997