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Minutes of Public Meeting - March 17, 2015

Commission Members Present:

Bruce Quade
Tammy Lafferty
John McDaniel
Charles Tildon
Louis Ulman
Mary Louise Preis
Ernest Grecco

Members Absent:

David Hayden
John Franzone

Staff Present Representing the Maryland Racing Commission:

J. Michael Hopkins

Executive Director
Eric B. London
Assistant Attorney General

In accordance with the Notice of Public Meeting, as required by State Government Article, §10-506, Annotated Code of Maryland, the Maryland Racing Commission ("Commission") met in open session on March 17, 2015 commencing at 12:30 p.m. at Laurel Park, Laurel, Maryland.

Minutes - February 25, 2015.

The Commission waived a reading of the minutes of its February 25, 2015 meeting and voted unanimously to approve them.

Introduction of Kelly M. Schulz, Secretary of DLLR.

Chairman Bruce Quade introduced Kelly M. Schulz, the new Secretary of the Department of Labor, Licensing and Regulation, and thanked her for participating in the racing briefing held before the Ways and Means Committee in Annapolis. Secretary Schulz thanked Chairman Quade and stated that she was looking forward to working with the racing industry through the budget and legislative process and that she would always be available to discuss issues relevant to the racing industry. Chairman Quade commented that the Secretary has met with him and the Executive Director on a few occasions and appreciated her taking the time and was looking forward to future discussions.

Legislation.

Executive Director J. Michael Hopkins informed the Commission that Senate Bill 182 providing for an extension through 2019 for operating assistance for the harness tracks and Senate Bill 929 providing for specific benefits to the standardbred horsemen through the Cloverleaf Standardbred Owners' Association had crossed over into the House. Chairman Quade commented that the Commission had previously supported the two bills and the Executive Director advised that he would continue to monitor their progress.

Regulations - Final 09.10.02.43 and 09.10.02.52.

Executive Director J. Michael Hopkins reminded the Commission that regulation 09.10.02.43 and .53 provides for one qualifying time regardless of the size of a racetrack for the Sire Stakes and Foaled Stake races had been published for the appropriate time and that no public comments had been received. Mr. Hopkins further commented that the proposed change also reduced the amount distributed to the winner of a race from 60% to 55% and increased the amount to the third place finisher from 10% to 15%. Hearing no objection, the Commission unanimously approved the regulations for final adoption.

Maryland Jockey Club - Pimlico Spring Meet.

Executive Director J. Michael Hopkins presented the Commission with requests from the Maryland Jockey Club for its Pimlico spring race meeting beginning April 1, 2015 through July 31, 2015. Mr. Hopkins commented that the racing schedule would be comprised of 37 live and 84 simulcasting days and the importation and exportation of racing signals would be the same as the current meeting being held at Laurel Park.

Mr. Hopkins noted that the only change in the wagering format would be to add the "Rainbow 6" and to reduce the amount of takeout on the Pick 5. Commissioner Ulman asked if any carryover from these pools would be distributed on the last day of the meet. Sal Sinatra, representing the Maryland Jockey Club, commented that it depended on the amount in the carryover. The Commission expressed their concern that any carryover should be distributed on the last day of the race meet and approved the requests provided any carryover would be distributed on the last day of the meet.

Maryland Jockey Club - Satellite Simulcast Betting.

Executive Director J. Michael Hopkins informed the Commission members that he had received a letter from the Maryland Jockey Club expressing their intent to apply for a permit to conduct Satellite Simulcast Betting inside the Horseshoe Casino. Mr. Hopkins further commented that the documents needed to complete the application were being collected. Commissioner McDaniel asked if part of the application process was a review of the impact on the live racing programs. Mr. Hopkins responded that the application process would review the impact on live racing and that it would be reviewed on a yearly basis. Chairman Quade pointed out that the proposed opening date for this facility is May 1, 2015 and asked the Executive Director if that could be accomplished. Mr. Hopkins responded that he has provided the Maryland Jockey Club with a list of required documents and the expected opening may be attainable if the Jockey Club provides the information within two weeks of the meeting. Commissioner Grecco asked if the other Casinos, such as Rocky Gap, which has appeared before the Commission would be approached for future expansion of these facilities and if there would be tellers employed at the Horseshoe. Tim Ritvo, representing the Maryland Jockey Club, commented that the Maryland Jockey Club would explore the expansion of all wagering opportunities. Mr. Ritvo also commented that the use of live tellers would be evaluated and put in place if it was determined to be economically feasible. Chairman Quade asked Mr. Ritvo to provide the Commission with an update on their activities.

Mr. Ritvo commented that the construction of the new barns, negotiations to create a regional racing circuit and improvements to the Laurel and Pimlico facilities demonstrate the Stonach Groups' commitment to Maryland racing. Mr. Ritvo cautioned that any potential legislative change to slot revenue for the industry would adversely affect the positive strides in the racing industry. Mr. Ritvo continued stating that wagering has been increasing for the first time in a long time. Commissioner McDaniel suggested that the tracks continue pursuing the local newspapers to promote and market horse racing.

Video Lottery Revenue - Report.

Executive Director J. Michael Hopkins provided the Commission with the February 2015 VLT report. The Commission members expressed concern over the reduction of slot machines to make room for more table games and the impact that would have on slot revenues.

Public Comment.

Bob Lillis of the Maryland Horsemen's Assistance Fund informed the Commission members that the Fund was in the process of changing its tax exempt status from a 501(c)(4) to a 501(c)(3). The purpose of making this change would be to allow the Fund to receive tax deductible donations, which are currently not tax deductible, when they are collected by an organization operating under a 501(c)(4) status. This issue was raised when the Fund was collecting money for an exercise rider that was paralyzed from a fall. Chairman Quade asked if other changes were necessary and Mr. Lillis responded that the name of the Fund would change to the Maryland Horsemen's Assistance Foundation. The Commission applauded Mr. Lillis for being proactive and appreciated his comments.

Cricket Goodall, Executive Director of the Maryland Horse Breeders' Association, commented that the Maryland Horse Industry was hosting an event at the Calvert House in Annapolis for legislators from 6 to 8 and hoped the Commission members could attend.

Bob Lillis commented that on March 20, 2015, Maryland will learn whether two of its nominees, Trainer King T. Leatherbury and the horse, Extra Heat will be inducted into the Horse Racing Hall of Fame.

Next Commission Meeting.

The next Commission meeting will be held on April 21, 2015 at 12:30 p.m. in the Triple Crown Room at Pimlico Race Course, Baltimore, Md. 21215.

J. Michael Hopkins
Executive Director