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Minutes of Public Meeting - April 21, 2015

Commission Members Present:

Bruce Quade
Tammy Lafferty
John McDaniel
Charles Tildon
Mary Louise Preis
Ernest Grecco
Dr. Thomas Bowman

Members Absent:

Lou Ulman

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 April 21, 2015 commencing at 12:30 p.m. at Pimlico Race Course, Baltimore, Maryland.

Chairman Bruce Quade.

Chairman Bruce Quade recognized former Horse Racing reporter for the Baltimore Sun Chris Korman, who was in attendance at the meeting. Chairman Quade noted that Mr. Korman has always been a big supporter of Maryland racing.

Chairman Quade also introduced Dr. Tom Bowman, the newly appointed Commissioner from Chestertown. Dr. Bowman explained that he had been a Veterinarian for over forty years, served as the President of the Maryland Horse Breeders' Association,owned Thoroughbred and Standardbred horses and had a long history in the racing industry. Dr. Bowman thanked Chairman Quade for the introduction and noted that he looked forward to serving the Commission.

Minutes - March 17, 2015.

The Commission waived a reading of the minutes of its March 17, 2015 meeting and voted unanimously to approve them.

Commission Attendance Requirements.

Executive Director J. Michael Hopkins informed the Commission that he had included in their meeting packets an explanation of the new requirements for Commission members regarding attendance at meetings. Mr. Hopkins explained that in order to continue to be a member of the Commission, Commission members must attend at least two-thirds of the scheduled meetings, unlike the previous 50% requirement. Mr. Hopkins also reminded the Commission that their 2014 ethics reports were due on April 30, 2015.

Maryland Standardbred Race Fund - 2015 Purses.

Executive Director J. Michael Hopkins presented the Commission with a request from the Maryland Standardbred Race Fund Advisory Committee for its 2015 purse distribution schedule. Chairman Quade asked if the purses were dependent on the revenue from the Video Lottery Terminals (VLT). Fund Administrator Cheri Stambaugh confirmed that the purses were dependent on VLT revenues and explained that the purses were also dependent on revenue derived from a special fund made up of uncashed tickets, taxes, license and permit fees. Hearing no objection, the Commission unanimously approved the request.

Maryland Standardbred Race Fund Advisory Committee.

Executive Director J. Michael Hopkins provided the Commission with a request from Prince George's Racing Ventures, Inc. (Rosecroft) nominating Lisa Watts to be their representative on the Standardbred Race Fund Advisory Committee, replacing John Finamore. Mr. Hopkins informed the Commission that Ms. Watts met the requirements to be a member of the Committee. Hearing no objection, the Commission unanimously approved the request.

Maryland Standardbred Breeders Task Force.

Chairman Bruce Quade announced that he has appointed a task force to review the standardbred racing and breeding industry, which would encompass a review of the standardbred breeding incentive programs, preferences and other issues identified by the task force. Chairman Quade stated that the task force would consist of himself, along with Commissioners David Hayden, Dr. Tom Bowman, Tom Winebrener, Tom Cooke, Dan Meyers, Cheri Stambaugh and Commission staff.

Maryland Horse Breeders - Yearling Show Report.

Executive Director J. Michael Hopkins informed the Commission that he had received a report from the Maryland Horse Breeders' Association accounting for the revenues and expenses related to the yearling show, which is required on an annual basis. The Commission accepted the report as submitted.

Maryland Jockey Club - Request For A Satellite Simulcast Betting Permit.

Executive Director J. Michael Hopkins informed the Commission that the Maryland Jockey Club submitted an application for a permit to conduct satellite simulcast betting at the Horseshoe Casino in Baltimore City. Mr. Hopkins further explained that he has provided the Commission members with copies of the application for their review and comment. Further, Mr. Hopkins explained that pursuant to the Business Regulation Article, Title 11, Annotated Code of Maryland, all of the prerequisites to request and issue a permit had been met and that the application has also been reviewed by the Office of the Attorney General for legal sufficiency. Chairman Quade asked Assistant Attorney General Eric London, Counsel for the Commission, if he had reviewed the application to which Mr. London responded that he had reviewed the application and advised that the application has met the legal requirements. Chairman Quade asked the length of time of the permit. Mr. Hopkins explained that the permit would expire on December 31, 2015. Tim Ritvo, representing the Maryland Jockey Club, explained to the Commission the he expected the facility to be open for the Preakness Prep (Kentucky Derby) and thanked all those involved in the process. Mr. Ritvo further commented that it was important to review the operation of the facility to ensure that it would grow the business and not cannibalize the on track wagering at either Pimlico or Laurel. Mr. Ritvo continued that if this business model works, the Maryland Jockey Club would work to open more facilities. Commissioner John McDaniel asked Mr. Ritvo about the anticipated impact of the Horseshoe facility. Mr. Ritvo responded that the Maryland Jockey Club projected 10 million dollars in handle for the industry, which would approximate to roughly $500,000.00 for the purse account. Hearing no objection, the Commission unanimously approved the permit.

Maryland Jockey Club - Update.

Mr. Ritvo explained to the Commission that the Maryland Jockey Club has placed approximately 300 flat screen televisions in both Laurel and Pimlico, upgraded the broadcast of races from standard definition to High Definition and had also renovated the Sports Palace at Pimlico, which allows for views of the racetrack. Mr. Ritvo further commented that the new barn at Laurel with a 150 stalls would be completed and ready for occupancy on Monday April 27, 2015 and that the second barn was beginning to be constructed.

Mr. Ritvo also advised that there has been dramatic growth in handle, with approximately $2,000,000.00 per day. Mr. Ritvo also noted that the MJC continues to have discussions to formulate a year-round regional racing circuit schedule with Delaware and Virginia.

Chairman Quade commented that as a handicapper, the new changes implemented by the Maryland Jockey Club have had a positive effect on wagering on Maryland races. Commissioner Ernie Grecco asked Mr. Ritvo about the status of the Bowie facility. Mr. Ritvo responded that all of the horses would be relocated from Bowie and that the future of the facility would be determined at a later time. Commissioner Tom Bowman commented that the improvements made at the facilities demonstrate the commitment by the Maryland Jockey Club to Maryland racing and will show the legislature that the revenue being received from the VLT program will provide a return on investment to the state.

Uniform Medication Update.

Executive Director J. Michael Hopkins informed the Commission that he had provided them with a list of states that have adopted or are in the process of adopting the uniform medication policies which include third party Lasix administration, uniform medication thresholds and multiple medication violation language.

In addition to the regional and national update on adoption of the recommendations, Mr. Hopkins further explained that the use of Cobalt salts has been reported by the media in other states and, as a result, Mr. Hopkins had a number of tests performed on both the harness and thoroughbred horses, which resulted in no excessive levels in the thoroughbred industry, but did reveal a number of high levels in the harness industry. As a result, Mr. Hopkins required the horses that indicated a high level not be allowed to race until, at the owners expense, the level was below 25 parts per billion. Chairman Quade acknowledged the efforts of Mr. Hopkins, which he characterized as a horse welfare issue and that the Commission is expecting to consider a regulation regarding Cobalt at its May meeting. In addition, Chairman Quade commented that he would be asking the medication and safety committee to conduct a self-assessment of the effect of the changes that have been implemented over the last year and a half. Furthermore, Chairman Quade reiterated the Commission's commitment to the Racing Medication and Testing Consortium.

Legislation.

Executive Director J. Michael Hopkins informed the Commission that the recently concluded legislative session passed four bills relating to racing. House Bill 180 extends through 2019 the ability of Ocean Downs and Rosecroft to apply for financial assistance for operating losses; House Bill 1160 repeals a requirement that at least 85% of the employees of a track licensee must be Maryland residents; and Senate Bill 929 and House Bill 1176 allow Cloverleaf Standardbred Owners' Association to apply to the Secretary of Labor, Licensing and Regulation for the reimbursement of certain expenses.

Video Lottery Revenue - Report.

Executive Director J. Michael Hopkins provided the Commission with the March 2015 VLT report. The Commission asked if any studies had been done to ascertain the impact of the reduction of slot machines. Mr. Hopkins responded that he was not aware of any study, but noted that it would not be difficult to find out the impact.

Public Comment.

Cricket Goodall commented that for the first time a Maryland trainer and breeder, King T. Leatherbury, has been inducted into the National Racing Hall of Fame. She also advised that a Maryland horse, Extra Heat, which was sold at Timonium, was also inducted.

Chairman Quade acknowledged the upgrades at the stable area at Timonium and commended Andy Cashman, the General Manager of the Maryland State Fair.

Chris McErlean representing Penn National Gaming acknowledged the success of the Maryland Jockey Club, but noted that Rosecroft no longer has access to the Stronach Group's signals. Although Mr. McErlean acknowledged that we live in a free market society where competition is healthy, he requested a level playing field.

Next Commission Meeting.

The next Commission meeting will be held on May 19, 2015 at 12:30 p.m. in the Triple Crown Room at Pimlico Race Course, Baltimore, MD, 21215.

J. Michael Hopkins
Executive Director