Minutes of Public Meeting - March 4, 2025

In accordance with §3-302, General Provisions Article, Annotated Code of Maryland, the Maryland Racing Commission (“Commission” or “MRC”) met in person and by the Google Meets platform in open session at 12:30 p.m. at Laurel Park in the Tycoons Lounge. Chairman George Mahoney took a roll call of the Commission members and confirmed that all were present, except Commissioner Ellen Zavian. A quorum was present for the meeting.

Call to Order

Chairman Mahoney called the Commission to order at 12:30 PM.

APPROVAL OF FEBRUARY 4, 2025, MINUTES

The Commission waived a reading of the open minutes of its meeting on February 4, 2025. Executive Director Merz reminded the Commission that there was an update to the minutes that reflected that the Commission went into executive session. Chairman Mahoney acknowledged the update. Chairman Mahoney asked for a motion to approve the minutes. Commissioner Wayson made the motion to approve, Commissioner West seconded. Commissioners Shawn Wright and Dr. Jennifer Wright both abstained as they were not present at the previous meeting. The motion was unanimously approved.

APPROVAL OF EXECUTIVE SESSION MARCH 4, 2025, MINUTES

Chairman Mahoney asked for a motion to approve the executive session minutes from the February 4, 2025 meeting. Commissioner Lafferty made the motion, Commissioner Wayson seconded. Commissioners Shawn Wright and Dr. Jennifer Wright abstained as they were not present at the previous meeting. The motion was unanimously approved.

RATIFICATION OF THE FEBRUARY 7, 2025, EMAIL POLL OF HISA VOLUNTARY IMPLEMENTATION AGREEMENT

Executive Director Merz told the Commission that an email poll was conducted on February 7, 2025, where the Commission voted unanimously to approve the HISA Voluntary Implementation Agreement and that all documents have been signed. Mr. Eric London, counsel to the Commission, provided further details and gave a brief background on the document. Chairman Mahoney asked for a motion to ratify the email poll. Commissioner Wright made the motion, Commissioner Lafferty seconded. The motion passed unanimously.

EXECUTIVE DIRECTOR REPORT

Executive Director Merz started his report by talking about the recommendation of the Department of Legislative Services to lower the amount of VLT money that goes into the Purse Dedication Account from 6% to 5%. He said written testimony by himself and oral testimony by Secretary Portia Wu opposed this recommendation. He thanked the Thoroughbred representatives for providing written testimony to oppose the bill and thanked the Standardbred representatives for giving oral testimony against the bill. He thanked Lisa Watts for advocating for an additional percentage point to go into purses. Mr. Merz opined that it was nice to see both industries work together. He said for the industry to move forward, they need to work together.

Mr. Merz gave an update on Preakness Festival Week. He advised that First Lady Moore is overseeing Preakness Festival Week, with an objective to mirror what Kentucky does leading up to the Kentucky Derby. He said the festival is designed to bring more attention to Maryland and the Preakness Stakes. He thanked the Executive Director Anne Litz of the Horse Industry Board and Cricket Goodall of the Maryland Horse Breeders on a collective to pitch farm tours the Sunday prior to Preakness. He said the Preakness Festival Week committee was very excited by the idea and it was met with much optimism. Mr. Merz said that as committees begin to form and more details become available on the festival, he would share them with the Commission.

Executive Director Merz gave an update about farm tours. He said the first one was schedule for Thursday, March 6 and that all Commissioners where invited to come. He said if they are unable to make it, that other tours will be scheduled later in the month.

Executive Director Merz advised about Standard Operating Procedures moving forward for appeals. He recognized how long it was taking for appeals and worked with the Attorneys General’s Office to work out procedures in hopes to have appeals adjudicated within 60 days. Commissioner Wayson asked if 60 days is the fastest they can be adjudicated. Mr. Merz said his goal was to have appeals within 60 days or less. Commissioner Lafferty asked if appeals could be noted on the days the Commission has its meetings. Mr. Merz said that his goal was to have hearings on Commission meeting days moving forward. He told the Commission that there is only one litigator assigned to handle racing appeals, but he will try his best going forward to accommodate the request.

Executive Director Merz provided a calendar agenda page. This calendar page went over the days of Commission meetings, where the meeting was being held, when to have agenda requests in by, when agenda materials needed to be turned in and when packets to the Commissioners would be sent out. The Commission thanked Mr. Merz for his efforts to cut down on the late agenda items.

Executive Director Merz told the Commission that the state was auditing the Commission. The state was looking at procedures regarding cash receipts, VLT procedures and pari-mutuel taxes. Mr. Merz noted that he wanted to put this on the record to provide the public with transparency. He said he would provide any updates.

Mr. Merz continued his report by thanking members of the Commission for their input regarding the Onboarding Kit that was presented on February 4. He said VLT money, how it works and why it is important to the industry will be added to the kit. He also noted that the Kit will have a section on economic impact and what the Commission regulates. He advised that these changes will be made and that he expected a vote on the Kit at the April meeting.

Concluding his report, Executive Director Merz said the National Compact Committee had reached out to him to take the place of Mike Hopkins, the former Executive Director of the Commission. He said this action would require a vote by the Commission to allow him to take the position. Chairman Mahoney asked for a motion. Commissioner Lillis made the motion, Commissioner Lafferty seconded, and the motion passed unanimously.

MOVING OF COMMISSION MEETING TO THE FIRST WEDNESDAY OF EVERY MONTH

Executive Director Merz said he received a request from the Maryland Jockey Club (“TMJC”) to move the Commission meetings from the first Tuesday of every month to the first Wednesday. He said this would work better with the building operations, because Tuesdays are typically dark days and it is hard for TMJC to get enough staff in for the meetings. Commissioner Wayson and Commissioner West voiced that they had prior commitments on the first Wednesday of every month. The discussion then turned to whether the week after would work for everyone. Commissioner Wayson said that the second Wednesday of the month would work. Commissioner West objected and asked if Mondays would work. Mr. London said that Monday and Tuesday were no longer available at the racetrack. Chairman Mahoney asked for a motion to move Commission meetings to the second Wednesday of every month. Commissioner Lillis made the motion. Commissioner Lafferty seconded and the motion passed unanimously. Chairman Mahoney went on to thank The Maryland Jockey Club for their hospitality and generosity.

PIMLICO PREAKNESS MEET DATES APPROVAL

Executive Director Merz brought to the Commission’s attention The Maryland Jockey Club request for Pimlico Preakness meet race dates. He informed the Commission that the dates being requested were from May 5 to May 18, 2025. TMJC was requesting 6 days of live racing. May 9-11 will be run on a Friday-Sunday schedule with first post at 12:10. May 15-17 will be run Thursday- Saturday with Black Eyed Susan Day post time at 11:30 and Preakness day post time at 10:30 AM. He said the wagering menu for this meet is the same from last year. Chairman Mahoney asked for a motion to approve the racing dates. Commissioner Lafferty made the motion. Commissioner Wayson seconded and the motion passed unanimously. Mr. London, after the vote, asked Mr. Bill Knauf if it was okay to have the Commission meeting at Pimlico in May. Mr. Knauf said yes. Mr. London asked Mr. Merz to update the agenda calendar of the change.

THE MARYLAND JOCKEY CLUB PICK 5 MODIFICATION REQUEST

Executive Director Merz received a request from The Maryland Jockey Club for the modification of their early Pick 5 and carryovers. The request is for the early Pick 5 to have the same rules as the late Pick 5, which would allow it to have a carryover. The current early Pick 5 is a mandatory payout. He explained that the pool would have to pay out regardless, if there were five correct choices or not. He went on to explain that if this pool would have a carryover, it would carryover into the next racing day’s early Pick 5.

In addition to this request, Mr. Merz said The Maryland Jockey Club would also like to have their late Pick 5 carryover into the early Pick 5. He said this would make it so all Pick 5 carryovers would go into the next racing day’s early Pick 5. He said that the early Pick 5 outhandles the late Pick 5 by nearly half or more. With more money going to the early Pick 5 for the next racing day, it would give TMJC time to market the carryover and in theory get more eyes onto their card and play through the card the next day. Mr. Merz said this rule is currently in place in New Jersey and Indiana. Mr. London said that since these are two separate requests, the Commission needed two separate motions for approval. Hearing no questions, Chairman Mahoney asked for a motion to approve the rule change of the early Pick 5 to have the same rules as the late Pick 5. Commissioner Wayson made the motion, Commissioner Lillis seconded, the motion passed unanimously.

Chairman Mahoney asked for a motion to have the late Pick 5 carryover go into the early Pick 5 for the next racing day. Commissioner Wayson made the motion, Commissioner Lillis seconded, and the motion passed unanimously.

MARYLAND STANDARDBRED RACE FUND

Executive Director Merz told the Commission that a meeting of the Maryland Standardbred Fund Committee was held on Monday, March 3. Commissioner Lafferty presided over the meeting. He said the committee approved a budget of $2.4 million for the two stake programs. The two- and three-year-old Sire Stake horses will race for $2 million and the Standardbred fund (foaled) stakes will race for $400,000. This is the highest total purse structure for the Sired side of the program. The two- and three-year-old Sire Stakes will run for $95,000 twice a year, which was an increase from $90,000. He said the committee felt they have momentum and are bringing in new horses to race in Maryland under this program. They wanted to capitalize on their momentum by giving these categories a raise. Commissioner Lafferty said that the Standardbreds are showing great growth. They are hoping to get more money going forward to spread around the program, with the goal being $100,000 for the finals. Hearing no questions, Chairman Mahoney asked for a motion to approve the schedule. Commissioner Wayson made the motion, Commissioner Lillis seconded, and the motion passed unanimously.

ROSECROFT RACEWAY UPDATE

Executive Director Merz called on Lisa Watts for a Rosecroft Raceway update. Ms. Watts thanked everyone for the moving of the February 12 racing day to February 13, because of weather. She reported that the Pete Medhurst memorial race went well and was very emotional. Ms. Watts reported an increase of on track attendance and thanked Mr. Merz for attending the awards dinner. Ms. Watts ended her report by telling the Commission that boxing and an Easter Egg Decorating events are scheduled.

CLOVERLEAF STANDARDBRED OWNERS’ ASSOICIATION UPDATE

Executive Director Merz called on Gina Maybee to do the update. Ms. Maybee said most of her report was covered by Lisa Watts. Ms. Maybee said since the start of the Rosecroft meet an average of 78% of the purse money is going to Maryland connected horses. The industry has emphasized Maryland racing and are pleased with the results. Ms. Maybee said the Cloverleaf organization gave out 32 awards at the banquet held a week prior. They honored prominent horses in the state as well as grooms, drivers and trainers. They also honored two stallions that do dual-breeding here and abroad.

THE MARYLAND JOCKEY CLUB UPDATE

Executive Director Merz called on Bill Knauf to give the Maryland Jockey Club Update. Mr. Knauf started his report by saying the transition is still going well. Their new track superintendent John Bano looks to be on the grounds and starting his new role in two weeks. Mr. Bano will oversee the dirt surfaces at Laurel, Pimlico and the new training center. Mr. Knauf highlighted the hard work the track crew has done over the winter.

Mr. Knauf announced the hiring of Fritz Widaman as the Vice President of Sponsorships and Marketing, advising that he brings a wealth of industry knowledge and they are looking forward to having him on the team. Mr. Knauf said they are continuing their search to find a veterinarian. He said the process has been difficult. He concluded his update by stating that Preakness planning is underway and that he is working closely with Mike Rogers and the 1/st team for Preakness.

Commissioner Lillis asked why entries have been smaller over the last few weeks. Mr. Knauf stated that they are without 250 horses they typically had this time of year, because of the extended winter break and the closing of Pimlico. He is hoping with turf season around the corner that entries will start to pick up along with handle.

EQUINE MEDICAL DIRECTOR REPORT

Equine Medical Director Dr. Elizabeth Daniel delivered the report. Dr. Daniel went over fatalities for the month of February. She said there were three fatalities, none of which were racing related. They had one medical case of a horse getting an infection and being euthanized because the infection was too hard to overcome. They had one sudden death during training. The last one during training the horse took a bad step and suffered an injury to the neck, which caused spinal injuries. Due to the seriousness of the injuries, the horse had to be euthanized. She ended her update by saying that her search for new vets has intensified. She is going to a conference in Kentucky this upcoming week and will be using that time to try and recruit vets to Maryland.

Public Comment

Cricket Goodall of the Maryland Horse Breeders advised that the Renaissance Dinner will be April 11 at Laurel Park.

Jackie MacLeod of the Maryland Standardbred Association followed-up with what Gina Maybee and Lisa Watts had to say earlier in the meeting. The banquet gave out more than 40 awards. They gave out a new award to honor Tom Cooke. He thanked everyone for their hard work on the banquet.

April Smith urged the Commission to tell the MTROA that the plans for the new Pimlico need to be shared with the public. She said she is hearing that Stakes Barn would be eliminated. She said the stakes barn needs to be saved, in its entirety. She urged the Commission to pass the concerns along to the MTROA, because it was a bad idea.

Having no other public comment, Chairman Mahoney asked for a motion to adjourn the meeting. Commissioner Lillis made the motion, Commissioner Lafferty seconded, and the motion passed unanimously. The meeting adjourned at approximately 1:10 PM.

/s/ George P. Mahoney, Jr.  4/9/25     

Chairman