Texas Thoroughbred Forum

[jrgators]

Due to personal reasons I'm not currently an active member of the TTA, and can't run. If I were able to run, I would, and I'd do it to help as much as possible bring about change.

As for change, when we think about change, change is often not comfortable, and honestly somewhat scarry. I personally don't like change, and resist it rather strongly. It's hard to imagine my ability to function in this business had I not accepted the fact that there is time for a change, and what the change would be.

There is a need to look at things differently. I will put it like this.....When we take our "emotions" out of the picture, we can often see the picture more clearly. It's a good idea to even get an outside opinion. I think one of the reasons we as horsemen get stuck in these ruts is that we don't like change. We've been feeding horses the same feed for 20 years, and it works, and I'm not going to change. Been raping legs the same way for 20 years, and I'm not going to change. ETC. Because it's been done this way forever, doesn't mean that it's the right way, or better put, the best way, or only way to do something!

Would a reasonable person think this "rule" we have for elections on the TTA board "normal"? I'd bet not, and I'd also bet that most reasonable people would find it rather weird that we have such a process in place. But that's part of the problem, people don't want to change, or see change.

G2W and some others have been pushing that we need to accept change, and this is a good chance for them to use their power and influence to get these boards to come to 2011, and embrace change.

Theo

[Gate2Wire]

Rog, you & I must be reading different reports. All the things the JC forum is recommending, you are are against (ex. More support for incentives to make more open racing possible, consolidated meets, less dates - not more). Especially the bad racing, I don't know how you guys can keep making the same arguments when the numbers don't lie. Everyone knows that not everyone can own a G1 or G2 horse, but why do we put ourselves in a position where they don't make any money for us?

Key, when the CEO of GG stated in front of the TRC they were expecting a 52 MILLION dollar loss over the next 5 yrs, what part of that do you not understand?

The 1st statement made by Penn Gaming was "we are not here to support a bunch of bad racing"........you should think about that.

[tinners way]

I think there are some excellent points made in the JC study and not one word about slots.

Gate you continually want something that doesn't exist. We have what we have, and that is our starting point. I made the bold recommendation to just shut the whole thing down last year, and I am sure you were even crawfishing on that one. That would have ruined everyones slots plan.

Amount and quality of racing has many variables. Part of the recommendations are for the tracks to more carefully plan, for major races run on the same day to coordinate better to maximize handle, move race days of the weeks, reduce total number of races per day, etc. But you still have to account for a way to pay for all the horses that are not running G1 and G2 and claiming races. Gate, you appear to be a knowledgable guy(s), how do you take an only 4% decline in wagering on claiming races and discredit an entire industry?

Retama had better results last year, and is there anything to suggest that we can't see improvement again this year. It seems that Bryan Brown spoke about the need for fuller fields, accomplished it, and had better numbers. And the JC agreed
"It has been well known in the industry that field size matters, but our extensive regression allowed us to quantify this relationship, from which we see a strong correlation between field size and handle. In this example, adding an eighth starter to a mid-sized race drives a handle increase of nearly 11%."

And the JC roundtable fully embraces technology as a way forward. Do you think some of your energy going into slots should be channeled into educating legislators about something else?
"Before we do, I want to say that we are realists, and we know that you have lived this history for the last 10 years or, in some cases, more, and we went back with your help and studied that history. So don't be surprised if you have heard, tried, or even funded many of the growth ideas in our strategy before. The shift to online betting, online video, online gaming, smartphones, tablets, and mobile applications is changing the world of sports marketing in fundamental ways. We think that some of the same tactics that racing has used in the past and abandoned can be executed in totally new ways and with much more success. We also believe that success will come from individuals taking immediate action. We aren't relying on grand coalitions or universal consensus to move forward."

I guess we can all learn. Not one word about slots.

[jrgators]

Very well put Tinner! Thanks!

[Roger]

[quote="Gate2Wire"]Rog, you & I must be reading different reports. All the things the JC forum is recommending, you are are against (ex. More support for incentives to make more open racing possible, consolidated meets, less dates - not more).

a. one of us must not understand the word All .

b. more support for incentives??? I mention last year that with the state of racing in Texas, we could benefit from a gift from the state. Less take-out and a grant. I've been an advocate for sponsorships for our stakes races. The TTA and THP really should research that idea. What incentives do you propose?

c. I have stated several times that we need to make the BEST use of the purse money that we do have. Having Million Dollar days in our state at this time was not a good idea. Purses have to match the available horse population. Most of our allowance races can only get 5-7 horses unless they are on the grass then they may fill. Most of our horses never run through their conditions, but that is pretty much universal. I have no problem with condition books paying half a days purse money for two or three races.

[tinners way]

Gate, a bit more follow up from your earlier post.

Yes, Lone Star is committed to Texas racing for the next 5 years and while the projection is there for potential losses, they firmly believe that will not be the case. Some of those dollars I am sure will be capitalized in plant and equipment improvements. The TRC had real concerns why an entity would potentially look at a $100 million dump. I think they answered it well.
Below is testimony of John Elliott CEO of Global Gaming on the LSP financial projections from the minutes of the May TXRC meeting
Page 65

MR. ELLIOTT: Good morning.
8 CHAIRMAN PABLOS: How are you?
9 MR. ELLIOTT: Good. Thank you,
10 Commissioners and staff, for the opportunity to speak
11 today. I'm John Elliott, the CEO of Global Gaming
12 Solutions.
13 First I want to thank Drew and Ricky for
14 their kind words on Global Gaming Solutions and the
15 Chickasaw Nation. I also want to thank the TRC staff
16 and Department of Public Safety for their assistance in
17 this lengthy process that we've been in.
18 We look forward to expanding the Texas
19 relationship through our investment in Lone Star Park.
20 As you've heard, we acquired Remington Park and we feel
21 that Remington Park and Lone Star Park are natural fits
22 that will benefit both Texas and its horse racing
23 industry.
24 The progress we've made with improvements
25 and innovations at Remington Park that you've heard a
66
little bit about I think has earned 1 us some respect
2 with the horsemen. And I certainly do not stand up
3 here saying that I have spent my career in the horse
4 industry. That's not the case.
5 But it's also increased our confidence
6 that racing can survive as part of today's
7 entertainment culture and encouraged us to take the
8 financial risk at Lone Star Park that Ricky discussed.
9 To survive, track owners must have the
10 financial strength to weather the storm that currently
11 engulfs the racing industry. We believe that Global
12 Gaming and the Chickasaw Nation, together with Drew and
13 his management team and Ricky Knox, have the
14 capabilities, expertise, and resources to bring Lone
15 Star Park safely through the storm.
16 We are very pleased and fortunate to have
17 Ricky Knox as our Texas partner, as he shares our
18 values and our desire to make the racing industry
19 profitable. We will look to him, as well as Drew, for
20 leadership and guidance as together we seek to find
21 solutions to the tough problems that confront the
22 racing industry.
23 We're eager to work and to find those
24 solutions. And certainly there's no panacea cure.
25 We'll do our best to work with you, the staff, Ricky,
67
and the Texas horse racing industry 1 for the betterment
2 of the industry and to save Texas horse racing.
3 So on that note, I'd like to close and
4 say thank you and I'm happy to answer questions.
5 CHAIRMAN PABLOS: Any questions,
6 Commissioners?
7 Hearing none, I have a question. We've
8 heard Chairman Polunsky ask -- and this is a concern I
9 share. Should you be awarded this license, the last
10 thing I would want to see is for you to shut down the
11 track tomorrow and hold onto your license in
12 anticipation of any additional forms of gaming, I mean,
13 very plainly spoken.
14 And so the concern that I have is exactly
15 that, is knowing the commitment that you would have,
16 because in your documents that you've submitted, you
17 forecast out five years. And so in your commitment to
18 continuing to keep the track open, to fund it, I would
19 be interested in knowing -- and maybe it wasn't fair to
20 ask Mr. Knox because you're the one with the money.
21 Would you be committed to keeping the track open at
22 least during the time that you've estimated in your pro
23 formas?
24 MR. ELLIOTT: Yes, we are unequivocally
25 committed to keeping the track open. I think you've
68
seen that in the pro formas. We are 1 not standing here
2 being delusional as to what the financial needs of Lone
3 Star Park might be. I think you've also seen the
4 demonstration of that commitment already with the
5 numbers that were referred to that have already been
6 invested by us in Lone Star Park without holding the
7 license. And without the license, that money is
8 completely lost by us. I think you've also seen the
9 evidence of it at Remington Park.
10 CHAIRMAN PABLOS: Would you be willing to
11 make that a condition of the issuing of this license?
12 MR. ELLIOTT: I think we would be willing
13 to make it a condition of the license through the
14 period of which those forecasts have been presented to
15 the Commission.
16 CHAIRMAN PABLOS: That's what I was
17 asking. That's what I was asking. Thank you.
18 Commissioners, any other questions?
19 Commissioner Ederer?
20 COMMISSIONER EDERER: If I understand
21 what was just said, that you will -- you will commit to
22 keeping the track open for the next five years.
23 MR. ELLIOTT: Correct.
24 COMMISSIONER EDERER: No matter what
25 happens.
69
MR. 1 ELLIOTT: Correct.
2 COMMISSIONER EDERER: And you're going to
3 lose a hundred million dollars.
4 MR. ELLIOTT: Possibly, yes. We hope, as
5 I've indicated, that we can do better than that --
6 COMMISSIONER EDERER: That's your
7 projections.
8 MR. ELLIOTT: -- but you have the
9 projections.
10 COMMISSIONER EDERER: Well, it's a very
11 real possibility that there's not going to be any type
12 of gambling at all, including machines, at least for a
13 minimum of two years.
14 MR. ELLIOTT: We understand that. In
15 fact, in answer to your question, I guess, 50 million
16 dollars goes out the door on Monday if this license is
17 awarded.
18 COMMISSIONER EDERER: Right. I guess
19 I'm -- we're all wrestling with the rationale.
20 MR. ELLIOTT: Let me comment on it.
21 First, Lone Star Park was originally built for a cost
22 approaching some 100 million. So today it has a net
23 book value of assets of some 50 million dollars. Lone
24 Star Park has historically been profitable. Lone Star
25 Park was even profitable at the time we entered into
70
1 the acquisition.
2 Our record at Remington Park demonstrates
3 we feel that we have some chance of improving the
4 performance at Lone Star Park. We also believe that
5 there are clear synergies that exist between Remington
6 Park and Lone Star Park that will benefit both track
7 operations. And finally, Lone Star Park is a
8 prestigious entertainment asset in a prestigious
9 entertainment location.
10 Those are the reasons that we believe the

And concerning comment "The 1st statement made by Penn Gaming was "we are not here to support a bunch of bad racing"........you should think about that."

The first 2 racetracks Penn Gaming owned and operated were Penn National Race Course and Charles Town Races. For most of their history, those 2 tracks have been the real backwaters of East Coast racing. Even today, most of their cards are dominated by lower-level, conditioned claimers.

Penn National is open year round for racing.
They offer a total of 21 stakes races, 9 of which are restricted, and none of the open 12 are graded.

Charles Town is also open year round for racing.
They offer a total of 30 stakes races, 18 of which are restricted, and it is only recently that the Charles Town Classic became their first graded (G3) race out of the 12 open stakes.

Texas racing is NOT open year-round.
This year, on a combined basis, Texas offers 37 stakes races, 21 of which are restricted, and 3 of the 16 open stakes are Graded (all G3).

Look at any recent card at either of Penn's tracks and tell me that the horses that run at those meets don't look an awful lot like a typical Texas racing card.

Penn Gaming is not looking to support bad racing, and it is easy to look at the product they already put on to see what we should expect. You should think about that.

[keyranch]

One thing about G2W they are consistent! Just like the associations reps, facts never get in the way of an agenda. Boutique meets in states that have boutique meets at one track while other tracks provide year round racing so their industry can survive is understandable. Using boutique meets to place a few more nails in the coffin of Texas racing and to get rid of those pesky trainers, breeders, and horsemen that want to make a living in Texas is another! Do any of you people have a conscious?

The stated goal of the 48% cut in race dates last year was to create a crisis large enough to get the legislators attention. What is the goal of bleeding out another 15% of the horsemen each year by restricting their racing opportunity? The horsemen are not the ones that failed your slots or nothing agenda, you failed to present to the legislators something they could support! You have failed the horsemen for over a decade and the arrogance of these folks that continue to make these decisions without consequence while the horsemen that are trying to make a living in Texas are getting economically hurt more and more each year. Do any of you people have a conscious?

It is obvious from the Fasig sale entries that many TTA board members have moved horses to LA because of their LA bred program. At the same time they refuse to look at the T-bred program that since the rules change a decade ago has contributed to the decline in their membership of well over 50%. No one demands these folks bring their horses back to Texas, but if you chose to spend your money in LA; run for their board and help them acheive the same success you have done for us the last decade or so. Do any of you people have a conscious?

[jellac]

Taking a break from the never ending acrimony that has come to characterizet his thread, I thought this might be of interest to many Texas and neighboring states' horsemen/breederes and trainers (Excerpted from the TTA website, which in turn excerpted it from TAHC) -

VEE confirmed in Mexico, TAHC encourages equine owners to consult with veterinarians

8/23/2011
(from TAHC news release)

Due to recent cases of Venezuelan Equine Encephalitis (VEE) in Southern Mexico, horse owners and veterinarians are encouraged to be alert to any clinical signs of illness that could indicate VEE. Venezuelan Equine Encephalitis (VEE) is a non-contagious viral infection of horses and other equids that can cause a severe and often fatal encephalitis/encephalomyelitis, which is defined as an inflammation of the brain and spinal cord.

VEE is typically found in Central and South America, but due to the recent case of a horse that died of VEE in Southern Mexico, the United States Department of Agriculture (USDA) issued an import alert for four states in Mexico. Effective immediately, and until further notice, horses and other equids from the states of Tamaulipas, Veracruz, Tabasco, and Chiapas or that have transited through these states are required to undergo a 7-day quarantine and observation for VEE in a vector-proof (double-screened) quarantine facility, rather than the standard 3-day quarantine prior to entry into the U.S. The particular VEE virus being reported by Mexico is considered an endemic strain, which doesn’t normally cause disease in equids. The import alert issued by USDA is a precautionary measure due to the one horse in the State of Tabasco that has died from the virus. The severe outbreak that occurred in Texas in 1971 was caused by a different, more virulent strain of the virus.

Clinical signs of VEE include moderate to high fever, depression, lack of appetite, cranial nerve deficits (facial paralysis, tongue weakness, difficulty swallowing), behavioral changes (aggression, self-mutilation, or drowsiness), gait abnormalities, or severe central nervous system signs, such as head-pressing, circling, blindness, and seizures.

VEE is usually transmitted by mosquitoes, and infrequently by other bloodsucking insects. People may also be infected by mosquitos, but horse-to-horse and horse-to-human transmission is uncommon. VEE is highly pathogenic in horses. It can also cause illness in humans.

VEE is a foreign animal disease, reportable to both the TAHC and the Department of State Health Services due to the potential for human illness. Vaccination may interfere with testing for the disease, so veterinarians need to weigh the potential risks and benefits of vaccinating an individual horse that might be tested for export.

“There have been no reported cases of VEE in recent years in Texas. However, our close proximity to Mexico means that we will be keeping a close eye on any cases across the border and determining whether any further regulatory action will be needed,” said Dr. Andy Schwartz, TAHC State Epidemiologist. “Vaccination and other protective measures for all equine including West Nile Virus, Western and Eastern Equine Encephalitis (WEE/EEE) should be discussed with your veterinarian.”

For more information about VEE visit http://www.cfsph.iastate.edu/Factsheets ... elitis.pdf.

For the American Association of Equine Practitioner VEE vaccination guidelines, visit http://www.aaep.org/eee_wee.htm.

For import requirements, go to the USDA Center for Import/Export
http://www.aphis.usda.gov/import_export ... tine.shtml

Founded in 1893, the Texas Animal Health Commission works to protect the health of all Texas livestock, including: cattle, swine, poultry, sheep, goats, equine animals, and exotic livestock.

[jrgators]

Thanks so much for posting Jellac!!

[Horsecrazy]

Come on Key, SOS? Come on!

[Roger]

I've been thinking about the topic of questions for prospective board members. First of all, I think the questions should not be adversarial (sp) in nature. They should give each candidate a chance to express their feelings without fear of us jumping on them for having that opinion.

My first question would be, " As a board member, what do you hope to do to improve the current situation of smaller purses, fewer dates, and a diminishing value of ATBs?" That could be three questions.

My second question would be, "As a board member, "What do you see as the most pressing challenges of the TTA?"

My third question would be, "What options do we have other than slots, if we are to survive in this business?"

[keyranch]

Well, I must be more adversarial. I would concentrate the questions on why did you vote to support the reduction in race dates. Why do you support TTA board members being on the board of Texas HORSE. Why do you not support changes in the T-bred rules?

These folks that have been on the board, should answer for the TTA's position's against the horsemen.

If the finances of the TTA are in such a dire condition, how can you justify paying the ED to work out of state as a steward in LA? Is this how the administration fees the TTA charges should be spent? After all the membership has dropped over 50% since he came on board. You might want to ask these folks how they feel about the job the association and ED have done in that time frame!

Will you support changes in the by-laws to truly reflect the stances of the association. IE reduce racing opportunity, attack and discredit members with opposing views, and refusing the requests of the TRC!

[Roger]

[quote="keyranch"]Well, I must be more adversarial. I would concentrate the questions on why did you vote to support the reduction in race dates. Why do you support TTA board members being on the board of Texas HORSE. Why do you not support changes in the T-bred rules?

These folks that have been on the board, should answer for the TTA's position's against the horsemen.

If the finances of the TTA are in such a dire condition, how can you justify paying the ED to work out of state as a steward in LA? Is this how the administration fees the TTA charges should be spent? After all the membership has dropped over 50% since he came on board. You might want to ask these folks how they feel about the job the association and ED have done in that time frame!

Joe, your questions are pointed at most standing members, I know what most of them think. We have problems and I want to see how they think and I want to know if they are problem solvers.

[jrgators]

I am not aware if any of you know this or not, but there is a dire situation in Bastrop Co, and they need help with Evacuating horses. Check out Vicke Caldwells FB page, she has the contact numbers.

Theo

[Bedouwia]

Texas horse folks are amazing... the horses is emergency need in Bastrop were all evacuated, to safe locations... some for the second time!!! Sadly, the fires are still burning and who knows what will happen next? Still, hats off to those who came to the rescue.

All horse owners need to have an emergency plan, just in case. I spoke to a friend who was trying to help, and sometimes you cannot get a horse into the trailer under these circumstances. If that happens, and you have to go, be sure to allow the horse some freedom, and put a tight halter on them, with a duck tape label of ownership and contact information. It has happened that horses will find a way to safety, if there is a chance for them.

Hoping for an end to these terrible fires soon.

Bedouwia