2014-15.vp

45th Annual Report
California Horse Racing Board
A Department of the Business,
Consumer Services and Housing Agency
A Summary of
Fiscal Year 2014–15 Revenue and
Calendar Year 2015 racing in California
California Horse Racing Board
Chuck Winner, Chairman Richard Rosenberg, Vice Chairman Madeline Auerbach, Member Steve Beneto, Member Jesse Choper, Member George Krikorian, Member Alex Solis, Member Bo Derek, Former Member Rick Baedeker, Executive Director Jacqueline Wagner, Asst. Exec. Director This report covers the fiscal year (July 1, 2014, through June 30, 2015) for revenue purposes, including pari-mutuel handle, fines, taxes, license fees and the distribution of funds, as well as the report of the Postmortem Program. This report covers the 2015 calendar year for reports on race meets and CHRB meetings.
The CHRB general office is located at 1010 Hurley Way, Suite 300, Sacramento, CA 95825.
Field offices are located at all operating racetracks. Annual reports are available at:

Report from the Chairman
The California Horse Racing Board elsewhere for the first time in four years. Excluding Breeders' and racing industry made great Cup business, total wagering actually increased by 1.6 percent.
strides together in 2015 by focusing These figures demonstrate the importance of attracting the on proactive programs to improve world championship thoroughbred races to California as of- equine welfare and promote racing ten as possible. In addition to increased wagering, the integrity. And by year's end, all par- 100,000 people attending the two-day Breeders' Cup event ties came together to stabilize rac- typically generate in excess of $40 million in increased sales ing and training operations in in the region. The Breeders' Cup will return to Santa Anita in Southern California as they contin- 2016, and then Del Mar will host the event for the first time ued to collectively address the chal- in 2017. We look forward to having those great days of rac- lenges created by the closure of Hollywood Park in 2013.
ing back in our state.
My second year as chairman went fairly smoothly, thanks in Reflecting the stable business environment, racing interests large part to the hard work and support of my fellow com- have continued to invest heavily in the infrastructure. New missioners and Executive Director Rick Baedeker and his stalls have been added at Los Alamitos Race Course and San staff. We were all disappointed to see Bo Derek leave the Luis Rey Training Center — with even more stalls antici- Board after doing so much fine work during her seven years pated in 2016. And Del Mar replaced its synthetic racing sur- as a racing commissioner. Fortunately, Alex Solis agreed to face with a dirt main track, thanks to the support of the 22nd serve on the Board and bring his insights as an active jockey.
Racing in California is benefiting from his expertise, espe-cially with respect to issues dealing with the safety of racing Significantly, racing interests led by the Stronach Group are committing an estimated $700,000 for the installation of avideo surveillance system in the stable area at Santa Anita — I believe that racing in California continues to be well served the first step in what we hope eventuaally will be a statewide by a Board of highly qualified and very dedicated individuals.
program at all of the major racing and stabling centers to im- Richard Rosenberg's service as our vice chair has been in- prove security and reassure fans of California horse racing valuable to me and to the Board. Commissioners Madeline that only authorized, well-meaning individuals are entering the Auerbach, Steve Beneto, Jesse Choper, and George stalls of horses entered to run and that everyone is playing on a Krikorian all have impressive credentials and have worked level field.
tirelessly to do what is in the best interest of the sport that welove. Together we have a strong commitment to preserving The industry continues to expand its in-state simulcast wag- horse racing as a sport and industry for the benefit of the ering network by opening new wagering operations in sports bars, restaurants and other existing businesses. Theaddition of Striders in downtown San Diego late in the year Perhaps most importantly, Rick Baedeker and Jackie Wagner marked the 10th mini-satellite in the state to offer wagering and their entire team are without equal. I can't thank them on horse racing. We still have the potential to increase the enough for their knowledge, dedication, work ethic, and in- number of satellite facilities by as many as 35 to reach the tegrity. We are all fortunate they are a part of California rac- maximum of such facilities authorized by statute. An 11th ing. We are grateful for the support of the Governor, the Leg- mini-satellite is scheduled to open in Norco early in 2016.
islature, the Business, Consumer Services and HousingAgency (BCSHA), the University of California at Davis The industry named a new company to provide totalizator (UC Davis), and all other organizations, individuals and in- services at all California wagering facilities. Amtote Interna- terests who sustain our efforts.
tional began operations here on October 28, 2015. The tran-sition from the previous provider to Amtote had some minor start-up glitches, but given that Amtote installed more than3,000 wagering machines at 40 locations in a matter of Somewhat remarkably, the California horse racing business weeks and that California has the most complex pari-mutuel has held fairly steady for the last five years, despite the closure system in North America, pari-mutuel executives expressed of Hollywood Park and the cessation of racing at the Los An- relief that the transition went as smoothly as it did.
geles County Fair. It seems that racing has reached a set point— holding very close to $3 billion in wagering by fans of Cal-ifornia horse racing after declining by $1 billion the previous Racehorse Health and Welfare
decade. Handle in 2015 dropped 2.7 percent, but that was California is in step with the rest of the country in imple- largely attributable to the Breeders' Cup being held menting National Uniform Medication Program model CALIFORNIA HORSE RACING BOARD ANNUAL REPORT medication rules, laboratory standards, and enhanced penal- Race Dates and Stabling
ties for repeat offenders. To this end, the CHRB, often an in- One of the more difficult issues for the CHRB and the indus- dustry leader when it comes to medication policy, has try has been dealing with the changing landscape of racing in adopted rules reducing authorized levels for therapeutic California. The closure of Hollywood Park, the cessation of medications, which included restrictions on corticosteroids racing operations at the Los Angeles County Fairgrounds, in racehorses, thus addressing a great source of concern. We and, going further back, the demolition of Bay Meadows, all also set limits on the amount of the natural element cobalt have involved a reallocation of racing dates. Identifying ade- that can be present in the horse to eliminate abuse by over- quate stabling for horses racing in California following the elimination of approximately 4,000 stalls at those three loca- We continued progress toward the eventual requirement that tions has made the process far more complicated.
all anti-bleeding medication (Lasix) be administered by an The racing calendars are evolving with Golden Gate Fields, independent veterinary professional rather than private vet- Santa Anita, Del Mar, and Los Alamitos Race Course pick- erinarians. We appreciate the cooperation of the California ing up the bulk of the dates vacated by Bay Meadows and Veterinary Medical Board and the BCSHA's support in this Hollywood Park. The Board will continue evaluating busi- ness trends and other factors at those and other racing facili- Our own safety stewards continued working with racetrack ties in a continuing effort to maximize racing opportunities superintendents and maintenance crews on the Racing for racing associations and fairs.
Safety Program, which includes monitoring racing surfaces The stabling issue continues to be complex due to the high and establishing track safety standards with the goal of re- costs of providing stalls and maintaining racing surfaces for ducing injuries to both horses and riders.
the training of horses preparing to race in California. There The CHRB and horse racing industry continue to be focused also are environmental issues, as some communities are hesi- on equine safety and the reduction of equine injuries and fa- tant to authorize the construction of new stalls. Temporary talities. These efforts resulted in a further 5-percent reduc- arrangements are in place, thanks to the cooperation of all tion in fatalities within CHRB-controlled facilities during stakeholders, and we are all working to secure permanent, the last fiscal year. The CHRB will continue to make equine adequate stabling for the years ahead.
health and safety issues an extremely high priority, including One source of relief for the overcrowding of horses at Cali- stressing continuing education for trainers and assistant fornia racing and training facilities will be a program intro- duced in 2015 involving the implantation of microchips in a While improvements to their design have made riding crops small number of horses stabled at Golden Gate Fields and the kinder to horses and all but eliminated injuries due to whip- Alameda County Fairgrounds. Some owners already have ping, the CHRB took a major step to address public percep- volunteered to have more than 150 horses microchipped, tion and rider and horse safety by adopting a rule in 2015 and the CHRB has plans to make microchip identification strictly limiting the use of the riding crop. Jockeys using the mandatory. Once racing executives can positively identify the riding crop in excess of the limitations have been fined current location of every horse in the inventory, they should and/or suspended.
be able to determine which horses are actually competingand eligible for stall space.
Protecting the Integrity of Racing
The CHRB received a budget increase of $1.2 million for FY 2015-16, allowing for the Kenneth L Maddy Equine Analyt- The panels of three stewards at every operating racetrack ical Chemistry Laboratory at UC Davis to continue provid- have a tremendous responsibility to represent the Board and ing its high level of drug testing services and research to the oversee operations at those facilities. They are in the public California racing industry. We appreciate the support pro- eye when they conduct inquiries that affect millions of dol- vided by BCSHA in this matter. As detailed elsewhere in this lars in wagers. They make rulings involving the livelihood of annual report, the Maddy Laboratory conducts all primary individuals licensed by the CHRB. And together with the post-race testing as well as out-of-competition testing and safety steward, they are responsible for the health and safety other services to provide a critical line of defense against of all racing participants.
those who would take unfair advantage over those who play To assist stewards in this important work and to promote by the rules.
uniformity of regulation, Executive Director Baedeker rec- We are very pleased to report that California horse racing ex- ommended and the CHRB created the position of Chief perienced only four Class 1, 2, or 3 medication violations Steward. We were fortunate to have a highly qualified stew- during the 2014-15 fiscal year — the lowest number of ma- ard within our ranks to assume this new position. Darrel jor medication violations in at least 40 years.
McHargue has been a California steward since 1990, and be-fore that he was a highly successful jockey, who earned an FISCAL YEAR 2014–15 Eclipse Award for his riding achievements in 1978. Begin- Ahmed Zayat, and ridden by Southern California jockey ning December 26, 2015, Darrel left the stewards stand at Victor Espinoza, American Pharoah became a major celeb- Golden Gate Fields and began working with his colleagues rity in North America and provided welcomed public atten- throughout the state. We are proud to have taken this tion to the sport. Given that our state-bred California proactive step for the improvement of horse racing in Cali- Chrome won the previous year's Kentucky Derby and Preakness, California has maintained its stature as one of thepremier racing centers in the world.
On another bright note, American Pharoah, the brilliant coltthat began his career by winning major stakes races for2-year-olds at Del Mar and Santa Anita in 2014, went on towin the Kentucky Derby, Preakness, and Belmont Stakes in2015 to become the first horse to sweep racing's TripleCrown in 37 years, since Affirmed in 1978. Trained by Cali- Chuck Winner, Chairman fornia-based conditioner Bob Baffert, owned and bred by California Horse Racing Board CALIFORNIA HORSE RACING BOARD ANNUAL REPORT Table Of Contents California Horsemen's Organizations Welfare Funds . . . . . . . . . . . . . . . . . 49Audited Expenses of California Horsemen's Organizations . . . . . . . . . . . . . . . 49Audited Financial Statements of California Horse Racing Industry . . . . . . . . . . . . 50 FISCAL YEAR 2014–15 Names and Locations of Racing and Training Facilities
Regulated by the California Horse Racing Board
All of these locations except San Luis Rey Downs and Galway Downs, which are
private training centers, and the Humboldt County Fair are open to the public during
their off seasons for simulcast wagering.
Privately Operated Race Tracks
01–Del Mar, Del Mar02–Golden Gate Fields, Albany 03–Los Alamitos, Cypress04–Santa Anita, Arcadia Racing Fairs
05–Alameda County Fair, Pleasanton 06–California Exposition, Sacramento 07–Fresno District Fair, Fresno 8–Humboldt County Fair 9–San Joaquin, Stockton 10–Sonoma County Fair, Santa Rosa 11–San Luis Rey Downs, Bonsall 12–Galway Downs, Temecula Alameda Stanislaus CALIFORNIA HORSE RACING BOARD ANNUAL REPORT Names and Locations of Simulcast-Only Facilities
Regulated by the California Horse Racing Board
Valley Fair, Lancaster ers Casino, Salinas* ona Casino, Lakeside ce Casino, Commerce* Expo Centre, Indio antasy Springs Casino, Indio irehouse Restaurant, Bakersfield* resno Club One, Fresno 10–Lake Perris Sports Pavilion, Perris11–Los Angeles County Fair, Pomona 12–Monterey County Fair, Monterey 13–National Orange Show, San Bernardino 14–OC Tavern, San Clemente* 15–Ocean's 11, Oceanside* 16–Roadhouse Grill, Santa Maria* 17–Sammy's Restaurant and Bar, Mission Viejo* 18–San Bernardino County Fair, Victorville 19–San Mateo Events Center, San Mateo 20–Santa Clara County Fair, San Jose 21–Santa Clarita Lanes, Santa Clarita* 22–Shasta District Fair, Anderson 23–Solano County Fair, Vallejo 24–Stanislaus County Fair, Turlock 25–Striders, San Diego* °° 26–Sycuan Band of Mission Indians, El Cajon 27–Tilted Kilt, Thousand Oaks* 28–Ventura County Fair, Ventura 29–Viejas Casino and Turf Club, Alpine * Mini-satellite locations °° Opened October 30, 2015 FISCAL YEAR 2014–15 The California Horse Racing Board
History and Mission Statement
Horse racing has been taking place in California since the 1800s, but horse racing as
we now know it — under the pari-mutuel wagering system — was not made possible
until the electorate passed a Constitutional Amendment in 1933. The Horse Racing
Law has since been regularly modified, amended, and enhanced to provide for
regulation of live racing, off-track wagering, interstate and international wagering, and
online account wagering, known as Advance Deposit Wagering, or ADW.
Horse Racing Law is to al- and oversight of all race meets in the days conducted by racing associa- low pari-mutuel wagering state where pari-mutuel wagering is tions and fairs.
on horse races and: conducted, as well as off-site simulcast t Encouraging innovative expansion wagering locations and ADW compa- Assure protection of the public.
of wagering opportunities, such as Encourage agriculture and thebreeding of horses in this state.
t Monitoring and auditing pari- mutuel handle and takeout, and the Provide uniformity of regulation The mission of the CHRB is to ensure appropriate use of takeout distribu- for each type of horse racing.
the integrity, viability, and safety of the t Provide for maximum expansion of California horse-racing industry by t Assessing racing surfaces to deter- horse-racing opportunities in the regulating pari-mutuel wagering for mine safety standards for the benefit public interest.
the protection of the public, promot-ing horse racing, breeding, and wager- of the participants.
To accomplish these objectives, the ing opportunities, and fostering safe t Enforcing laws, rules, and regula- Constitutional Amendment autho- racing through the development and tions pertaining to horse racing in rized pari-mutuel wagering on the re- enforcement of track safety standards sults of horse races at licensed race and regulations for the health and wel- meets and created the California Horse fare of all participants.
t Acting as a quasi-judicial body in Racing Board (CHRB/Board) to over- matters pertaining to horse-racing see the industry's activities in this state.
Principal activities of the CHRB in- In addition, as a member of the Associ- t Collecting the State's lawful share of ation of Racing Commissioners Inter- t Adopting rules and regulations to revenue derived from horse-racing national (RCI), the CHRB exchanges protect the public and ensure the information on licensees and disciplin- safety of the human and equine par- ary proceedings with other commis- The following pages explore some of sions of the RCI through the National these programs and functions in more State Racing Information System.
t Licensing racing associations and racing-industry participants and of- The CHRB is a seven-member com- mission appointed by the Governor. It CALIFORNIA HORSE RACING BOARD ANNUAL REPORT

Members of the
California Horse Racing Board
The Board consists of seven members appointed by the Governor,
generally to four-year terms, who are subject to Senate confirmation. Members are
eligible for reappointment at the discretion of the Governor. The terms are specific; no
more than two of the terms expire in any calendar year.
Atleastfourmembersof Commissionersreceiveaperdiemof Bagley-Keene Open Meeting Act.
the CHRB must concur $100 for each day spent in attendance Whenever a Board quorum is expected in the taking of any official at meetings and are reimbursed for at any meeting of a committee, the ex- action or in the exercise of travel and other expenses necessarily ecutive director shall give notice that any of the Board's duties, powers, or incurred in the performance of their the meeting is a Special Meeting of the functions. The member commission- official duties.
California Horse Racing Board limited ers elect their chairman, who presides to the agenda, the items to be discussed over meetings of the Board. The mem- Committees of the Board
at the meeting, and the expected com- bers also elect a vice chairman or when missioners in attendance, so that legal necessary a 1st vice chair and a 2nd vice The executive director is directed to notice may be published.
chair to preside in the absence of the provide public notice of committee meetings in accordance with the Founded Winner & Associates, LLC, Former worldwide head of the Music in 1975. Appointed to the CHRB by Department of the William Morris Governor Edmund G. Brown Jr. on Agency, later became a member of April 9, 2012, through the executive committee.
July 26, 2015. Reappointed by Appointed to the CHRB by Governor Brown through Governor Arnold Schwarzenegger on July 26, 2019.
September 24, 2009. Reappointed by Governor Edmund G. Brown Jr.
through July 26, 2016.
FISCAL YEAR 2014–15

Members of the California Horse Racing Board
Former CFO of JSA Founded Beneto, Inc. in Corporation from 1977 - 1979. Appointed to the 2004. Appointed to the Edmund G. Brown Jr. on Edmund G. Brown Jr. on May 21, 2012, through January 2, 2014, through January 1, 2016.
January 1, 2018.
Governor Brown through January 1, 2020.
Jesse H. Choper,
Dean and Earl Warren Premiere Theaters since 1984. Appointed to the University of California, Berkeley. Appointed to the Edmund G. Brown Jr. on CHRB by Governor Arnold May 6, 2013, through Schwarzenegger on July 26, 2013.
March 30, 2007.
Reappointed by Governor Governor Brown through Schwarzenegger through July 26, 2017.
January 1, 2015, and by Governor Edmund G.
Brown Jr. through July 26, 2019.
Bo Derek,
Jockey, riding in the Actress, active in United States since 1982, humanitarian efforts for member of National people and animals.
Museum of Racing's Hall Appointed to the CHRB of Fame. Appointed to the by Governor Arnold Schwarzenegger on July Edmund G. Brown Jr. on 15, 2008. Reappointed by April 30, 2015, through Governor Edmund G.
January 1, 2018.
Brown Jr. through January 1, 2018. She completed her service on April 27, 2015.
CALIFORNIA HORSE RACING BOARD ANNUAL REPORT Board and Committee Meetings
Racing commissioners met 21 times in 2015 for public Board
and Committtee meetings. Noticed meetings are open to the
public and include a published agenda. The following 11
Board meetings were held:
Los Alamitos Race Course February 19, 2015 November 19, 2015 Del Mar Simulcast Facility Del Mar Simulcast Facility December 17, 2015 Golden Gate Fields Del Mar Simulcast Facility Los Alamitos Race Course September 24, 2015 Los Alamitos Race Course Committee Public Meeting Dates
Medication & Track Safety Jockey & Driver Welfare Medication & Track Safety Pari-Mutuel, ADW & Simulcast NorCal Race Dates & Stabling Medication & Track Safety September 4, 2015 Los Alamitos Race Course Golden Gate Fields Del Mar Simulcast Facility Legislative, Legal & Regulations SoCal Race Dates & Stabling Pari-Mutuel, ADW & Simulcast Golden Gate Fields Los Alamitos Race Course Medication & Track SafetyMay 27, 2015Santa Anita Park FISCAL YEAR 2014–15 CHRB Operating Budget
July 1, 2014 – June 30, 2015
Personal Services Operating Expenses Exchange Wagering Allocation Total Appropriation Expenditures — Personal Services
Salaries and Wages Total Personal Services Operating Expenses and Equipment
Facilities Operations Contractual & Professional Services-Interdepartmental Contractual & Professional Services-External Consolidated Data Center Central Administration Services: Pro Rata Exchange Wagering Total Operating Expenses and Equipment Total Expenditures **Unexpended Balance FY 2014-15 Total Expenditures & Unexpended Balance * Includes year-end accruals **Unexpended balance includes $443,000 allocated to Exchange Wagering. This program was not implemented.
CALIFORNIA HORSE RACING BOARD ANNUAL REPORT Governor Edmund G. tiveDirectorRickBaedekerisrespon- Horseracing'sdynamics,complexity, Brown Jr.'s Reorganiza- sible for the department's operations and broad geographical base place a tion Plan took effect July and regulation of the horse-racing in- tremendous responsibility on the 1, 2013. This comprehen- dustry. The executive director is sup- Board's staff. To assist in this day- sive overhaul of state government, as ported in this regard by the assistant to-day oversight, the CHRB contracts approved by the Legislature, elimi- executive director, Jacqueline Wagner; with stewards and veterinarians for nated or consolidated dozens of de- by the general counsel, Robert Miller, on-track activities, and with the Uni- partments and entities. As part of this as well as by supervisorial personnel versity of California, Davis, for drug reorganization, the CHRB came un- and staff at CHRB offices and at all of testing and safety-related services.
der the Business, Consumer Services, the state's racetracks.
The horse-racing industry operates and Housing Agency.
The executive and management team seven days a week — 365 days a year.
Horse racing's specialized and com- plans and oversees the CHRB's budget Even when there is no live racing, the plex regulatory requirements drive the and directs the department's opera- stable areas and training facilities re- CHRB's organizational structure and tional divisions: Administrative Ser- main active. To meet the demands determine the responsibilities for its vices, Legislation and Regulations, associated with this schedule, the exec- Audits, Licensing, Information Tech- utives and key managers remain avail- nology, and Enforcement.
able at any hour of the day.
The Board appoints an executive direc-tor to carry out its objectives. Execu- Assistant Executive Director
Appointed effective February 3, Appointed December 5, 2011.
2014. Previously held numerous Previously Manager of Policy & executive positions in horse Regulations from 1997 to 2004 racing from 1989.
and from 2005 to 2011.
FISCAL YEAR 2014–15 The following rules were amended, repealed, or added during 2015:
Rule 1433
Application for License to Conduct a Horse Racing Meeting: Amended to remove the requirement that a polymer synthetic-type racing surface be installed at Californiathoroughbred racing facilities. The amendment also revises forms CHRB-17 Ap-plication for License to Conduct a Horse Racing Meeting and CHRB-18 Applica-tion for License to Conduct a Horse Racing Meeting of a California Fair torequire: 1) more detailed stakes information; 2)information regarding equineemergency services; 3) wagering changes that differ from the prior year, and 4)takout percentages for each type of wager.
Rule 1588
Horse Ineligible to Start in a Race: Amended to provide that a horse on a Veterinar- ian's List in another racing jurisdiction is ineligible to start in any race, except withprior approval of the stewards for good cause. Good cause includes: 1) unforeseenadministrative issues; 2) the location of the horse prevents it from being evaluatedby the official veterinarian of another racing jurisdiction in order to be cleared fromthat jurisdiction's list, provided the horse is approved by a California official veteri-narian, or 3) any other unforeseen event or reason that would prevent a horse thatwould otherwise not be on a Veterinarian's List from being cleared.
Rule 1632
Jockey's Riding Fee: Amended to adjust the scale of jockey riding fees for losing mounts by 12.5 percent in order to comply with the first of two incremental Cali-fornia minimum wage increases, as directed by Business and Professions Code sec-tion 19501. The amendment also applied the 12.5 percent adjustment to the scaleof the jockey riding fees for all mounts not sharing in purse monies to ensure thatriders with second and third- place mounts in races with a gross purse of $9,999 orless receive more than a losing mount.
Rule 1688
Use of Riding Crop: Amended to replace the word "whip" with "riding crop" within the text and title of the rule. The amendment also prohibits a jockey from using ariding crop on a horse more than three times in succession without giving thehorse a chance to respond before using the riding crop again.
Rule 1843.2
Classification of Drug Substances: Amended to add cobalt to the CHRB Penalty Categories Listing by Classification. The amendmement also reclassifies and addsspecified drug substances.
Rule 1844
Authorized Medication: Amended to remove clenbuterol from the list of drug sub- stances that may be detected in an official urine test sample from a quarter horse.
Rule 1844
Authorized Medication: Amended to revise the allowable level of ketoprofen that may be present in a test sample from 10 nanograms per milliliter of blood plasmaor serum to 2 nanograms per milliliter of blood plasma or serum of the drug sub-stance. The amendment also adds isoflupredone to the list of drug substances that ablood serum or plasma may contain in an amount that does not exceed 100picograms per milliliter.
CALIFORNIA HORSE RACING BOARD ANNUAL REPORT Rule 1858
Test Sample Required: Amended to remove the maximum limit of nine horses des- ignated each day for testing by the Equine Medical Director, the stewards, or theofficial veterinarian. In addition, the amendment requires that every horse nomi-nated, pre-entered, or registered to race at an inclosure be subject to testing. Theamendment defines "registered to race at an inclosure," as a horse that has papersfiled with a racing association under the jurisdiction of the Board.
Rule 1866
Veterinarian's List: Amended to provide that after being placed on the Veterinar- ian's List (List) as sick or having received veterinary treatment-shockwave therapy,a horse may not work out for 72 hours without the permission of the official veteri-narian. The amendment also requires a horse to remain on the List for a specificnumber of days after being placed on the List as lame or unsound before the horseis eligible to be removed from the List.
Rule 1866.1
Presence of Clenbuterol in Quarter Horses: Adopted to provide that a quarter horse prescribed clenbuterol will be placed on the Veterinarian's List (List) until an offi-cial test sample shows there is no clenbuterol in the blood or urine of the quarterhorse after a workout to demonstrate its physical fitness. A quarter horse placed onthe List for clenbuterol will not be allowed to start in a race until the horse is re-moved from the List. Veterinarians prescribing clenbuterol must fill out formCHRB-24 (Veterinarian Report) and must be in compliance with Rule 1864, La-beling of Medication. Administration of clenbuterol must also be reported by thetrainer with form CHRB-60 (Trainer Medication Report).
Rule 1891.1
Penalty for Possession of Electrical Device: Adopted to provide that a case against any licensee for the possession or use of an electrical device, as prohibited under Rule1890(c), shall be referred to the Board for hearing. If the Board finds that a licenseehas violated or conspired to violate Rule 1890(c), the licensee shall have his or herlicense revoked. In addition, the amendment provides that if the Board finds that aviolation of Rule 1890(c) has occurred, the matter shall be referred to the districtattorney for the county in which the violation occurred.
FISCAL YEAR 2014–15 The CHRB licensing unit is comprised of two racing license supervisors and eight
racing license technicians assigned to the thoroughbred, quarter horse, and harness
venues. During a licensed racing meet at any of the racetracks in the state, a licensing
field office of the CHRB is established
at the operating facility.
or duplicate licenses in FY 2014-15. Licenses is- cants were screened for disqualifying criminal histories by sued included 3,244 new or renewal owner li- querying these automated criminal history records. Addi- censes, 371 new or renewal trainer or assistant tionally, all CHRB licensees were subjected to the same trainer licenses, 152 new or renewal jockey or apprentice criminal history checks upon scheduled license renewal jockey licenses, 1,906 new or renewal groom or stable em- ployee licenses, and 442 new or renewal pari-mutuel clerk li- The licensing staff verified that all licensed trainers had the censes as well as many other classes of occupational licenses.
required workers' compensation insurance. The racing pro- The issuance of these licenses generated $787,580 in licens- gram was checked daily to ensure that participants were ing fee revenue for the General Fund.
properly licensed. Racing license technicians are trained on The live-scan fingerprint technology and digital photograph the complex circumstances of multiple partnerships, racing identification card system continued to streamline the licens- syndications, stable names, and various types of corpora- ing process. The applicant's fingerprints were digitally cap- tions, so they were able to explain the requirements to appli- tured and the fingerprint image transmitted to the California cants and assist them in selecting the type of license that best Department of Justice and the Federal Bureau of Investiga- met their needs. As part of the verification process, the racing tion National Crime Information Center (NCIC) databases.
license technicians utilized computer databases, consulted The NCIC database contains criminal history information with other racing jurisdictions, and also worked closely with from federal, state, local, U.S. territory, and foreign criminal CHRB enforcement personnel.
CALIFORNIA HORSE RACING BOARD ANNUAL REPORT Appointed CHRB Officials —
FY 2014–15
Michael "Wayne" Oke Dr. Forrest Franklin Dr. Donald Dooley Dr. Timothy Grande Dr. Clifford Zucco FISCAL YEAR 2014–15 The responsibility for onsite supervision of race meets is placed with racing officials
appointed or approved by the CHRB. The racing officials are the stewards, safety
stewards, paddock judges, patrol judges, starters, clerks of scales, official veterinarians,
racing veterinarians, horse identifiers, horseshoe inspectors, and timers. The stewards
have overall responsibility for the conduct of the race meets.
TheCHRBselectsandcon- tMade recommendations to the infirmhorses,accidents,andinjuries; tracts with stewards based CHRB regarding the qualifications approved prescribed therapeutic treat- on their experience and ex- and fitness for licensure of appli- ment regimens; and otherwise acted as pertise. Each panel of three cants referred to them by the the Board's veterinary advisors.
stewards at a race meet has been Board's licensing staff.
The horse identifiers accurately identi- delegated the powers and duties neces- t Maintained minutes of all such pro- fied all breeds of racehorses that had to sary to ensure the integrity of racing ceedings for review by the Board be identified before starting in any and to oversee compliance with the and the public.
race. The horse identifiers supervised Horse Racing Law and CHRB rules.
the tattooing of horses and maintained The stewards attended Stewards' The CHRB directly appoints all stew- that information in the identification Committee meetings, allowing them ards and official veterinarians, while records of each horse, along with pho- to discuss issues, rule changes, and in- the other racing officials are nominated tographs and other information relat- terpretations of policy and to receive by the racing associations subject to ing to unique markings, color, pedi- information. They shared their views CHRB approval.
gree, and a narrative description.
and experiences relating to race re- The Legislature provides an annual ap- views, veterinary practices, proper ad- Safety stewards enforced compliance propriation to meet the costs of direct ministrative hearing procedures, and with safety standards. They also: racing supervision. The CHRB paid other important work-related matters.
t Monitored training to ensure that $2,184,641 in FY 2014-15 for stew- The meetings helped them remain cur- exercise riders, outriders, and pony ards and official veterinarians. Other rent on laws, regulations, and policies, riders observed all rules.
racing officials were paid by the associ- helping ensure that all stewards' deci- ations in the manner prescribed and sions are made in a fair and consistent t Established horse ambulance proto- agreed to by the CHRB.
manner throughout the state.
col for quick response during train-ing and racing.
Acting for the CHRB in matters relat- The official veterinarians, overseen by ing to the race meets assigned to them, the Equine Medical Director (EMD, t Implemented use of certified para- the stewards used their delegated au- Dr. Rick Arthur), enforced CHRB medics on ambulance crews.
thority for the following: regulations relating to veterinary prac- t Oversaw continuing education tices, medication, and the health and Oversaw entries, declarations, and classes for provisional exercise rid- welfare of the horse. They supervised the placing of horses for the official ers and apprentice jockeys.
operations of the receiving barn, the order of finish.
collection of urine and blood samples t Investigated selected horse fatalities.
t Conducted administrative hearings for testing, and the preparation and t Approved licenses for all riders.
on matters involving racing infrac- documentation of the samples to be tions and other offenses.
transported to the laboratory.
t Conducted field sampling and test- ing for the Track Surface Standards Issued rulings based on those hear- The official veterinarians consulted ings to impose suspensions of li- with the EMD and track veterinarians, cense, impose fines, and/or bar examined horses for fitness, main- t Monitored and observed daily back- individuals from the enclosure for tained a health and racing soundness side activities.
racing offenses.
record for each racehorse eligible to t Performed pre-meet track inspec- compete at a race meet, reviewed con- Presided over exams required for fidential reports of veterinary treat- certain classes of licenses.
ments of horses under their general su- t Assisted in out-of-competition medication testing.
CALIFORNIA HORSE RACING BOARD ANNUAL REPORT California is the only state with a statewide pari-mutuel database providing services to
racetracks, horsemen, and government. Services provided by CHRIMS include data
collection, calculation of takeout distributions, database management, software
development, pari-mutuel accounting and settlements, money room balancing,
customer resource management, and statistical analysis.
poration whose members include Northern Cal- TVG, XpressBet, and Watch & Wager.
ifornia Off-Track Wagering Inc. and Southern CHRIMS partners with the California Marketing Commit- California Off-Track Wagering Inc. An eight- tee on its technology projects, manages the intrastate tote member board of directors, which includes representatives wagering telecommunications network, and provides data from day and night racing associations, horsemen, and rac- relating to the specifics of races (runners, distance, surface, ing fairs, oversees the CHRIMS operation. The CHRIMS age, class, etc.) via downloads from Equibase.
databases contain California wagering and attendance datadating back to 1985.
CHRIMS also provides services to racetracks, ADWcompanies, and racing commissions outside California.
CHRIMS has been instrumental in helping the California Contracts include Amtote, Aqueduct, Belmont, Colonial racing industry cope with the demands associated with the Downs, eBet, Ellis Park, Gulfstream Park, the Horse Races changing landscape of pari-mutuel wagering during the past Now, TheHorseRaces.com, Keeneland, Laurel Park, Louisi- 30 years. Specialized applications enable data technicians to ana Downs, Meadowlands, Monmouth Park, Pimlico, Port- electronically collect wagering data and calculate the distri- land Meadows, Sam Houston, Saratoga, Tampa Bay Downs bution of takeout based upon California pari-mutuel and The Red Mile. Racing commissions and horsemen's horse-racing law and contractual business rules.
organizations include the Illinois Thoroughbred Horse- Each day, CHRIMS downloads parimutuel data from vari- men's Association, Kentucky Horse Racing Commission, ous totalisator systems. The data includes wagering pools, Massachusetts Gaming Commission, and the North Dakota takeout commissions, breakage, minus pools, runner pay, re- Racing Commission. CHRIMS processes and provides re- funds, uncashed tickets, and voucher information. The raw porting services relating to the six California licensed ADW data collected from totalisator systems is compiled and trans- companies: Game Play Network, Lien Games, TVG, lated into the CHRIMS database parameters. CHRIMS Twinspires, WatchandWager, and Xpressbet. CHRIMS also data can be sorted by a myriad of criteria, including by date, provides simulcast settlement services for many of its cus- race, pool, host track, location of bet, location type, breed, geographic zone, zip code, state, and race type. CHRIMS CHRIMS Inc. received $417,112 from unredeemed vouch- connects to and downloads data from AmTote, United Tote, ers in 2015.
and Sportech, plus the six licensed California ADW compa- FISCAL YEAR 2014–15 To protect animal health and the integrity of racing, the CHRB requires analysis of blood and urine samplesfrom horses in competition. The Kenneth L. Maddy Equine Analytical Chemistry Laboratory (Maddy Lab) at University of California, Davis (U.C. Davis) is the authorized drug-testing laboratory for California horse racing. Funded by wagering revenues, the Maddy Lab tested 53,755 samples in FY 2014-15. and blood samples, including in-depth testing of 11,987 for anabolic steroids, 18,234 bicarbonate The Maddy Lab, under the direction of its chief chemist, Dr.
(TCO2) loading blood samples, 1,398 out-of- Scott Stanley, was re-accredited by the American Association competition (OOCT) blood samples, 235 OOCT and for Laboratory Accreditation to international standards. The post-race hair samples, 42 evidence submissions, and 582 Maddy Lab utilizes state-of-the-art scientific instrumentation, other samples for various purposes in FY 2014-15. The cost to the State of California was $1,987,250.
(LC-MS) screening processes. The combined testing panel Urine and blood samples are obtained post-race from the covers over 1,500 drugs utilizing a spectral library for forensic winner of every race, horses finishing second and third in cer- identification. The Maddy Lab routinely adds new drugs and tain stakes races, and from any other horses selected at ran- updates its metabolite profiles as new information becomes dom from each program, as well as other horses designated by the stewards. Post-race testing includes in-depth testing The Maddy Lab conducts ongoing research to improve test- for anabolic steroids and over 1,500 other prohibited drugs, ing capabilities for potential drugs of abuse and to provide from regularly used therapeutic medications to potent stim- information to better treat horses and remain in compliance ulants such as dermorphin. Special testing for cobalt with horse-racing rules.
included blood and urine race samples and necropsy tissuesamples.
The Maddy Lab conducted research or published scientificpapers on acepromazine, amikacin,, andarine, bambuterol, Checking for TCO2, a prohibited practice known as betamethasone, buprenorphine, butorphanol, carbaza- "milkshaking," is conducted on thoroughbreds and harness chrome, ceftiofur, chloramphenicol, clenbuterol, cobalt horses. Thoroughbred TCO2 testing is done pre-race; har- dehydroepiandrosterone (DHEA), dexmedetomidine, dex- ness horse TCO2 testing is primarily done pre-race, but some TCO2 sampling is done 90 minutes post-race on winners.
ergoloid mesylate, ethylestrenol (Nitrogenâ), fentanyl, The CHRB thoroughbred and pre-race harness TCO2 pro- grams are in compliance with the Racing Medication and megalumine, gamma- aminobutyric acid (GABA), GHRP-2, Testing Consortium (RMTC) Best Practices recommenda- GHRP-6, GW1516, hair testing, insulin, isoflupredone ace- tions and the Association of Racing Commissioners Interna- tate, medetomidine, methocarbamol, methylprednisolone ac- tional (RCI) model rule for TCO2 testing.
etate, metronidazole, morphine, neostigmine, nikethamide, OOCT, conducted throughout the year, is critical for compli- ostarine, 6-oxo, pergolide mesylate, penicillin, phenyl- ance in human sports testing and is necessary to detect cer- butazone, propoxyphene, propofol, propranolol, romifidine, tain prohibited drugs. OOCT targets blood- doping agents, tranexamic acid, trazadone, triamcinolone acetonide, tripel- biopharmaceutical agents. The OOCT program monitors ennamine, zoledronic acid, and numerous other drugs. Of compliance with anabolic steroid reporting procedures and particular interest was research to better regulate the use of for surveillance of other drugs of interest. The CHRB and corticosteroids, especially intra-articular corticosteroids in Maddy Lab expanded the program in FY 2014-15 to include horse racing.
equine hair analysis, an alternative testing matrix to expand The pharmacology research is conducted under the direction the drug-detection window.
of Dr. Heather Knych, the Maddy Lab's veterinary pharma- The Maddy Lab retains a portion of every urine sample for cologist. Much of the Maddy Lab's research program is retrospective testing should a new test become available.
funded by outside sources, including the Center for Equine Samples underwent retrospective testing for carbazachrome, Health, RMTC, Dolly Green Research Foundation, cobalt, zilpaterol, and ractopamine. Combining this with Grayson/Jockey Club Research Foundation, and CaliforniaDepartment of Food and Agriculture.
CALIFORNIA HORSE RACING BOARD ANNUAL REPORT Racing Safety Program
California Business and Professions Code section 19481 requires the CHRB to establish safety
standards to improve the safety of horses, riders, and workers at the racetrack. Business and
Professions Code section 19481.3 requires the stewards to prepare a report that identifies the
circumstances and likely causes for all on-track accidents. In addition, the Business and
Professions Code establishes the qualifications for licensing and the duties of trainers and
Program (RSP), which be- to inform the horse racing and other race meeting and address any concerns gan in 2010, addresses the equine industries of the education op- with track mangement and track su- requirements of the Busi- portunities they provide. The CHRB's ness and Professions Code and is cred- objective is to gain support and partici- The RSP is expanding the MPP by im- ited with proactively creating programs pation to ultimately allow for the com- planting microchips in an ever-increas- that have significantly reduced injuries pletion of additional modules.
ing number of California racehorses.
to both horses and riders.
The CHRB/CAHFS Postmortem Pro- Launched in 2014, the MPP objective The RSP focuses on: gram identifies the pathology related is to develop hardware and software to the death of the racehorse and pro- that will allow paperless inventory 1. Continuing education; vides scientific understanding of spe- analysis and movement tracking for 2. The University of California, Da- cifically what injuries occurred. Post- California racehorses. InCompass So- vis (U.C. Davis) California Ani- mortem Program reports by fiscal year lutions has developed a microchip mal Health and Food Safety are available on the CHRB website un- module for its racetrack operations der the Veterinary tab.
software, which will store all informa- Postmortem Program; tion specific to each microchippped The CHRB continues to conduct in- horse. A hand-held wand or scanner 3. Fatality investigations; vestigations into every racehorse fatal- will identify the chip specific to each ity that occurs at a California racetrack 4. The Track Safety Standards Pro- horse, and then that data will be trans- or official training facility. This infor- ferred via a tablet computer to the mation is studied to understand the InCompass software. The horse's in- 5. The Microchip Pilot Program cause of each fatality and to identify formation in the database will be auto- methods for detecting and preventing matically updated. The CHRB devel- The continuing education program is a oped a plan to microchip horses in The TSSP has the objective of creating Pleasanton and at Golden Gate Fields CHRB and U.C. Davis in which two operational and maintenance stan- to allow a comprehensive field trial and education modules have been com- dards for all racing surfaces in Califor- demonstration of the hardware and pleted and a third is nearing comple- nia. The program addresses the devel- software. The MPP is scheduled to be tion. The goal is to offer all three of the opment of standard racing surface completed by the end of FY 2015-16.
modules online, free of charge or for a performance measurement tools and The CHRB is working closely with small fee, in the spring of 2016. The surface material performance testing.
other racing jurisdictions and the As- CHRB in partnership with U.C. Davis Regular testing and track evaluation is sociation of Racing Commissioners Extension has produced an informa- scheduled for every racing surface in International to update the licensing tive DVD showcasing the two com- the state. The safety stewards continu- test for trainers.
FISCAL YEAR 2014–15 Equine Postmortem Program
and authorized training facilities are monitored.
track. There is a distinct link between equine safety and This is accomplished through the CHRB/Uni- jockey safety. Nearly a third of all jockey falls are associated versity of California, Davis (U.C. Davis)/Cali- with a sudden death or catastrophic injury to the horse.
fornia Animal Health and Food Safety (CAHFS) In-depth analysis of necropsy specimens at VORL has dem- Laboratory System Postmortem Program. The Postmortem onstrated the role of undiagnosed stress fractures contribut- Program annual report provides a descriptive report of find- ing to catastrophic fractures of the pelvis, femur, humerus, ings from the Postmortem Program. These reports are scapula, tibia, third metacarpal (shin), and other bones.
posted on the CHRB website under the Veterinary link Pre-existing pathology at the site of the fatal injury is a re-oc- when available.
curring finding at enhanced necropsy, with nearly 90 percent The CHRB/U.C. Davis/CAHFS Postmortem Program be- of musculoskeletal racing and training fatalities showing gan in 1990 as a partnership between the CHRB and the pre-existing pathology associated with the fatal injury. While CAHFS laboratory system under the School of Veterinary much of the pre-existing pathology is only detectable at Medicine at U.C. Davis. The program was established to study the nature of injuries occurring in racehorses, to deter- instrumentation, these pre- existing changes could lead to mine the reasons for these injuries, and to develop preven- early clinical detection techniques and injury prevention pro- tion strategies.
grams. Using information from the necropsy program, theCHRB is collaborating with Dr. Stover and The Jockey Club CHRB Rule 1846.5, Postmortem Examination, requires a to develop online continuing education modules to help necropsy for all horses dying within a CHRB facility. More than better understand how bone responds to training and racing, 6,000 necropsies have been performed over the last 24 years, while allowing trainers to identify horses at risk.
but FY 2014-15 saw the lowest number of fatalities for any fullracing year since FY 1994-95. CAHFS laboratories at Davis Dr. Stover and her team have been focusing on proximal and San Bernardino conduct all of the postmortems except sesamoid bone fractures for several years. Proximal sesamoid those from the Fresno fairgrounds (performed at the CAHFS bone fractures and associated fetlock (ankle) injuries are the laboratory in Tulare). CAHFS veterinary pathologists perform single major cause of fatal racehorse injuries, both racing and the necropsy and prepare a report. Additional testing, such as training. Proximal sesamoid bone fractures, as has been seen toxicology, microbiology, histology, virology, or other special- with other fractures, frequently have pre-existing but cur- ized tests may be necessary before a final report is issued.
rently undetectable bone pathology.
Funding for the entire program is a cooperative effort. The Research findings are published in veterinary medical jour- CHRB funds the postmortem examinations, the racing asso- nals and presented at professional meetings. A list of the pub- ciations provide transportation to the CAHFS laboratories, lished articles can be found in the appendix of the annual and specific studies are funded by research grants from pri- postmortem reports on the CHRB website.
vate and public sources, including the Center for Equine While the focus is on musculoskeletal injuries, the necropsy Health at U.C. Davis.
program allows for the study of other conditions important to Musculoskeletal injuries are the most common cause of fatal- equine health and safety. In FY 2014-15 the program allowed ities at CHRB facilities. Musculoskeletal specimens of spe- CAHFS pathologists and toxicologists to identify a link be- cial interest are forwarded to the J.D. Wheat Veterinary Or- tween traces of anti-coagulant rodenticides and unusual hem- thopedic Research Laboratory (VORL) at U.C. Davis for orrhage in six fatality cases over the previous two years. The in-depth analysis. This is part of the CHRB's Racing Safety CHRB instituted an anti-coagulant rodenticide educational Program. Details on that program can be found on page 21 outreach and monitoring program at racetracks. Sudden of this report.
deaths are an internationally recognized sport horse phenom-enon. The CHRB/CAHFS program has greatly improved The uniquely equipped VORL is under the direction of Dr.
necropsy and toxicology procedures for sudden death fatality Sue Stover. The immediate goal of the enhanced necropsy is investigations over the last few years and currently is investi- to determine the causes and reasons for horse injuries and fa- gating the relationship between subtle pathological findings talities. The ultimate goal of this and other programs is to in cardiac tissue and equine sudden deaths through grants improve detection of injuries earlier to reduce serious from the Center for Equine Health.
CALIFORNIA HORSE RACING BOARD ANNUAL REPORT Fatalities at CHRB Facilities by Track and Surface
July 1, 2014 — June 30, 2015
Cal Expo (Harness) Cal Expo (State Fair) Fairplex (Pomona) Golden Gate Fields San Luis Rey Downs *Racing includes any fatality associated with racing.
**Training includes any fatality associated with training.
***Other includes any non-exercise related fatality , including stable area accidents. The most common cause of death in theOther group is gastro-intestinal diseases, such as colic, colitis, and enteritis, followed by respiratory disease, primarily pneu-monia and pleuropneumonia, and neurological diseases, including West Nile Virus and equine protozoal myeloencephalitis(EPM).
Starts for All Breeds: July 1, 2014 — June 30, 2015
Cal Expo (Harness) Cal Expo (State Fair) Golden Gate Fields FISCAL YEAR 2014–15 Horse Racing in California
continues to developchampion horses, beginning with astatewide stakes program for2-year- olds that offers signifi-cant prize money and attractsmany of the most promisingyoung horses in North Amer-ica. California also providesrich racing opportunities forthe 3-year-olds as they continueto develop. The results ofthese programs were evidentin 2014 when California Chrome followed up on his romp in the Santa AnitaDerby by winning the Ken- tucky Derby and Preakness Stakes. And then in 2015 AmericanPharoah did one better by adding a Belmont Stakes victory to becomethe first horse in 37 years to sweep the Triple Crown. AmericanPharoah (shown with regular rider Victor Espinoza) began his careerat Del Mar, where he won the Del Mar Futurity, and concluded his2-year-old campaign with a wire-to-wire victory in the FrontRunnerStakes at Santa Anita. Furthermoe, Los Alamitos repeatedly show-cases champion quarter horses, ensuring that the spotlight remains onCalifornia horse racing both day and night throughout the year.
CALIFORNIA HORSE RACING BOARD ANNUAL REPORT California Horse-Racing Meets During 2015
Thoroughbred Race Meets — Central & Southern Zones
Los Alamitos Racing Assn.
Los Alamitos Racing Assn.
Thoroughbred Race Meets — Northern Zone
Golden Gate Fields Golden Gate Fields Golden Gate Fields Golden Gate Fields Quarter Horse Race Meets — Statewide
Harness Race Meets — Statewide
Fair Meets — Statewide
Pleasanton (OTRA*) Alameda County Fair Sonoma County Fair Humboldt County Fair Los Angeles County Fair Fresno District Fair * Oak Tree Racing Association ** LA County Fair race meet relocated from Fairplex in Pomona to Los Alamitos Race Course in 2014.
FISCAL YEAR 2014–15 14 through 12/
ear 2015 (12/
RUN AT HOS
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TOTAL RACE
CALIFORNIA HORSE RACING BOARD ANNUAL REPORT The vast horse-racing industry in California included racetracks that stretch from the
Humboldt County Fair near the Oregon border down to Del Mar just above San
Diego and the Mexican border. The racetracks, together with simulcast outlets and
Advance Deposit Wagering (telephone and Internet), make horse racing accessible to all
of California and the world.
SANTA ANITA PARK WINTER-SPRING
Handle, Attendance, and Santa Anita again extended its traditional winter meet later into the spring – from Field Size increased during December 26, 2014, through June 28, 2015 – using dates formerly run at Holly-wood Park, resulting in all-source handle of $1,143,694,150 over the course of Santa Anita's Extended 107 racing programs, compared with $1,122,697,736 for the same number of Star-Studded Meet days in 2014. On-track handle stayed virtually even with 2014 at $95,378,296.
The Los Angeles Turf Club chose to offer the seamless six months of racing in twoparts, the first session beginning as always the day after Christmas through April19, and then the second session from April 24 through June 28. The track reportedslight increases in on-track attendance. Field size for the extended session averaged8.18 per race, also an increase from 2014, when the average field size was 7.68.
Continuing a trend, Advance Deposit Wagering (ADW, account wagering) grewsignificantly, from $189,824,773 in 2014 to $224,320,169.
Even though his stablemate American Pharoah would go on to overshadow him,Dortmund developed into a major star at Santa Anita by winning all three of hisraces in the winter and spring, including the Santa Anita Derby, to remain unde- feated going into the KentuckyDerby. Even so, many felt the raceof the meet was the San AntonioInvitational in which Shared Be-lief defeated 2014 Horse of theYear California Chrome. And top-ping it all off was a non-racing ap-pearance by Triple Crown winnerAmerican Pharoah on June 28before a crowd of 21,000.
Santa Anita Chairman KeithBrackpool trainer Bob Baffert for bringingAmerican Pharoah back to hishome at Santa Anita and for allow-ing significant access to the super- star by the media and public.
Shared Belief and jockey Mike Smith make easy work of the SantaAnita Handicap.
FISCAL YEAR 2014–15 SANTA ANITA PARK FALL
Without the Breeders' Cup Santa Anita Park raced six fewer days in the autumn of 2015 than in 2014 and it did For the First Time in Four not host the Breeders' Cup, as it had for the previous three years, so business com-parisons were difficult to make. With the Breeders' Cup held in Kentucky in 2015, years, Santa Anita's Fall California handle on Breeders' Cup weekend declined $123 million compared to Meet Posted Weaker 2014. That huge drop was reflected in Santa Anita's numbers. All-source handle for the 19-day 2015 fall meet was $168,817,271, compared with $371,390,506for the 25-day meet in 2014.
Without the tremendous influx of horses coming to California for the Breeders'Cup and other races during the meet, average field size also declined, from 8.88 in2014 to 8.18 in 2015.
The Breeders' Cup will return to Santa Anita in 2016, and then move to Del Mar in2017.
Rafael Bejarano rode 25 winners during the meet to notch yet another riding titleat Santa Anita and his 23rd in Southern California.
Doug O'Neill led all trainers with 12 victories. Holly and David Wilson shared theowner title with Reddam Racing LLC, each with four wins.
Nyquist and jockey Mario Gutierrez win the FrontRunner Stakes.
CALIFORNIA HORSE RACING BOARD ANNUAL REPORT DEL MAR SUMMER
Longer Summer Meet Summertime racing stretched beyond Del Mar's normal seven-week session by Provided An Extra Weekend picking up an extra weekend at the start with a July 16 opening. By the time the meet closed on September 7, Labor Day, thoroughbred fans had wagered for Appreciative Racing $462,832,278 on California's most popular race meet over the course of 40 days.
Fans to Enjoy Racing at the This compared with all-source handle of $421,451,651 for the 36-day meet inPopular Seaside Oval 2014. Del Mar's on-track attendance totaled 582,324 for a daily average of14,558, highest in the state and among the very best nationally.
Field size for the 354 races run over the summer held firm at an average of 8.78horses per race, the highest number in the state once again For the second year in a row, Del Mar debuted a new racing surface. In 2014 it putin play its wider and totally renovated turf course. For 2015, Del Mar presented abrand new dirt oval consisting of 31,000 tons of "El Segundo sand," the same soilmix that covers the Santa Anita track in Arcadia. The new surface replaced DelMar's previous synthetic Polytrack footing, which had been in place for eight sea-sons between 2007 and 2014. The new strip drew nearly unanimous positive feed-back from horsemen and fans alike.
The track had two exceptional highlights during its season. The first saw its pre-mier race – the $1,000,000 TVG Pacific Classic – won in smashing fashion by thechampion mare Beholder, the first time a female had beaten males in the 25-yearhistory of the mile and a quarter race. Later, Triple Crown hero American Pharoahgave his local fans a thrill when he paraded in the afternoon in front of an el-bow-to-elbow crowd of nearly 33,000 fans. He also put his Del Mar training togood use when he later captured the Breeders' Cup Classic in Kentucky.
Champion mare Beholder and Gary Stevens are well clear at the finish of theTVG Pacific Classic.
FISCAL YEAR 2014–15 DEL MAR FALL
Del Mar's Fall Meet Again Del Mar offered a fall season – a meet expanded from four weeks to five – to racing Offered Post-Summer fans for the second straight year in 2015, from October 29 through November 29,utilizing dates formerly run at Hollywood Park. The meet, dubbed the "Bing Entertainment for Horse Crosby Season" as a salute to the track's iconic founder, showed all-source handle of $186,565,346 during the 20-day session, compared to $147,917,844 for the15-day meet in 2014. Total attendance during the 2015 fall run, which again wasblessed with delightful San Diego weather, was 123,608, for a daily average of6,180.
Both Del Mar's renovated turf course and its brand-new dirt main track performedwell throughout the stand. The turf course, which was built anew in 2014, held upwell under 66 races that drew 591 starters for an average field size of 8.95. Hall ofFame rider Kent Desormeaux described it as "the best turf course in the country." Del Mar's racing department was especially pleased and encouraged by the note-worthy participation throughout of Eastern-based horsemen, especially for itsstakes races, topped by the Hollywood Derby and the Matriarch Stakes, in whichthe longshot Stormy Lucy pulled off a $132.80 upset.
Rafael Bejarano captured his sixth Del Mar riding crown, with 20 winners in 20days. Top trainer for the session was Doug O'Neill, who saddled 15 winners.
A full field of 14 breaks from the gate on Del Mar's expanded turf course.
CALIFORNIA HORSE RACING BOARD ANNUAL REPORT HJ HIGHLIGHT
GOLDEN GATE
Golden Gate Anchored Golden Gate Fields offered 149 racing programs over the course of 2015, more Horse Racing in Northern than any other thoroughbred track in California but one shy of the quarter-horsetotal at Los Alamitos. Even so, this was three fewer programs than Golden Gate of- California While Posting fered in 2014, which explains why all-source handle of $456,842,086 was down Steady Business Numbers slightly in 2015 from $464,622,598 the previous year. Significantly, Golden Gate'son-track handle held nearly even with 2014, reflecting the track's popularity withBay Area racing fans.
On Thanksgiving Day, Jerry Hollendorfer became only the third trainer to win7,000 races when Kiss N Scat captured the first race. Through December 13,2015, Hollendorfer had won 2,943 races at Golden Gate alone. He led all trainerswith 103 wins at the Albany oval in 2015. Hollendorfer's star pupil, Shared Belief,trained at Golden Gate in the lead-up to his victories in prestigious races at SantaAnita.
Code Warrior delivered three impressive performances, breaking her maiden indominant fashion in August before posting a pair of stakes scores in October, beat-ing males in the Golden Nugget Stakes before defeating other fillies in the GoldenGate Debutante. Code Warrior is trained by Manny Badilla, the longtime assistantto Bill Morey, Jr., who passed away in April 2015. Anne Sanguinetti regularly rides Code Warrior, ownedby the jockey's par-ents, John and ChrisSanguinetti.
again the track's lead-ing jockey with 207wins, 49 more thanrunner-up The promising 2-year-old filly Code Warrior (#6 in front, with AnneSanguinetti aboard) impressed, winning three starts in 2015 at Golden GateFields.
FISCAL YEAR 2014–15 LOS ALAMITOS QUARTER HORSE
Los Alamitos Left the Los Alamitos offered 150 nights of quarter-horse racing in 2015, along with 28 Lights on for Guests 51 daytime thoroughbred programs, 20 of those programs overlapped day and night,making it easily the busiest racetrack in California. The stabling of both quarter Weeks Out of the Year as horses and thoroughbreds throughout the year added greatly to the excitement at the Quarter Horse Capital the Orange County oval. And oh yes, the outstanding California-bred 2014 Horse of the Year California Chrome returned to his home base of Los Alamitos duringthe fall to train for his 2016 campaign, bringing with him the usual bustle of ador-ing fans and media attention.
With five more racing programs than it offered the previous year, all-source handleof $244,160,327 in 2015 exceeded the 145-day total of $231,899,297 in 2014,while showing a slight increase in daily average handle. As usual, ADW (accountwagering) of $64,668,032 represented a significant portion of the track's overallhandle.
Highlighting the long quarter-horse meet were outstanding performances byHeza Dasha Fire, winner of the Champion of Champions and Los Alamitos SuperDerby; five-time stakes winner Moonist, winner of the Robert L. Boniface LosAlamitos Invitational Championship and Go Man Go Handicap; and Walk ThruCrystal, winner of the Ed Burke Million Futurity and Kindergarten Futurity. Othertop stars included three-time derby winner Forget It, multiple futurity winner ImaFearless Hero, and Quirky, now a two-time winner of the Charger Bar Handicap.
Track owner Ed Allred was the leading quarter horse owner at the meeting with 69wins from 403 starters, for a 17-percent win ratio in 2015. Paul Jones led all train-ers for the 17th time in the last 18 years by saddling 101 winners. Cruz Mendez pi-loted 119 winners to finish as the meet's leading rider for the fourth straight year.
Cruz Mendez guides Heza Dasha Fire to victory in the Champion of Champions CALIFORNIA HORSE RACING BOARD ANNUAL REPORT LOS ALAMITOS THOROUGHBRED
Los Alamitos Again Helped Los Alamitos Race Course hosted eight weeks of daytime thoroughbred racing inFill the Year-Long Racing 2015, split into three meets held in July, September, and December, including theLos Angeles County Fair meet that first moved to Los Alamitos in 2014. Alto- Calendar for Thoroughbreds gether, the three meets generated all-source handle of $174,907,900 over a total of With Three Daytime Meets 30 days, which compared favorably to the 2014 handle of $176,590,830 from 31total days of racing.
The three meets were held July 2-12 (eight days), September 10-25 (10 days), andDecember 2-12 (12 days). Among the highlights at the three meets: t The 2-year-old colt Mor Spirit showed signs of being a star in the making when he outran heavily favored Toews on Ice (both trained by Bob Baffert) to win theLos Alamitos Futurity.
t Management was pleased with the inaugural Showdown Series, a five-race se- quence that offered purses totaling $175,000 for horses eligible for $8,000,$16,000, and $25,000 starter allowance races.
t Four jockeys – Santiago Gonzalez, Mario Gutierrez, Edwin Maldonado, and Fernando Perez – started the Los Alamitos thoroughbred season tied for the rid-ing title with six wins each during the summer meet. But by the end of the yearafter the fall and winter meets, Perez pulled away from his rivals to lead all jock-eys with 29 winning rides, three more than runner-up Maldonado.
t Doug O'Neill led all trainers with 18 wins over the course of the three meets.
"We're happy,'' said Brad McKinzie, vice president and general manager of the Los Alamitos Racing Association. "I thought (racing secretary) Bob Moreno did a great job at all three meetsthis year. Being able to fillraces without a turf course isvery impressive to me.'' Mor Spirit and jockey Gary Stevens outrun Toews On Ice (Martin Garcia)to win the Los Alamitos Futurity FISCAL YEAR 2014–15 THE NORTHERN CALIFORNIA FAIRS
The Northern Fairs Faced It was a challenging summer for the Northern California fair racing circuit as it Challenges from Increased raced head-to-head with Emerald Downs in Washington, where purses had beenboosted by 20 percent. Supplementing the California horse population with Competition, the Weather, out-of-state runners during the summer has long been the backbone of fair racing.
and a Difficult Schedule But now Emerald Downs looked increasingly attractive for horses shipping fromArizona, New Mexico, Oregon, and Idaho.
The California Authority of Racing Fairs (CARF) met the challenge by expandingits trainer incentive program, which offers cash bonuses for trainers passing startthresholds at each fair. Thoroughbred trainers making 5-9 starts at the Pleasanton,Ferndale, Stockton, and Fresno meets received a $500 bonus, while trainers mak-ing 10 or more starts received $1,000. Bonuses at the State Fair were even higher at$800 and $1,500. Those incentives totaled more than $160,000, plus another$55,200 in shipping incentives. The recruitment program helped bring 166 horsesto California, and those horses made a total of 359 starts on the fair circuit. Forcomparison, the program recruited 175 horses for 328 starts in 2011, when com-petition from Washington was not as great.
The 2015 northern fair circuit encompassed six racetracks racing a total of 64 days,from June 18 to October 18, and offered a balanced program by strengthening thepurses for low-level maidens and first-level allowance runners.Young trainers, in-cluding Jonathan Wong, Joshua Stein, and Marcia Storz, helped expand the trainerroster. CARF continued its Track Safety and Maintenance Program. As in recentseasons, a single racing secretary provided oversight for the entire circuit. Andagain, a single-credential VIP program was available for horsemen and bettors.
Off to a good start for the fair circuit at the Oak Tree meet in Pleasanton CALIFORNIA HORSE RACING BOARD ANNUAL REPORT The Partnership with Oak For the second consecutive year, the Alameda County Fair partnered with one of Tree Racing Association the most respected racing operators in California – the Oak Tree Racing Associa-tion – to conduct the Oak Tree at Pleasanton meet and kick off the fair circuit at the Continued to Benefit the oldest one-mile racetrack in America. In keeping with Oak Tree's founding mis- Alameda County Fair Meet sion of "horsemen helping horsemen," purses were increased and more than$50,000 in shipping and starting incentives were paid to trainers by Oak Tree andthe Alameda County Fair. The 12-day meet featured six thoroughbred stakes, in-cluding the $100,000 Oak Tree Distaff. All-source handle of $32,019,758exceeded the 2014 handle of $31,800,636.
The Pleasanton surface continued to serve as an effective launching pad for2-year-olds, like Smokey's Image, a colt that broke his maiden opening Sunday,and then won the Everett Nevin Stakes on closing day. Smokey's Image went on towin three more stakes, including the Golden State Juvenile at Del Mar.
More than $2 million in cash and in-kind advertising was spent on advertising,marketing, and promotions to draw people from the Bay Area and surroundingcommunities to the fair and race meet. "Spin to Win" prize wheels were placedwithin the fairgrounds, redeemable at the grandstand to drive fair traffic to theraces, thereby giving some fairgoers their first experience at a live horse race. Mar-keting efforts targeted to racing included traditional advertising, on-track promo-tions, and expanded television coverage through partnerships with ADWcompanies.
A Longer Race Meet Beginning in 2015, the California State Fair was granted an additional week of Proved Popular During the horse racing. The resulting three-week meet generated all-source handle of$25,441,330 in 11 days. Handle for the two-week meet in 2014 totaled $15,677,878 in seven days. The 2015 average daily handle increased more than 3percent from 2014.
Several on-track promotions were designed to drive fairgoers from the three mainadmission gates to the Miller Lite Racetrack Grandstand. For example, eachfairgoer received a coupon with admission, redeemable at the races for a free wager,a table for four in the turf club, and other merchandise. Special events at the grand-stand included the Best of California Brewfest, held on the apron, where fans couldwatch the races and participate in a seminar on how to select winners and placewagers, while sampling some of California's best craft beers. Another event, ANight at the Races, was held in the clubhouse to attract a young professional audi-ence and expose them to the track as a social outlet. In addition, a significantamount of the State Fair's advertising was dedicated to creating awareness aboutthe three weeks of horse racing. Billboards, television ads, signage, and collateralmaterials were developed to promote horse racing at the fair. Safety and comfortimprovements for horsemen included a new safety rail, misters in the test barn, aloose-horse alert system, and other renovations. A $500,000 upgrade to 22 tackrooms, improvements to water runoff, repainted tote board, and enhancedsecurity on the backside were completed in 2014.
FISCAL YEAR 2014–15 SANTA ROSA
Turf Racing Enhanced the "Wine Country Racing" at the Sonoma County Fair has proven to be a successful Mid-Circuit Meet in Santa setting for Northern California turf horses. The 11-day meet in 2015 carded 82thoroughbred races, with 35 of those races run on the turf course. While the aver- age thoroughbred field size was 7.1, an average of eight horses per race competedon turf. Santa Rosa continued to offer seven thoroughbred overnight stake races,including the Wine Country Debutante for 2-year-old fillies.
All-source handle for the meet was $32,942,658, which resulted in an averagedaily handle of nearly $3 million. Handle exceeded the $31,319,378 wagered dur-ing the longer, 13-day meet in 2014. Even with the challenge of being moved backa week in the 2015 racing calendar and despite running two fewer days than in2014, handle increased in many significant categories, though live handle declinedby about 1 percent. Incentives for horsemen in 2015 included an additional starterbonus of $100 for runners placing 6th through 10th , daily gas card drawings, andweekly BBQ dinners hosted by the Sonoma County Fair Board of Directors.
A Long Tradition of An aggressive recruitment program for horses in Idaho and Oregon, and improve- Racing Continued in the ments to the racing surface and stable area, helped bring in horsemen to the Victo-rian Village of Ferndale, home to the Humboldt County Fair. The six-day meet offered eight more races than it ran the previous year, and this resulted in 54 morestarts. Average field size remained steady at six horses per race. A total of 118 startswere made by horses from out of state.
Efforts to attract patrons included a beer garden in the newly developed FriendshipSquare and a surf and turf barbecue contest, hosted by former Ferndale residentand Food Network star Guy Fieri. These fairground promotions helped generatean 11-percent increase in on-track attendance. Racing on Fridays, Saturdays, andSundays, the 2015 meet generated all-source handle of $6,632,598, comparedwith $6,262,844 in 2014. On-track handle was up 8 percent.
The Joaquin County Fair Predictions of a heat wave and an irregularity in the racing calendar presented chal- Took the Heat in 2015 lenges for the 2015 San Joaquin Fair in Stockton. Temperatures were predicted tohit 107 degrees during the first two days of the six-day meet. The heat wave nevercame, but the forecast was enough to deter horsemen and fans from attendingopening weekend.
In addition to weather hardships, the racing schedule adopted in May called fortwo weekends of racing at Stockton, a return to Golden Gate Fields for two weeks,and then a two-week meet at Fresno. The schedule made it easier for trainers to sitout Stockton, especially when excessive heat was predicted. Understandably,all-source handle of $12,311,942 was down from $13,794,438 over the samenumber of days in 2014. On-track handle declined by over 9 percent.
CALIFORNIA HORSE RACING BOARD ANNUAL REPORT Fresno Again Celebrated The Big Fresno Fair, known for its packed grandstand apron, especially on Fridays California Chrome During when racing is a popular social event, brought the 2015 Northern California faircircuit to a close on Columbus Day, October 18. All-source handle for the nine-day meet was $19,114,469, which was virtually even with handle for the nine-daymeet in 2014. On-track handle was essentially unchanged.
The 2015 meet faced a scheduling challenge, with two weeks at Golden GateFields inserted between the Fresno and San Joaquin County Fair meets, whichmade it more difficult to persuade horsemen in the Bay Area to ship horses to theCentral Valley. Nonetheless, the average field size of 6.62 was up slightly from the2014 average of 6.54.
The $2.8 million Fresno County Historical Museum was open for the first timeduring the fair. The museum contains a section dedicated to California Chrome,the San Joaquin Valley-born Kentucky Derby winner and 2014 Horse of the Year.
FISCAL YEAR 2014–15 CAL EXPO HARNESS
Watch and Wager's Cal Expo, the home of harness racing in California, offered 60 nights of racing dur- Harness Operation ing the 2015 racing year, staged as two meets, the first in the winter and spring, thesecond in the fall. This was one more program than Cal Expo hosted in 2014, as re- Continued Its Strong flected in the all-source handle of $61,420,491 in 2015, compared with Showing at Cal Expo $58,255,022 for the slightly shorter meet.
The surprising thing about the handle numbers is that Cal Expo ran only 685 racesduring its 60 days of racing in 2015, compared with 747 races in 2014, and yet in-creased total handle, despite offering 62 fewer races.
"It wasn't due to just one thing," said Christopher Schick, general manager for theWatch & Wager harness meet. "We ran more three-day weeks, fewer two-dayweeks, than we did in 2014, and that worked out well for us. We wrote the racesdifferently, and that proved popular with fans. Some bettors who had drifted awayfrom us came back. Everything seemed to work out well. We finished in the bestshape ever with purses – so well that we increased purses by 10 percent for the ini-tial 2016 meet." On the racing front, Steve Wiseman edged out Luke Plano, 95 to 93, to capture thedriving title at the first meet, with Plano leading the standings for the fall meeting.
Bob Johnson, who is in his fifth decade as a trainer in California, led the first meetby a wide margin, with 54 trips to the charmed enclosure, while Wiseman finishedone winner ahead of Plano to be the leading conditioner at the fall stand.
Heading into the 2016 meet, Ben Kenney, Chief Financial Officer for the harnessmeet, echoed Schick's remarks when he said, "The purse pool was in good shapecoming out of the last meet. This meet is off to a good start, and the horsemen de-serve this purse increase." Popular driver Luke Plano winning with the trotter El Azteca.
CALIFORNIA HORSE RACING BOARD ANNUAL REPORT Simulcast Facilities by Location
Total Handle
Number of
California Simulcast Facility
FY 2014-15
Firehouse Restaurant (Bakersfield) Ocean's 11 Casino Sammy's Restaurant and Bar Santa Anita Tablet Santa Clarita Lanes Santa Maria Original Roadhouse Grill Tilted Kilt (Thousand Oaks) Note: Racetracks that offer simulcast wagering include combined pari-mutuel handle for live racing and simulcast wagering.
FISCAL YEAR 2014–15 Senate Bill 16, which took effect in 2009, eliminated the license fees paid to the state
by racing associations. In lieu of license fees, the horse-racing industry is responsible
for providing support to the CHRB. Each year, the CHRB develops a formula in
consultation with the industry. The formula is used to determine the share each racing
association should pay towards the funding of CHRB operations. During FY 2014-15,
the pari-mutuel handle totaled $3,095,263,930, and $11,912,000 was remitted to
fund CHRB operations.
CHRB support, purses, meets,24.02percent;andforharness zatorsystemcalculatesthepayoutfor track commissions, and race meets, 24.18 percent.
winning wagers.
In general, once the state license fees, The payout for each pool is first calcu- generated from a portion breeders and owners awards, equine lated on a $1 amount, which is then of the wagering handle referred to as research, and other mandated amounts used as the basis for paying all winning have been deducted from the takeout, wagers for that pool.
The takeout is set by law and is a per- the remaining funds are divided in a During the calculation of the $1 pay- cent taken from each dollar wagered.
prescribed manner between purses and out, amounts for each pool are The takeouts on conventional wager- track commissions.
rounded down ("broken," thus the ing (win, place, and show pools) are A pari-mutuel auditor located at each term breakage) to the nearest dime.
15.43 percent for thoroughbred race live race meet in California prepares a For example, in calculating a win pool, meets, 17.63 percent for quarter-horse daily audited report of the precise dis- a $1 payout of $2.67 would be "bro- race meets, 17.43 percent for harness tribution of the wagering handle. The ken" to $2.60. A $2 wager on that pool race meets, and 16.77 percent for fair report is submitted to the CHRB, the would then return $5.20.
racing association, and other inter- The 7 cents that is broken for each dol- The takeouts on exotic wagering pools ested parties.
lar in the calculation then becomes part (all pools that are not win, place, or Breakage is a term used to describe the of the total breakage for that pool, that show) are, for thoroughbred race monies generated by mathematical race, and that day of racing, etc.
meets, 22.68 percent for wagers in- rounding during the calculation of Breakage in FY 2014-15 totaled volving two runners or legs and 23.68 winning wagers. After a race is run and $7,909,154. State statutes require percent for wagers involving three or the results are made official, the totali- breakage to be split evenly between more horses or legs; for quarter-horse purses and commissions.
race meets, 22.88 percent; for fair race Charity Days
California horse-racing associations have distributed many millions of dollars to
worthwhile charities over the last 70 years. Their donations in the
last fiscal year totaled $556,655.
Business and Professions Code section 19550 requires rac- racing association furnishes the facilities and personnel nec- ing associations to contribute a portion of handle to charity.
essary for the conduct of racing.
Associations have the option of selecting a number of racing The income from all operations of the race meet on charity days determined by the length of their racing meet or racing days, less deductions for actual expenses, is dedicated two-tenths of one percent of the live handle for the entire to charitable purposes. The following racing associations race meet. The law also requires that at least 50 percent of the distributed funds last year: Los Angeles Turf Club, Del Mar proceeds be distributed to charitable groups within the Thoroughbred Club, Los Alamitos Quarter Horse Racing horse-racing industry. While recognizing the worthwhile na- Association, Holllywood Park Racing Association, Pacific ture of all charitable organizations favored by distributing Racing Association, and Watch and Wager LLC.
foundations, the CHRB encourages the foundations to ex-ceed this minimum percentage. On charity racing days, the CALIFORNIA HORSE RACING BOARD ANNUAL REPORT Uncashed Pari-mutuel Tickets
Winning pari-mutuel tickets can be cashed until May 15 of the year following the year in which the race meet ends. Racing patrons may mistakenly tear up, lose, or forget about winning tickets. After May 15, any unclaimed monies are distributed as indicated below. Senate Bill 16 went into effect during 2009, eliminating the withstanding the distribution of live races unclaimed tickets, State's portion of unclaimed tickets pursuant to Business and unclaimed ticket monies generated by wagering on intrastate Professions Code section 19641.
(north/south) thoroughbred and fair races and interstate im-ports are split equally between purses and commissions.
All such unclaimed money resulting from the thoroughbred, During FY 2014-15, the tracks and the horsemen each re- harness, or quarter-horse race meets, excluding the race ceived $1,568,211.
meets of the California Exposition and State Fair, county, dis-trict agricultural association, or citrus fruit fair race meets 3. Unclaimed refunds totaled $743,380 for FY 2014-15.
shall be distributed as follows: Unclaimed refunds provide health and welfare benefits toCalifornia licensed jockeys, former California licensed jock- 1. Fifty percent of live races unclaimed pari-mutuel tickets eys, and their dependents. The California Jockey Welfare shall be paid to a welfare fund established by the horsemen's Corporation is the organization designated by the CHRB to organization contracting with the association with respect to receive these funds.
the conduct of the racing meet for the benefit of the horse-men, and the said organization shall make an accounting to 4. Cash vouchers that are not redeemed within 365 days of the the Board within one calendar year of the receipt of such pay- close of the racing meeting at which the voucher was purchased ment. During FY 2014-15, the distribution to the welfare are distributed to a nonprofit organization for the purposes of funds was $938,848.
maintaining a database of horse-racing information. CHRIMSis the organization designated by the CHRB to receive these 2. The other 50 percent of live races unclaimed pari-mutuel funds. During calendar year 2014 uncashed vouchers totaled tickets shall be divided equally between the association (as commissions) and horsemen (in the form of purses). Not- Statement of Distribution by Fund of Horse Racing Revnues
July 1, 2014 through June 30, 2015
Revenue To Horse Racing Fund
License Fees — CHRB Support ADW License Fees — CHRB Support Miscellaneous Income Income from Surplus Money Investment Fund Escheat of Unclaimed Checks, Warrants Total 3153 Fund
Revenue To General Fund (0001)
Fines & Penalties Occupational Licenses Miscellaneous Income Total Fund 0001
Revenue to CA Veterinary Diagnostic Laboratory
(0881)
Equine Research License Fees ADW Equine License Fees FISCAL YEAR 2014–15 Occupational Licenses and Fees
July 1, 2014, through June 30, 2015
Type of License
Multiple Ownership* Horse Owner-Open Claim Trainer, Assistant Trainer*** Harness Horse Driver*** Association Employee Exercise Rider/Pony Rider*** Misc. Employee/Stable Agent Vendor** Replacement License Annual Groom/Stable Employee Annual Groom/Stable Employee Total fees generated to General Fund All licenses are issued for three years except those for groom and stable employeelicenses, which are annual licenses.
* Includes partnership registrations ***Includes reduced license fees CALIFORNIA HORSE RACING BOARD ANNUAL REPORT Other Public Revenues
Horse racing contributes to local economies through sales retain the horse; the owner who under-values the horse may tax from the sale of claimed horses. During FY 2014-15, well win a purse — but in all probability lose title to the horse there were 1,830 horses "claimed" at authorized race meets.
to a successful claimant. Thus, it is the owner who establishesthe true competitive value of a horse in a claiming race.
The "claiming" of a racehorse is in effect a sale of the horse ata designated price (as established by the conditions of the Inasmuch as the claim of a horse is in fact a purchase, state race) to a qualified person who submits a "claim" for the sales tax is collected on the amount of the claim. During FY horse at least 15 minutes prior to the race in which the owner 2014-15, the total amount paid for claiming of horses was of the racehorse established the competitive value of the $25,171,600, resulting in sales tax revenues of $2,173,924.
Business and Professions Code 19610.3 authorizes every For example, in a claiming race where the claiming price is racing association or fair to permanently elect to deduct up established by the racing secretary as $10,000, an owner of a to 0.33 of one percent from all pari-mutuel pools and to dis- horse may enter the horse in the race if willing to lose the tribute the amounts to the city or county where the racing horse to another owner (or qualified person) for the price of meet is held if the city or county passes an ordinance to ac- cept such fees in lieu of admission taxes and license fees.
An owner who over-values the horse will find competition in During FY 2014-15, $3.6 million was distributed to local the race too severe and will not win a purse — but probably governments under this provision.
Under the system known as pari-mutuel wagering, the rac- age deduction for purses, and the track's commission. Com- ing association acts as the stakeholder for all wagers, deduct- missions retained by California racing associations during ing from each pari-mutuel wagering pool the statutory FY 2014-15 totaled $122,679,948.
"takeout," which includes the state license fee, the percent- As with track operators' commissions, the purses for race The actual purses to be paid for any one race, or for the day's meets are determined by the rate schedules, or in some cases, races, initially are determined by the racing secretary's pro- by agreement with the racing association.
jections of handle, and then revised during the course of therace meet based on actual handle. The racing association Purses for California race meets during FY 2014-15 totaled must also execute an agreement with the respective horse- $145,134,186. In addition, $10,273,997 was paid out as men's organization representing the horsemen at each race meet in order to establish the percentage of the total purses In order for the individual racing associations to establish that may be used for stakes races.
their daily purse structure for their race meets, the associa-tions must first make a projection of the amount ofpari-mutuel wagers they expect to handle.
FISCAL YEAR 2014–15 Statistics For Horses Claimed
Authorized Horse Sales
July 1, 2014 to June 30, 2015
Each year the CHRB authorizes sales for racehorses orbreeding stock used in the production of racehorses when such sales are conducted on the premises of a racing associa- Sales Tax
tion. During FY 2014-15, there were 1,034 horses sold for atotal of $24,713,500. These sales generated a total of Thoroughbred Race Meets — Northern
$895,881 in sales tax. Prospective purchasers may review the reported medication record of any horse offered for sale, and purchasers of a horse may request a verifying blood test forhorses bought.
The following sales were authorized in FY 2014-15: Barretts Equine Ltd. at Del Mar
Barretts Equine Ltd.
Thoroughbred Sales at Fairplex Park
Fair and Mixed Meets-Statewide
October Yearling Sale January Mixed Sale March Two-Year-Olds February 28, 2015 Spring Two-Year Olds Altogether, 568 horses were sold at Barretts' Del Mar and Fairplex Park sales for a total of $18,000,500, which gener- LACF @ Los Al.
ated $723,114 in sales tax.
California Thoroughbred Breeders
Nor-Cal Yearling Sale A total of 92 horses was sold for a total of $1,097,300,which generated $53,087 in sales tax.
Quarter-Horse Sales At Los Alamitos
Los Alamitos Equine Sale A total of 374 horses was sold for $5,615,700, which gener-ated $119,680 in sales tax.
CALIFORNIA HORSE RACING BOARD ANNUAL REPORT California Horse Breeding Programs
The Horse Racing Law provides incentives for the breeding and owning of California-bred
horses. A principal and explicitly stated intent of the law is to encourage agriculture and the
breeding of horses.
Every association licensed to conduct a horse-racing meet in Standardbred Breeders Programs
California must provide, each racing day, for the running of The California Standardbred Sires Stakes Committee, Inc., a at least one race limited to California-bred horses, provided California non-profit public benefit corporation, adminis- those races can attract a sufficient number of qualified en- ters the Standardbred Breeders Program. The Sires Stakes Committee is authorized to deduct expenses (not to exceed The breeder of a California-bred horse receives a monetary four percent of funds generated) for administering the Stan- award based on the order of finish for horses finishing in the dardbred Breeders Program. The program is funded from first three places. A further incentive to own a Califor- the breakage at harness race meets and an additional one per- nia-bred horse is provided by owners premiums. Business cent takeout on all exotic wagering at harness race meets. In and Professions Code section 19611 (d) allows for 0.07 per- FY 2014-15, the program generated $224,569.
cent of the takeout to be distributed as owners premiums topersons owning California-bred horses.
Quarter-Horse Breeders Program
Additionally, stallion awards are issued to owners of qualified Pacific Coast Quarter Horse Racing Association, as the thoroughbred stallions standing in California whose prog- recognized breeders organization, received $330,248 eny win races in California having a certain qualifying gross from the pari-mutuel handle to fund its program in FY purse. A breeders award is also paid for a California-bred 2014-15. The source of these funds was 0.48 percent of thoroughbred when the horse wins a graded stakes race out- the on-track and 0.48 percent of the off-track handle on side the state.
quarter-horse racing at the fair race meets, 0.4 percent ofthe handle at quarter-horse race meets, and a proportional These California breeders programs and distribution of payment of the monies required by the state, the associa- awards and premiums are administered by the recognized tion, and the horsemen.
California breeders organizations of the various breeds.
Thoroughbred Breeders Program
Paint Breeders Program
The Paint breeders awards received $404 for the breeders The California Thoroughbred Breeders Association program in FY 2014-15. No Paints ran in California. This (CTBA) administers the California-bred awards, owners revenue came from ADW wagers.
premiums, and stallion awards for thoroughbreds. In ad-dition, the CTBA supervises the California-bred racefund, which has supplemented the very successful Califor- Arabian Breeders Program
nia Cup Program each year since 1990. In FY 2014-15, The California Arabian horse breeders awards received $681,808 was generated as owners premiums and $10,615 for the program during FY 2014-15.
$9,698,932 for the breeders program from the wageringhandle.
Mule Breeders Program
At California thoroughbred race meets, the amount of 0.54 The California mule breeders awards received $9,215 for the percent on track and 0.54 percent off track of all pari-mutuel program during FY 2014-15.
pools is deducted as takeout and transferred to the CTBA fordistribution. A further amount equal to .07 percent of the Appaloosa Breeders Program
handle is specified for owners premiums and transferred tothe CTBA for distribution. The CTBA is authorized to de- California did not host Appaloosa breed races during FY duct five percent for administrative overhead and expenses, including education, promotion, and research.
FISCAL YEAR 2014–15 The Revenue Stream
The Takeout Dollar in California: Where It Goes and How It's Used
Workers Comp Fund, UC Equine Research, Satellite Expense Backstretch Benefits, Retirement Fund, CHRB Support, 1.89 Local Government, Location Fee, 4.08 Owners/Breeders, Off-track Stabling, On/Off Track Import A total of $3,095,263,930 was wagered by fans of California racing during FY 2014-15,
and of the money, 79 percent ($2,450,117,734) was returned to winning ticket holders.
Prior to simulcast wagering in 1985, Patrons failed to cash $4.1 million Breakage, a byproduct of the pari- virtually all of the wagering in Califor- worth of winning tickets. By law, mutuel calculation, is distributed to nia races was at the track, but today money from uncashed tickets, except the state, to purses, and to the racing "on-track" bets make up only 12.70 for fairs, is split between a welfare fund associations. This totaled $7,909,154 percent of wagers placed ($393 mil- for the benefit of the backstretch, the lion). Off-track betting within the state associations, and horsemen. Money Of the $3.1 billion wagered, $645 mil- provides 22.42 percent of the handle from uncashed tickets at fairs is turned lion, or 20.84 percent, was withheld as ($694 million) The balance comes over to the state's General Fund.
the "takeout" for such purposes as from out-of-state and Advance De- Similarly, money from unredeemed horsemen's purses, racetrack opera- posit Wagers (totaling $1.1 billion).
vouchers issued by tracks for use by tions, and government taxation, as dis- ADW accounted for $879,079,830 of racing patrons at track self-serve bet- cussed on the next page: ting machines is used to finance thehorse-racing CALIFORNIA HORSE RACING BOARD ANNUAL REPORT Host Fees
A total of $145,134,186 was distributed during FY 2014-15 Host fees are negotiated for mandated payments to produc- in the form of purses. This money went to the owners of the ers of live horse racing imported by tracks via satellite and of- horses, the jockeys, the trainers, and through them, to the fered to the betting public in conjunction with a California track's live racing program. Last year, California tracks paid$12 million to out-of-state hosts.
Portions of the purse money also went to organizations thatrepresent owners and other horsemen.
Interstate Wagering Fees
Interstate wagering fees are "takeout" deductions from wag-ers made on California racing by racing fans at off-track bet- The racetracks and fairs that host the racing programs col- ting systems outside of the California borders. These deduc- lected a total of $123 million in commissions. Much of that tions in other states amounted to $168 million.
money went toward the cost of operations, such as rent,mortgages, and labor costs, of which pari-mutuel clerks rep-resent a large part. The racetracks are also responsible for marketing the sport with advertising, promotions, and other A mandated deduction goes to U.C. Davis for equine re- forms of publicity.
search. Last year the total for equine research was $1.7 mil-lion.
CHRB Support
The allocation of the CHRB budget comes from the horse-racing industry through the yearly budget process Simulcast fees are deducted from the off-track handle at Cali- conducted by the State Legislature. This allocation is used to fornia simulcast facilities and are distributed in proportion to fund the CHRB's mission of overseeing the horse-racing in- each facility's handle. This revenue goes to the Stabling and dustry on behalf of the state and the California public.
Vanning Fund to offset the cost of off-site stabling and trans-porting horses to the track, the Promotion Fund to be used for the promotion of horse racing, the Expense Fund for thepurpose of offsetting the costs of simulcast broadcasting, and One of the most important uses of horse-racing revenue is to guest site commissions. A guest site is the term used for an for incentive awards, which promote the agricultural pro- authorized off-track betting system, or simulcast facility, that gram in California by encouraging horse breeding. Last year is an authorized recipient of a live horse race.
$10,273,997 in awards were divided between programs forthoroughbreds ($9,698,932), standardbreds ($224,569), These funds received a total of $54.4 million last year: quarter horses ($330,248), paints ($404), Arabians($10,615), mules ($9,215), and Appaloosas ($14).
Stable and Vanning Fund: For those local municipalities who elect to participate, an ad-ditional 0.33 of one percent is withheld from the handle toreimburse communities for costs incurred due to traffic con- Retirement and Welfare
trol, security, and other expenditures resulting from ADW Retirement and Welfare Plans received $1,736,887 in horse-racing events. Last year $3.6 million was withheld for FY 2014-15. These funds supplement the backstretch per- this purpose.
sonnel pension plan and provide welfare benefits for horse-men and backstretch personnel.
FISCAL YEAR 2014–15 Sources of Handle
Fiscal Years 2013–14 and 2014–15
$3,500,000,000.00 $3,000,000,000.00 $2,500,000,000.00 $2,000,000,000.00 $1,500,000,000.00 $1,000,000,000.00 The on-track handle represents wagers at the host track. For FY 2014-15, on-track wagers accounted for 12.70 percent ofthe total handle. Off-track handle represents wagering at California simulcast locations and accounted for 22.42 percent ofthe total. Out-of-state handle represents commingled wagers from other U.S. and international sites. Out-of-state wagersaccounted for 36.48 percent of the total. ADW represents the handle generated through the six licensed California ADWcompanies. The ADW handle accounted for 28.40 percent of the total.
CALIFORNIA HORSE RACING BOARD ANNUAL REPORT The Horsemen's Organizations Welfare Funds
The Horse Racing Law provides that 50 percent of the unclaimed redistributable
money in pari-mutuel pools (uncashed pari-mutuel ticket amounts) resulting from
thoroughbred, harness, or quarter-horse race meets be paid to the welfare fund
established by the horsemen's organization contracting with the association for the
conduct of the race meet for the benefit of horsemen. These funds are registered with
the Office of the Attorney General, Registry of Charitable Trusts. The three horsemen's
organizations have established and maintain the following welfare funds:
The California Thoroughbred Horsemen's
Quarter Horse Benevolent Charity Foundation
11278 Los Alamitos Blvd., Suite 243 Los Alamitos, CA 90720 Registry of Charitable Trusts No. 018221 Registry of Charitable TrustsNo. 052861 California Harness Horsemen's
P.O.Box 254767Sacramento, CA 95864Registry of Charitable Trusts No. CT0202834 Each of the foregoing welfare funds have a state tax-exempt status under the provisions of section 23701 of the Revenueand Taxation Code.
The California Horsemen's Organizations
The CHRB determines the organizations to represent California horsemen with
respect to each breed.
The following horsemen's organizations were recognized by Horsemen's Association for harness horsemen; Pacific Coast the Board during FY 2014-15: Thoroughbred Owners of Quarter Horse Racing Association for quarter horsemen; California for thoroughbred owners; California Thorough- and the Arabian Racing Association of California for Ara- bred Trainers for thoroughbred trainers; California Harness bian horsemen.
Audited Expenses of California Horsemen's Organizations
The information regarding the expenditures of these organi- copy of the complete audited financial statements of a horse- zations is only one portion of the total audited financial state- men's organization can do so by contacting the CHRB's ments submitted to the CHRB. Persons wishing to obtain a headquarter office in Sacramento.
FISCAL YEAR 2014–15 Audited Financial Statements of California Horse Racing Industry
Pursuant to Business and Professions Code Section 19440.5 and requirements
outlined in the horse race meet application, the CHRB requires recognized industry
participants receiving statutory distributions from the takeout to annually file audited
financial statements. The table below lists those organizations and their most recent
audit reports received by the CHRB, along with two recognized partipants that do not
receive statutory distributions.
Last Audit Report
Pacific Coast Quarter Horse Racing Association American Mule Racing Association California Thoroughbred Horsemen's Foundation California Harness Horsemen's Association* Arabian Racing Association of California California Thoroughbred Breeders Association California Thoroughbred Trainers Thoroughbred Owners of California California Marketing Committee - CMC California Thoroughbred Business League Northern California Off-Track Wagering (NOTWINC) Southern California Off-Track Wagering (SCOTWINC) Quarter Horse Racing, Inc. & Subsidiaries Disabled Jockeys' Endowment** California Jockeys' Welfare Corp Quarter Horse Benevolent Charity Foundation California Standardbred Sires Stakes Committee* California Harness Horsemen's Benevolent Foundation AmTote International** Pacific Racing Association (GGF) Del Mar Thoroughbred Club Los Angeles Turf Club (Santa Anita) Los Alamitos Quarter Horse Racing Watch and Wager, LLC at Cal Expo Magna Entertainment Corp. (GGF/Santa Anita/ExpressBet) Watch and Wager, LLC Game Play Network, Inc.
Lien Games Racing *Pursuant to Business and Professions Code section 19613.2 (c), the CHRB may take disciplinary action against a horsemen'sorganization that is not in compliance with filing annual audited financial statements with the CHRB.
** Do not receive statutory distributions.
CALIFORNIA HORSE RACING BOARD ANNUAL REPORT

Source: http://www.martinracing.us/resources/2015_annual_report.pdf