Odds On Racing - Harness Racing

IHHA & Tracks Negotiating Update

December 7, 2005

Talks continue between the IHHA (Illinois Harness Horsemen's Association and racetrack management (owners & operators of Maywood & Balmoral Parks). The two entities met for a meeting Wednesday night and on for Friday, December 9.

"Things are progressing and I think we'll come to an agreement soon that is comfortable for both parties," IHHA President Marty Engel said. "It's tough. Their businessmen trying to make a profit and we have a lot of horsemen, on both a large and small scale, who are trying to merely survive, and that's not good. Our business should be thriving. As an owner, I shouldn't have to take my horses out of state to race so that I can support my horses here in Illinois. But were working through out differences and I'm confident that we'll be able to come to an agreement soon."

“Right now we have an 80 to 20 split on recapture,” Engel continued. “The tracks have deferred 80% of the recapture money through the end of this year, and we’ve been responsible for paying them 20% of it. For 2006, we’re asking for a 90/20 split, with the current ‘sunset’ clause for three years that we currently have in place.”

Recapture is a legislative provision that was introduced along with full-card simulcasting in 1995. It allows Illinois racetracks to recoup their losses on live handle in accordance with the authorization of full card simulcasting from other states. The recapture amount is 2% of the decrease of Illinois handle on Illinois races from 1994, and the recapture monies allocated to the racetracks are deducted directly from the horsemen’s purse accounts.

“I think the talks are going well,” said Duke Johnston, who is negotiating on behalf of Maywood and Balmoral Parks. “Our differences are spelled out and we’re working on a solution to our current purse structure.”

“The 80/20 deal was made three years ago and included that sunset clause from 2003,” Johnston said. “I want to extend that sunset clause for another three years, because nothing is going to happen legislatively in 2006 to help the horse racing industry. But I’d like to be able to give me some hope for the future and extending the sunset clause is a painless way to do that.”

“We hope to get this settled as quickly as possible,” Engel said. “However, it’s paramount to us that we keep to our guns and not settle for less than what we currently have in this year’s contract.”

“Right now I’m trying to operate two harness tracks and given the current economic climate, that’s not easy to do,” Johnston said. “But the talks are going well and I think we’re getting close to reaching an agreement. I think the horsemen really want to race January 1 and so do we.”