THE COMMONWEAL TH OF MASSACHUSETTS

• STATE RACING COMMISSION •

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• SIXTY-FOURTH ANNUAL REPORT • Robert M. Hutchinson, Jr., Chairman Christ N. Decas, Associate Commissioner • Arthur M. Khoury, Associate Commissioner

YEAR ENDING DECEMBER 31,1998 • MR798M3 A55 State Libra y of rv a ~ chusetts 1998 c.2 Stat Hous, 80S 0 • .... •

The Massachusetts State Racing Commission Organization Chart •

MusacIwseIts state Racing Camniuion •

Associal. Chairman Associate • Conmissioner Conwnissioner

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state PolIce Board 01 Judges investigative CommissIon AdIninistratIw ConwnissIon CommIssion Board 01 UnIt Laboratory Offtce Inspectors Accountants Stewards •

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THE COMMONWEALTH OF MASSACHUSETTS • Argeo Paul Cellucci, Governor

• OFFICE OF CONSUMER AFFAIRS AND BUSINESS REGULATION • Dan Grabauskas, Director

• MASSACHUSETTS STATE RACING COMMISSION

Robert M. Hutchinson, Jr., Chairman Christ N. Decas, Associate Commissioner • Arthur M. Khoury, Associate Commissioner

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• • cffk?i!~L ~ o/f( ~~~ cff~ W#ce PlJ~ 1 ~ PJ>1ace.. ~ 1313 • ~ 02108 ARGEO PAUL CELLUCCI PlJodon.. DANIEL A. GRABAUSKAS GOVERNOR DIRECTOR OF CONSUMER AFFAIRS

ROBERT M. HUTCHINSON, JR. CHRIST N. DECAS CHAIRMAN ASSOCIATE COMMISSIONER ELIZABETH M. BARRY ARTHUR M. KHOURY • SECRETARY June 1, 1999 ASSOCIATE COMMISSIONER Honorable Argeo Paul Cellucci Governor of the Commonwealth State House, Room 360 Boston, MA 02133 • Dear Governor Cellucci: We are pleased to submit this Annual Report covering the activities and responsibilities of the State Racing Commission during calendar year 1998.

As a result of it's 1998 hearings, the Racing Commission granted five permanent licenses to Suffolk, Wonderland, MassasoitfTaunton, Plainridge and Great Barrington, and one fair license to • Northampton. The return of harness racing was authorized for 1999 when Plainville Racing Company, LLC was granted a conditional license by a 2-1 vote. The new track will be located at the intersection of 1-495 and US Route 1, in Plainville, and is scheduled to open for live racing in April 1999.

In excess of $567 million was bet in 1998. This was a decrease of $44 million due primarily • to the loss of Foxboro Harness, which failed and is in the process of the equivalent of a bankruptcy proceeding. It is estimated that during 1998 the racing industry employed directly or indirectly in excess of 8,000 people. The racing industry continues to be dynamic, dealing with many competitive changes.

The Commission collected $11,047,911.09 from MA racetracks in fiscal year 1998. This • figure is approximately $1.2 million less than what was collected in 1997. This difference is reflected due to the continuing increase in the level of simulcasting, as well as the closing of Foxboro Park in July of 1997. The Commission expended approximately $3.47 million dollars while collecting over 11 million dollars in revenue. This will be further supplemented by an estimated $2.5 million because of litigation relative to simulcasting resolved in favor of the Commission. Specifically, the State Appeals Court ruled in the fall of 1998 that unclaimed ticket money ("outs money") from simulcast • races reverts to the Commonwealth of Massachusetts, just as live unpaid ticket money does. This produces $2.5 million of additional revenue.

The Racing Commission remains committed to insuring the integrity of racing for its participants and patrons and we thank the Governor and the Legislature for the support of our • regulatory efforts. The Commission welcomes inquiries from all parties. Sincerely, STATE RACING COMMISSION • ~~~ . Robert M. ~~:n:~ Chairman • cffeL· (of7) 727-2581 @"aa-: (017) 227-0002 •

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Table of Contents • MASSACHUSETTS STATE RACING COMMISSION 1 ADMINISTRATIVE OFFICE. 2 LICENSING 3 ASSOCIATION LICENSES 3 COMMISSION INSPECTORS 4 OCCUPATIONAL LICENSES IN 1998 4 • COMPLAINTS. 4 SUPERVISE TESTING AREA 4 COMMISSION ACCOUNTANTS 5 PARI-MUTUEL OPERATIONS 5 SAFEGUARDS 5 DAILY AUDIT . 5 • ANNUAL AUDIT 6 STATE POLICE INVESTIGATIVE UNIT 7 KENNEUSTABLE INSPECTIONS 7 POSITIVE DRUG TESTS -- CONTROLLED MEDICATION 7 EJECTIONS -- WARRANTS SERVED -- ARRESTS 7 • MASSACHUSETTS RACING FAIR . 8 UNIFORMED STATE POLICE DETAILS 8 SPECIAL INVESTIGATIONS 8 BACKGROUND INVESTIGATIONS . 8 THOROUGHBRED-STANDARDBRED RACING 8 COMMISSION LABORATORY 9 • INTEGRITY OF SAMPLES ENSURED 9 QUALITY ASSURANCE AND PROFICIENCY PROGRAMS 9 SAMPLES ANALYZED 10 DRUG FINDINGS/PROGRAM VIOLATIONS 10 COMMISSION VETERINARIANS 11 COMMISSION TESTING ASSISTANTS 11 • BOARD OF STEWARDS/JUDGES . 12 RULINGS -- BOARD OF STEWARDS/JUDGES 12 APPEALS 13 REVENUES 14 RECEIPTS 14 EXPENDITURES 14 • REVENUES COLLECTED 15 COST EFFECTIVE STATE SERVICES 15 SIGNIFICANT ACTIVITIES DURING 1997 16 RACING COMMISSION BUSINESS. 17 MEETINGS AND HEARINGS 17 • RULINGS 17 DECISIONS APPEALED TO THE COMMISSION 17 DUE PROCESS AFFORDED ALL LICENSEES 17 COMMISSION DECISIONS APPEALED TO SUPERIOR COURT . 18 RACETRACKS 19 NOTES ON CHARTS . 20 • TOTAL HANDLE - CALENDAR YEARS 1995, 1996, 1997 . 21

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AVERAGE TRACK ATTENDANCE PER PERFORMANCE. 22 AVERAGE LIVE HANDLE PER PERFORMANCE 22 TOTAL HANDLE VARIANCE. 23 TOTAL HANDLES 24 • LIVE VS SIMULCAST (CHART # 1) . 25 LIVE VS SIMULCAST (CHART # 2) . 26 HORSES VS DOGS . 27 STERLING SUFFOLK RACECOURSE LLC . 28 SUFFOLK VARIANCE 29 SUFFOLK TOTAL HANDLE. 30 • SUFFOLK LIVE VS SIMULCAST 31 WONDERLAND GREYHOUND PARK, INC. 32 WONDERLAND VARIANCE . 33 WONDERLAND TOTAL HANDLE 34 WONDERLAND LIVE VS SIMULCAST 35 • MASSASOIT GREYHOUND ASSOCIATION, INC. 36 TAUNTON DOG TRACK, INC. 36 MASSASOIT VARIANCE 38 MASSASOIT TOTAL HANDLE 39 MASSASOIT LIVE VS SIMULCAST 40 TAUNTON VARIANCE 41 • TAUNTON TOTAL HANDLE . 42 TAUNTON LIVE VS SIMULCAST. 43 HAMPSHIRE, FRANKLIN, AND HAMPDEN AGRICULTURAL SOCIETY 44 NORTHAMPTON VARIANCE 45 NORTHAMPTON TOTAL HANDLE . 46 • NORTHAMPTON LIVE HANDLE 47 WESTERN NEW ENGLAND FAIRGROUNDS, GREAT BARRINGTON RACEWAY 48 GREAT BARRINGTON VARIANCE. 49 GREAT BARRINGTON TOTAL HANDLE 50 GREAT BARRINGTON LIVE HANDLE 51 • PARI-MUTUEL TAKE-OUT STRUCTURES. 52 CAPITAL AND PROMOTIONAL TRUST FUNDS 53 APPENDICES CAPITAL AND PROMOTIONAL TRUST FUNDS A-1 REPORT OF OFFICIAL SAMPLES ANALIZED IN 1997 B-1 • OCCUPATIONAL LICENSES FOR 1997 C-1. GREYHOUND DISPOSITION SUMMARY 0-1 •

ii • • Massachusetts State Racing Commission

INTRODUCTION: MASSACHUSETTS STATE RACING COMMISSION

• The Massachusetts State Racing Commission is a State Regulatory Agency created by an act of the General Court in 1934. Massachusetts General Laws, Chapter 6, section 48 states:

''There shall be a Commission to be known as the State Racing Commission to consist of a commissioner and two associate commissioners to be appointed by the governor and serve coterminous with him. Not more than two of such members shall be of the same political • party. The Commissioner shall serve as chairman and shall devote his full time during business hours to his official duties."

M.G.L. Chapter 6 Section 48

Chairman • Robert M. Hutchinson, Jr.

Associate Commissioner Associate Commissioner Christ N. Decas Arthur M. Khoury • The State Racing Commission is one of nine regulatory agencies under the jurisdiction of the Office of Consumer Affairs and Business Regulation. Consisting of a full-time Chairman and two part-time Associate Commissioners, the Commission is charged with the supervision of the conduct of business of racing in Massachusetts, to ensure the integrity of the racing industry. The Commission regulates two Thoroughbred tracks, and Great Barrington; two Greyhound tracks, Wonderland and Raynhamrraunton; and one Fair located in Northampton. The annual 1998 total • handle was over $567 million, a decrease from calendar year 1997 of over $44 million, attributable to the closing of Foxboro Park, which closed in July 1997.

The Chairman's responsibilities include supervising the overall management activities of the Racing Commission on a day to day basis. This includes but is not limited to all budget and personnel activities for the agency. These efforts are supported by the following operating sections of the • Commission: Administrative Office, Racing Commission Inspectors, Accountants, Laboratory Personnel, Veterinarians, Judges and Stewards, and State Police Investigators. This report reviews each of these areas and the business they conduct.

To ensure fair and honest pari-mutuel racing, the Commission promulgates and enforces rules and • regulations, proposes legislation and develops policies to better regulate the Racing Industry. Further, it is responsible for ensuring the legitimate performance of all racing animals and the integrity of pari-mutuel wagering. The Commission works closely with the Government Regulation Committee of the Legislature. The Racing Industry directly and indirectly employs over 10,000 people within the • Commonwealth.

1 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

ADMINISTRATIVE OFFICE: •

Secretary Elizabeth M. Barry •

Special Assistant to the Commissioner Michael J. Callahan • Director of Racing David R. Ernst

Chief Information Officer • Joseph H. Van Deventer

Auditor Richard J. Mudarri •

Auditor II Marta M. Ferreira • Systems Analyst II Linda A. Mackey • Administrative Assistant II Barbara A. Nealon

Administrative Assistant I John E. Hill, Jr. • •

2 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

LICENSING

One of the Commission's foremost responsibilities include the issuance of licenses to Associations • who operate racetracks, as well as issuance of occupational licenses to every person who participates in racing.

APPLICATIONS FOR LICENSURE PROCESSED IN 1999

The licensing process requires that every person who participates in racing complete an application, • and that all questions must be answered truthfully. The application is reviewed for completeness by Commission Inspectors who then forward the application to the Board of Stewards/Judges at each track. The Board reviews the application and may interview the applicant. The Stewards/Judges determine if the applicant has the required integrity, ability, and the right to the license applied for. The Commission Inspectors or Board of Stewards/Judges may refer an application to the State Police Investigative Unit to conduct a background investigation on the applicant. The Commission also has • direct computer access to the Association of Racing Commissioners' International (ARCI) files in Lexington, Kentucky. These files maintain a record of every racing related offense attributed to an applicant anywhere in the country. The Commission provides reciprocity to other jurisdictions and their licensing decisions. • If the Stewards/Judges recommend licensing an applicant, the Inspectors collect the required fee and enter the appropriate information in the Commission's computer network. The applicant is issued a license card which entitles him to a photo identification badge. No person may enter any restricted area of a racetrack without a photo identification badge. During 1998, the Racing Commission issued approximately 4,500 occupational licenses to persons participating in horse and dog racing in the State. Total occupational licenses decreased due to the closing of Foxboro Park. Occupations • licensed include jockeys, trainers, assistant trainers, owners of racing animals, blacksmiths, racing officials, kennel owners, vendors, stable employees, and leadouts.

ASSOCIATION LICENSES

During 1998, the Racing Commission issued dog racing licenses to Massasoit Greyhound • Association and Taunton Dog Track, Inc., both located in Raynham, MA, and Wonderland Greyhound Park, Inc. located in Revere, MA, to conduct racing in 1999. The Commission issued running licenses to Sterling Suffolk Racecourse, LLC located in East Boston MA, and Western New England Fairgrounds, Inc., located in Great Barrington, MA to conduct racing in calendar year 1999. The Commission issued a conditional harness horse racing license to Plainville Racing Company, LLC to conduct harness racing at a new facility known as Plain ridge Racecourse located in Plainville, • MA. In addition, the Commission issued a running horse racing license to the Hampshire, Franklin and Hampden Agricultural Society for the purpose of conducting racing in conjunction with their annual agricultural fair in 1999. Consistent with the Massachusetts General Laws, the Commission held eight public hearings in 1998 on seven applications for seven licenses to conduct horse, dog, and harness racing meetings. The public hearings were held in Boston, Northampton, Great • Barrington, and Plainville; and two hearings each in Raynham and Revere, Massachusetts.

3 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

STATE RACING COMMISSION INSPECTORS Supervisor of Inspectors • Lawrence J. Rooney

RaCing Inspectors Jeffrey W. Bothwell David M. Callahan George E. Carifio Michael T. Cunningham Mark H. Estrich Richard J. Ford Diane C. Mackey Edward M. Travis Wallace A. Ward • John J. Werner

Racing Inspectors supervise the operation of the Commission's field offices located at Suffolk Downs, Raynham Park, Wonderland Park, and temporary offices at the Northampton Fair and Great Barrington. These individuals must possess a thorough knowledge and ability to interpret the rules and regulations of the racing industry. Additiona"y, they maintain a close liaison with the Stewards, • Judges, Racing Officials, Track Security, State Police, and the Racing Commission to ensure that operations at each track are efficient and effective. PROCESSED OCCUPATIONAL LICENSE APPLICATIONS IN 1998 • Occupational licenses expire annually on December 31 st. Inspectors review and process license applications. In 1998, the Inspectors processed over 4,500 applications and were responsible for collecting $121,068 in license and badge fees. They also collected $10,525 in fines. As a result of the Inspector's efforts approximately $132 thousand dollars were deposited in the general fund of the Commonwealth. • COMPLAINTS

The Commission Inspector is the most accessible and visible Commission representative at the track. Complaints and disputes are usually initiated with the Inspectors. The complaints and disputes that cannot be resolved at the field level are then reported to the Commission Office for further action. In • 1998, the Commission received 39 complaints. A" complaints are closed, the Commission has no backlog.

SUPERVISE TESTING AREA State testing areas at each track are supervised by an Inspector in order to ensure proper collection • and continuity of evidence for blood and urine samples obtained from racing animals. Testing Assistants who are employed for each program are trained, scheduled and supervised in their activities by the Inspectors in compliance with established procedures. In 1998, Commission veterinarians collected 590 blood samples and Commission testing assistants, under supervision of the Racing Inspectors collected 21,176 urine samples from both horses and dogs which participated at Massachusetts racetracks. The samples were tested at the Racing Commission Laboratory for • prohibited drugs and medications which could affect the performance of a racing animal. Approxiately 1/1 Oth of 1 percent of the samples tested positive for prohibited drugs. •

4 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

STATE RACING COMMISSION ACCOUNTANTS Director of Simulcasting/Chief Accountant • David Berube

Auditor III Program Manager II Richard C Moniz Anna P. Bossi Kerry O'Brien (LOA)

• Auditors Thomas J. Banks Peter T. Burke Paul M. Buttner Neil F. Cadigan Robert L. Ferrara Joan Grady Robert Hickman Bruce A. Larocca William L. Phillip • Maryanne M. Regnetta Frank A. Sclafani James M. Veneziano Contract Accountants William F. Abdelnour Dennis F. Griffin Walter B. Lee Patrick M. Major

• PARI-MUTUEL OPERATIONS - COMPLIANCE ENSURED

Pari-mutuel responsibilities include overseeing the proper distribution of the handle. The handle is the total amount of money wagered at each performance and the percentage or take-out of the handle is determined by statute. Proceeds from the handle are distributed to specific categories from • purse accounts to Capital and Promotional Trust Funds.

SAFEGUARDS

All money wagered at each racetrack are logged into a cash/sell totalizator (tote) system. At the start of each live race, the wagers are locked into the computer by the Commission Steward/Judge. For simulcast races, standard industry protocol is used to stop betting. Print-outs from the tote system • are audited by the Racing Commission Accountants for accuracy and compliance with current statutes.

DAILY AUDIT • A summary sheet, detailing the breakdown of the statutory take-out is prepared by a Commission Accountant for each individual racing performance. For live racing, the information is provided by the on-site tote system. For signal received simulcast races, a report from the host track is faxed to the guest track. This report is used in conjunction with on-track reports to complete the summary sheet. This activity ensures that the public, the Commonwealth, horsemen, dogmen, and all designated trust • funds are properly funded. A handle reconciliation report is prepared by the Commission Auditors on a daily b~sis. This report shows the handle broken down as to live, signal sent and signal received. Further, the balance of all current uncashed tickets and the liquidity of the mutuel department is audited on a daily basis by the Commission Auditors. •

5 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

ANNUAL AUDIT Racing Commission auditors conduct annual audits with the racetracks. An annual audit of the purse • accounts is conducted to ensure that appropriate funds are deposited in these accounts as required by statute, and that the funds are used appropriately when withdrawn from the accounts.

The net value of all outstanding pari-mutuel tickets is returned to the Commonwealth one year after the end of the racing year. An audit of these outstanding tickets is conducted an a yearly basis by Commission auditors to ensure that the State receives the appropriate amount. In Fiscal Year 1998, • the Commonwealth received in approximately $575 thousand from uncashed tickets.

Litigation started in 1995 to determine the outcome of unclaimed simulcast winnings. A judgment in Superior Court found in favor of the Racing Commission and ruled that unclaimed simulcast winnings should return to the Commonwealth. This judgment was appealed. The appeal was heard in • February, 1998 with a decision handed down in the Fall of 1998. Upon appeal, the courts found in favor of the Racing Commission. As a result, an additional $2.6 million has been paid to the Commonwealth. An additional $675 thousand is owed by Foxboro Park, which is in default. •

6 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

STATE POLICE INVESTIGATIVE UNIT • Detective Lieutenant: James C. Lane

Troopers Richard Dahill David Brown Joseph Sinkevich Gary R. Walsh Steven Hines

• The goals of protecting racing participants and the wagering public as well as maintaining the public's confidence in pari-mutuel wagering are achieved through the Commission's licensing, revenue collection, and investigative activities. The State Police Investigative Unit plays a vital role in achieving these goals. • M.G.L. CHAPTER 128A. SECTION 8 The Racing Commission applies to the Department of Public Safety for an assignment of a complement of police officers. The Commission assigns State Police officers to guard and protect the lives and safety of the public, property, and animals at all racing meets. In the performance of their duties, the State Police Investigative Unit investigates violations of the rules of racing and the • Massachusetts General Laws. The Investigative Unit's extensive responsibilities and activities have resulted in a major improvement in the Commission's regulatory functions.

KENNELJSTABLE INSPECTIONS

Kennel/Stable inspections focus on the detection of safety violations, the presence of unlicensed • persons in restricted areas, and the possession of illegal medications, drugs, and syringes. These inspections are conducted by officers assigned to the State Police Unit and aid in preserving the integrity of racing. These inspections are conducted both at the racetracks and at private sites off the racetracks. The inspections are both announced and unannounced. • 41 POSITIVE DRUG TESTS -13 CONTROLLED MEDICATION VIOLATIONS Protecting the integrity of racing involves animals racing free of prohibited drugs and medications. The Investigative Unit is responsible for ensuring that the testing areas where samples are collected are secure and that the continuity of evidence is maintained with all samples. The State Police investigate each positive drug test reported by the Racing Commission Laboratory, and interview the • trainers, veterinarians and other persons responsible. EJECTIONS - WARRANTS SERVED -- ARRESTS

In 1998, the Unit conducted 29 investigations including assaults, fraud, larceny, sudden deaths, and • service of warrants, etc. which resulted in 9 arrests and/or 14 ejections from Massachusetts racetracks of persons whose presence was determined to be detrimental to the best interest of racing. •

7 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

MASSACHUSETTS RACING FAIR

The State Police Investigative Unit plays a major role in organizing and supervising security at the • racing fair held in Northampton. In addition to their regular duties, the Investigative Unit works with fair management at least three months prior to the opening of the fair. These meetings involve important issues such as track conditions, security, and pari-mutuel procedures. One week before the fair, officers from the Investigative Unit are involved in initial security preparations. For the duration of the fair, all officers from the State Police Investigative Unit are assigned full-time to supervise security at the fair. •

UNIFORMED STATE POLICE DETAILS

The State Police Investigative Unit oversees and assists the uniformed State Police detail in the test area of the horse tracks. Paid by the Racing CommiSSion, these details are responsible for witnessing the collection of samples, ensuring the continuity of evidence for samples, and transporting samples collected in the testing area to the Racing Commission Laboratory. State Police • training ensures the integrity of samples and provides expert testimony at administrative and court proceedings. Detail officers also patrol the 's room and paddock areas at Suffolk Downs and Foxboro Park. SPECIAL INVESTIGATIONS • The State Police Unit conducted thorough investigations into the background of each individual who was party to the application for a racetrack license in Massachusetts. The State Police Unit also conducted several special investigations concerning gaming violations in conjunction with other agencies and units within the State Police. • BACKGROUND INVESTIGATIONS

The State Police conducted 174 background investigations on Racing Commission employees, racing officials, and trainers who participate at Massachusetts racetracks. They also conducted background investigations on all of the other persons licensed at Massachusetts racetracks. •

THOROUGHBRED-STANDARDBRED RACING

Suffolk Downs and Plainridge Racecourse schedule approximately 150 live performances each. The State Police Unit committed itself to maintain a constant presence at each racetrack, especially during live racing, working closely with the Stewards/Judges and other Commission and racing • officials to help ensure that each track operated honestly and credibly. •

8 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

STATE RACING COMMISSION LABORATORY • Chief of Laboratory Bruce Aspeslagh - B.S., Chemical Engineering

Senior Chemist Encarnacion L. Bernaldo - B.S., Medical Technology

• Assistant Chemists Lucille Saccardo - B.S., Animal Science Christine M. Gottshall- B.S., Chemistry

Junior Chemists Jocelyn N. Fadrigalan - B.S., Chemistry • Melchor S. Layon - A.S.

The State Racing Commission Laboratory is an important link in the Racing Commission's effort to ensure that quality racing exists within the Commonwealth. The primary function of the Commission Laboratory is to analyze samples of urine and blood for the presence of any drug which is of such • character as could affect the racing condition of the animal. Samples are taken from every winning horse or greyhound and any other horse or greyhound designated by Commission officials. Testing is performed by a specially trained staff at modern facilities located within the State Laboratory Institute in Jamaica Plain. • INTEGRITY OF SAMPLES ENSURED Special precautions are taken at all Massachusetts racetracks when post race blood and urine samples are collected to ensure that no tampering can take place. In order to assure the continuity of evidence, every winning horse or greyhound and all designated horses or greyhounds are under the surveillance of a uniformed State Police officer or Racing Commission employee from the finish of the race until the specimens are obtained. Samples are properly identified and transported immediately • after the close of each racing performance by a uniformed State Police officer or bonded courier to the Commission Laboratory in Jamaica Plain and placed in a locked laboratory locker for analysis the following day.

Responsibility for custody of the samples is assumed by Racing Commission Laboratory personnel once the samples are placed in the laboratory locker. To avoid bias, the chemist identifies the • sample by number only. After analysis, results are reported directly to the Racing Commission.

QUALITY ASSURANCE AND PROFICIENCY PROGRAMS

• The Racing Commission Laboratory is a member of the Association of Official Racing Chemists (AORC) and participates in their annual Proficiency Testing Program. The Commission Laboratory also participates fully in the Association of Racing Commissioners' International (ARCI) Equine and Greyhound Quality Assurance Programs (QAP). •

9 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

21,176 URINE SAMPLES - 590 BLOOD SAMPLES ANALVZED

Despite a heavy workload, the Racing Commission's Laboratory provides high quality results. The • Commission Laboratory annually screens in excess of 22,000 biological samples for the presence of illegal drugs and prohibited medications. Each year, many other items confiscated in the course of investigations are also submitted for analysis. These items may include feed preparations, vitamins, liniments, antibiotics and other pharmaceuticals, and medical devices such as needles and syringes.

UNIFORM TESTING I SOPHISTICATED INSTRUMENTS •

Each blood and urine sample received by the Commission Laboratory is screened by specialized tests to comply with ARCI-QAP guidelines for drug detection. These tests include specific extraction procedures, Thin Layer Chromatography (TLC), and Enzyme-Linked Immunosorbent Assays (ELISA). • Massachusetts allows the use of Phenylbutazone (Bute) and Furosemide (Lasix) in horses under the direction of the Controlled Medication Program and the Bleeder Medication Program. The Commission Laboratory monitors these two drugs in all equine samples received.

If screening tests indicate the presence of a drug or unknown foreign substance in a sample, • additional specialized testing is performed on that individual sample to prove or disprove the initial findings. All findings are unequivocally confirmed by use of such techniques as tandem Gas Chromatography/Mass Spectrometry. 16 DRUG FINDINGS 111.PROGRAM VIOLATIONS • Upon positive confirmation of a drug finding, the Commission Laboratory contacts the Racing Commission office in Boston, and reports the name of the drug found, track name, date of the race, and the sample identification number. Only at this time does the Racing Commission supply the Commission Laboratory with the race number, animal's name, and trainer's name for inclusion in an official report. The report is directed to the State Racing Commission, with a copy to the Racing Commission State Police Investigative Unit and a copy to the respective track Judge or Steward for • additional investigation and subsequent prosecution and/or other action.

During 1998, the Racing Commission Laboratory confirmed 16 drug findings and 11 medication program violations. Several hundred other submissions of pharmaceutical, paraphernalia, and feed preparations were analyzed and reported on as a part of the routine duties of the Commission • Laboratory. A comprehensive report of the Laboratory's activities can be found in, "Report of Official samples Analyzed During 1998", as Appendix B of this Annual Report. •

10 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

COMMISSION VETERINARIANS

Chief Veterinarian • Alexandra Lightbown, D.V.M. Contract Veterinarians Kevin F. Lightbown, D.V.M. Arthur Nedder, D.V.M. Lorraine O'Connor, D.V.M. Susan M. O'Neill, D.V.M.

• RESPONSIBILITIES

The Commission Veterinarians play an indispensable function in ensuring that the quality and integrity of racing within the Commonwealth remains strong. This is accomplished by the veterinarians overseeing implementation of the drug program for racing animals in the Commonwealth, and by testifying at Commission hearings on matters relative to drug and medication • use in animals. Additionally, they monitor the Lasix and Bute programs for horses racing in the Commonwealth. The veterinarians are responsible for tracking the condition of each horse and greyhound racing in the Commonwealth. They work closely with the Testing Assistants in the collection of samples obtained from racing animals. The Racing Commission in consort with the Tufts University Veterinary School conducted a review of medication guidelines relative to the use of • drugs in animals. These guidelines were adopted by the Commission in 1997. COMMISSION TESTING ASSISTANTS

Kathleen Atkinson Robert Beveridge Bradford G. Bshara Louis Cersosimo Ramos Chavez David Clement • Charles Correia Anthony J. Correnti Enrico Curcio Carl Demarco Richard T. Desisto John Doyle Richard J. Estrella Paul F. Fazzina Domenic J. Ferrullo . Gerald A. Ferrullo Gregory J. Forte Alfred Foster Monique Franke George Gagnon Leo A. Grasso John E. Keenan Norman L. Labelle George Ladino • Roger M. Lagace Frederick K. Lord James Matthews Charles S. McQuiggan John C. Myette Arthur Nobrega Richard A. Reale Domenic L. Russo Joe Schiavone Carmine R. Sciaraffa Terralynn E. Sullivan John P. Walsh • RESPONSIBILITIES Testing Assistants are the technicians responsible for securing, sealing, and documenting samples obtained from racing animals, deSignated by the Stewards and Judges, to be tested. Testing Assistants maintain sample logs and reports which reinforce the chain of evidence which begins at • the finish line and ends when the results are reported by the Commission Laboratory. The methods and procedures initiated by the Testing Assistants enable the Commission Laboratory to conduct its procedures with the confidence that samples they receive are secure and intact and that the Laboratory's results will not be nullified by errors occurring outside the lab. •

11 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

BOARD OF STEWARDS/JUDGES

Enforcement of the rules and regulations of racing begins with the prosecution of violators by the • Board of Stewards/Judges at the racetrack. One Steward/Judge is appointed by the racetrack, and must be approved by the Racing Commission and licensed as a racing official and two Stewards/Judges are appointed by the Racing Commission. RESPONSIBILITIES • The Judges and Stewards are responsible for reviewing all occupational license applications and for recommending or not recommending the applicant for a license. The Judges and Stewards are present at the racetrack each day on which there is racing, and they oversee everything from drawing of post positions to making the results of every race official. In addition, the Stewards/Judges preside over all hearings conducted at the track and report their rulings and findings to the Racing • Commission. .

Before post time of the first race the Stewards/Judges review the daily program of races to note any changes or errors. Changes are reported to each department that might be affected by the change (i.e., mutuels, paddock judges, patrol judges, starters, clerk of the course, clerk of scales, program director, and announcer). All changes are also reported promptly to the wagering public. •

After observing every race, both live and on television monitors, the Stewards/Judges mark the order of finish as the horses or dogs cross the finish line. They give the first three unofficial finishers to the Mutuel Department, post an inquiry, review an objection, and request a photo finish when necessary. If there is an apparent violation of the rules, the Stewards/Judges review the videotape and then make a decision before making the results of the race official. •

If a violation of the rules occurs, the judges notify the all parties involved of a scheduled hearing. After conducting the hearing the Stewards/Judges determine if any penalty of a fine or suspension or purse redistribution should be imposed. Violators are then advised of their right to appeal to the Racing Commission. • ENFORCEMENT OF RULES AND REGULATIONS

The most significant responsibility of the Commission is the enforcement of the rules and regulations of racing. It is only as a result of conscientious, consistent, and aggressive enforcement of the rules • and regulations, that we can ensure honest racing.

161 RULINGS - BOARD OF STEWARDS/JUDGES

The regulatory process begins with the promulgation of rules and regulations and concludes with the enforcement of those rules. On July 7, 1992, Chapter 101 was signed into law. Chapter 101 changed the number of State's Stewards/Judges at the racetracks from one to two. The Board of • Stewards/Judges at each racetrack now consists of two persons appointed by the Racing Commission, and one person appointed by the Association, and approved by the Racing Commission. The Board of Stewards/Judges is the most significant link in the regulatory chain. The Stewards/Judges are responsible for recommending persons for licenses, and ensuring that each licensed racing association and all partiCipants are in compliance with the rules and regulations of • racing. The Stewards/Judges carefully examine every license application to determine if the

12 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

applicant is eligible for a license. The Stewards/Judges observe every race run at the racetrack and determine if the race is conducted in accordance with the rules. The Stewards/Judges are responsible for making each race official. The Stewards/Judges also monitor the conduct of all • licensees in all areas of the racetrack. If a licensee appears to be in violation of the rules, the Stewards/Judges conduct a hearing and make a final determination. If there is a violation of the rules, the Stewards/Judges may sanction the licensees by imposing a fine and/or suspension.

APPEALS • The Stewards/Judges' decisions are reviewed by the Racing Commission. If any licensee disagrees with a decision of the Stewards/Judges, they may appeal to the Commission. The Commission affords the appellant an adjudicatory hearing on the merits of his appeal. If an appellant is dissatisfied with the decision of the Racing Commission, they may appeal to the Superior Court in accordance with Chapter 30A of the General Laws.

• The Racing Commission's regulatory activities have resulted in improved compliance by licensees.

Hearings 1994 1995 1996 1997 1998

Board of Judges/Stewards 499 484 439 327 161

• Racing Commission 65 60 68 55 30

Sanctions • Fines 339 191 253 193 107 Suspensions 130 186 128 106 38 •

13 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

REVENUES

RECEIPTS •

FISCAL YEAR 1998 - JULY 1.1997 TO JUNE 30.1998

RECEIPTS

0131 Commission and Breakage $ 9,192,529.78 • 2700 Fines and Penalties 10,525.00 3003 Association License Fees 419,219.60 3004 Licenses and Registrations 109,885.00 4800 Assessments 729,434.68 5009 Unpaid Tickets 575,133.70 • 6900 Miscellaneous 1,183.33

$11,047,911.09 EXPENDITURES • FISCAL YEAR 1998 - JULY 1.1997 TO JUNE 30.1998

APPROPRIATION (7006-0110) Total Available $3,662,914.00 • EXPENDITURES

AA Regular Employee Compensation $1,718,335.00 BB Regular Employee Related Expenses 67,542.00 DD Pension/Insurance, Related Expenses 67,352.00 • EE Administration Expenses 109,872.00 FF Facility Operational Supplies 78,401.00 HH Consultant Services 166,247.00 JJ Operational Services 926,230.00 KK Equipment Purchase 168,265.00 LL Equipment Lease/Purchase Lease and 96,034.00 • Rental/Maintenance and Repair

TOTAL EXPENDITURES $3,398,278.00

Unexpended Balance of 264,636.00 • Maintenance Appropriation •

14 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

REVENUES • $ 11,047,911.09 IN REVENUES COLLECTED In addition to licensing racetracks and participants, the Racing Commission has a primary responsibility to collect revenue in accordance with Chapter 128A of the General Laws. Each licensed racetrack pays daily to the Racing Commission a commission as determined by law, in addition to license fees and assessments. Commission Inspectors collect occupational license fees, • badge fees, and fines. All unclaimed money for outstanding tickets eventually reverts to the Commonwealth. The State Racing Commission collected $11 ,047,911.09 from Massachusetts racetracks in Fiscal Year 1998. This figure is approximately $1.2 million less than what was collected in 1997. This difference is reflected due to the continuing increase in the level of Simulcasting. The Commonwealth receives less revenue for simulcast races as compared with live performances. An • additional contributor to reduced revenue was the closing of Foxboro Park in July 1997. COST EFFECTIVE STATE SERVICES

OVER 11 MILLION IN REVENUE COLLECTED - 3.47 MILLION IN EXPENDITURES

In 1998, working with 43 full-time employees and supplemented by part-time employees, the Racing • Commission fulfilled its duties and responsibilities in a most effective and efficient manner. Expending only 3.47 million dollars, the Racing Commission directly supervised thousands of persons licensed by the Commission and collected over 11 million dollars in revenue • 43 FULL-TIME EMPLOYEES * Processed more than 4,200 license applications * Investigated more than 160 violations of the rules and regulations * Conducted more than 55 Administrative Hearings * Collected, Audited, and Deposited in the General Fund in excess of $ 11 Million in Revenue • * Remained current on all proceedings, there is no backlog The Racing Commission is using every resource available to them and is succeeding in ensuring that honest and well-managed services are delivered to the citizens of Massachusetts. •

15 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

SIGNIFICANT EVENTS DURING 1998 1. MASSACHUSETTS HANDICAP -- The Mass Cap winner was for the second year in a • row. Later in the year, Skip Away was selected as the 1998 Horse-of-the Year.

2. NEW HARNESS TRACK PROPOSED -- Plainville Racing Company, LLC was granted a conditional harness license for a new track to be located at the intersection of 1-495 and US Rt. 1 in Plainville. The new track will be known as Plain ridge Racecourse and is scheduled to open for live racing in April, 1999. •

3. PERFORMANCE RECOGNITION -- The Racing Commission recognized the following employees with the 1998 Commonwealth Citation for Outstanding Performance awards: David Ernst, Director of Racing; Larry Rooney, Chief Inspector; and Jeffrey Bothwell, Racing Inspector. David Ernst was also a nominee for the Manuel Carballo Governor's Award for Excellence in Public Service • 4. OUTSTANDING SIMULCAST TICKETS -- The value of outstanding live pari-mutuel tickets (outs) which remain uncashed after a year escheat to the Commonwealth. The Racing Commission maintained that simulcast tickets should be treated similarly. That stand was challenged in court, with the Appeals Court ruling in favor of the Commission. As a result of the court's ruling , approximately $2.6 million was paid to the Commonwealth in late 1998. Still outstanding is approximately $250 • thousand owed by the defunct Foxboro Park. Foxboro Park has declared bankruptcy and their parent company has not paid the debt.

5. JIM BELL'S DEATH -- The Racing Commission and all of the racing industry was saddened by the untimely death of Chief State Steward Jim Bell, Jr. in June, 1998. Jim was well known and admired throughout the industry and will be missed. •

16 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

RACING COMMISSION BUSINESS • MEETINGS AND HEARINGS During 1998, the Racing Commission held 23 business meetings at the Commission Office, One Ashburton Place, Boston, MA or at other designated locations. The provisions of Chapter 372 of the Acts of 1978 were complied with in calling each meeting.

In addition, as required by Chapter 128A of the Massachusetts General Laws, the • Commission held eight public hearings on seven applications for seven licenses to conduct horse, dog, or harness racing meetings. The hearings were held in Revere, Boston, Northampton, Great Barrington, Plainville, and two in Raynham.

The Racing Commission in 1998 presided over 30 adjudicatory hearings as a result of appeals from rulings of the Stewards and Judges at the various commercial and fair • racetracks throughout the Commonwealth.

161 RULINGS IN 1998

The Racing Commission conducts weekly hearings pertaining to association licenses, • violations of the rules and regulations, and appeals of fines and suspensions. In 1998, 161 violations of the rules were prosecuted by the Board of Stewards/Judges at Suffolk Downs, Raynham Park, Wonderland Park, or Foxboro Park. Of those violators fined and/or suspended, 55 appealed ,the decision to the Racing Commission. All appeal hearings are held in a timely, current basis. As a result, the Commission has no backlog of appeals.

• DECISIONS APPEALED TO THE RACING COMMISSION

The Racing Commission, sitting as a quasi-judicial body pursuant to the Massachusetts Administrative Procedures Act, adjudicated 30 appeals. The Commission has taken extensive precautions to ensure licensees due process throughout the appeal process. The Commission initiated a Stay of Suspension process. This permits licensees suspended by the • Stewards/Judges for a minor violation of the rules that does not compromise the integrity of racing to continue to participate in racing until the licensee has been provided a hearing by the Commission and a decision made. Procedural safeguards were adopted to prevent licensees from abusing the Stay privilege. Hearings are conducted within two weeks of granting of the • Stay, thereby preventing a licensee from remaining on a Stay for a long period of time. DUE PROCESS AFFORDED ALL LICENSEES

While the right to protect the public is subject to the power of the State, an accused who is charged with a violation of the rules that may result in the loss of a license is always entitled to a hearing pursuant to the Administrative Procedures Act. Formal disciplinary hearings held by • the Racing Commission follow the requirements established in the Massachusetts Administrative Procedures Act. These requirements include issuing timely notice of hearings, providing the opportunity for an appellant to confront witnesses, and to be represented by counsel. •

17 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

COMMISSION DECISIONS APPEALED TO SUPERIOR COURT In addition to hearing appeals, the Racing Commission must prepare a complete record and • legal decision for each case that is appealed to the Superior Court. When the record is completed and certified, it is forwarded to the Government Bureau of the Attorney General's Office and is assigned to an Assistant Att9rney General who defends the case in court. The Commission and the Attorney General work closely together to present the best possible case in Superior Court. • The Racing Commission takes this opportunity to thank the Attorney general's Office for the diligent, professional, and expert defense of Commission cases.

OVER 11 MILLION DOLLARS IN REVENUE COLLECTED IN 1998

The administrative office audits, records, and deposits receipts from racetracks for: • commissions, breakage, association license fees, assessments, trust funds, occupational licenses, fines, and outstanding tickets. The staff transfers receipts to the State Treasurer's office, daily. APPROXIMATELY 3.47 MILLION IN EXPENDITURES IN 1998 • The administrative office analyzes the financial needs of the Racing Commission in order to anticipate budgetary requirements. The staff monitors cash needs daily through accurate cash forecasting included in the spending plan.

1099 LIVE RACING PERFORMANCES - 43 FULL TIME EMPLOYEES •

The administrative staff establishes and maintains a calendar of racing days, a schedule of necessary personnel, and a record of payrolls for Commission personnel at the racetracks and for State Police details at each track.

107 FINES - 38 SUSPENSIONS - 19 EJECTIONS •

The administrative staff establishes and maintains an accurate record of all persons fined, suspended, and/or ejected from each racetrack as well as persons who are the subject of a ruling by the Boards of Stewards/Judges at the various racetracks. • The administrative office also compiles and/or issues such reports as the spending plan, budget request, annual reports, GAAP financial statements of licensed associations, physical property inventory, affirmative action, small and minority business, and maintains an accurate record of all minutes of all business conducted by the Racing Commission. •

18 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

• RACETRACKS

19 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

NOTES ON CHARTS AND GRAPHS

In this 1998 Annual Report, the terminology used in reporting simulcast events remains the • same as was used in the 1997 Annual Report. The terminology was changed then to avoid confusion and misrepresentation of the numbers reported.

"Export Simulcast" (betting dollars are exported to a remote track) has now been categorized • as "Signal Received", as this is the signal sent from a remote track being received locally.

"Import Simulcasf' (betting dollars are imported from a remote track) has now been categorized as "Signal Sent", as this is the local signal being sent to a remote track. •

20 1998 ANNUAL REPORT • Massachusetts State Racing Commission

•(> HANPLE CALENPAR YEARS 1996. 1997.1998

% % 1996 1997 Valiance 1997 1998 Variance

• Uve

Taunton $41. 108.338 $33.739. 152 (17.93) $33.739.152 $31 .330.415 (7.14) Massasoit $42.761.937 $35.366.516 (17.29) $35.366.516 $33.397.794 (5.57) Wonderland $45.148.398 $40.341 .288 (10.65) $40.341.288 $31 .358.740 (22.27) Foxboro $6.513.527 $3.425.795 (47.40) $3.425.795 $0 .. (HXJ.OO) • Suffolk $37.014.536 S34.988.623 (5.47) $34.988.623 $33.256.607 (4.95) Northampton $2.301.808 Sl.877.662 (18.43) $1 .877.662 $2.022.072 7.69 Great Barrington $2.838.554 $2.838.554 $3.214,808 0.13

Total Uv9 $174.848.544 $152.577.590 (12.74) $152.577.590 $134.580.436 (11 .80) • Signal Received Taunton $30,304.518 $33.540.609 10.68 $33.540.609 $33.882. 795 1.02 Massasoit $32.327.219 $34.914.247 8.00 $34.914.247 $37.391 .389 7.09 Wonderland $51.786.343 $52.390.769 1.17 $52.390.769 $50.575.893 (3.46) Foxboro $47.624.016 $28.098.230 (41.00) $28.098.230 SO •• (100.00) • Suffolk $136.565.167 $138.500.570 1.42 $138.500.570 $146.201.720 5.56 Total Receiv9d $298.607.263 $287.444.425 (3.74) $287.444.425 $268.051.797 (6.75)

Signal Sent

Taunton $5.283.648 $16.014.626 203.10 $16.014.626 $18.198.11 9 13.63 • Massasoit $5.291.138 $13.722.618 159.35 $13.722.618 $18.090.257 31.83 Wonderland $26.848.459 $34.526.302 28.60 $34.526.302 $39.034.906 13.06 Foxboro $29. 561 . 99~ $25.287.851 (14.46) $25.287.851 $0 •• (100.00) Suffolk $87.953.936 $82.232. 115 (6.51) $82.232. 11 5 $89.796.726 9.20

Total Sent $154.939.174 $171.783.512 10.87 $171.783.512 $165.120.008 (3.88)

• TotalHmdIe $628.394.981 $611 .805.527 (2.64) $611.805.527 $567.752.241 (7.20)

•• Foxboro Park closed permanently on 7/31/97 •

• Massachusetts State Racing Commission •

AVERAGE HANDLE PER LIVE PERFORMANCE 1997 vs.1998

~ \ \ \ 'I \ \ \ I

\)~ ...0IIII • 300000

250000 V ~ ~ .- • · 20000o V

I-- 150000 1/ fIIIIiiili ...oII!II!'If! • 1/ I-- I-- .100000 ;5 V- i-- I--- I-- I-- I-- 50000 i;511 • o 1/ 7 '7 7 7 10.-7 7 7 Suffolk Wland Mass T nton Foxb Nham GtBarr

ICt997 D19~8 1 Average Attendance per Live Performance •

Gt Barr • \C 1997 D1998 \ • Massachusetts State Racing Commission

• HANDLES 1997 VS. 1998 Financial Variance Report

Category 1997 1998 Variance % Variance

• Meeting Days 1.251 1,099 *. (152) (12.1 5) Attendance 2.211.257 2.106.167 (105,090) (4.75)

live Handle $152.577.590.00 $134.580.436.00 ($17.997,154.00) (11.80) • Signal Received $287.444.425.00 $268.051,797.00 ($19.392.628.00) (6.75) Signal Sent $171 .783.512.00 $165. 120.008.00 ($6.663.504'(XJ) (3.88) . Total Sinulcast $459.227.937.00 $433.171.805.00 ($26.056.132.00) (5.67)

TOTAL HANDLE $611.805.527.00 $567.752.241 .00 *** ($44.053.286.00) (7.20)

• . ComrrVssions & Breakage $9.704.518.25 $9.185.241.74 ($519.276.51) (5.35) Assessmen1s $600.289.20 $877.636.92 $277.347.72 46.20 Association License Fee $520.710.15 $392.470.35 ($128.239.80) (24.63) Occu~IUcenseFee $157.241.30 $153.685.00 ($3.556.30) (2.26) Oufstmding Tickets $633.983.70 $3.172.246.20 $2.538.262.50 400.37 Rnes & Penalties $19.485.00 $11.505.00 ($7.980.00) (40.95) • Miscellaneous $3.607.86 $13.900.05 $10.292.19 285.27

TOTAl REVENUES $11.639.835.46 $13.806.685.26 $2. 166.849.80 18.62 • ** Foxboro Park closed permanently on 7/31/97

23 • 1998 ANNUAL REPORT ------

Massachusetts State Racing Commission •

HANDLES 1997 vs. 1998 •

1997 1997 Live Handle: $152,577,590. $134,580,436. • Simulcast Handle: Sent: $171,783,512 $165,120,008. Received: $287,444,425. $268,051,797. Total Simulcast Handle: $459,227,937. $433,171 ,805. • TOTAL HANDLE: $611,805,527. $567,752,241. •

HANDLES •

$ Mil •

Suffolk Wland Mass Tnton Foxbro Nhamp GtBarr

la1997 Live 81998 Live E!l1997 Smlcast 1111998 Smlcast I •

24 1998 ANNUAL REPORT •• • Massachusetts State Racing Commission

HANDLES Live vs. Simulcast Chart #1 •

S MIL •

• 1998 Total Handle $567,752,241.

• liYe Handle

Signal Roceived 47% 11I iii •

• 1997 Total Handle $611,805,527.

Signal RaceiV

• ~ · 47% _ _

25 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

HANDLES Live vs. Simulcast Chart #2 • LIVE HANDLES 1997 va. 1998

120 •

SMil •

Greyhoonds Horses 10 1997 D 1998 1 •

SIMULCAST HANDLES 1997 va. 1998 •

200 •

S Mil. 150 100 • 50

o~------,L------( Greyhounds Horses 10 1997 D 1998 1 •

. 26 1998 ANNUAL REPORT • • Massachusetts State Racing Commission HANDLE CHARTS Horses vs. Dogs

• HORSE HANDLES Uve va. Simulcast (1997 •• 1998)

• $ Mil.

Live Simulcast

10199701998 1 • DOG HANDLES Uve vs. Simulcast (1997 .• 1998) •

• $ Mil.

Live Simulcast • 10199701998 I

27 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

STERLING SUFFOLK RACECOURSE LLC

SUFFOLK DOWNS BOARD OF STEWARDS •

Commission Stewards

James M. P. Bell, Jr. Jerald O. Caruso Richard T. DeStasio William E. Keen •

Association Stewards

James Gigliotti Warren C. Mehrtens •

The Racing Commission was saddened by the untimely passing of Chief Commission Steward Jim Bell, Jr. in June (see the Significant Events item earlier). In addition, long time Steward Jerald Caruso decided to retire. Fortunately, we were able to obtain the services of Richard DeStasio and William Keen as State Stewards. •

71 ADMINISTRATIVE HEARINGS

The primary responsibility of the stewards is to interpret and enforce the rules of racing as • promulgated by the Commonwealth of Massachusetts.

In carrying out this duty, the Stewards presided as judges in 71 hearings in 1998 resulting in 22 fines, 25 suspensions, and 4 cases involving both fine and suspension. There were 22 other actions such as probation, and revocation. Additionally there were purse redistributions for violations ranging from minor riding infractions to serious medication and drug violations. •

28 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

• SUFFOLK 1997 vs. 1998 Financial Variance Report

Category 1997 1998 Variance % Variance • Meeting Days 150 150 0 0.00 Attendance 902188 976.387 74.199 8.22

. Uve Handle $34.988.623.00 $33.256.607.00 ($1.732016.00) (4.95)

Signal Received $138.500.570.00 $146.201.720.00 $7.701. 150.00 . 5.56 • SignatSent $82232115.00 . $89.796.726.00 $7.564.611.00 9.20 Total Simulcast $220.732685.00 $235.998.446.00 $15.265.761 .00 6.92

TOTAl HANDLE $255.721.308.00 $269.255.053.00 $13.533.745.00 5.29

Commissions & Breakage $781.677.99 $796,403.84 $14,725.85 1.88 • Assessments . $178,488.54 $395,246.00 $216.757.46 121.44 Association Ucense Fee $145,878.12 $84.47(l;35 ($61,407.77) (42.10) Occupational Ucense Fee $82173.30 .$75.495.00 ($6,678.30) (8.13) Outstanding Tickets . $110,997.50 $1,432,664.40 $1,321.666.90 . 1.190.72 Fines & Penalties $8,595.00 $3.750.00 ($4,845.00) (56.37) • Miscellaneous $228.20 $7,708.04 $7,479.84 3,277.76 TOTAL REVENUES $1,308,038.65 $2.795.737.63 $1,487;698.98 113.74 . •

29 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

SUFFOLK DOWNS TOTAL HANDLE · • Live vs. Simulcast • 1997 Total Handle $255,721,308. • Live Handle 14% •

Signal Received 54% •

1998 Total Handle $269,255,053. •

Live Handle 12% •

Signal Received Signal Sent 55% 33% •

30 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

SUFFOLK DOWNS • Live vs. Simulcast (1997 ... 1998)

1997 1998

• Live Handle: $34,988,623. $33,256,607.

Simulcast Handle: Sent: $82,232,115. $89,796,726. Received: $138,500,570. $146,201,720. • Total Simulcast Handle: $220,732,685. $235,998,446.

TOTAL HANDLE: $255,721,308. $269,255,053. •

SUFFOLK DOWNS Live vs. Simulcast (1997 •. 1998) • 250 •

$ Mil •

• Live Simulcast 10 199701998 1 •

31 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

WONDERLAND GREYHOUND PARK, INC.

WONDERLAND PARK BOARD OF JUDGES • Commission Judges

James A. Buono Carl J. DeMarco Denis M. Dunn Robert J. Furlong Vincent A. Sabella Hugh T. Walsh •

Associate Commission Paddock and Track Judges

Robert Beveridge Sergio R. Clivio Fred Lord Robert P. Love • Peter E. McCauley John Myette Joseph T. Schiavone Albert F. Tebbetts

Association Judges

Russell Brennan Herbert C. Brenner • Steve Edmunds

Associate Track Judges are responsible for supervising lead-outs and starting box personnel on the track as well as making sure that no greyhounds are mishandled and that blankets, muzzles, and starting box equipment are operating correctly. • Associate Paddock Judges are present for weigh-in of greyhounds and assure that all weights are accurately recorded. They double check Bertillon cards and markings and make sure that all greyhounds are properly identified, blanketed, and muzzled. In addition, they ensure that only licensees and authorized track personnel with proper identification badges are in the paddock. They report any irregularities to the Commission Judge immediately and meet with • the Commission Judge periodically. Associate Commission Judges supervise racing greyhounds from the time they are brought to the racetrack until each race is made official.

50 ADMINISTRATIVE HEARINGS IN 1998

In 1998, the Boarp of Judges issued 4 suspensions and 19 fines to licensees for violations of • the Racing Commission Rules and Regulations.

During 1998, there were 25 fines and Greyhound suspensions issued for weight violations. •

32 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

• WONDERLAND 1997 vs. 1998 Financial Variance .Report

Category 1997 1998 Variance % Variance

Meeting Days 461 399 (62) (13.45) • Attendance 489.722 406.828 (82.894) (16.93)

Uve Handle $40.341.288.00 $31.358.740.00 ($8.982.548.00) (22.27)

Signal Received $52.390.769.00 $50.575.893.00 ($1 .814.876.00) (3.46) • Signal Sent $34.526.302.00 $39.034.906.00 $4.508.604.00 13.06 Total Simulcast $86.917.071.00 $89.610.799.00 $2.693.728.00 3.10

TOTAL HANDLE $127.258.359.00 $120.969.539.00 ($6.288.820.00) (4.94)

Commissions & Breakage $3.562.544.20 $2.941.087.91 ($621.456.29) (17.44) • Assessments $129.334.58 $151.168.29 $21.833.71 16.88 Association Ucense Fee $144.300.00 $122. 100.00 ($22.200.00) (15.38) Occupational Ucense Fee $16.455.00 $12.790.00 ($3.665.00) (22.27) Outstanding Tickets $188.367.00 $743.402.50 $555.035.50 294.66 Fines & Penalties $3.400.00 $3.380.00 ($20.00) (0.59) • Miscellaneous $79.00 $815.28 $736.28 932.00 TOTAL REVENUES $4.044.479.78 $3.974.743.98 ($69.735.80) (1 .72) •

33 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

WONDERLAND GREYHOUND PARK TOTAL HANDLE • Live vs. Simulcast • 1997 Total Handle $127,258,359. •

Signal". Reeeived' I 11;1~~:: •

Signal Sent 27% •

1998 Total Handle $120,969,539. •

• S ign aIReceiVedli1ill;;;~1= I •

34 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

WONDERLAND GREYHOUND PARK • Live vs. Simulcast (1997 ... 1998)

1997 1998 • Live Handle: $40,341,288. $31,358,740. Simulcast Handle: Sent: $34,526,302. $39,034,906. Received: $52,390,769. $50,575,893. • Total Simulcast Handle: $86,917,071. $89,610,799. TOTAL HANDLE: $127,258,359. $120,969,539. •

WONDERLAND Live vs. Simulcast (1997 •• 1998) •

SMII 40 • 30 20

10

o+------+------~ Live Simulcast • 101997 D199s 1

35 1998 ANNUAL REPORT • Massachusetts State Racing Commission •

MASSASOIT GREYHOUND ASSOCIATION. INC. AND TAUNTON DOG TRACK, INC. •

RAYNHAM PARK BOARD OF JUDGES

Commission Judges

Robert N. Braz Robert P. Connolly Robert W. Foster • Grace Hall Charles McGowen William W. Perry Eileen Rodgerson Stephen Smith Associate Commission Paddock and Track Judges • Dr. Mark A. Castro William Egan Phillip P. Lemieux George F. Moses Joaquim P. Oliveira, III William W. Perry Bradley Preston Association Judges • Robert Babeau David Burke Lawrence Hurley Raymond Whalen

Associate Track Judges are responsible for supervising lead-outs and starting box personnel on the track as well as making sure that no greyhounds are mishandled and that blankets, muzzles, and starting box equipment are operating correctly. •

Associate Paddock Judges are present for weigh-in of greyhounds and assure that all weights are accurately recorded. They double check Bertillon cards and markings and make sure that all greyhounds are properly identified, blanketed, and muzzled. In addition, they ensure that only licensees and authorized track personnel with proper identification badges are in the • paddock. They report any irregularities to the Commission Judge immediately and meet with the Commission Judge periodically. Associate Commission Judges supervise racing greyhounds from the time they are brought to the racetrack until each race is made official. 17 ADMINISTRATIVE HEARINGS • Commission Rule 205 CMR 5.16 (2) (3) prohibit the use of drugs in racing greyhounds. A violation of this rule results when a prohibited medication is found in a urine sample taken from a greyhound after the running of a race., i.e., aspirin, procaine, or D.M.S.O. (dimethylsulfoxide) . •

36 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

During 1998, the Board of Judges issued 4 suspensions or fines to trainers for violations of the medication or other rules. In each medication case, the medications detected were minor • violations of the rules resulting in fines and short suspensions. 25 FINES OF TRAINERS FOR VIOLATION OF 205 CMR 5.26

The most common violation in greyhound racing is 205 CMR 5.26 which regulates the weight of racing greyhounds. Violation of 205 CMR 5.26 carries an automatic fine and suspension of • the greyhound for six days. The trainer responsible for the greyhound is also fined, and if repeated violations occur, the trainer may be suspended. In 1998, there were 25 fines for weight. •

37 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

MASSASOIT 1997 VS. 1998 Financial Variance Report •

Category 1997 1998 Variance % Variance

Meeting Days 256 258 2 0}8 • Attendance 368,729 365,010 (3.719) . (1.01)

Uve Handle $35,366,516.00 $33,397,794.00 ($ 1,968, 722JD) (5.57) . Signal Received $34,914,247.00 537,391,389.00 $2.477,142.00 7.00 • Signal Sent $13.722.618.00 518,090,257.00 $4.367.639.00 31.83 Total SimuJcast $48,636.865.00 $55,481,646.00 $6,844.781 .00 14.07

TOTAL HANDLE $84.003,381 .00 $88,879,440.00 $4.876,059.00 5.80

Commissions & Breakage 52.601.519.13 $2.535,143.27 ($66,375.86) (2.50) • Assessments $96,813.24 5118,584.83 521.n1.59 22.49 Association Ucense Fee $76.500.00 580,400.00 $3,900.00 5.10 Occupa1iQnal Ucense Fee $13,610.00 $11 .700.00 ($1.910.00) (14.03) Outstanding rICkets $149.057.40 . 5166,030.10 $16,972.70 11.39 Rnes & Penatties $650.00 $525.00 (5125.00) (19.23) MiscellaneOus . SO.OO 51.126.23 51.126.23 •

TOTAL REVENUES 52.9~, 149.77 52. 913,509.43 (524,640.34) (0.84) •

38 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

MASSASOIT GREYHOUND ASSOCIATION • TOTAL HANDLE Live vs. Simulcast • 1997 Total Handle $84,003,381. •

Live Handle Signal Received' ~:- 42% • 42% I11III

Signal Sent • 16%

1998 Total Handle $88,879,440. •

• 38% SignaIReceived'1.~ I •• ~ • Signal Sent 20"/0 •

39 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

MASSASOIT Live vs. Simulcast (1997 ... 1998) •

1997 1998 Live Handle: $35,366,516. $33,397,794. • Simulcast Handle: Sent: $13,722,618. $18,090,257. Received: $34,914,246. $37,391,389. Total Simulcast Handle: $48,636,865. $55,481,646. • TOTAL HANDLE: $84,003,381. $88,879,440. •

MASSASOlT Uve va. Simulcast (1997 •• 1998) •

Live Simulcast 1.1997 D1996 1 •

40 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

• TAUNTON 1997 vs. 1998 Financial Variance Report

• Category 1997 1998 Variance % Variance Meeting Days 268 263 (5) (1.87) Attendance 362.148 331,313 (30.835) (8.51)

Uve Handle 533.7.39. 152.00 $31.330.415.00 ($2.408.737.00) (7.14)

• Signal Received 533.540.609.00 $33.882.795.00 $342186.00 1.02 Signa/Sent 516.014.626.00 518.198.119.00 52. 183.493.00 13.63 Total SimulCast $49.555.235.00 552.080.914.00 52.525.679.00 5.10 • TOTAL HANDlE 583.294.387.00 $83.411.329.00 $116.942.00 0.14 Commissions & Breakage 52.207.151.17 ·52.309.119.28 - S101.968.11 4.62 Assessments $82.467.48 5145.207.69 $62.7.40.21 - 76.08 . Association license Fee . $75.33203 575,900.00 5567.97 0.75 Occupational License Fee 52.595.00 $4.830.00 . $2.235.00 86.13 outstrnding TICkets $138.950.10 $822.684:20 $683.734.10 492.07 • Fines & Penatties 52010.00 $525.00 ($1.485.00) (73.88) Miscellaneous $0.00 $421.70 $421.70

TOTAL REVENUES . $2508.505.78 $3.358,687.87 SSso.182.09 33.89 •

41 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

TAUNTON DOG TRACK TOTAL HANDLE •

Live vs. Simulcast

1997 Total Handle $83,294,387. •

Live Handle 41". Signal40% Received' I 1111~:=- •

Signal Sent 19% • 1998 Total Handle $83,411,329. •

SignaIReceived'liiil~~:<0' I •

Signal Sent 22"/. •

42 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

TAUNTON DOG TRACK, INC. • Live vs. Simulcast (1997 ... 1998) 1997 1998

Live Handle: $33,739,152. $31 ,330,415.

• Simulcast Handle: Sent: $16,014,626. $18,198,119. Received: $33,540,609. $33,882,795. Total Simulcast Handle: $51,602,792. $52,080,914.

• TOTAL HANDLE: $83,294,387. $83,411,329.

• TAUNTON Uve vs. Simulc:ast (1997 .. 1998)

• 60

• 10

OT------~------~ Live Simulcast

101997 Dl996 1 •

43 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

HAMPSHIRE, FRANKLIN, & HAMPDEN AGRICULTURAL SOCIETY

NORTHAMPTON BOARD OF STEWARDS •

Commission Stewards

Robert Stovall Richard F. Tobin, Jr.

Association Steward •

John Gaver 4 ADMINISTRATIVE HEARINGS • The primary responsibility of the Stewards is to interpret and enforce the rules of racing as promulgated by the Commonwealth of Massachusetts. There were 4 rulings issued in Northampton in 1998. •

44 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

NORTHAMPTON FAIR 1997 vs. 1998 Financial Variance Report •

Category 19.97 1998 Variance % Variance

• Meeting Days 6 9 3 50.00

Uve Handle $1,877,662.00 $2,022,072.00 $144.410.00 7.69

Signal Received $0.00 $0.00 SO.OO Signaf Sent . $0.00 $0.00 SO.oo • Total Simulcast $0.00 $0.00 . SO.OO

TOTAl HANDLE $ 1,877,662.00 $2.022.072.00 $144.410.00 7.69

Commissions & Breakage $22779.93 $23,311.43 $531.50 2.33 • Assessments $0.00 $6,850.31 $6,850.31 Associdtion UCense Fee . $ l,(XXloo $1,2CX).00 $200.00 20.00 Occupotior"lQr license Fee $3;605.00 $895.00 ($2.710.00) (75.17) Outstanding TIckets $13,325.00 ..$7,465.00 ($5,860.00) (43.96) Fines & Perlolties $0.00 $450.00 $450.00 • Miscellaneous $0.00 $205.00 ($205.00) TOTAL REVENUES $40,700.93 $40,376.74 ($333.19) (0.82) •

45 • 1998 ANNUAL REPORT ------~~------

Massachusetts State Racing Commission •

NORTHAMPTON FAIR TOTAL HANDLE • Live •

1997 Total Handle $1,877,662. •

Simulcast 0% •

• Live Handle 100"""

1998 Total Handle $2,022,072. •

Simulcast 0% •

live Handle 100% •

46 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

NORTHAMPTON FAIR • Live Handle (1997 ... 1998) 1997 1998

Live Handle: $1,877,662. $2,022,072.

• Simulcast Handle: Sent: $0. $0. Received: $0. $0. Total Simulcast Handle: $0. $0.

• TOTAL HANDLE: $1,877,662. $2,022,072.

• NORTHAMPTON Uve Handle (1997 •• 1998) •

SMil •

1.8-¥------,L------..,/ • 1997 1998

47 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

WESTERN NEW ENGLAND FAIRGROUNDS

GREAT BARRINGTON RACEWAY •

Commission Stewards

Richard DeStasio Robert Stovall

Association Steward •

John Gaver 21 ADMINISTRATIVE HEARINGS • The primary responsibility of the Stewards is to interpret and enforce the rules of racing as promulgated by the Commonwealth of Massachusetts. In carrying out this duty, the Stewards issued 21 rulings in 1998. •

48 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

GREAT BARRINGTON 1997 vs. 1998 Financial Variance Report •

Category 1997 1998 Variance % Variance

• Meeting Days 12 20 8 66.67 Attendance 38,306 26,729 (11,577) (30.22)

Uve Handle $2,838,554.00 $3,214,808.00 $376,254.00 13.26

• Signal Received $0.00 $0.00 $0.00 Signal Sent $0.00 $0.00 $0.00 Total Simulcast $0.00 $0.00 $0.00

TOTAL HANDLE $2,838,554.00 $3,214,808.00 $376,254.00 13.26

• Commissions & Breakage $21,289.18 $24,111 .08 $2821.90 13.26 Assessments $0.00 $11,268.37 $11,268.37 Association Ucense Fee $800.00 $8,800.00 $8,000.00 1,000.00 Occupational Ucense Fee $1,715.00 $6,675.00 $4,960.00 289.21 Outstanding Tickets $0.00 $0.00 $0.00 • Fines & Penalties $1,600.00 $2,150.00 $550.00 34.38 Miscellaneous $325.00 $1,009.00 $684.00 210.46

TOTAL REVENUES $25.729.18 $54,013.45 $28.284.27 109.93 •

49 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

GREAT BARRINGTON TOTAL HANDLE • Live • 1997 Total Handle $2,838,554.

Simulcast • O"k •

Live Handle 100% •

1998 Total Handle $3,214,808. . •

Simulcast O"k •

• Live Handle 100% •

50 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

GREAT BARRINGTON • Live Handle (1997 ... 1998) 1997 1998

Live Handle: $2,838,554. $3,214,808.

• Simulcast Handle: Sent: $0. $0. Received: $0. $0. Total Simulcast Handle: $0. $0.

• TOTAL HANDLE: $2,838,554. $3,214,808.

• GT. BARRINGTON Total Handle (1997 •. 1998)

• $1111 •

1997 1998 •

51 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

LIVE PARI MUTUEL TAKE-OUT STRUCTURE • THOROUGHBRED

STRAIGHT WAGER

Purses 8.5% Association 8.5% • Running Horse Promo Fund 1/4% Massachusetts Breeders 1% State 3/4% TOTAL 19% • EXOTIC WAGER

Purses 9.5% Association 14% Running Horse Promo Fund 1/4% • Massachusetts Breeders 1% State 3/4% Tufts 1/2% TOTAL 26% •

52 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

LIVE PARI-MUTUEL TAKE-OUT STRUCTURE • HARNESS STRAIGHT WAGER

Purses 8% Association 93/4% • Standardbred Breeders 1/2% State 3/4%

TOTAL 19% • EXOTIC WAGER Purses 10% Association 11 3/4% Standardbred Breeders 1 1/2% Capital Improvement Fund 1% • Promotional Fund 1% State 3/4%

TOTAL 26% •

53 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

LIVE PARI-MUTUEL TAKE OUT STRUCTURE

GREYHOUND •

STRAIGHT WAGER & EXOTIC WAGER

Purses 5% Association 8% • Promotional Fund 1/2% Capital Fund 1/2% State . 5% TOTAL. 19% •

Upon Attaining 1985 Handle

Purses 5% Association 8.5% • Promotional Fund 1/2% Capital Fund 1/2% State . 4.5% TOTAL. 19% • 1985 Pari-Mutuel Handle

Wonderland: $137,670,529 Massasoit: $74,943,729 Taunton: $81,555,158 •

54 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

LIVE TAKE-OUT STRUCTURE FOR WONDERLAND PARK • STRAIGHT WAGER Purses 5% Association 8% Promotional Fund 1/2% Capital Fund 112% • State 5% TOTAL 19%

QUINELLAlDAILY DOUBLE/PICK 31BIG QUINELLA

Purses 5.8% • Association 10.2% Promotional Fund 1/2% Capital Fund 1/2% State 5% • TOTAL 22% TRIFECTA

Purses 6.3% Association 11 .7% • Promotional Fund 1/2% Capital Fund 112% State 5%

TOTAL 24%

• SUPERFECTAlTWIN-TRIFECTAlTRI-SUPER

Purses 7% Association 13% Promotional Fund 1/2% Capital Fund 112% • State 5%

TOTAL 26% •

55 • 1998 ANNUAL REPORT ------

Massachusetts State Racing Commission •

LIVE PARI-MUTUEL TAKE-OUT STRUCTURE ·

FAIR (NORTHAMPTON) •

STRAIGHT WAGER

Purses 8% Association 9.25% Massachusetts Breeders 1% • State 3/4%

TOTAL 19% EXOTIC WAGER • Purses 8% Association 16.25% Massachusetts Breeders 1% State 3/4% • TOTAL 26% •

56 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

SIMULCAST PARI-MUTUEL TAKE-OUT STRUCTURE • THOROUGHBRED HOST TRACK IN-STATE STRAIGHT WAGER

Host Association 41/4% Purses - Host Association 5% • Guest Association 51/4% Purses - Guest Association 31/2% Promotional Fund 1/8% Massachusetts Breeders 1/2% State 3/8%

• TOTAL 19%

EXOTIC WAGER

Host Association 7% • Purses - Host Association 6% Guest Association 81/4% Purses - Guest Association 31/2% Promotional Fund 1/8% Massachusetts Breeders 1/2% State 3/8% • Division of Fairs 1/4% TOTAL 26% •

(Take-out Structure to be used whenever Foxboro and Raynham wager of Suffolk's signal) •

57 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

SIMULCAST PARI-MUTUEL TAKE-OUT STRUCTURE

THOROUGHBRED HOST TRACK OUT-STATE • STRAIGHT WAGER

Host Association Per Contract Guest Association Per Contract Guest Association Purses 31/2% • Promotional Fund 1/8% Massachusetts Breeders 1/2% State 3/8% - TOTAL 19% • EXOTIC WAGER

Host Association Per Contract Guest Association Per Contract Guest Association Purses 31/2% • Promotional Fund 1/8% Massachusetts Breeders 1/2% State 3/8% TOTAL 26% •

• (Take-out structure used whenever a Massachusetts track wagers on an out-of-state thoroughbred track's signal) •

58 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

SIMULCAST PARI-MUTUEL TAKE-OUT STRUCTURE • HARNESS HOST TRACK IN-STATE STRAIGHT WAGER

Host Association 57/8% Purses - Host Association 5% • Guest Association 4% Purses - Guest Association 31/2% Breeders 1/4% State 3/8% • TOTAL 19% EXOnCWAGER

Host Association 67/8% Purses - Host Association 6% Guest Association 71/2% • Purses - Guest Association 31/2% Capital Improvement Fund 1/2% Promotional Fund 1/2% Breeders 3/4% • State 3/8% TOTAL 26% •

(Take-out structure used whenever Suffolk Downs wagers on Foxboro Harness' signal) •

59 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

SIMULCAST PARI-MUTUEL TAKE-OUT STRUCTURE

HARNESS HOST TRACK OUT-STATE •

STRAIGHT WAGER

Host Association Per Contract Guest Association Per Contract Purses - Guest Association 31/2% • Breeders 1/4% State 3/8% TOTAL 19% • EXOTIC WAGER

Host Association Per Contract Guest Association Per Contract Purses - Guest Association 31/2% Capital Improvement Fund 1/2% • Promotional Fund 1/2% Breeders 3/4% State 3/8% TOTAL 26% •

(Take-out structure used whenever a Massachusetts racetrack wagers on a simulcast signal • from a harness track outside the Commonwealth) •

60 1998 ANNUAL REPORT • • Massachusetts State Racing Commission

SIMULCAST PARI-MUTUEL TAKE-OUT STRUCTURE • GREYHOUND HOST TRACK IN-STATE STRAIGHT WAGER AND EXOTIC WAGER

State 21/2% Promotional Trust Fund 1/4% • Capital Trust Fund 1/4% Purses - Host Association 2 112% Host Association 41/4% Guest Association 9 1/4% Purses - Guest Association - no less than 3 1/2% from the 91/4% • from Guest Association) TOTAL 19%

(Take-out structure used whenever Raynham and Wonderland wager on each others' • simulcast signal)

SIMULCAST PARI-MUTUEL TAKE-OUT STRUCTURE • GREYHOUND HOST TRACK bUT-STATE STRAIGHT WAGER AND EXOTIC WAGER

State 21/2% Promotional Trust Fund 114% Capital Trust Fund 1/4% • Racing Meeting Licensee Remaining share

TOTAL 19%

• (Take-out structure used whenever a Massachusetts track wagers on a simulcast signal from a greyhound track outside the Commonwealth) •

61 • 1998 ANNUAL REPORT Massachusetts State Racing Commission •

CAPITAL AND PROMOTIONAL TRUST FUNDS In accordance with Chapter 277 of the Acts of 1986, and Chapter 114 of the Acts of 1991, two • Trust Funds known as the Capital Improvement Trust Fund and Promotional Trust Fund were established for each Association.

The Capital Improvement Trust Funds are reimbursements made to the racetracks for alterations, additions, replacements, changes, improvements or major repairs to or upon the property owned or leased by the racetrack licensee and used by it for the conduct of racing. •

The Promotional Trust Funds are reimbursements for promotional marketing to reduce the cost of admissions, programs, parking and concessions, and to other entertainment and give­ aways.

Trust Fund receipts and expenditures are monitored by the Commission Auditor. Invoices, • vouchers, canceled checks and reports by architectural and engineering consultants are reviewed by the Auditor before reimbursements are made to the racetracks for capital improvements or promotional activities to verify that expenditures made by the racetracks are for appropriate capital expenditures or promotional activities. •

• '. •

62 1998 ANNUAL REPORT • • • • • • • • • • • •

MASSACHUSETTS STATE RACING COMMISSION Statement of Revenue and Expenditures Capital Improvements and Promotional Trust Funds Year ended December 31 , 1998

Suffolk Foxboro Tbred Foxboro Har Massasoit Taunton Wonderlan d Gt. Barrington Total Capita/Improvement Trust Funds

Fund balance, Jan. 1,1998 $ 129,694.17 $ 2,254.21 $ 39 ,858.58 $ 20,879.30 $ 21 3,385.67 $ 46,324.17 $ 26,164.92 $ 478,561 .02

Program revenue 981 ,912.32 256,279.70 231,407.17 288,350.99 27,126.11 1,785, 076.29

Interest Income 15,999.00 7,121.74 3,127.02 13,210.22 7,590.53 25,944.29 72,992.80

Funds available 1, 127,605.49 9,375.95 42,985.60 290,369.22 452,383.37 360,619.45 53,291 .03 2,336,630.11

Capital improvements reimbursed 294,495.80 24,458.25 308,339.00 290,213.15 39,730.58 957,236.78

Other expenditures 101 ,938.00 1,080. 00 4, 855.50 107,873.50

Total expenditures 396,433.80 25,538.25 308,339.00 295,068.65 39,730.58 1,065,11 0.28

Fund balance Dec. 31, 1998 $ 731,171 .69 $ 9,375.95 $ 42 ,985 .60 $ 264,830.97 $ 144,044.37 $ 65,550.80 $ 13, 560.45 $ 1,271,51 9.83

Promotional Trust Funds

Fund balance, Jan. 1,1998 $ 67,062.56 $ 111,478.81 $ 20,394.56 $ 19,330.42 $ 469,248.66 $ 28,145.95 $ 7,096.45 $ 722,757.41

Program revenue 253,847.24 242,697.81 243,882.53 278,365.32 8,036.96 1,026,829.86

Interest Income 4,920.40 3,760.35 1,221 .77 31,366.28 37,423.01 6,907.88 85,599.69

Funds available 325,830.20 115,239.16 21,616.33 293,394.51 750,554.20 313,419.15 15,133.41 1,835, 186.96

Promotional expenditures reimbursed 313,808.10 283,702. 13 472,292.15 295, 036.83 8,137. 59 1,372,976.80

Fund balance Dec. 31 , 1998 $ 12,022.10 $ 11 5,239.16 $ 21 ,616.33 $ 9,692.38 $ 278,262.05 $ 18,382.32 $ 6,995. 82 $ 462,210.16 ------•

• • n r:~ 0/ YtaU Ln, rt~ • ~ Y~o/te o~7-5gg-.96'(J7 .105 Yowti Ytuet Ye¥:c o~7-7g7-.J~7.9 ~ g'k;n, ~. 021.10 • /t:uuuujt, ~g-, ~.9.96'

TO: Massachusetts State Racing Commission FROM: Bruce Aspeslagh, Chief of Laboratory • RE: Annual Report for 1998

LABORATORY STAFF • Chief of Laboratory Senior Chemist Bruce Aspeslagh Encarnacion L. Bernaldo B.S. , Chemical Engineering B.S., Medical Technology

Assistant Chemists • Christine M. Gottshall Lucille Saccardo B.S ., Chemistry B.S., Animal Science

Tunior Chemists Jocelyn N. Fadrigalan Melchor S. Layon - A.S. • B.S. , Chemistry

QUALITY RACING • The State Racing Commission Laboratory is an important link in the Racing Commission's effort to ensure that quality pari-mutuel racing exists within the Commonwealth. The primary function of the State Racing Commission Laboratory is to analyze samples of urine and blood for the presence of any drug which is of such character as could affect the racing condition of the animal. Samples are taken from • every winning horse or greyhound and any other horse or greyhound designated by Racing Commission officials in cooperation with track officials. Samples are taken at Foxboro Park, Suffolk Downs, Wonderland Park, Raynham I Taunton Park, Great Barrington, the Northampton Fair, and any other race track in Massachusetts licensed to conduct pari-mutuel racing. Testing is performed by a specially trained staff at • modern facilities located within the State Laboratory Institute in Jamaica Plain.

• ANNUAL98.RPT.doc !fXe ~mnu;J/UDealf"{ 0/ La11ac.,{a1ett1 • Ytate !1lacin-p

IN1EGRI1Y OF SAMPLES ENSURED • Special precautions are taken at a11 Massachusetts race tracks when post race urine and blood samples are collected to ensure that no tampering can take place. In order to assure the continuity-of-evic:lence, every winning horse or greyhound and all designated horses and greyhounds are under the survei11ance of a uniformed Massachusetts State Police officer and a Racing Commission testing assistant from the • finish of the race until specimens are obtained. All equine samples are properly identified and transported immediately after the dose of each racing performance by a uniformed State Police officer to the Racing Commission Laboratory in Jamaica Plain and placed in a locked and refrigerated laboratory locker for analysis the following day. Canine samples are properly identified, locked in steel boxes, and • delivered directly to laboratory personnel by private courier. Responsibility for the custody of samples is assumed by the Racing Commission Laboratory personnel once the samples have been placed in the laboratory locker or upon receipt of locked boxes. To eliminate bias, the chemist identifies the sample by • number only. After analysis, the results are reported directly to the State Racing Commission.

NEW FACIUTIES •

In July, 1998, with the assistance of the University of Massachusetts Medical Center, the State Racing Commission Laboratory moved into fu11y re-furbished and modernized quarters at our location in Jamaica Plain. This was the first total • modernization of our facility in almost 20 years, and the result is a dean, efficient, and safe work site. • NEW INS1RU:MENTATION

Also, in June, 1998, the Racing Commission Laboratory acquired a new state­ of-the -:-art Gas Chromatograph/Mass Spectrometer (GC/MSL This new instrument, which is necessary for confirmation of all positive drug findings, will complement and • eventually replace the GC/MS which has been in service continually since 1980.

2 • • Y'Xe C(?o.mm(}/UUealt~ 0/ La1~ada~dt~ c5/late !JZaci/t,? C(?o.mmi~~to/t .:£'ato,-at(},-p • Annual Report for 1998

SUMMARY • In 1998 the Massachusetts State Racing Commission Laboratory analyzed 21,176 urine and 590 blood samples for the presence of drugs as detailed below:

SOURCE URINE BLOOD POSITIVES * • Thoroughbred 2,439 590 9 Harness 0 0 0 Greyhound 18,737 0 7 TOTALS 21,176 590 16

• * Not including ControlledIBleeder Medication Program violations.

Controlled Medication Program • All eqUine urine samples submitted were subjected to screening for phenylbutazone and/or its metabolites as per the Massachusetts State Racing Commission Controlled Medication Program Rules with the following results-:

• Source Drug Found No Drug Found Not On Program On Program Thoroughbred -0- -6-

• Bleeder Medication Program All eqUine urine samples submitted were subjected to screening for the presence of LASIX (Furosemide) as per the Massachusetts State Racing Commission Bleeder Medication Program Rules with the following results:

• Source Lasix Found No Lasix Found Not On Program On Program Thoroughbred -3- -2- •

• 3 !7Xe ~mmontueatt£ 0/ La~~ada~ett~ • !/'late 9tacinp

Special Analyses • In 1998, in cooperation with the Department of Food & Agriculture, this laboratory analyzed 51 blood samples taken from animals (oxen and horses) involved in 'pulling contests' under the jurisdiction of the Bureau of Fairs. There were no drugs found in any of the submitted samples. •

Drugs Found in Samples The drugs found in Equine and Greyhound positives are as follows: • SOURCE DRUG FOUND # SAMPLES Suffolk Downs Sulfamethoxazole 1 it Trimethoprim 1 • tI Clenbuterol 4 Northampton Fair Acepromazine metabolites 1 •

Great Barrington Cimetidine 2

Raynham/Taunton (none) •

Wonderland Salicylic Acid 2 tI Sulfamethoxazole 4 tI Isometheptene 1 •

4 • • 5f'Xe

AORC Profiency Testing Program • As a member laboratory in the Association of Official Racing Chemists (AORC), this laboratory participated in the 1998 Proficiency Testing Program and correctly identified the following drugs in a single-blind study: PROPIONYLPROMAZINE PROLINTANE • ACEBUTOWL FLUNIXIN NAPROXEN BENZOCAINE ISOXSUPRINE :MEPHENESINE

• Quality Assurance Program As a member laboratory in the Association of Racing Commissioners International Quality Assurance Program (ARCI-QAP), this laboratory participated • with the Interstate Drug Testing Alliance (IDTA) at Cornell University during 1998, and received and analyzed equine urine samples containing the following drugs: PROPOXYPHENE BROMFENAC KETOROLAC FLURBIPROFEN CARPROFEN OXAPROZIN MEPIVACAINE SUMATRIPTAN TOLMETIN • NAPROXEN 11E1H01REXA1E 11ECLOFEN.MflC Acid PlROXICAM KETOPROFEN n-Butyl SCOPOLAMINE INDOME1HACIN PHENYfOIN BUPRENORPHINE

• Attached, please find a breakdown of the numbers of samples submitted to this laboratory in 1998, by month and track. • Respectfully submitted,

Bruce Aspeslagh Chief of Laboratory • State Racing Commission

• 5 •

APPENDIXC OCCUPATIONAL LICENSES ISSUED FOR 1998 • GREYHOUND LICENSES (MASSASOITITAUNTON DOG TRACK)

CATEGORY NUMBER PRICE REVENUE

Greyhound Owner 309 $30 $9,270 Greyhound Trainer 33 $30 $990 • Assistant Trainer 102 $25 $2,550 Kennel Name 45 $60 $2,700 Lead-Out 74 $5 $370 Vendor 30 $10 $300 Temporary Owner 3 $30 $90 Veterinarian 1 $60 $60 • Official 17 $25 $425 Other 30 $1,935 TOTAL 644 $18,690 •

GREYHOUND LICENSES (WONDERLAND GREYHOUND PARK) CATEGORY NUMBER PRICE REVENUE • Greyhound Owner 294 $30 $8,820 Greyhound Trainer 30 $30 $900 Assistant Trainer 56 $25 $1,400 Kennel Name 35 $60 $2,100 Lead-Out 31 $5 $155 Vendor 1 $10 $10 • Temporary Owner 20 $30 $600 Official 39 $25 $975 Other 41 $2,875 TOTAL 547 $17,835 •

• •

• THOROUGHBRED LICENSES (SUFFOLK DOWNS & WESTERN MASS) CATEGORY NUMBER PRICE REVENUE

Thoroughbred Owner 1,314 $30 $39,420 Thoroughbred Trainer 292 $30 $8,760 Partnership 166 $50 $8,300 • Stable Name 202 $60 $12,120 Stable Employee 507 $5 $2,535 Jockey 109 $60 $6,540 Jockey/Apprentice 4 $60 $240 Jockey Agent 13 $60 $780 Vendor 105 $10 $1,050 • Blacksmith 16 $25 $400 Veterinarian 13 $60 $780 Racing Official 41 $25 $1,025 Authorized Agent 29 $30 $870 Temporary Owner 84 $30 $2,520 Assistant Trainer 32 $30 $960 • Valet 18 $10 $180 Other 59 $8,695

TOTAL 3,004 $95,175 •

• •

1998Greyhound Disposition Results for Wonderland and Raynham •

Date New Track Owner Breed Adopt Farm Euth. Natural Total

31-Jan 180 4 30 6 0 6 0 226 •

28-Feb 181 5 13 42 8 5 0 254 31-Mar 253 6 21 10 5 6 0 301 • 30-Apr 128 5 5 7 2 3 0 150

31-May 206 1 16 13 2 7 0 245 30-Jun 130 5 5 5 0 0 1 146 • 31-Jul 239 0 7 15 4 9 1 275 , 31-Aug 212 1 15 8 6 2 0 244 30-Sep 133 0 13 7 10 1 0 164 • 31 -0ct 139 16 18 45 3 7 0 228

30-Nov 96 2 2 6 7 2 0 115 31-Dec 121 5 16 4 6 4 0 156 •

TOTAL 2018 50 161 168 53 52 2 2504 Percent 80.5

• •

• •