Administrative Rule of the Month - Allocation of Race Dates and Permits

November 1st of every year has long been established by the Indiana Horse Racing Commission (IHRC) as the deadline for Indiana's race tracks to apply for race dates for the coming year. Given the recent efforts by the IHRC to reduce thoroughbred race dates, Indiana Breeder & Owner Protection, Inc. (IBOP) is making '71 IAC 2-9-1 Allocation of race dates and permits' our November Administrative Rule of the Month. For those of you who regularly follow our blog, this is the second time this year that we've highlighted this particular rule. (See September's Administrative Rule of the Month at http://www.ibopindy.blogspot.com/2012/09/administrative-rule-of-month-allocation.html) Our October Administrative Rule of the Month, which was a proposed rule that could cut flat racing days to a minimum of 50 per track, may be required reading prior to moving on with this post. (See October's Administrative Rule of the Month at http://ibopindy.blogspot.com/2012/10/administrative-rule-of-month.html)

From what we have been told by multiple sources, the proposed rule that could reduce flat racing to 50 days per track will not be considered for 2013. By creating an administrative rule, the IHRC can lower the statutory number of flat racing days from the minimum of 60 days per licensee as provided by IC 4-31-5-9(b)(2). Since Indiana statute defines flat racing as racing horses "mounted by jockeys," the proposed rule was never an issue for Indiana's standardbred race meets, or for that matter quarter horse races as they usually race only three days a week. This proposed rule was specifically targeted to thoroughbred racing. We'll be 100% certain of this rule being out of the picture when the agenda for the IHRC's December 14th meeting is made public.

As of Monday, October 29th, both the General Manager at Indiana Downs and at Hoosier Park indicated to the industry that they will essentially comply with the current statute and request the minimum of 60 days of flat racing. However, the twist is that the breakdown of those 60 days will be 57 thoroughbred/quarter horse and 3 quarter horse-only days. That is a reduction of days for thoroughbred racing while increasing the quarter-horse only days from one day per meet to three days per meet. As long as the total adds up to 60 race days, their applications will comply with the Indiana law.

Here's where '71 IAC 2-9-1 Allocation of race dates and permits' comes into play which is copied below. More specifically, 71 IAC 2-9-1(b) places, "The burden of proof is on the association to demonstrate that the assignment and allocation of the race dates will be in the public interest and will achieve the purposes of the Act." The IHRC, by its own rules, have specifically designed criteria, as outlined in the October Administrative Rule of the Month, which will never be covered by either track during the course of their application hearings. The simple matter is that they cannot demonstrate that 57 thoroughbred race days and 3 quarter horse-only days are in the public interest, or even maximize revenues to the State. Any reduction in thoroughbred race days in favor of quarter horse-only days will actually reduce pari-mutuel wagering revenues to the State. Quarter horse-only days are the poorest, by far, racing days in the State of Indiana as far as handle is concerned. It's doubtful that this fact will ever change.

71 IAC 2-9-1 Allocation of race dates and permits
Authority: IC 4-31-3-9
Affected: IC 4-31-5
Sec. 1. (a) The commission shall allocate race dates and permits to each association in accordance with the Act and after consideration of the factors in 71 IAC 11-1-7. An association shall apply to the commission not later than November 1 of each year
for race dates to be conducted in the next year. The application must contain the information required by statute and commission licensing procedures. After the request is filed, the commission may require the association to submit additional information.
(b) The burden of proof is on the association to demonstrate that the assignment and allocation of the race dates will be in the public interest and will achieve the purposes of the Act.
(c) The association shall be obligated to conduct pari-mutuel racing, except in the case of emergencies, on each race date allocated. Any change in race dates must be approved by the commission. In the case of emergencies, the judges, stewards, or the
executive director may authorize cancellation of all or a portion of any race day.
(d) Racing dates shall be issued by the commission no later than December 31 of each year.

The other problem with a potential reduction in scheduled thoroughbred race dates is that invariably days will be lost due to weather (or an Executive Director attempting to demonstrate his authority over the horsemen). The spin for this 57/3 race day plan will be that thoroughbreds haven't run a full 60 days at either track in the last two years. This is a true statement. In 2011, both Indiana Downs and Hoosier Park held 57 live thoroughbred race days. (IC 4-31-2-10.5 defines a live racing day as "a day on which at least eight (8) live horse races are conducted.") In 2012, Indiana Downs had 57, there's that number again, live thoroughbred race days and Hoosier Park held 59. We can almost hear the testimony in front of the commissioners that the tracks are just requesting what's been run the last two years. The problem is that in 2011 Hoosier Park was scheduled to have 61 thoroughbred race days, and lost four days, and Indiana Downs was scheduled for 60, and lost three days. In 2012, Hoosier Park was scheduled to have 63 thoroughbred race days and Indiana Downs was authorized to have 60 days.

Over the last two years, the thoroughbreds have lost at least three race days per meet. While there's always an attempt to reschedule lost races, there are never enough spots to bring back anywhere close to all of them, especially when considering almost all of the quarter horse races lost due to weather ARE brought back. According to The Jockey Club, thoroughbred races in Indiana reached their peak in 2009 with 1150. They have declined each year ever since with 1128 in 2010, 1065 in 2011, and 1045 in 2012. With a 57/3 race days scenario, this trend will continue as total thoroughbred race days will drop to the mid-50's when taking into consideration the almost inevitable loss of race days due to weather.

Under Indiana statute, IC 4-31-5-10 (copied below) gives the IHRC the authority to add race dates for "race cards lost because of inclement weather or other emergencies." To our knowledge this aspect of the code has never been put into action. Given the current plan of 57/3, the IHRC also needs to institute a policy whereby thoroughbred races dates can be added back when days are lost. After all, if they can delegate the authority to the Executive Director to cancel race days after-the-fact, they can surely be proactive and delegate the authority to add thoroughbred race days when the need arises.

IC 4-31-5-10
Granting of special permission
Sec. 10. Upon receipt of an application from a recognized meeting permit holder, the commission may grant special permission for:
(1) more than nine (9) races each day; or
(2) race cards lost because of inclement weather or other emergencies, to be made up at the rate of one (1) race each day or on additional dates as granted by the commission.
As added by P.L.341-1989(ss), SEC.2.