Impasse Continues Over Arlington Purse Levels

The Illinois Thoroughbred Horsemen's Association and Arlington International Racecourse remained at loggerheads over contract negotiations after a long back-and-forth exchange during a Jan. 21 meeting of the Illinois Racing Board.

The gaming expansion law passed by the Illinois General Assembly in 2019 added a requirement to the racing statutes that tracks have a contract in place with horsemen by Dec. 31 of the year prior to the start of a race meeting. Arlington and the horsemen's group did not reach an accord and remain far apart on the issue of purse levels for the meeting due to open in May.

Arlington's Tony Petrillo said the track expects overnight purses to average about $142,000. The ITHA pegged the likely figure between $125,000 and $130,000 and is seeking $200,000. Arlington said inclusion of that figure in a contract would amount to an unprecedented "guarantee" of purse levels. The ITHA countered it is not demanding a guarantee but, rather, a willingness on the part of Arlington or its corporate parent, Churchill Downs Inc., to do something to pump up the pot available to local owners and trainers.

Arlington's stakes schedule, other than the Arlington Million (G1T) itself, was mentioned as a potential source of additional revenue for overnights.

"This industry in this state cannot afford that kind of a day," ITHA Board member Chris Block said, referring to the other two grade 1 events and supporting stakes on Million Day. "I'm not saying to get rid of them, but we're in a crisis situation—maybe put them on hiatus for a year.

"Unfortunately, as a trainer and owner and breeder, at $130,000 it's hard to make ends meet," Block said.

Separately but simultaneously on Tuesday, Arlington announced a 2020 stakes schedule that includes the Million, the $600,000 Beverly D. Stakes (G1T) for fillies and mares and the $500,000 Secretariat Stakes (G1T) for 3-year-olds on Aug. 15. The total program of open stakes is worth $3.65 million. The Million, Beverly D., and Secretariat are the only grade 1 races contested in Illinois.

Horsemen also have suggested Arlington forego taking some $4.5 million in "recapture" funds this year—money due the track under state law to compensate for revenue lost to wagering on full-card simulcasts.

Petrillo called those suggestions "unrealistic demands in the present environment. It would wipe us out."

"We will abide by the statute," Petrillo said. "Purses are paid as they are earned by racing."

Racing Board Chairman Jeffrey Brincat said he will monitor negotiations, noting, "This is a private contract. But the IRB has a responsibility to the state and the racing public."

The dispute follows CDI's decision in August 2019 not to apply for a license for casino gambling at Arlington. That decision dashed horsemen's expectations—after decades of lobbying the legislature for a gaming bill—of millions of dollars in new purse money from a slice of the gaming profits.

The ITHA also raised questions during the meeting about the formula used to calculate the amount of recapture due to each track. Failing to account for advance deposit wagering made by cell phone by patrons physically on-track or in OTBs, the organization said, skews the figures in a way that inflates the amount tracks take from the purse account.

"At Arlington Park, they encourage people to bet through their ADW accounts," ITHA Executive Director David McCaffrey said. "If it's being tracked, that's terrific. But if it's not, I don't know how you can calculate recapture accurately."

While commissioners agreed a closer look is needed at the reporting system, they said no other formula currently is available to calculate the figure and approved the 2020 allocation by a unanimous vote.

In other action, the Board tabled a recommendation by staff to start rulemaking that would have banned the use of riding crops in Thoroughbred races.

"It's actually dangerous to propose something like this," said ITHA President Michael Campbell, a former jockey. "When you're trying to go through a hole, you need to encourage the horse. If you don't have that tool (the crop), the horse will hang or go back and what happens is, you will clip heels.

"I'd rather ride around there with one rein," Campbell said.