Allocations to MA Thoroughbred Industry Revised Again

The portion of the money allocated from the Massachusetts Race Horse Development Fund to the state's Thoroughbred horsemen is set to change again, following keys votes by the Horse Race Committee of the Massachusetts Gaming Commission July 15.

The HRC, which is a subcommittee of the MGC, voted to shift the splits of the millions of dollars in the fund, which was established as part of the state's 2011 expanded gaming law to benefit both the Thoroughbred and Standardbred industries, so that the harness horsemen's share dedicated to purses increases. Breeders awards will remain unchanged.

In a victory for the Thoroughbred horsemen, the HRC also voted to change the percentage of the fund dedicated to backstretch welfare so that they receive a greater share.

Prior to the vote, the Standardbred horsemen were to receive 65% of the entire fund for purses, breeders, and welfare, while the Thoroughbred horsemen got 35% of the pool. Moreover, of each breed's total share, by law 80% had to go to purses, 16% was for the breeders, and 4% was dedicated to welfare programs.

But the MGC had earlier ruled that the HRC now has the authority to determine all three of the programs, referred to as "buckets" for discussion purposes, on an individual basis and is empowered to adjust the percentages of each as it sees fit.

After Wednesday's votes, purse subsidies will now be split 70%-30%, Standardbred-Thoroughbred; breeders awards will be allocated 65%-35%, Standardbred-Thoroughbred; and monies for horsemen's welfare will be shared 60%-40%, Thoroughbred-Standardbred.

When the RHDF was established in 2014, the entire fund was allocated 75%-25%, Thoroughbred-Standardbred.

But over the years as live Thoroughbred racing dates dwindled to just six or eight per year, and then the state's only facility, Suffolk Downs, was sold and closed, the HRC continually whittled down the Thoroughbred horsemen's share. 

Regarding Wednesday's votes, Gayle Cameron, who is a member of the MGC and the commission's representative on the HRC, said during the meeting: "These are three difficult decisions that have to be made. Concerning the health and welfare benefits, I am persuaded by letter after letter after letter that I get from the Thoroughbred horsemen, and it all goes back to their inability to race (and earn purse money and paychecks). These people are hurting."

The motion to alter the percentage of health and welfare benefits from 35%-65%, Thoroughbred to Standardbred, to 60-40% in favor of the Thoroughbred horsemen passed on a unanimous 5-0 vote.

Paul Umbrello, the executive director of the New England chapter of the HBPA, was pleased with the measure to help his members but said the relief is only a Band-Aid. 

"We've already had to cancel the health insurance and cut back many other benefits for some of our members, so this is a lifeline for us," said Umbrello, who added that benefits include eye glasses, prescription medication, and other necessities. "But it's only short term."

The RHDF is funded by a percentage of the profits from the state's casino industry, and because of COVID-19 protocols, they were shut down for months. Although they have reopened as part of the state's phase-in, they must operate at a significantly reduced capacity and with reduced gaming, entertainment, and food and beverage offerings.

"Because they were closed for so long, the revenue from the casinos into the fund was already way down, and now with them generating only a fraction of what they had been before, and no way to predict the future, it's a double hit," he said. 

The HRC's votes are technically recommendations. Now they must go to the Massachusetts House of Representatives and State Senate for approval, but a rubber stamp from both chambers is standard procedure. Next, the change in the splits goes before the MGC for a final approval. 

Should the MGC not agree with the HRC's recommendations, commissioners are not empowered to override them. Instead, the entire matter would be kicked back to the HRC for future action. Meanwhile, should the NEHBPA decide to challenge the votes, it has the right to do so.

Umbrello, who will report back to the membership, said Wednesday night that no decision has been made yet.