California Purse Overpayments in Focus as Handle Drops

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California Purse Overpayments in Focus as Handle Drops
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Photo: Courtesy of Santa Anita Park
Racing at Santa Anita Park

Following substantial purse overpayments at Golden Gate Fields, Santa Anita Park, and Del Mar, California Horse Racing Board staff is working on changes to its race meet applications, CHRB executive director Scott Chaney said March 21.

Speaking toward the end of the CHRB's monthly meeting, Chaney noted the modifications are "designed to further provide clarity and information to the board when making decisions regarding licenses to race. More broadly, it provides an indication with respect to the current economics of horse racing, and frankly, education to licensees to better understand how purse money is generated and paid."

Scott Chaney (moderator)<br><br /> Embracing Change – Are We Ready to Adopt Category 1 Rules In the US?<br><br /> 12-5-23 RTIP Global Symposium::RTIP Global Symposium On Racing held at Ventana Canyon Resort, Tuesday December 5th, 2023 in Tucson, AZ. <br><br /> 12-5 -23 Photo by James S. Wood <a href=www.jswoodphotography.com 520-247-9387" src="//cms-images.bloodhorse.com/i/bloodhorse-images/2023/12/59eb2ebf7b5c4257a3f1fd29e994f68c.jpg?preset=medium" style="border-width: 0px;" title="Scott Chaney (moderator)<br>
Embracing Change – Are We Ready to Adopt Category 1 Rules In the US?<br>
12-5-23 RTIP Global Symposium::RTIP Global Symposium On Racing held at Ventana Canyon Resort, Tuesday December 5th, 2023 in Tucson, AZ. <br>
12-5 -23 Photo by James S. Wood www.jswoodphotography.com 520-247-9387">
Photo: Race Track Industry Program/James S. Wood
Scott Chaney, executive director of the CHRB

A $3 million overpayment in purses at Golden Gate over a series of meets necessitated a sudden 25% drop in purses before its June closure.

Santa Anita Park and Del Mar are also expected to announce purse cuts this year after discussions with the Thoroughbred Owners of California. Tracks and horsemen groups can be slow to cut purses over fears of reducing field size.

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Santa Anita Park's purse account is overpaid by $4 million, according to Craig Fravel, executive vice chairman for 1/ST Racing and Gaming, which owns the Southern California track and also Golden Gate Fields.

"That's not easy to make up," he said at the Thursday CHRB meeting. "So what you hope for, again, is we have three to four years to spread out the pain on that and try to figure out the additional revenues we can generate."

Purses are forecasted based on estimated handle and available purse funds. Purse overpayments typically result in purse cuts and underpayments in purse hikes.

Chaney said wagering on California afternoon (Thoroughbred) racing was down 5% in the first two months of 2024.