Brockton Request for Funds Delayed Yet Again

Horsemen in New England will have to wait longer to see if live racing can return to the Brockton Fairgrounds this year.

The Massachusetts Gaming Commission Aug. 1 once again delayed its vote to approve or deny the track's request for $1,473,947 to cover operational and administrative costs for a 15-day meet because the question remains if the distribution is allowable under state statute.

The MGC reconvened to reconsider the request of the Middleborough Agricultural Society, the operator of the racetrack, for the distribution from the state's Race Horse Development Fund. The funding request was first presented at the regulatory agency's July 21meeting July 21, and at that time, the commissioners allowed the petitioners to return and present a stronger case as to why it complies with the current law.

Under the terms of the 2011 Massachusetts expanding gambling legislation, the RHDF was established to prop up the state's struggling Thoroughbred and Standardbred industries and was to be supplied by a percentage of the revenue from the burgeoning casino industry. The law requires that disbursements of the RHDF be allocated 80% to purses, 16% to breeders, and 4% to backstretch welfare.

At the Aug. 1 session, Michael Morizio, attorney for the Middleborough Agricultural Society, proposed combining the track's request for the money with its earlier ask for $2.5 million for purses for a 15-day live meet and with the request of the Massachusetts Thoroughbred Horsemen's Association for $262,000 to cover the group's administrative costs into a single pool.

The MGC rebuked the petitioners for presenting a cursory oral argument instead of submitting a written proposal complete with documentation.

Commissioner Lloyd Macdonald, a former state Superior Court Justice and the former U.S. Attorney for the District of Massachusetts, admonished the attorneys for the Brockton Fairgrounds and the Massachusetts Thoroughbred Horsemen's Association.

"We put this off to provide the opportunity to you to come back with your argument and the proposal," MacDonald said. "I have done my homework and studied the statute since the last meeting and I was looking forward to hearing your argument. I hear your apologies.

"Now you are asking us to put these funds into the hands of the horsemen. That sends a terribly weak signal as to what our legal authority is. I hate to think of the legal ramifications. The applicant has failed to meet the burden as outlined on July 21."

Catherine Blue, the general counsel for the MGC, testified that she did not agree with the case presented by Morizio. She said the law specifically directs the RHDF to be used for purses, breeders, and backstretch workers' benefits and as such is not public money. Moreover, she said that money cannot support a private entity such as a racetrack.

"Putting it all in together and mixing it up doesn't make it OK," Blue said. "This is a business and they are asking us for funding."

Bill Lagorio, the president of the horsemen's group, which splintered from the New England Horsemen's Benevolent and Protective Association and entered into a purse agreement with the owners of the Brockton Fairgrounds, implored the commissioners to take into consideration the plight of the local horsemen whose only alternative is six days of live racing at Suffolk Downs in 2016.

"I would ask you for a leap of faith to say that this (request) is in the best interest of the racing," Lagorio said. "A lot of our horsemen are losing their farms and are in serious financial trouble. This is going to put people back to work and help the horsemen out of trouble."

The MGC expressed concern for local horsemen, who would use the Brockton Fairgrounds for stabling and training over a four-month period in addition to the 15 days of live racing, but said their hands are tied.

"I have sympathy for your predicament," said Commissioner Enrique Zuniga said. "But I don't believe we have the authority to dispense these funds."

Nonetheless, the MGC will allow the petitioners to submit a written argument and restate their case for the funding at a subsequent meeting to be scheduled for Aug. 3 or Aug. 4. In related news, a bill before the Massachusetts legislature to alter the current statute related to funding and all other racing matters failed to pass before the deadline of midnight Aug.1.