PA Awards Delay Is 'Killing Breeders'

The Pennsylvania Horse Breeders Association is urging members and non-members to contact Gov. Tom Wolf to facilitate release of breeder and stallion awards that have been suspended since a new horseracing reform law took effect in late February.

A section of the law on the Pennsylvania Thoroughbred breeding fund that contains “ambiguous” language was called into question by the state Department of Agriculture, which raised legal questions regarding the payments. The department oversees racing in the state.

"This is ridiculous," said Peter Giangulio, who with his sister, Barbara Geraghty, owns Castle Rock Farm in Chester County. "It's killing breeders, it's killing suppliers, it's killing the industry. In my letter to the governor, I said if this is not resolved, farms are going to go out of business. People will lose jobs and horses will start suffering. It's a trickle-down thing."

The PHBA, which by statute oversees administration of the breeding fund for the Department of Agriculture, has also reached out to members of the state's horsemen's groups who may not be PHBA members but regularly own and race Pennsylvania-breds. The breeders' organization has asked concerned individuals to send letters to Wolf and indicated the campaign has picked up support.

The PHBA July 27 asked the new nine-member Pennsylvania Horse Racing Commission to restore the funds based on an assessment by the law firm Buchanan Ingersoll that suggested the payments could be made under current law. A motion was made and seconded to restore the payments, but counsel for the racing commission said the matter requires more study and it was tabled until the next meeting in late August.

According to PHBA statistics, 2015 breeder awards totaled $9.31 million and stallion awards $1.65 million.

The incorrect wording in the new racing law led to a back-and-forth in the Pennsylvania General Assembly, which wrapped up its regular session in early July. The House of Representatives approved an amendment that would increase percentages that goes to breeder and stallion awards from the gaming-fueled Race Horse Development Fund, but the Senate opted to reinstate the percentages that have been in place for decades.

Though the legislation died at the end of the session, the House was working on compromise percentages one legislator said will be addressed when the legislature reconvenes in September.

Whether that happens remains to be seen, and even if does, a few more months would have passed without payment of the awards.

"We can't wait for the legislature to return (to session)," said Giangiulio, who also noted he's owed $50,000 to $60,000 in awards. "As far as I'm concerned, we can't put up with this any longer."

The RHDF generates $17 million to $18 million a year for the Thoroughbred breeding program. Another $12 million to $13 million in purses for restricted races and owner bonuses for winning Pennsylvania-breds comes from horsemen's purse accounts and racetracks.