Presque Isle Horsemen Payments Delayed

Horsemen owed $2.2 million in purses and owner rewards and an unknown amount from claiming transactions from the Presque Isle Downs meeting completed Sept. 25 are awaiting checks and looking for answers.

Thoroughbred owner Phil Kempler is owed purse money of $2,800 and claim money of $7,500 following the runner-up finish of his filly Freud's Mistress in a Sept. 22 race at Presque Isle in which she was claimed by M. Anthony Ferraro. Noting there’d been no medication issues in the race, Kempler couldn’t fathom why he hasn’t been paid the purse money or claim funds from a race more than a month ago.

“I’ve been doing this for 40 years and it’s the first time I’ve ever seen it,” Kempler said. “They told me to wait and I waited. I’m still waiting and they told me I have to wait some more.”

The Pennsylvania Horsemen’s Benevolent and Protective Association, which has oversight of the purse account, said horsemen haven’t been paid for purses owed from the summer meet as far back as July, and possibly dating back to the beginning of the meet in May depending on their billing.

The Pennsylvania HBPA placed the blame on delays at the state’s department of revenue but said it is taking steps to alleviate the problem. Pennsylvania HBPA executive director Todd Mostoller said checks were mailed out Oct. 21 to owners who have submitted bills for purses owed.

Mostoller said the Pennsylvania HBPA recently received $853,000 from the state for owner awards and restricted race purses for July. But Mostoller said that payment still left a shortfall of more than $1.3 million. To cover most of that money, the Pennsylvania HBPA took out a $1 million loan. Mostoller said the loan money and the $853,000 from the state was used to send out this week’s checks.

“I completed the wire transaction Tuesday and all the checks were sent out Tuesday,” Mostoller said, adding that they'll eventually be reimbursed by the state through the Pennsylvania Breeding Fund.

Officials from Presque Isle, which saw changes in ownership finalized this year when Eldorado Resorts merged with its previous sole owner, MTR Gaming, said the HBPA has oversight of the purse fund and the track had made no policy change to contribute to the problem.

According to Pennsylvania Horse Breeders Association executive secretary Brian Sanfratello, money from the Pennsylvania Breeding Fund used to pay owner rewards earned in races and purses for restricted races has not been delayed. He said it always has taken a few months to be processed.

For instance, money from July races is tallied at the end of the month, processed in August, presented for approval to the Pennsylvania Horse Racing Commission in September, and sent out by the state’s department of revenue in October.

Mostoller acknowledged that his organization has approved advance payments of those restricted purses and owner awards.

“The owner awards and restricted races are supposed to be paid from that breeding fund. But we advance the money out of the purse account and get money back from the commonwealth,” Mostoller said. “What happened was racing, basically the department of revenue, has their priorities in the state budget and obviously racing’s not a priority.”

Mostoller said when he heard about horsemen being owed money, his organization took action.

“We solved the problem and we’re going to pay some interest on that money, but as the HBPA we thought it was important to make sure our members got their money. The association will take it on the chin instead of our members,” Mostoller said. “It’s just unfortunate that it took some extra time to get that done.”

Mostoller said any interest paid on the loan will come from the HBPA and not from the purse fund.

Money owed horsemen is not limited to purse money. Horsemen said they have not been paid money from when their horses were claimed at the meet. Kempler is owed the $7,500 claiming price paid for Freud’s Princess. Mostoller blamed the track’s accounting practices for claiming transactions being held up.

“The horsemen’s bookkeeper wasn’t able to differentiate (between purse money and claiming money), that was another problem that I did have,” Mostoller said. “I heard complaints about that. I immediately called Presque Isle and told them that any claim money—I don’t care what we have to do—any claim money needs to be paid immediately.

“The problem there is you have a multi-jurisdictional gaming company running racing and they don’t always understand the complications and the intricacies. They need to understand that claiming money is a purchase that needs to move from one (owner’s) account to another and there’s absolutely no excuse not to send that money immediately when it’s requested. I made sure that was clear and that problem too has been solved.”

Kempler said typically he faxes in a request for payment and receives funds within two weeks. He said when no money arrived, the only person he could reach was the horsemen’s bookkeeper, who informed him that the purse fund was empty and the HBPA was attempting to get a loan. Kempler said he didn’t understand why the purse fund would ever be allowed to reach zero.

Lou Ruberto, Kempler’s trainer, said he knew of 42 owners owed money, including one who had $80,000 coming. He said there’s been no communication from the Pennsylvania HBPA, which has oversight of the purse fund, or the track.

“I started in the game in 1967 and I’ve never seen something like this,” Ruberto said. “It’s unbelieveable. And we can’t get a hold of anybody other than the bookkeeper (who only informed them there was no money). Nobody wants to tell us what’s going on. There’s no communication.”

Mostoller said between the July money from the state and the $1 million loan, everyone who has sent in bills will be paid. As for the $347,000 owed beyond that, he said the HBPA would find a way to get that money out.

“They’ll get paid. We’ll make sure they do. I’m in constant contact with the comptroller at Presque Isle and we’ll make sure everyone is paid in a timely fashion,” Mostoller said. “We’ve gone out of our way at the HBPA to solve a problem that was created by the Department of Revenue. I can’t control what they do.”