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Hall of Fame Banquet Photos

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     “YOUR” ILLINOIS HARNESS HORSEMEN’S ASSOCIATION REPORT

                              ……. “The State of the Industry”………..

2007 has proven to be challenging, interesting, and eventful year for our industry.  We are continuing our efforts to cause all to realize that YOUR IHHA and other horsemens’ groups do represent the more than forty-thousand (40,000) legitimate business persons involved in the many activities relative to our important industry, with an investment exclusive of race track operations, of probably more than five billion dollars in the State of Illinois; and, that we, as any other business-men and women seek to achieve a fair and reasonable return on our investment.  There has been an evolution, a metamorphosis if you will, from two (2) or three (3) persons racing down a dusty country road, for a Sunday meal or bragging rights, to a multi-billion dollar industry comprised of serious and professional business people.

One of our goals for 2007-2008 was to be able to transition our racing schedule to 2008 without any interruption. For the second consecutive year we have been able to accomplish this thru a spirit of mutual understanding and cooperation between YOUR IHHA and Maywood/Balmoral management.  Additionally, we have a tentative Agreement with Hawthorne Race Course. 

It should be noted also, that as part of the 2008 Agreement, Maywood/Balmoral has agreed that in the event that Maywood and/or Balmoral are closed for remodeling, renovation, or construction and are not racing as scheduled during calendar year 2008 and extending into 2009, they shall provide at no charge to horsemen, stall facilities, use of racetrack, and housing with appropriate utilities at Maywood and Balmoral for horses and tenants at whichever facility those horses and tenants would normally be stabled. and housed. This accommodation was requested and granted since should favorable legislation be enacted, major changes to the physical plants might become a reality.

A most important benefit which we are charged with is to provide a strong subsidized insurance program for our eligible members.  A continuing efficient administration and a more aggressive cost preservation and protection policy did enable us to absorb any increases during 2007 and to hold 2008 increase to a minimum level in spite of huge insurance industry increases.  Our insurance consultant brokers and underwriters are to be applauded for their cooperation and understanding in the matter.  Additionally, because of our positive actions, we were able to declare two (2) “insurance premium holidays”, making for a total of three (3) such “holidays” in the past fifteen (15) months, to our members; a savings we were pleased to pass along.

We have placed YOUR IHHA is a stronger financial position and have been able to reduce some of the costs related to our operations.  These savings were passed along in the form of slightly increased pursed during 2007.  We continue to work with track operators to find solutions to the declining on-track handle which negatively impacts our purse account.  The cooperation and understanding between our groups has enabled us to sustain these increased purse levels throughout 2007 .This is an on-going battle in all venues of our industry and we are actively seeking an answer as is the entire standardbred and thoroughbred industry.

Legislative assistance is necessary for our industry to survive and to return Illinois to the once prominent position we held. There has been a spirit of cooperation between YOUR IHHA and track operators in many areas of proposed legislation.  This has translated in our Illinois general assembly seriously considering and proposing needed assistance thru implementation of HB4194.

This is good legislation. It does provide for: Slots on track,  total and complete repeal of recapture immediately upon commencement of slot revenues, resumption of standardbred racing at Fairmount Park (an Illinois track that has been void of standardbred racing for many years depriving our Southern Illinois horsemen of opportunities), protection of live racing opportunities, a percentage of Adjusted Gross Slots Revenues estimated to double purse account when fully implemented, additional monies for breeders’ awards and county and state fair programs, adequate funding for Illinois Department of Agriculture for testing purposes, increased commissions from OTB’s, Advance Deposit Wagering whereby the horsemen are equal partners.

There are some modifications we are seeking to further improve this proposal, such as, adequate funding for the Illinois Racing Board in order that they can conduct a comprehensive testing program to insure and promote the integrity of Illinois racing. This is good legislation. YOUR IHHA, its’ legislative team, our lobbyists, are in constant contact with members of the Illinois general assembly and staff on a daily basis. We have presented testimony at several House Gaming Committee hearings and have been well received.  We are continuing with our set goal of being “pro-active”.  It appears that after our last gaming committee hearing that discussions will continue throughout January and we are cautiously optimistic that positive action will take place in early February or sooner.

There are other matters of legislation which are of concern to our industry and we bring to your attention.  A huge victory for Illinois horsemen during 2007 was passage of HB950 providing a sales tax exemption on all purchases, claims, or transfers of racehorses and broodmares in Illinois.  Without enactment and reinstatement of this expired exemption, all horsemen would have owed the state 6.75% tax plus penalties and interest applied to the cost of all horses claimed or purchased since year 2000.  The passage of this bill, which was accomplished solely by the efforts of YOUR IHHA saves our horsemen millions of dollars. A great job by our legislative team and lobbyists.

The passage of HB1918 commonly referred to as “The Molaro Bill” was a major accomplishment for our industry.  Your IHHA was able to “re-negotiate” the benefits with track management to an even more favorable position including the elimination of recapture during the two (2) year term of this bill.  Although the benefits of this legislation have not been realized because of court action put forth by the riverboat casino industry, the monies are being escrowed each month in anticipation of their release.  It is expected the Illinois Supreme Court will make their decision in this regard before the end of February 2008 thus making available for the standardbred purse account some $5.0 million plus annually in addition to elimination of a significant portion of prior recapture obligations.   We are hopeful that we will prevail. 

As regards one of the most important issues of concern in our industry, “integrity”, we continue to investigate different programs, have discussions with the track and Illinois Racing Board.  We need to provide assurances to our fan base, to the State, and to each other that Illinois racing is conducted with the highest degree of integrity and at the same time we need to be certain that horsemen’s rights are protected.   While the Illinois Racing Board, due to present budget constraints, cannot now implement a comprehensive testing program, we continue to discuss programs with them in anticipation of adequate funding being made available thru proposed and supported legislation.

The winds of change in 2007 brought to YOUR IHHA the services of our newly appointed Executive Director, Anthony “Tony” Somone.  Tony brings to this position experience in our industry, but most importantly, an enthusiasm and passion for getting things done to benefit his fellow horsemen.  Welcome and best wishes to Tony.

There is a large task ahead for all of us.  We need to stem the tide of more and more owners, trainers, drivers, and top horses leaving Illinois for those more progressive states that have recognized the importance of their agri-business community and have implemented the plans to save an industry.  We must all work together, horsemen, track operators, and legislators, all of us, to insure that we are here to stay and continue to provide benefit to Illinois. Mutual respect, cooperative efforts, and understanding will be the watchword for 2008.

Respectfully presented:

ILLINOIS HARNESS HORSEMEN’S ASSOCIATION

George Bonomo, President

 

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Executive Director's Report

How do I start my first director’s report with news from Springfield still waiting in the wings? Much before I took over, hard work was done by many to put us in a spot where we could hopefully get some help.  I certainly hope so. I have been here less then 3 months and I am already impressed with the hard work of the board and other representatives of the IHHA. Their contributions are invaluable to all of us. They put in countless hours of work. Having watched the IHHA throughout the years I have come to realize that although everyone has an opinion, these people actually walk the walk. It’s easy to see what the problems are and it’s easy to sit back and complain but this organization actually tries to make changes for the better. Sometimes issues may seem small and unsubstantial but they do make a difference. No one said much when  HB 950 passed in August. Does everyone realize if that one slipped by, we as horseman, would have had to pay sales tax, plus interest and penalties on all horses purchased or claimed and race bikes from May 2000 forward? It could have been a disaster. How about our insurance program? Health insurance is a huge problem out there for everyone and for the IHHA to pitch in and keep costs manageable is a credit to everyone involved. Now I also understand that some people may have negative feelings about this association and I won’t sit here and debate passed rights or wrongs but I will tell you “WE ARE WORKING  FOR SOMETHING SPECIAL, SOMETHING WE CAN ALL BE PROUD OF.” We can’t dwell on some of the mistakes of the past, we must move forward. 

 Illinois horsemen have proven their talents at racetracks across North America. Some of the best drivers, trainers and breeders have called Illinois home. Some have left for greener pastures and that is understandable but how about the owners who have stuck around during these difficult times. How much do they love this game? How passionate are they?  Call me naïve but I still have hope that we can restore Illinois racing to higher levels. I would not have taken this job if I felt any differently. Many other states that have added sources of revenue rely strictly on that revenue, but here we have a terrific and enthusiastic fan base already in place. I am convinced PEOPLE FROM ILLINOIS LOVE THEIR HARNESS RACING.

 In closing let me say thanks for this opportunity. Everyone has been helpful and I do appreciate it. I also understand that soon the honeymoon will be over, but that is o.k., disagreeing and arguing a little is healthy for an organization. Not everyone sees issues the same and it proves that people care and it prevents us from being a “one-man show.” I also urge everyone to visit the website. There is plenty of good information on it and we are constantly tweaking and updating it.

   Thanks,

             Tony Somone

 

Legislative Activities Report   January 8, 2008

The IHHA did give testimony to the Committee of Gaming conducted by Chairman, Lou Lang and Representative Molaro and attended by key legislators including Speaker Madigan.  A copy of our testimony is  also on your IHHA website. (see below after legislative report)

HB4194  is good legislation.  Although not yet voted on by either house, it remains the only active revenue bill in the General Assembly. It currently provides for:

Key points regarding the IHHA:

1.      Total and complete repeal of recapture immediately upon commencement of  slot revenues

2.      Resumption of standardbred racing at Fairmount Park

3.      Protection of live racing opportunities

4.      Fifteen per cent (15%) of AGR (Adjusted Gross Revenues) from slots directly to purse account. (estimated to double purse account when fully implemented)

5.      Additional monies for breeders’ awards and county and state fair programs. (not from horsemens’ monies)

6.      Adequate funding for Illinois Dept. of Agriculture for testing programs.

7.      Increased commissions from first generation OTBs  resulting in estimated additional  $1.4 million to standardbred purse account.

8.      Even splits on breakage

9.      ADW (Advance Deposit Wagering).

a)      Any provider contract requires IHHA approval and consent

b)       Horsemen are equal partners in all ADW commissions.

(There are some modifications as per testimony we are seeking to add.)

We have been extremely active over the past several weeks and months and will continue to work diligently towards accomplishing our goals.  We have been in constant contact with key legislators, our lobbyists, and “bill writers” .. all members of the General Assembly and staff, (on a daily basis including week-ends) We are continuing with our set goal of being “pro-active”.  It does appear after meeting with the committee and its members that there will be continuing discussions regarding this legislation over the next thirty (30) days and we are cautiously optimistic that positive action will follow.

George Bonomo, President -Tony Somone, Executive Director

 

 

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             Information re: 2008 Agreement         

There will be no interruption in racing.  The IHHA has a tentative Agreement with Maywood/Balmoral Licensees.  Please refer to the 2007 Agreement which is available on this website and insert the changes as listed below. (Note:  The full text of the 2008 Agreement will be available on this website soon.)

                                      Agreement

The below listed items of the agreement are to be incorporated into the 2007 Agreement (with all years changed to reference 2008 Agreement)  All other terms and conditions of the 2007 Agreement shall remain the same as in the 2008 Agreement.

Contract expiration date"   12/31/08

Page 2 & 3 Section 2,B

--   Provides for stakes monies of $1,182,000 for 2008  (No change from 2007)

Page 18, Section 27

--   The IHHA and LICENSEES agree that for trainers and owners that have not had  20 starts at Balmoral or Maywood Park in 2007 or 2008 or 30 starts in 2006 and 2007, or 2007 and 2008 combined, horses entered in a race with a purse of less than that of a $14,000 claiming race shall not be accepted to race unless ICF or Illinois owned..... (provides for increased number of starts for eligibility).(Remainder of this section remains unchanged)

Page 20, Section 34

--   ADD TO END OF SECTION: In the event the Licensees are closed for remodeling, renovations, or construction and are not racing during calendar year 2008 and extending into calendar year 2009, Licensees shall provide at no charge to horsemen, stall facilities, use of racetrack, and housing with appropriate utilities at Maywood Park and Balmoral Park for horses and tenants at whichever facility those horses and tenants would normally be stabled and housed.  (This provision shall not apply to those 2008 race dates at Hawthorne Park Race Course unless agreed upon by all parties)  (This insures that in the event of favorable legislation and decision by the tracks to reconstruct facilities and possible not conduct a race meeting at either facility (perhaps shifting one to the other) , horses and horsemen facilities will be maintained as above)

Page 24, Section 44,A

--   Delete IRB and Replace with ANY JURISDICTION: (This provides that should a trainer receive a penalty in any jurisdiction, the wait period to change trainers is the same as when a penalty is incurred in Illinois.  There is now consistency and uniformity in this provision.)  (Remainder of this section remains the same)

Exhibit B:

--   Change to read: Sulky insurance at Maywood Park and Balmoral Park will be limited to sulkies and jog carts only (no wheels and tires)  Damage must be incurred while on or entering the race course from the paddock between the start of a race program and until the horse has returned to the paddock at the conclusion of the race.

  Damaged sulkies and jog carts will be paid for as per the following schedule

 

        Age             Sulky Amount Covered        Jog Cart Amount Covered

 

           0-2 years                    $2000.00                           $ 800.00                    

           3-4 years                     1700.00                             600.00                   

           5 years/older                1200.00                            500.00                    

(This provides for an increase in $$$ reimbursement and now include jog carts.  Also, the occurrence time has been extended to include the entire time period of the race program, including warm-ups, rather than just the actual 'start to finish' of the race)

Exhibit: E

--   Provides that the Licensees shall have the option of renegotiating that portion of Section 4 which relates to recapture monies (as certified by the Illinois Racing Board for the Agreement year) to be "deferred" and to be "transferred" from horsemen's purse account.  For the period January 1, 2008 through the Agreement year, the percentages shall remain the same as in 2007 Agreement, unless a change is agreed upon by the IHHA.  This section does refer to recapture and does designate that 30% of the Agreement year shall be transferred to Licensees from horsemen's purse account and 70% shall be "deferred" as designated. (same as in prior years)  Upon notice prior to February 28, 2008, Licensees shall have the option to renegotiate this section 4 as it relates to percentage to be deferred to no less than 65% and corresponding maximum transfer of 35% to be transferred to Licensees. (Note: This provision is subject to agreement by both the IHHA and Licensees)

      

 

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October 19, 2007

 

As one of the many IHHA ongoing efforts, this letter by IHHA President George Bonomo,  expresses the need for expansion in gaming.  It was recently featured in the Arlington Heights Daily Herald (3rd largest paper in state and also in the Tribune's online edition.  The letter will probably run in other  local state papers.

 

To the Editor,

The recent impasse between the executive and legislative branches of state government offers a good opportunity to revisit the issue of horse racing in Illinois and the potential revenue that can be derived from this economic powerhouse.

There is financial crisis at every juncture in Illinois government.  The RTA, CTA and downstate mass transit cry for new revenue.  Roads are in dismal condition across the state.  Schools desperately need new infrastructure and the governor has asked for more money to fund healthcare initiatives.

With no appetite for higher taxes, our elected officials are left with few options.  Casino gaming at racetracks is one option that doesn't raise taxes and provides a funding mechanism to bond billions of dollars in new vital programs.  Furthermore it ensures continued viability of an industry that employs 40,000 people while pumping more than $1 billion into our economy every year.

Virtually every other state that races horses has moved to this revenue enhancer.  Key to our support, of course, is a fair and proper split of revenue that can improve the racing product through higher purses.  If we stem the exodus of horsemen leaving Illinois for greener pastures in the East, we guarantee a bright future for the thousands who are employed in horseracing here.

The argument that some do not want an expansion of gambling doesn't work here.  Wagering already takes place at all Illinois race tracks.  To install other gaming options is not an expansion of gambling anymore than the adding of more positions to existing casinos.  And unlike existing casinos, tracks offer new venues to attract patrons from other locales including the many who cross our border into Indiana every year.

It makes perfect sense and it goes a long way towards solving Illinois’ dire financial woes.  Our lawmakers and the governor should wake up and smell the roses while we run for them.

Sincerely,

 

George Bonomo
President

Illinois Harness Horsemen’s Association
 

   

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