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SPRINGFIELD – Governor Rod R. Blagojevich today signed
into law two bills designed to help protect thousands of jobs associated with
the state’s horse racing industry, and to help Illinois racetracks remain
viable and competitive. The Governor signed House Bill 1918, creating the
Horse Racing Equity Trust Fund, which will provide $36 million a year for
racing purses and racetrack improvements for the next two years. In addition,
the Governor signed House Bill 4377, which reduces the state tax due on bets
placed at Fairmount Racetrack in Collinsville
from 1.5% to .25%.
“These bills will help protect the jobs of thousands of hardworking people
who depend on the horse racing industry for their livelihood. They will also
create a more level playing field that will allow the horse racing industry
to remain competitive in Illinois,”
said Governor Blagojevich.
HB 1918, sponsored by Rep. Robert S. Molaro
(D-Chicago) and Sen. James F. Clayborne Jr.
(D-Belleville) creates a new Horse Racing Equity Trust Fund to give Illinois racetracks
funding for races, track improvements and promotion. It requires the four
largest riverboat casinos to pay 3% of their adjusted gross receipts for two
years to the Horse Racing Equity Trust Fund. The estimated $36 million in
annual revenues will be distributed from the Trust Fund in the following way:
· 60% of the overall funds will be distributed in the form of purse money -
prize money that is paid to the winners of the races. Thoroughbred racing
will receive 57% of that amount, and standardbred
racing will receive the remaining 43%. Each racetrack will receive purse
money equal to their percentage of total purse money for that breed in the
prior year.
· The remaining 40% of the funds would go to track improvements and
promotion. Fairmount Racetrack will get 11% of that amount, while the rest
will be divided between the other Illinois
racetracks based on the percentage of total bets placed on races at that
track in 2004 and 2005.
“I would like to thank Governor Blagojevich for signing these bills,” said
Rep. Molaro. “The Illinois
agri-business industry employs between 30,000 and 40,000 people across the
state. It would be a tragedy to see these people’s lives put at risk. These
bills will keep the Illinois’ horse racing industry competitive with our
neighbors and ensure that our agri-business has a viable future.”
“Illinois has had a long and illustrious history with horse racing,” said
Sen. Clayborne, “and with a 1.4 billion dollar
impact on the Illinois economy, it’s vital that we assist this struggling
industry.”
HB 4377, sponsored by Rep. Jay C. Hoffman (D-Collinsville) and Sen. William
R. Haine (D-Alton) will reduce the state tax due on
bets placed at Fairmount Racetrack in Collinsville
from 1.5% to .25%. The Fairmount Racetrack employs more than 2,000 people and
is a vital center of commerce for the city of Collinsville.
“Fairmount Park Racetrack has been an economic engine in the Metro East area
for decades,” said Rep. Hoffman. “This legislation will allow Fairmount Park
Racetrack to remain competitive by increasing live racing dates and will
provide thousands of employees job security.”
“With 1,500 good paying jobs at stake, I, along with my good friends, State
Senator James Clayborne, Representative Jay Hoffman
and Representative Tom Holbrook, knew we had to do something to keep
Fairmount Park viable in the near future,” said Sen. Haine.
“We decided to step in and work to keep horse racing alive in the Metro -
East. This bill will go a long way in helping us do just that, especially
with the 10th riverboat license in limbo.”
“I’ve been in this industry for 30 years now,” said Dr. Terry Morgan, horse breeder and practicing veterinarian
at Fairmount Racetrack whose wife owns the local tack shop. “Fairmount has
been through some tough times. We have been waiting for a way to revitalize
this business for some time now and Governor Blagojevich provided us with the
means to do so. This will affect everybody here at Fairmount and we are
extremely grateful for this opportunity. It means the world to us.”
HB 1918 and HB 4377 become effective immediately.
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