Washington Horse Racing Commission
6326 Martin Way E, Suite 209
Olympia, Washington 98516
Phone: 360.459.6462
Fax: 360.459.6461
2005 Annual Report

April 11, 2006

The Honorable Christine Gregoire, Governor
State of Washington
P. O. Box 40002
Olympia, Washington 98504-0002

Dear Governor Gregoire:

On behalf of the Washington Horse Racing Commission (WHRC) I am pleased to advise you that our 2005 Annual Report has been posted on our website, www.whrc.wa.gov. Pursuant to the provisions of the Washington Horse Racing Act, Chapter 67.16 RCW the WHRC submits it’s forty-eight annual report for the 2005 racing season.

The WHRC and its staff are pleased and gratified that horse racing is recognized as both an economic and recreational asset to the people of Washington. The racing and breeding industries are a valuable sector of the state’s economy and agribusiness.

We appreciate your continued support of the WHRC and the horse racing industry and look forward to working with you to address the challenges that confront horse racing while we work to strengthen its role and viability in our state.

Respectfully submitted,

Hartly Kruger
Chairman

Senator Bill Finkbeiner
Ex-Officio Member

Dr. Bud Hallowell, DVM
Commissioner

Senator Marilyn Rasmussen
Ex-Officio Member

Carol Smith-Merkulov
Commissioner

Representative Skip Priest
Ex-Officio Member

Judi Roland
Commissioner

Representative Dave Quall
Ex-Officio Member

Paul George
Commissioner

 
Emerald Downs
Wager Type
Wagers Placed
Returned To Public
Track/OTB Wagers
154,172,316.00
122,938,668.91
 
Retention
31,233,647.09
Advance Deposit Wagering (ADW) is a form of pari-mutuel wagering in which an individual deposits money in an account with an entity authorized by the commission to conduct advance deposit wagering and then the account funds are used to pay for pari-mutuel wagers made in person, by telephone, or through communication by other electronic means. A portion of the wager, the "source market fee", made on any race by a person whose principle residence is in Washington is returned to the class 1 racing association and the commission, the source market fee is distributed as breeders awards, owners bonus, purse accounts, and operating accounts per WAC 260-49-070.
 
Pari-Mutuel Wagers from ADW accounts for Washington residents
ADW Company
Wagers Placed by Washington
Residents
Source Market Fees Received
TVG Network
13,410,723.00
1,298,970.10
XpressBet, Inc.
4,038,260.40
305,281.02
YouBet.Com
16,610,877.00
736,839.29
Totals
34,059,860.40
2,341,090.41
 

Class C Purse Fund
One-tenth of one percent of in-state track/OTB pari-mutuel wagers is collected every calendar year to provide funding for purses at the state’s non-profit (Class C) race tracks the following year. The Washington Horse Racing Commission provides the funds collected plus the difference between this amount and three hundred thousand dollars. The amount collected in 2004 was $159,888.44 leaving a difference of $140,111.56 which was paid from the Commission’s operating budget in 2005. The distribution is based on the number of live race days at each non-profit racetrack.
RCW 67.16.105(3)

Class C Purse Fund Revenue Source
Pari-Mutuel wagering
Fines
Source Market Fee
Interest on Fund 169 & Fund 497
Washington Horse Racing Commission operating revenue
Total Revenue Received
 
139,749.62
10,825.00
3,422.86
5,890.96
140,111.56
300,000.00
Class C Purse Fund Revenue Distribution
Racetrack
pari-mutuel Wagers
WHRC Operating
Sun Downs
69,459.98
80,504.02
Walla Walla
34,730.00
40,270.00
Waitsburg
13,893.00
16,107.00
Dayton
20,837.00
24,163.00
Total Fund Distribution
 
Total
150,000.00
75,000.00
30,000.00
45,000.00
300,000.00

Donohue Fund
Interest derived from the Owner's Bonus Funds in 2004 were paid to the non-profit racetracks in 2005 for maintaining and upgrading their respective racing courses and equine quartering areas.
RCW 67.16.102(2)

Donohue Fund Revenue Source
Interest paid on the Owners Bonus Funds
Total Revenue Received
 
8,869.88
8,869.88
Donohue Fund Revenue Distribution
Sun Downs
Walla Walla
Waitsburg
Dayton
Total Fund Distribution
 
2,217.47
2,217.47
2,217.47
2,217.47
8,869.88

Owners Bonus
One percent of in-state track/OTB pari-mutuel wagering is paid at the end of the race year to all licensed owners whose horses place first, second, third, or fourth. The horses must be bred within Washington State and run at a for-profit race track.
RCW 67.16.102(1)

The Owners Bonus receives 2.5 percent of the source market fee.
WAC 260-49-070

Owners Bonus Revenue Source
Track and off-track wagers placed in-state
Source market fee
Total Revenue Received
 
1,541,723.16
58,527.26
1,600,250.42

Breeders Award
One percent of in-state track/OTB exotic wagers is paid at the end of the race year to the breeder of record for each Washington bred horse that finished first at a for-profit race track.
RCW 67.16.175

The Breeders Award receives 2.5 percent of the source market fee.
WAC 260-49-070

Breeders Award Revenue Source
Track and off-track wagers placed in-state
Source market fee
Total Revenue Received
 
944,930.23
58,527.26
1,003,457.49

Commission Operating Revenue
The Washington Horse Racing Commission operating account is comprised of revenue received from pari-mutuel tax, source market fee, annual license fees from advance deposit wagering firms, individual license fees, and live race day license fees.

License Types License Number  
Owners 1,765  
Trainers 158  
Jockey 80  
Grooms 373  
Platers 47  
Pony 143  
Exercise 230  
Veterinarians 18  
Vendors 67  
Authorized Agents 222  
Prospective Owners 47  
Stable Licenses 231  
Association Staff 883  
Other Staff 54  
Spouse Groom 21  
Apprentice Jockey 4  
Assistant Trainer 10  
Jockey Agent 15  
Total
Licensing Fees
  186,688.00
Fingerprint Fees   35,190.00
Processing Fees   1,365.00
Daily Fee
Emerald Downd
101 Race Days @ $500/Day 50,500.00
Daily Fee Class C 20 Race Days @ $10.00/Day 200.00
Advanced deposit wagering license fees 8,000.00
Source market fee 163,876.32
pari-mutuel tax on track/OTB wagers placed in-state 2,004,240.13
Total Commission Operating Revenue 2,450,059.45
 
Class C Racetrack Wagers Distribution
  pari-mutuel Wagering

Return
To Public

Dayton 63,131.00 50,911.00
Sun Downs 444,532.00 358,079.00
Waitsburg 51,389.00 41,525.00
Walla Walla 159,676.00 129,087.00
Total 718,728.00 579,602.00
Racetrack
Retention
12,220.00
86,453.00
9,864.00
30,589.00
139,126.00
The Total Number Of Race Days And The Average Number Of Horses Per Race Are Included For 2005
 

Number
Race Days

Number Races # Horses Starting
Emerald Downs 101 925 7,237
Dayton 3 24 151
Sun Downs 10 89 621
Walla Walla 5 46 295
Waitsburg 2 19 109
Statewide Totals 121 1103 8,413
Average Horses
Per Race
7.8
6.3
7.0
6.4
5.7
7.6
 
   
 

In 2004, advance deposit wagering was legalized (RCW 67.16.260). This form of pari-mutuel wagering allows a person to establish an account with a licensed service provider and place wagers via telephone, computer or other electronic means. Advance deposit wagering service providers are required to obtain a license from the Washington Horse Racing Commission and must pay a source market fee, which is a portion of each wager placed by a Washington account, to Washington’s horse racing industry.

A portion of the retention from track/OTB wagers and advance deposit wagers is reinvested in Washington's horse racing industry. The distribution to these sectors of the horse racing industry is provided in the annual report and according to several statues in Chapter 67.16 RCW. The retention (source market fee) from advance deposit wagering is distributed according to WAC 260-49-070.

 
 
   

Copyright© 2005 Washington Horse Racing Commission
6326 Martin Way Suite 209, Olympia, WA 98516
Telephone: 360.459.6462  Fax: 360.459.6461
Use of this site is subject to the laws of the state of Washington.
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