April 6, 2007
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 2006
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 its annual report
for the 2006 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.
The mission of the WHRC is to regulate parimutuel
horse racing and support the development of
the equine industry. The goals of the WHRC are
(1) to foster a regulatory environment that
promotes the economic benefits of the equine
industry, and (2) to ensure that the public
has confidence in the integrity of parimutuel
horse racing.
Data on the key agency performance measures
is reported in the annual report including:
1. Number of live racing days
2. Number of horse races.
3. Number of horses starting
4. Average horses per race.
5. Annual in-state parimutuel
wagering
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,
Carol
Smith-Merkulov
Chairman |
Senator Bill
Finkbeiner
Ex-Officio Member |
Jeff Colliton
Commissioner |
Senator Marilyn
Rasmussen
Ex-Officio Member |
Paul George
Commissioner |
Representative
Skip Priest
Ex-Officio Member |
Dr. Bud Hallowell, DVM
Commissioner |
Representative
Dave Quall
Ex-Officio Member |
Hartly Kruger
Commissioner |
|
| Emerald
Downs |
Wager Type |
Wagers
Placed |
Returned
To Public |
| Track/OTB Wagers |
136,001,548.10 |
108,568,495.69 |
|
|
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
breeder 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 |
21,137,895.40 |
2,092,858.64
|
| XpressBet, Inc. |
1,938,405.40 |
155,702.88 |
| YouBet.Com |
13,613,050.80
|
799,110.27 |
| Totals |
36,689,351.60
|
3,047,671.79
|
|
|
|
 Nonprofit
Racetracks’ 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 nonprofit 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 2005 was $202,154.62 leaving
a difference of $97,845.38, which
was paid from the Commission’s
operating budget in 2006. The distribution
is based on the number of live race
days at each non-profit racetrack.
RCW 67.16.105(3)
| Nonprofit
Racetrack Purse Fund Revenue
Sources |
| Parimutuel
wagering |
| Fines |
| Source
Market Fee |
| Interest
on Fund 169 & Fund
497 |
| Washington
Horse Racing Commission
operating revenue |
| Total
Revenue Received |
|
| |
| 147,198.01 |
| 11,764.00 |
| 17,812.91 |
| 25,379.70 |
| 97,845.38 |
| 300,000.00 |
|
|
Purse Fund Distribution
by Days of Racing |
| Sun Downs |
2
days |
| Walla Walla |
10
days |
| Waitsburg |
2
days |
| Dayton |
5
days |
Total
Fund Distribution
|
19
days |
|
| |
31,578.94 |
157,894.71 |
31,578.94 |
78,947.41 |
| 300,000.00 |
|
|
Donohue
Fund
Interest derived from
the Owner's Bonus Funds in 2005
were paid to the non-profit racetracks
in 2006 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
|
|
|
| Donohue
Fund Revenue Distribution |
| Sun
Downs |
| Walla
Walla |
| Waitsburg |
| Dayton |
Total
Fund Distribution
|
|
| |
| 4,879.16 |
| 4,879.16 |
| 4,879.16 |
| 4,879.16 |
| 19,516.63 |
|
|
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
|
|
| |
| 1,360,015.48 |
| 76,191.78 |
| 1,436,207.26 |
|
|
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
|
|
| |
| 827,599.69 |
| 76,191.78 |
| 903,791.47 |
|
|
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 |
|
| Apprentice Jockey |
6 |
|
| Assistant Trainer |
7 |
|
| Association Employee
– Mgmt |
23 |
|
| Association Employee
– Hourly |
400 |
|
| Authorized Agent |
70 |
|
| Exercise Person |
226 |
|
| Groom |
387 |
|
| Honorary License |
4 |
|
| Jockey |
64 |
|
| Jockey Agent |
13 |
|
| Other |
24 |
|
| Owner |
1,731 |
|
| Pony Person |
135 |
|
| Prospective Owner |
40 |
|
| Service Employee |
41 |
|
| Spouse Groom |
18 |
|
| Stable License |
232 |
|
| Trainer |
141 |
|
| Vendor |
62 |
|
| Veterinarian |
22 |
|
| Licensing Fees
|
|
179,533.00 |
| Background check
fees |
|
29,190.00 |
| Daily Fee Emerald
Downd |
90
Race Days @ $500/Day |
45,000.00 |
| Daily Fee Class
C |
19
Race Days @ $10.00/Day |
190.00 |
| Advanced
deposit wagering license fees |
8,000.00 |
| Source market
fee |
163,876.32 |
| Parimutuel tax
on track/OTB wagers |
1,768,020.12 |
| Total
Commission Operating Revenue |
2,243,270.15 |
|
| Nonprofit
Racetrack Wagers Distribution |
| |
pari-mutuel
Wagering |
Return
To
Public |
| Dayton |
45,744.00
|
36,874.90
|
| Sun
Downs |
419,302.00
|
338,305.91
|
| Waitsburg |
26,186.00
|
21,138.10
|
| Walla
Walla |
159,676.00 |
136,062.30
|
| Total |
659,407.00
|
532,381.21
|
|
Racetrack
Retention |
|
8,869.10 |
| 80,996.09
|
|
5,047.90 |
| 32,112.70
|
| 127,025.79
|
|
| Number
of Race Days, Races, Horses,
and Average Horses/Race |
| |
Number
Race
Days |
Number
Races |
#
Horses Starting |
| Emerald
Downs |
90 |
822 |
6,456 |
| Dayton |
2 |
17 |
101 |
| Sun
Downs |
10 |
85 |
497 |
| Walla
Walla |
5 |
46 |
270 |
| Waitsburg |
2 |
19 |
90 |
| Statewide
Totals |
109 |
989 |
7,414 |
|
Average
Horses
Per Race |
| 7.85 |
| 5.94 |
| 5.85 |
| 4.74 |
| 5.87 |
| 7.5 |
|
|
 |
| Funding Incentives
Recent legislation, RCW 67.16.280(2),
authorized the Washington
Horse Racing Commission (WHRC)
“to spend up to $300,000
per year for the purpose of
developing the equine industry,
maintaining and upgrading
racing facilities, and assisting
equine health research.”
In 2006, the WHRC established
the Jockey Incentive Program
and made the following grants
to nonprofit race meets and
WSU for equine health research.
A total of 26 jockeys received
awards based on their participation
in the nonprofit race meets.
The awards ranged from just
$39 for one race to $4,443
for 115 races.
|
|
| Competitive
Grant Applications - Fiscal
Year 2007 |
|
Amount
Requested |
Amount
Approved |
| Jockey Incentive Program |
35,003.00
|
35,003.00
|
| |
|
|
| Nonprofit Race Meets |
|
|
| Sun Downs Barn Restoration |
12,296.25 |
12,296.25 |
| Sun Downs Rail &
Track |
161,329.63 |
161,329.63 |
| Jockey Insurance |
40,500.00 |
40,500.00 |
| Wireless Camera System
- Races |
2,201.69 |
2,201.69
|
| Mobile Office Trailer
& Female Jockey Facility |
25,000.00
|
6,223.43
|
| Test Barn - Walla Walla |
30,000.00
|
|
Subtotal |
271,327.57
|
222,551.00 |
| |
|
|
| Washington State University |
|
|
| Evaluate Surgical Treatment
for Desmitis |
42,446.00 |
42,446.00
|
| Identify Relative Adrenal
Insufficiency |
56,562.00 |
|
Subtotal |
99,008.00
|
42,446.00
|
| |
|
|
| Emerald Downs Equine
Diagnostic Clinic |
|
|
| Nuclear Scintigraphy
Unit |
50,000.00
|
|
| |
|
|
Total |
455,338.57
|
300,000.00
|
|
|
|
|
|
Washington
Horse Racing Commission
