MARCH/APRIL 2014 THE RIDER /40


Q.R.O.O.I: 11 Harwood Avenue South, Suite 202, Ajax, Ontario L1S 2B9 Telephone: (905) 426-7050 • Fax: (905) 426-7093 Email: qrooiheadoffice@gmail.com


www.qrooi.com


PRESIDENT


Bob Broadstock 18101 Cedardale Road, Nestleton, Ontario L0B 1L0 (905) 986-0044 email: bob_broadstock@hotmail.com


VICE-PRESIDENT


Erik Lehtinen RR #2, Uxbridge, ON L9P 1R2 (905) 852-5245


Greg Watson 785 Hwy 7A, Bethany, ON L0A 1A0 (705) 277-0248


René Hunderup P.O. Box 310, Station Main, King City, ON L7B 1A6 (905) 886-7886


Dr. Gayle Sommer P.O. Box 91, Leaskdale, ON L0C 1C0 (647) 999-6554


Don Salzsauler 10708 Third Line, Milton, ON 9T 2X9 (416) 579-7876


Steve Hunter 231485 County Road 24, Grand Valley, Ontario L6X 2P5 • (519) 928-5209


Notice to the Industry Ontario Horse Racing issues information on new funding model


today released more details related to the $80 million annual funding under the Horse Racing Partnership Funding Program (HRPFP). The details of the 5-year government funding program were confirmed on February 13, 2014 following the government’s approval of the HRPFP Order in Council. This announcement offers assur-


Ontario Horse Racing (OHR)


Over 96% of funding dedicated to purses


enue, will be used to support the indus- try as follows:


$80 million per year in HRPFP fund- ing


support the horse racing industry by: • providing up to $400 million over five years ($80 million each year) to sustain a wide range of racing opportu- nities across the province; • developing a new industry gover- nance structure; and, • integrating horse racing with the Ontario Lottery and Gaming Corpora- tion’s (OLG) modernization plan. The HRPFP funds, combined with the other sources of industry rev-


ment released the five-year Horse Rac- ing Partnership Plan to help Ontario’s horse racing industry build a sustain- able future. The government has committed to


ance to the racing industry that over the next five years, race dates (around 900 live dates per year) will be stable and purse levels guaranteed. On October 11, 2013, the govern-


HRPFP funding will be dedicated to purses at racetracks across Ontario.


HRPFP funding – around 10% or approximately $8 million – is being explicitly directed to purse accounts at regional racetracks. Overall, more than 96% of


continue to be split between the horse people’s purse accounts and the race- tracks. For greater clarity, the direction to allocate 100% of pari- mutuel com-


Letter to the The Honourable Kathleen wynne February 7, 2014


The Honourable Kathleen Wynne Minister of Agriculture and Food Government of Ontario


Dear Minister, I am pleased to update you on progress to date in implementing the


to a great season of racing in 2014. John Snobelen


last October, the industry has been working collectively and diligently to form partnerships that will provide a solid foundation for Ontario horseracing. Thank you for your leadership and guidance. We are all looking forward


calendar for 2014. In order to provide notice to the industry, a racing calendar at Fort Erie Race Track will be made public by the end of February. Since your announcement of the Ontario Horseracing Partnership Plan


taken discussions on the opportunity of reaching a similar arrangement with the two Thoroughbred race tracks - Fort Erie and Woodbine. I am now able to report to you that, with the cooperation of all concerned, funds required for a full season of racing at Fort Erie have been secured. I have asked all parties to meet over the next few weeks to prepare a race


eration that is unique in the world and provides a solid foundation for the growth of racing in Ontario. Building on the successful alliance of Standardbred tracks, I have under-


of Standardbred racing. The core tracks, Western Fair, Grand River, Hanover, Clinton, Flamboro, Georgian, Mohawk and Woodbine have recently reached a working agreement that will assure high quality Standardbred racing for the next five years. The alliance of Standardbred tracks represents a level of inter-track coop-


Ontario Horseracing Partnership Plan and your request to explore options to continue live racing at the historic Fort Erie racetrack. As you know an important component of the plan is a coordinated circuit


Pari-Mutuel Commissions Pari-mutuel commissions will


HRPFP funding (approximately $72 million) is intended for the support of live racing at the core racetracks and industry development programs such as provincial marketing, animal wel- fare and responsible gambling that benefit the entire industry. OHR, the new industry development division of the Ontario Racing Commission (ORC), will be responsible for the delivery of the HRPFP and for the development and implementation of industry programs. The remaining share of the


Approximately 90% of the


tion of telephone account betting and teletheatre networks were also included in the Horse Racing Partnership Plan. Telephone account betting (TAB) will be operated within a single, province- wide home market area by a sole oper- ator. Similarly, a competitive procure- ment process has been undertaken to consolidate the operation of telethe- atres across the province to a single network. Net proceeds of TAB and teletheatre wagering will be directed to racing at the core tracks with future growth of revenues split between the core and regional tracks on a 90:10 basis.


and purse accounts – will continue to benefit from all pari- mutuel commis- sions and other revenues generated on- track. These revenues will be kept by


Regional racing – track operators


horse people’s revenue from purses tied to the market and keeps every- one’s focus on the customer. Linking their success to the growth of the pari- mutuel product will benefit both race- tracks and horse people, and will pro- mote alignment with the common goal of increasing the fan base and enhanc- ing wagering revenues. Conceptual changes to the opera-


missions to the purse accounts, as hap- pened last year, will no longer apply. Sharing the commission keeps


commissions will be allocated for rein- vestment in racing through a blend of marketing, research and development, and capital expenditures, as well as for purses and racetrack operating costs related to additional race dates.


enue are the OLG leases signed with the racetracks and any additional rev-


costs will continue to be funded through the PMTR, or “wagering levies” as they are sometimes called. In turn, the ORC has committed to reduc- ing licence fees for both racetracks and individual participants. This mix of regulatory funding demonstrates the rationale that regulatory fees are tied to the pari-mutuel handle and racing activity – in other words, regulatory funding will reflect the size and needs of the industry. The final sources of industry rev-


Other costs and sources of revenue As noted above, ORC regulatory


fits programs will also be funded from pari-mutuel commissions. The funding model targets approximately $2.5 mil- lion for the operation of a consolidated industry benefits and insurance pro- gram for all active industry participants across all breeds. Future growth of pari-mutuel


the track at which they are generated. The costs of horse people’s bene-


enue that results from the re-integra- tion of horse racing and gaming. Both of these sources will also be used to support the operations and capital improvement of racetrack facilities.


stakeholders – will come from per- forming well in the marketplace and expanding the fan base (particularly the horse players). The Plan encour- ages the industry to grow wagering revenues and enhance its fan base by creating and offering products con- sumers want.


Executive Director


Future Race Winners!


Left: Sire : Wave Carver Dam : Chicks Famous Candy Sex: Filly Owner: Wayne & Carol Procter


Steve Lehman


Funding Program is part of the Ontario government’s ongoing plan to foster a dynamic and innovative business envi- ronment. Growth of the industry – for all


ing model also recognizes reasonable returns and the potential for profitabili- ty for all industry participants – race- tracks, horse people and breeders. Sim- ilarly, there will be expectations for capital re-investment where it makes business sense and the maintenance of a strong focus on meeting customer needs. The Horse Racing Partnership


Growth potential for the Industry Going forward, the HRPFP fund-


Right: Colt born Jan 3l, by Carters Cartel out of Dollish. Owned by J & E Lehtinen, JEM Farms.


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