Minutes of Public Meeting - April 2, 2024

In accordance with §3-302, General Provisions Article, Annotated Code of Maryland, the Maryland Racing Commission (“Commission”) met in person and by conference call in open session at 12:30 p.m. at Laurel Park on April 2, 2024. At the start of the meeting, Chairman George Mahoney took a roll call of the Commission members and confirmed that all were present, except for Commissioner Shawn Wright.

Minutes - February 6, 2024

The Commission waived a reading of the minutes of its meeting on February 6, 2024, and voted to approve them unanimously. Commissioner Wayson abstained from the vote, as he was not present at the February meeting.

Ratification of Email Poll – Maryland Jockey Club Future Wager.

Executive Director J. Michael Hopkins asked the Commission to ratify an email poll he conducted on February 15, 2024, asking the Commission to approve a request from the Maryland Jockey Club to offer a “Future” wager on the Preakness. Hearing no objection, the Commission unanimously ratified the poll.

Ocean Downs - Racing Facility Redevelopment Account.

Executive Director J. Michael Hopkins presented a report from Maher Duessel, the accounting firm under contract with the Commission to review reimbursement requests submitted by the tracks. This particular report was a review of specific expenditures made by Ocean Downs in 2023 in accordance with their Capital Improvement Plan, where Ocean Downs was requesting reimbursement of such expenditures from their share of the Racing Facility Redevelopment Account. Hearing no objection, the Commission unanimously approved the request for $267,352.00 for capital improvements.

Ocean Downs - 2024 Capital Investment Plan.

Executive Director J. Michael Hopkins provided the Commission with a request from Ocean Downs for its proposed Capital Investment Plan for calendar year 2024. Mr. Hopkins further explained that the Commission would not be approving specific expenses, but merely the plan itself. Hearing no objection, the Commission unanimously approved the plan.

Maryland Standardbred Race Fund.

Cheri Stambaugh, Administrator of the Maryland Standardbred Race Fund, submitted a request to the Commission for the 2024 purse schedule for the Fund. Ms. Stambaugh stated that the Maryland Standardbred Race Fund Advisory Committee had reviewed the 2024 purse structure and was recommending to the Commission that it be approved. Hearing no objection, the Commission unanimously approved the request.

Commissioner Zavian - On Boarding.

Commissioner Ellen Zavian reported that she was continuing to work on an “on boarding” kit for Commission members. Commissioner Zavian advised that she had developed an electronic survey that was distributed to the Commission members and was requesting that the Commissioners fill out the electronic form.

Racing Commission Vacancy.

Executive Director J. Michael Hopkins reported that Commissioner Zavian had asked Mr. Hopkins the status of the vacancy on the Commission and how the Commission could help in having it filled. Consequently, Mr. Hopkins reported that he reached out to the Governor’s Appointments Office and had not received a response. Commissioner Zavian asked how to refer someone to if there was an interest in becoming a member. Mr. Hopkins responded that any individual with interest in serving would need to fill out an application that is available on the Governor’s Appointments Office website. Commissioner Zavian also asked what background an individual should have. Chairman Mahoney commented that an individual should have some insight on horse racing and some type of industry background.

Legislative Update.

Executive Director J. Michael Hopkins informed the Commission that he was aware of three bills that could potentially impact the racing industry. Mr. Hopkins noted that the bills were not sponsored by the Department of Labor. House Bill 1319 would authorize Internet gaming with a portion of the proceeds being returned to the industry as purse enhancements; House Bill 1524 would allow the Maryland Thoroughbred Racetrack Operating Authority to own and operate Laurel and Pimlico; and Senate Bill 627 would shift the Racing Commission’s regulation of Satellite Simulcast Betting Facilities to the Maryland Lottery and Gaming Commission. Mr. Hopkins further reported that these bills had not been approved by both chambers in Annapolis and that their status was still unknown. Commissioner Lillis commented that he was opposed to having the regulation of Satellite Simulcast Betting Facilities taken away from the Commission and given to the Maryland Lottery and Gaming Commission. He also commented that he was opposed to a provision in House Bill 1524 that reallocated the Rosecroft share of the Racing Facility Redevelopment Account (“RFRA”) to the Maryland Thoroughbred Racetrack Operating Authority. Commissioner Lillis also expressed his concern that there was not specific language addressing the backstretch employees living accommodations. Chairman Mahoney commented that living accommodations were in the Bill. Commissioner Tammy Lafferty also commented that she was opposed to the provision in the Authority Bill that would transfer RFRA money from Rosecroft to the Authority. Commissioner Lillis asked about the Commission taking a position on the legislation and Counsel, Eric London, indicated that it would be inappropriate for the Commission to take a position on Bills that were not put forward by the Department of Labor. Further, Mr. London noted that the topic on the Agenda was Legislative Update and for the Commission to take a vote on Bills, it would need to be on the Agenda. Ms. Zavian disagreed with such interpretation that “Update” prohibited the vote on such matter. Executive Director J. Michael Hopkins informed the Commission that they could testify in their individual capacities concerning Bills that were not put forward by the Department of Labor. He also noted that any Commissioner would need to preface any testimony that their comments were in their individual capacity and not as a member of the Commission.

Chairman Mahoney asked Commissioner Lillis if he would have interest in serving as Chair to a Legislative Sub-Committee of the Commission, which he agreed to do.

Jackie Macleod.

Jackie Macleod, representing the Maryland Standardbred Breeders, provided the Commission with their 2024 Stallion Directory and invited the Commission to the Awards Banquet at Rosecroft on April 13, 2024.

Maryland Jockey Club Update.

Mike Rogers, representing the Maryland Jockey Club (“MJC”), reported that the MJC was inspected by the Horseracing Integrity and Safety Authority (“HISA”) for its safety accreditation and that the inspection went well. Mr. Rogers also reported that the MJC would be performing alcohol testing of all the jockeys every day pursuant to the HISA protocol.

Mr. Rogers advised that Preakness preparations continue and that the Preakness Future wager has garnered interest. In addition, Mr. Rogers indicated that handle for the first quarter was down 11% at Laurel, but he attributed the decline to the loss of 6 racing days due to inclement weather. Mr. Rogers also advised that handle at Rosecroft was down 12%. He also informed the Commission that Rosecroft had hosted the Maryland Horse Industry Board Awards Ceremony. He further noted that Golden Gloves boxing matches would be taking place on April 6, 2024 and that the Maryland Standardbred Breeders and Cloverleaf Standardbred Owners’ Association would be having their awards banquets on April 13, 2024.

Public Comments.

Chairman George Mahoney announced the unfortunate passing of Commissioner Tammy Lafferty’s husband and advised that the Commission’s thoughts and prayers were with her.

Cheri Stambaugh, representing the Maryland Standardbred Race Fund, announced that the Sire Stakes program had begun and would be continuing through the spring.

Bob Shuwe, representing the Cloverleaf Standardbred Owners’ Association, read a statement from the Racing Commission minutes of August 18, 2022, where the Commission recognized the standardbred racing industry as an important part of the Maryland racing industry.

April Smith, representing Friends of Pimlico, read from a prepared statement expressing her thoughts on the introduction of HB 1524, which would redefine the future of Pimlico and racing. Further Ms. Smith commented about the lack of barn space, housing for backstretch workers and the rotation of the track.

Tom Cooke, a member of the Cloverleaf Standardbred Owners’ Association, commented about the provisions of HB 1524 relating to the transfer of RFRA monies to the thoroughbred industry that had accrued to Rosecroft without any discussion with the standardbred industry.

Mary Beth Kalinich expressed her concerns over the implementation of HB 1524 as proposed.

Cathy Rosenberg informed the Commission that the 4th Annual Track Reunion would be held at Laurel on April 28, 2024, at which racetrack workers past and present would attend, including Jockey Chris McCarron, Dr. Jim Stewart and Trainer King Leatherbury. Ms. Rosenberg encouraged the Commission and public to attend the event.

Alan Foreman, a member of the Maryland Thoroughbred Racetrack Operating Authority, commented that that he was disheartened by the comments made by some Commissioners regarding House Bill 1524. Mr. Foreman continued by stating that the Racing Facility Redevelopment Funds were not standardbred funds nor were they thoroughbred funds, they were state funds that had accrued and were unused by Rosecroft and that left unused would be transferred to the State’s general fund. Mr. Foreman also commented that the housing issue for backstretch workers at Pimlico was being addressed with housing being proposed in the community.

Cricket Goodall, representing the Maryland Horse Breeders Association, reported that Maryland Day took place in Annapolis at the Lawyers Mall on March 25, 2024. Ms. Goodall also reported that the American Horse Council has completed and published its report on the economic impact study on the entire horse industry. Further on April 17, 2024, the Horse Breeders will be holding their Awards Dinner and WBAL will be presenting a documentary on the Maryland Horse Industry in the near future.

Marylyn Bobbi, a horse racing enthusiast, expressed her concern over the lack of connection between the new Racing Authority and Racing Commission as well as the housing issue for the backstretch workers.

Mike Hall, representing the standardbred industry, commented that a united industry is the most valuable asset to the horse industry. Mr. Hall continued that he was also disappointed in the lack of discussion over the Rosecroft funds being transferred to the Authority.

Next Commission Meeting.

Chairman Mahoney announced that the next public meeting would be held on May 7, 2024, at Pimlico in the Triple Crown Room starting at 12:30 P.M.

/s/ George P. Mahoney, Jr.      

Chairman