Harness Racing: Illinois harness season on hold pending negotiations

By Kimberly Rinker

The start of the 2014 Illinois harness racing season continues to remain in jeopardy.

After six hours of yet another day of contract negotiations between the Illinois Harness Horsemen’s Association (IHHA) and Balmoral Park and Maywood Park management, the two groups exited the Illinois Racing Board (IRB) offices in the Thompson Center in downtown Chicago without a contract for 2014.

Members of the IRB mediated the meeting between the two groups.

“The IRB requires us to have a contract before we race and we’ve been unable to come to terms in regards to handling our purse account,” Tony Somone, IHHA Executive Director explained.

This impasse comes shortly after the much-anticipated ADW (advance deposit wagering) bill was passed by both the Illinois Senate and House on Jan. 29, and signed by Illinois Governor Pat Quinn. The Illinois racing industry had been held in limbo by the ADW bill, which allows portions of its revenue to fund the IRB. The IRB had stated last fall that without the reinstatement of ADW, they were not going to be able to regulate live horse racing in the Prairie State in 2014.

Passage of the ADW bill allows for harness racing to follow a schedule mirroring 2013 once a contract is in place, with racing conducted three nights (Wed., Sat. & Sun.) at Balmoral and two nights (Thurs., Fri.) at Maywood.

Racing was originally scheduled to begin on Feb. 5 (Wednesday) at Balmoral and continue on Feb. 6 and 7 at Maywood Park. However, as of 11:00 pm CT, Jan. 31, no racing programs had been acknowledged on either the Balmoral or United States Trotting Association websites for Feb. 5.

The issue of recapture, where racetracks can recoup money lost on live handle from purse accounts, continues to be a stifling point in the negotiations.

Section 213.10 from the Illinois Racing Board code states:

Pursuant to Section 26(g)(13) of the Illinois Horse Racing Act of 1975 [230 ILCS 5/26(g)(13)], qualified licensed Illinois wagering facilities are permitted to deduct an amount equal to 2% of the difference between the wagering facility's 1994 handle on Illinois races and its handle on Illinois races in the year in question, from amounts allocated or payable to purses in the succeeding year, at the racetrack from which the wagering facility is affiliated. Recapture amounts shall not be taken until after certification by the Board.

“The IHHA is trying to lessen the harmful effects of recapture as they relate to our purses,” Somone stressed. “Because of that, we are withholding our consent to send our signal out of state.”

If the two sister tracks of Maywood and Balmoral are allowed to collect 100% of recapture in 2014, that totals $4.9 million in revenue. The IHHA has projected that $13 million will be earned for harness purses in 2014 via handle.

“If the tracks take 100 percent of recapture, that will deplete our purse account somewhere between 35 and 40 percent,” remarked Somone. “It’s a huge hit that the horsemen can ill afford to take.”

No meetings are currently scheduled between the two parties, but a person close to the negotiations added that he is “hopeful” the groups will reconvene on Monday, Feb. 3.