Indiana Horse Racing Commission Meeting Notes

Date: June 8, 2007

Please note: These are NOT official minutes of the IHRC meeting.  They are notes developed by our representative attending the meeting.

The Indiana Horse Racing Commission (IHRC) met on Friday, June 8, 2007, at the Indiana State Library in Indianapolis, Indiana.  The meeting, with only one item on the agenda, was brief.  Chairman Sarah McNaught called the meeting to order at 9:00 a.m.  The meeting then progressed to the lone item on the agenda.

The subject being addressed by the commission was consideration of amendments to an emergency rule pertaining to Transfer of Permits, regarding the Indiana racetracks.  Chairman McNaught asked Robin Babbitt, IHRC Attorney, to explain the issue before the commission.

Babbitt began his discussion by mentioning a press conference with Indiana Governor Mitch Daniels held on Friday, June 1.  At this event, Daniels revealed his wish that the state receive up to fifty (50) percent of any profit earned by the racetracks, if they should decide to sell any portion of the slot licenses recently approved by the legislature (i.e. take on partners to meet the steep licensing fees).

As a way to monitor any such activity, the Governor called upon the Indiana Gaming Commission (IGC) and IHRC for help.  He has asked these regulatory bodies to reject any transfer of licenses, unless the license holders comply and share the profits with the state.  Babbitt referenced a recent article in the Indianapolis Star.  Within the article, Daniels states, “The intent is to strengthen the protection of the public interest by ensuring that, if and when the true value of the licenses is paid, the taxpayers of Indiana share appropriately in the benefits.”

Babbitt explained the wording for the emergency rule had been modified to include any license transfers that could come before the commission.  He noted much of the wording was of housekeeping nature, with the main changes in Section D.  He then explained this in more detail.

First, the rule simply provides and specifies factors and criteria to consider for approving any transfer of permits.  Babbitt pointed out the fact each case would be decided on its own merit, but the rule would establish certain guidelines.  He stated, “Gaming at the tracks will bring new regulatory responsibilities to the Indiana Horse Racing Commission.  The Indiana Gaming Commission has the expertise, but there are some areas where there will be overlap.”  One such area is physical changes to the facilities and, in some cases, transfer of ownership.  Depending on how a transfer is structured, it could go directly to the Indiana Gaming Commission or involve the IHRC.

Modifying the rule for Transfer of Permits would allow the commission to be ready to work with the IGC to comply with the Governor’s wishes.  Babbitt ended his comments by pledging the assistance of himself and his staff, indicating their willingness to work through anything that comes up concerning this issue.

Chairman McNaught then asked if any of the commissioners or audience members (which included some racetrack representatives) had questions or comments about the rule changes.  With no one indicating the desire to speak, she asked for motion.  A motion was made to adopt the language of the rule changes, which passed unanimously.

With nothing further on the agenda, the meeting was adjourned.

 Schedule for upcoming IHRC Meetings:

- Friday, June 22 – Indiana State Library – 10:00 a.m.

- Wednesday, July 18 – Hoosier Park – 10:00 a.m. (RCI Model Rule: Toe Grabs)

- No August meeting is currently planned, but may be necessary

- Thursday, September 27 – Indiana Downs – 10:00 a.m. (RCI Model Rule: Anabolic Steroids)

- Thursday, November 15 – Hoosier Park – 10:00 a.m. (RCI Model Rules: Wagering Integrity & Safety Reins)

Please Note: A timeline for industry input regarding each of the RCI Model Rules listed above will be available prior to their consideration by the IHRC.