Members of the newly formed Racing Commissioners International Special Task Force To Investigate Betting Rebates met earlier this month for the first time in Cincinnati, Ohio. Although the 37-member group was originally created to conduct a broad investigation into the extent of offshore betting over the Internet and telephone, members indicated during the meeting that they felt the largest threat facing the racing industry is posed by rebates given to off-track bettors, some of which offer rebates of up to 10 percent.
"We estimate that the pari-mutuel businesses of horse racing, dog racing and jai-alai are losing more than $500 million a year due to rebates and the number is increasing rapidly," said RCI president Tony Chamblin.
Echoing Chamblin was Dennis Lee, chairman of RCI, who added, "Offshore wagering and off-track rebates are harmful to horsemen, track management and the states, with little or no percentage currently withheld for purses, capital improvements and taxes," said Dennis Lee, RCI chairman. "We have
a small track in Grand Island, Nebraska called Fonner Park. During the first six weeks of this year's meeting, we learned that approximately $100,000 was wagered offshore on Nebraska races. If that much can be bet on Fonner, how much is being bet offshore and off-track on the major races at major tracks?"
During the first meeting, a subcommittee was formed to study rebates in depth and develop recommendations for the full committee's next meeting scheduled for September 24 in Washington, D.C. The sub-committee's members are: Chamblin, Massachusetts racing commissioner Arthur Khoury; Ohio
racing commissioner Norman Barron; Pennsylvania racing commissioner Rick Abbott; Edward Callahan, general manager of Rockingham Park; Hal Handel, CEO, Philadelphia Park; Terry Meyocks, president, New York Racing Association; Lonny Powell, vice president of racing, Magna Entertainment; Chris
Schert, president, Thoroughbred Racing Association; Michael Shagan, industry consultant; John
Sullivan, counsel, Las Vegas Dissemmination Company; and Mike Vukcevick and Frank Zanzuccki, deputy director and director of the New Jersey Racing Commission.
Other members of the Task Force include: Greve Avioli, National Thoroughbred Racing Association; Annette Bacola, Michigan Racing Commission; Stan Bergstein, Harness Tracks of America; Paul Berube,
Thoroughbred Racing Protective Bureau; Steven Crist, Daily Racing Form; Dan Fick, American Quarter Horse Association; John Giovanni, Jockey's Guild; Cynthia Henderson, Florida Department of Business and Professional Regulation; Jay Hickey, American Horse Council; Gerald Lawrence, Autotote Systems; Bill Lee, American Greyhound Track Operators Association; Ron Luniewski, YouBet.com; Dan Metzger, Thoroughbred Owners and Breeders Association; Ted Mudge, Amtote International; Clifford Nelson, Ohio State Racing Commission; Fred Noe, United States Trotting Association; Kevin O'Keefe, United Tote; Basil Plasteras, New Jersey Racing Commission; Hans Stahl, The Jockey Club; Bob Tourtelot, California Horse Racing Board; D.G. Van Clief, Breeders Cup; Alex Waldrop, Churchill Downs; Bill Wamsley, Horsemen's Benevolent and Protective Association; and Mark Wilson, Television Games Network.