Happy 4th

6-30-08

Illinois Supreme Court Decision

The Illinois Riverboats did file a last minute appeal with the Illinois Supreme Court (again) regarding enforcement of HB1918. It appears that the monies which were to be released within the next few weeks will again be "held-up" pending IL. Supreme Court review. Based on the prior 7-0 decision, the belief is that there is no chance the boats will prevail; however, this will cause a delay in distribution of $$$ until action is taken by the court. They are in summer recess and will not reconvene until middle of September. They can, before then, if they choose, take action sooner. There is a feeling that this may occur within the next 3 weeks or so.......if not, then that decision will be made promptly upon their September return.

Note: There still remains the option of a "US Supreme Court" Appeal by the boats.

We will keep all advised of any developments.

Your IHHA President

George Bonomo

6-27-08

Candidates File for
Illinois Harness Horsemen’s Association
(IHHA) Board Seats

Hinsdale, IL...The Illinois Harness Horsemen's Association (IHHA) announced that its 2008 Board of Director Elections will take place at the Annual Meeting on Saturday, August 16, 2008, at 12:00 noon at Balmoral Park Race Track located at 26435 S. Dixie Highway in Crete, Illinois.

To be elected at the annual meeting will be five (5) directors to serve terms of three (3) years each. The following 7 candidates filed petitions to be placed on the ballot for election to the Board:

Al Beals, Berwyn, IL

GEORGE BONOMO, NAPERVILLE, IL

cLARK fAIRLEY, lerna, il

Michael Knicley, Newton, IL

Steven O’Toole, Batavia, IL

hOSEA wILLIAMS, cHICAGO, il

nELSON wILLIS, BEECHER, IL

Ballots and Notice of the Annual Meeting will be mailed to all IHHA members in good standing on July 17, 2008 through the offices of McGladrey and Pullen, LLP., Certified Public Accountants, which have been retained as the official Election Supervisor in conjunction with Article III of the IHHA By-Laws.

For more information, please contact Exec. Dir. Tony Somone or Noel, at the IHHA office at 630-323-0808.

6-25-08

Illinois Racing Board - Amended Stewards Orders

At the Stewards request, the state veterinarian shall draw blood pre-race for the purpose of TCO-2 testing. Any trainer having a horse test .35MM/L (Lasix .37 MM/L) shall be required to have that particular horse report to their assigned security stall at 12 noon on race day for a period of 30 days

6-19-08

Important Updated Notice

Be advised that Balmoral Park Race Track will close the racetrack on June 25, 2008 in order to effect necessary renovation to the track surface. There will be major excavation and heavy equipment on site. All horses need to be removed from their stalls. It is important that all stalls be cleaned and any vacated tack rooms or dorm rooms be cleared of all refuse. It is expected that the track will re-open within 3-5 weeks. We will advise date of re-opening and horses will be welcome to return upon completion of renovation. Balmoral has extended the accommodation at no charge to those persons occupying the dorm rooms to remain on site during the Hawthorne meeting. Additionally, Hawthorne will accommodate all horsemen and horses during the Hawthorne Race Meeting. We will keep all informed of any changes and/or scheduling.

6-19-08

Stall Application for Hawthorne

Hawthorne is expecting your stall applications. The track is scheduled to be opened next Monday, June 16. Racing dates are Tuesday June 24 thru August 7. If you are bringing your horses there please call the Hawthorne racing office at 708-780-3700 to arrange for a stall. Please DO NOT just show up on your first race night and expect a stall after that.

Legislative Report

HB2702 ADW Legislation: There were meetings and discussions with race track management, Advance Deposit Wagering (ADW) provider, and legislators regarding proposed ADW legislation. While it was determined that the purse account would have benefited to the extent of $765,000 in the initial twelve (12) months,negotiations and discussions failed to provide results which would have provided the repeal of recapture, a directive of our Board. The IHHA was instrumental in preventing this legislation from being "called" and, accordingly it did not move forward in this session. (Note: Acceptable ADW language, including total and immediate repeal of recapture is included in all versions of the "major" gaming bill...see summary explanation re "final version" of HB2561)

HB2651 3% Impact Fee: With the help of Representative Bob Molaro, this legislation did move forward and we did testify in support of same in Executive Committee. It subsequently did pass the House with a vote of 89-26 and we were assured by Senate leadership that it would "pass" in the Senate; however, Senate leadership instead "stripped" this bill, and to use the words of House members, it was "hi-jacked" by the Senate, and replaced with language that eventually became the major gaming bill and sent back to the House for concurrence. The parliamentary "trick" by the Senate leadership ultimately destined this bill for failure. As noted, the House overwhelmingly supported this Impact Fee assistance and Representative Molaro attempted to undo the Senate's parliamentary procedure by "attaching" the Impact Fee Language to the now "stripped" HB2702. It was sent to the Senate for concurrence and it would then have become"law" since the Senate did indicate it would be accepted; however, the Senate leadership chose not to take any action and it "died" there. This legislation would have provided monies as described in "legislative synopsis" previously submitted and posted on IHHA website. The actual distribution to purse account does, though, depend upon ruling of the Illinois Supreme Court)

HB4758 "Poe's Bill"-Springfield Racing: We did offer testimony at Executive Committee hearing "in favor" of this proposed legislation. There was opposition testimony from Fairmount Park, some thoroughbred groups, and others. We did speak with Rep. Poe and he did express his thanks for our support. Feeling that they did not have adequate votes to call out of committee, action on this was deferred and it was not sent to the Senate for vote.

HB2651 "final version" Major Gaming Bill: We did review this entire bill with governor's staff and it did contain all the language we worked so very hard to incorporate in earlier versions. This provided major benefit to our industry. It is a "slots on track" bill which affords horsemen 15% Adjusted Gross Revenue (AGR) to purses, 1.46% to Breeders Funds, Protection of Live Racing, budged dollars for proper testing, improved commissions from OTB parlors, total and immediate repeal of recapture, acceptable enactment of ADW wagering.......a good bill for us. If there is any good news here, it is that despite concerted efforts by riverboats, racetracks, and some legislators to change some of the language to the detriment of horsemen, we were able to maintain our position on all those items important to us. None were allowed to be changed.

This bill was "passed" by the Senate, albeit with some amendments which made it near impossible to be enacted, and sent to the House for concurrence and vote. There was an Executive Committee meeting late Saturday evening and it passed out of that committee with a vote of 17-11 and was then sent to the House for vote. House leadership used a parliamentary maneuver to "table" the vote on this bill, thus preventing it from being presented to the members for vote. The House and Senate adjourned without taking any action on this legislation.

As noted, HB2651 "final version" is a good bill and does contain all those provisions which will provide great benefit to our industry. Some have indicated that the governor may call for a "special session" within two(2) to three(3) weeks and this legislation will be high priority for the state. The lag time here will give them time to work out some of the concerns of the City of Chicago (they expressed opposition to the HB2561 in its present form), and others. Some others have indicated we may need to wait until November before the general assembly takes any action on any issues. There is no firm opinion in this regard.

I wish to express a sincere appreciation and thanks to our lobbyists and legislative team. The final weeks were intense with long hours in Springfield meeting with and discussing issues with members of the general assembly and staff . We were extremely effective in getting our message across. That is the reason horsemen's' provisions were not disturbed in spite of extreme pressure from other segments. While I am proud of our efforts and the manner in which we comported ourselves (we continue to gain respect and consideration from all the general assembly and staff) , I am disappointed that this session did not provide the needed legislative relief for our horsemen. We will continue to apply the pressure and present the issues. We will continue to ask for your help.....we need to help ourselves.

Respectfully presented:

George Bonomo, President

IHHA LOBBY DAY REPORT

The IHHA is happy to report that “Rally Day” in Springfield on Monday was a success. All of the horseman’s group’s were united as one and sent a strong message to our legislators that we desperately need help. A press conference was held in the afternoon, followed by a reception at night. All in attendance were supportive of our goals and said they would do all they can to help. Thanks to all who attended. You can download the video of the press conference here: http://www.advanceddigitalmedia.tv/production_work.htm
You will need to right-click on the link below "WMV web video" and choose "Save Link As" to download the file and then play it on your computer.

Also, here are just a few of several articles and newscasts that ran: (Click Here)

NOTICE OF ELECTION

BOARD OF DIRECTORS

of the

Illinois Harness Horsemen's Association

Saturday, August 16, 2008 --12:00 noon

Balmoral Race Course

The annual meeting and election of directors of the Illinois Harness Horsemen's Association will be held Saturday, August 16, 2008 at Balmoral Race Track, 26435 S. Dixie Highway in Crete, Illinois beginning at 12:00 noon.

Balloting will be conducted from 12:00 noon to 12:30 p.m.

To be elected at the annual meeting will be five (5) directors to serve terms of three (3) years each.

Directors currently on the Board who must seek re-election if they wish to remain on the Board are: George Bonomo, Hosea Williams, Darcy Pletcher, Richard Schrock, Nelson Willis.

To be placed on the ballot for the election, candidates must file a notice of intent to be a candidate for election with the signatures of a least twenty (20) members in good standing. The notice of intent (Nominating Petition), must be filed via registered mail or by delivery to the IHHA main office, and received at the office of the Association (15 Spinning Wheel Road, Suite 432, Hinsdale, IL 60521), petitions may be circulated beginning Saturday,June 7,2008 through the close of business (5:00 p.m.), Friday, June 27, 2008. Nominating petitions are available at the Association office. To request a petition, write the Association at the above address or call (630) 323-0808 or (800) 572-0213 within Illinois.

Absentee ballots will be mailed to the membership on Thursday, July 17, 2008 with the deadline for receipt of those ballots being Friday, August 15, 2008, at 5:00 p.m. at the offices of McGladrey and Pullen, LLP., Certified Public Accountants, Suite 300, 570 Lake Cook Road, Deerfield, IL 60015, which has been retained as the official Election Supervisor in conjunction with Article III of the IHHA By-Laws.

Only members in good standing the last day of June, 2008 shall be entitled to vote.

All questions concerning the election will be ruled on by the Election Supervisor.

Synopsis -May IHHA Board of Directors Minutes

Legislative: President Bonomo reported that he had directed all lobbyists to remain in Springfield to lobby for passage of HB 2651 which would provide 3% of adjusted gross revenues from four (4) riverboats. This bill has passed in the House and awaits vote in the Senate. This is an extension of HB 1918 which and will provide for purse monies thru May 2011. It would provide for approximately $8 million dollars each of years one (1) thru five (5). Payment of prior deferred recapture debt would allow for an additional $4 million dollars to purse account in year no. 1, $5-6 million dollars in year no. 2, $7-7.5 million dollars in years three (3) thru five (5). By the end of year no. 5, all recapture debt will have been paid. There is a side agreement in connection with this legislation which will totally repeal recapture during the five (5) year term of this legislation. Our hope is that before the expiration of this legislation, recapture repeal will be permanently repealed thru other proposed legislation. The riverboats has appealed the enactment HB1918 and will undoubtedly take the same action regarding HB2651. The Illinois Supreme Court is expected to rule on the constitutionality of this legislation within the next 30-45 days. We are cautiously optimistic that we will prevail and monies already escrowed since June 2006 will be released to our purse account. (Note: If the courts do rule favorably, we expect that the purses will be increased by approximately 16-20% immediately and 3-4% in each succeeding year.

President Bonomo also reported regarding the pending Advanced Deposit Wagering (ADW) legislation which has passed in the Illinois Senate and awaits vote in the House. This legislation would allow the Illinois horsemen and tracks to participate in revenue generated by ADW providers. Our position on this legislation is that we can support it if it does address repeal of recapture, closer partnership on all wagers, and prohibition of ADW electronic terminals on site at racetracks. ( Purse commissions on-track are greater than ADW commissions, although ADW commissions are somewhat greater than that generated at OTB parlors.)

Another legislation action, referred to as the Poe bill, has passed the House vote and remains in Senate rules. This would provide for an expanded (6-9 months) pari-mutuel meet at the Springfield fairgrounds. There was some discussion regarding as to whether the horse population at Springfield could support such a meet and to what extent it would affect Chicagoland racing. Director Miller advocated that the IHHA support this legislation and upon motion made and seconded, the IHHA position is to indicate full support. President Bonomo advised that he and other members of the lobbyist team would review the bill and report back to the directors.

President Bonomo and others expressed the IHHA’s appreciation for all who participated in our rally day in Springfield. Gary Mack and staff (Nate) and Bill Wright were instrumental in organizing and coordinating this press conference, reception, and event.

Directors Bill Hunter, Hosea Williams, Terry Hunt, David McCaffery, Nelson Willis, Kay Willis, Rick Schrock, Erv Miller, Sam Widger, Brandon Simpson, President Bonomo, along with our lobbyists, Steve Brubaker, Mark Fary, Mike Hoffman, Jeff Dixon, Brenda Watson ….and Bill Wright were in attendance. Nelson Willis, Sam Widger, David McCaffery, Brandon Simpson, and Marcus Miller did stand on the podium with us for a great visual effect and also did directly speak with some legislators regarding those issues which confront our industry. While there was some disappointment regarding the sparse general attendance of harness horsemen, the press conference was well attended by horsemen and women from other segments of the industry. Gary Mack acted as moderator and Bill Wright, President Bonomo, and members of other horsemens’ groups did address the media along with Representatives Lou Lang, Jay Hoffman, and Bob Molaro. Representative Bob Molaro did deliver an impassioned presentation setting the tone for needed help for our industry. All felt that this was a highly successful event and expressed the need to “help ourselves”.

Membership/Grass Roots: Membership is slightly ahead of 2007 levels. President Bonomo again urged board members to encourage all horsemen and friends to apply for membership.

County Fairs: Charlyn Fargo, Illinois Dept of Agriculture continues to request assistance in securing licensed veterinarians to administer testing at fairs. They will be compensated at rate of $50 per hour. Please contact Charlyn regarding any assistance.

Race Track Condition: Discussion ensued regarding the condition of race track surface at Balmoral. President Bonomo did contact the Illinois Racing Board (during the meeting) and requested that an independent consultant review and make recommendations regarding reinstate the surface to acceptable standards. (Note: Balmoral management did agree to this request and did engage the services of an acknowledged expert in this area to review the track surface May 27-28. The recommendations therein made will be adhered to and will be jointly monitored by the IHHA and IRB and Balmoral management.

Legal: (See Legislative Report above)

Purse Account: President Bonomo dispelled recent unfounded rumors regarding impending purse reductions. While our handle and its corresponding purse account contribution continues to deteriorate, track management has not as of this date discussed any purse reduction; however we do need to be aware of the continuing decline in contribution. Some factors causing this decline; Meadowlands earlier start time has caused us to “lose” their double, Penn National has a reduced nighttime schedule, Santa Anita has an earlier post time Fridays causing us to lose their prior late signal, Northfield Park’s curtailed schedule.

President Bonomo recommended to the board that to assist horsemen with the spiraling cost of fuel, it consider alternatives to the racing schedule. By changing the number of carded races from 72 per week to 69 , we could support a minimum guaranteed payment of $50 to each starter to offset these higher costs. The board deferred any action and did discuss other options to preserve and maintain purse levels,; i.e., block of time off, 4-5 days schedule some times of the year, Friday and Saturday racing only for a 7-8 week period, etc. It was noted that other tracks such as the Meadowlands (9 race programs), Yonkers (8 races), Northfield Park (reduced days), had reduced number of races per day and race days per week. Executive Director Somone was directed to conduct a study and analysis regarding this issue and present to the board for review and recommendations.

Payment of Bills: All bills to be paid as review and accepted.

Action Items:

1. Hawthorne Contract: President Bonomo, Ex. Dir. Somone, and contract negotiating committee will meet with Hawthorne regarding execution of contract. Preliminary discussions indicate and understanding will be achieved.

2. The IRB will institute a new procedure regarding TCO testing effective June l. Horses that undergo pre-race testing with a resulting finding of above 35 (37 for Lasix horses) will be required to be in detention by noon for thirty days. Horses within these limits will not be subject to “scratch” of any “penalty” issued; however, the above detention rule will be enacted. The complete ruling will be published on the IHHA website when available.

Meeting adjourned 4:05 PM

$1000.00 REWARD

The Illinois Harness Horsemen's Association and Balmoral Park Racetrack are offering a $1000.00 reward to individual(s) who provide information regarding theft of Advantage Race Sulky and seven (7) or more sets of Advantage Wheels from Balmoral Race Track Paddock leading to arrest and conviction of offender(s). Kindly report any information to Duke Johnston, 708-343-4800. All information will be kept extremely confidential.

There have been several other reports of theft of horsemen's property and any information regarding same will be treated as confidential

Thanks for your cooperation.

*****************************************************

Meeting February 25, 2008 re: Purse Account

IHHA: David McCaffrey, Tony Somone, Al Beals, George Bonomo

Maywood/Balmoral: Duke Johnston, "Doc"Narotsky, Randy Olech

________________________________________________

(1) Period 1/1/08 thru 2/16/08: Purse account is "overpaid" .......$327,798.15

(2) Balance remaining from "overpaid" period ended12/31/07....... 153,609.53 **

**(Beginning Balance carryover was -$179,958.60 reduced by $560.82

per day until end of 2008)

(3) Total "overpaid" in purse account to 2/16/08 (includes (1) an (2) above...$481,407.67

(4) "Outs" Balance as of 2/16/08.........$535,740.34****

****(As per contractual Agreement, these monies are held as reserve

and amortized into purse account at rate of $1955.26 per day until

end of 2008 and are not available for inclusion into purse account

at any accelerated rate)

(5) Period 1/1/08 to 2/26/08, Purses distributed ($2,803,815.10) have exceeded purses available for distribution ($2,476,016.95) by $327,798.15, or 13.3%.

(6) If prior (2007) "overpaid" were included as additional credit against purses available for distribution, then purses distributed would have exceeded purses available for distribution by $481,407.67, or 20.75%. (Note: This (6) is for information only since the 2007 "overpaid" is being reduced by $506.82 per day until end of 2008.

(7) Since the "overpaid" is in excess of $200,000, per Agreement, the tracks can enforce reduction in purses.

-------------------------------------------------------------------------------

IHHA Position was that we have a mandate from the Board of Directors that there be no purse reduction.

Track management was seeking a "reduction" of 10% and a reduction in races per week of three (3) or four (4) races.

--------------------------------------------------------------------------------------

Compromise position which is anticipated to eliminate the need for any additional purse reductions throughout 2008:

(1) There will be no reduction in races (72 race events per week to be maintained)

(2) New Purse schedule will appear on next condition sheet reflecting:

a) Free for All Purse.................................................... $18,000

b) Open Pace/Trot.........................................................14,000

c) Minimum Purse......................................................... 2,900

d) Bottom approximately fifty (50) classes to be reduced $300 each

e) Classes above d) 50 classes to reduced $400 to $500 each

f) Excepting for a) and b) above, no purse shall be reduced more than

$500.00

Overall average effect on purse account will be approximately 7.1% reduction

*****************************************************

Hall of Fame Banquet Photos

The IHHA would like to thank everyone who participated in last week’s highly successful Hall of Fame banquet. 237 people turned out to congratulate Person of the year, Tim Tetrick , Living inductee’s Delbert Burkett and Mark Fransen, the friends and family of Immortal inductee Tim Wilson Sr., Caretakers of the year Arilee and Leo Osorio and Donna Hanna, and the equine inductee’s Giggles the Clown and Ideal Towne. A great time was had by all. There was 104 door prizes given out as well as a raffle for a lifetime subscription to The Racing Network. Check out some of these pictures.

(Click Here)

**************************************************************

“YOUR” ILLINOIS HARNESS HORSEMEN’S ASSOCIATION REPORT

……. “The State of the Industry”………..

2007 has proven to be challenging, interesting, and eventful year for our industry. We are continuing our efforts to cause all to realize that YOUR IHHA and other horsemens’ groups do represent the more than forty-thousand (40,000) legitimate business persons involved in the many activities relative to our important industry, with an investment exclusive of race track operations, of probably more than five billion dollars in the State of Illinois; and, that we, as any other business-men and women seek to achieve a fair and reasonable return on our investment. There has been an evolution, a metamorphosis if you will, from two (2) or three (3) persons racing down a dusty country road, for a Sunday meal or bragging rights, to a multi-billion dollar industry comprised of serious and professional business people.

One of our goals for 2007-2008 was to be able to transition our racing schedule to 2008 without any interruption. For the second consecutive year we have been able to accomplish this thru a spirit of mutual understanding and cooperation between YOUR IHHA and Maywood/Balmoral management. Additionally, we have a tentative Agreement with Hawthorne Race Course.

It should be noted also, that as part of the 2008 Agreement, Maywood/Balmoral has agreed that in the event that Maywood and/or Balmoral are closed for remodeling, renovation, or construction and are not racing as scheduled during calendar year 2008 and extending into 2009, they shall provide at no charge to horsemen, stall facilities, use of racetrack, and housing with appropriate utilities at Maywood and Balmoral for horses and tenants at whichever facility those horses and tenants would normally be stabled. and housed. This accommodation was requested and granted since should favorable legislation be enacted, major changes to the physical plants might become a reality.

A most important benefit which we are charged with is to provide a strong subsidized insurance program for our eligible members. A continuing efficient administration and a more aggressive cost preservation and protection policy did enable us to absorb any increases during 2007 and to hold 2008 increase to a minimum level in spite of huge insurance industry increases. Our insurance consultant brokers and underwriters are to be applauded for their cooperation and understanding in the matter. Additionally, because of our positive actions, we were able to declare two (2) “insurance premium holidays”, making for a total of three (3) such “holidays” in the past fifteen (15) months, to our members; a savings we were pleased to pass along.

We have placed YOUR IHHA is a stronger financial position and have been able to reduce some of the costs related to our operations. These savings were passed along in the form of slightly increased pursed during 2007. We continue to work with track operators to find solutions to the declining on-track handle which negatively impacts our purse account. The cooperation and understanding between our groups has enabled us to sustain these increased purse levels throughout 2007 .This is an on-going battle in all venues of our industry and we are actively seeking an answer as is the entire standardbred and thoroughbred industry.

Legislative assistance is necessary for our industry to survive and to return Illinois to the once prominent position we held. There has been a spirit of cooperation between YOUR IHHA and track operators in many areas of proposed legislation. This has translated in our Illinois general assembly seriously considering and proposing needed assistance thru implementation of HB4194.

This is good legislation. It does provide for: Slots on track, total and complete repeal of recapture immediately upon commencement of slot revenues, resumption of standardbred racing at Fairmount Park (an Illinois track that has been void of standardbred racing for many years depriving our Southern Illinois horsemen of opportunities), protection of live racing opportunities, a percentage of Adjusted Gross Slots Revenues estimated to double purse account when fully implemented, additional monies for breeders’ awards and county and state fair programs, adequate funding for Illinois Department of Agriculture for testing purposes, increased commissions from OTB’s, Advance Deposit Wagering whereby the horsemen are equal partners.

There are some modifications we are seeking to further improve this proposal, such as, adequate funding for the Illinois Racing Board in order that they can conduct a comprehensive testing program to insure and promote the integrity of Illinois racing. This is good legislation. YOUR IHHA, its’ legislative team, our lobbyists, are in constant contact with members of the Illinois general assembly and staff on a daily basis. We have presented testimony at several House Gaming Committee hearings and have been well received. We are continuing with our set goal of being “pro-active”. It appears that after our last gaming committee hearing that discussions will continue throughout January and we are cautiously optimistic that positive action will take place in early February or sooner.

There are other matters of legislation which are of concern to our industry and we bring to your attention. A huge victory for Illinois horsemen during 2007 was passage of HB950 providing a sales tax exemption on all purchases, claims, or transfers of racehorses and broodmares in Illinois. Without enactment and reinstatement of this expired exemption, all horsemen would have owed the state 6.75% tax plus penalties and interest applied to the cost of all horses claimed or purchased since year 2000. The passage of this bill, which was accomplished solely by the efforts of YOUR IHHA saves our horsemen millions of dollars. A great job by our legislative team and lobbyists.

The passage of HB1918 commonly referred to as “The Molaro Bill” was a major accomplishment for our industry. Your IHHA was able to “re-negotiate” the benefits with track management to an even more favorable position including the elimination of recapture during the two (2) year term of this bill. Although the benefits of this legislation have not been realized because of court action put forth by the riverboat casino industry, the monies are being escrowed each month in anticipation of their release. It is expected the Illinois Supreme Court will make their decision in this regard before the end of February 2008 thus making available for the standardbred purse account some $5.0 million plus annually in addition to elimination of a significant portion of prior recapture obligations. We are hopeful that we will prevail.

As regards one of the most important issues of concern in our industry, “integrity”, we continue to investigate different programs, have discussions with the track and Illinois Racing Board. We need to provide assurances to our fan base, to the State, and to each other that Illinois racing is conducted with the highest degree of integrity and at the same time we need to be certain that horsemen’s rights are protected. While the Illinois Racing Board, due to present budget constraints, cannot now implement a comprehensive testing program, we continue to discuss programs with them in anticipation of adequate funding being made available thru proposed and supported legislation.

The winds of change in 2007 brought to YOUR IHHA the services of our newly appointed Executive Director, Anthony “Tony” Somone. Tony brings to this position experience in our industry, but most importantly, an enthusiasm and passion for getting things done to benefit his fellow horsemen. Welcome and best wishes to Tony.

There is a large task ahead for all of us. We need to stem the tide of more and more owners, trainers, drivers, and top horses leaving Illinois for those more progressive states that have recognized the importance of their agri-business community and have implemented the plans to save an industry. We must all work together, horsemen, track operators, and legislators, all of us, to insure that we are here to stay and continue to provide benefit to Illinois. Mutual respect, cooperative efforts, and understanding will be the watchword for 2008.

Respectfully presented:

ILLINOIS HARNESS HORSEMEN’S ASSOCIATION

George Bonomo, President

*********************************************************************

Executive Director's Report

How do I start my first director’s report with news from Springfield still waiting in the wings? Much before I took over, hard work was done by many to put us in a spot where we could hopefully get some help. I certainly hope so. I have been here less then 3 months and I am already impressed with the hard work of the board and other representatives of the IHHA. Their contributions are invaluable to all of us. They put in countless hours of work. Having watched the IHHA throughout the years I have come to realize that although everyone has an opinion, these people actually walk the walk. It’s easy to see what the problems are and it’s easy to sit back and complain but this organization actually tries to make changes for the better. Sometimes issues may seem small and unsubstantial but they do make a difference. No one said much when HB 950 passed in August. Does everyone realize if that one slipped by, we as horseman, would have had to pay sales tax, plus interest and penalties on all horses purchased or claimed and race bikes from May 2000 forward? It could have been a disaster. How about our insurance program? Health insurance is a huge problem out there for everyone and for the IHHA to pitch in and keep costs manageable is a credit to everyone involved. Now I also understand that some people may have negative feelings about this association and I won’t sit here and debate passed rights or wrongs but I will tell you “WE ARE WORKING FOR SOMETHING SPECIAL, SOMETHING WE CAN ALL BE PROUD OF.” We can’t dwell on some of the mistakes of the past, we must move forward.

Illinois horsemen have proven their talents at racetracks across North America. Some of the best drivers, trainers and breeders have called Illinois home. Some have left for greener pastures and that is understandable but how about the owners who have stuck around during these difficult times. How much do they love this game? How passionate are they? Call me naïve but I still have hope that we can restore Illinois racing to higher levels. I would not have taken this job if I felt any differently. Many other states that have added sources of revenue rely strictly on that revenue, but here we have a terrific and enthusiastic fan base already in place. I am convinced PEOPLE FROM ILLINOIS LOVE THEIR HARNESS RACING.

In closing let me say thanks for this opportunity. Everyone has been helpful and I do appreciate it. I also understand that soon the honeymoon will be over, but that is o.k., disagreeing and arguing a little is healthy for an organization. Not everyone sees issues the same and it proves that people care and it prevents us from being a “one-man show.” I also urge everyone to visit the website. There is plenty of good information on it and we are constantly tweaking and updating it.

Thanks,

Tony Somone

Legislative Activities Report January 8, 2008

The IHHA did give testimony to the Committee of Gaming conducted by Chairman, Lou Lang and Representative Molaro and attended by key legislators including Speaker Madigan. A copy of our testimony is also on your IHHA website. (see below after legislative report)

HB4194 is good legislation. Although not yet voted on by either house, it remains the only active revenue bill in the General Assembly. It currently provides for:

Key points regarding the IHHA:

1. Total and complete repeal of recapture immediately upon commencement of slot revenues

2. Resumption of standardbred racing at Fairmount Park

3. Protection of live racing opportunities

4. Fifteen per cent (15%) of AGR (Adjusted Gross Revenues) from slots directly to purse account. (estimated to double purse account when fully implemented)

5. Additional monies for breeders’ awards and county and state fair programs. (not from horsemens’ monies)

6. Adequate funding for Illinois Dept. of Agriculture for testing programs.

7. Increased commissions from first generation OTBs resulting in estimated additional $1.4 million to standardbred purse account.

8. Even splits on breakage

9. ADW (Advance Deposit Wagering).

a) Any provider contract requires IHHA approval and consent

b) Horsemen are equal partners in all ADW commissions.

(There are some modifications as per testimony we are seeking to add.)

We have been extremely active over the past several weeks and months and will continue to work diligently towards accomplishing our goals. We have been in constant contact with key legislators, our lobbyists, and “bill writers” .. all members of the General Assembly and staff, (on a daily basis including week-ends) We are continuing with our set goal of being “pro-active”. It does appear after meeting with the committee and its members that there will be continuing discussions regarding this legislation over the next thirty (30) days and we are cautiously optimistic that positive action will follow.

George Bonomo, President -Tony Somone, Executive Director

Illinois Harness Horsemen’s Association

Testimony

Presented to the House Committee on Gaming

By: George A. Bonomo, President

Tuesday January 8, 2008

Chairman Lang and members of the House Committee on Gaming. Good Afternoon and thank you for allowing us to present testimony on behalf the Illinois Harness Horsemen’s Association and the more than forty-thousand (40,000) persons associated with this important Illinois industry.

This has been a long, hard road and we are now at a point where there is “light at the end of tunnel”. We do appreciate the efforts on the part the sponsors, Chairman Lang and Representative Molaro , the understanding of Speaker Madigan and others, and of all contributors who have worked to bring this jobs, revenue bill to this committee for consideration.

House Bill 4194 is a good bill…..House Bill 4194 surely does address those issues important to the State, to an industry vital to the economy of our State, and to the those individuals concerned about their jobs.

The Illinois Harness Horsemen’s Association is enthusiastically supportive of this proposed good legislation which provides the needed assistance to the State and our industry. We do suggest, however, that some provisions need clarification in order to promote and preserve the legislative intent of this most important undertaking. We would like to comment concerning the key issues contained in House Bill 4194.

We are in a period of rapidly declining revenues, loss of jobs, becoming less of a contributing factor to economy of the State. We recognized the need to increase revenue for purse levels to be competitive with other venues, to stem the flight, and loss, of jobs to other states, to provide for and protect the welfare of those persons engaged in this industry. All of us worked together to achieve our goals through House Bill 4194…it is good legislation.

The IHHA believes that HB4194 will increase purse structure wherein Illinois will once again be competitive with other States who have preceded us with similar legislation. The percentage allocated for pure purses is essential to our survival. Allocations to the struggling Illinois breeding industry, Illinois Department of Agriculture, Illinois Racing Board, and other named beneficiaries from sources other than purses are necessary for this once proud Illinois industry to survive.

Protection of live racing opportunities is most important to preserving our industry. House Bill 4194 does contain that necessary protection. We would suggest some minor language modifications which are not conceptual but add to clarity.

HB4194 “Fixes” Problems Facing Horseracing in Illinois

HB4194 Repeals Purse recapture – The IHHA had suggested the immediate repeal of purse recapture. House Bill 4194 does repeals purse recapture upon commencement of slots revenue flow. This is an acceptable compromise. While it does cost horsemen’s purses several million dollars, a concession to track operators, it is a concession that we believe is important to cause this legislation to move forward.

HB4194 Addresses Equalizing Splits on Some Wagers – HB4194 does not even splits on all wagers. It does bring horsemen and track operators closer to a true partnership. We had initially suggested a true partnering; however, this good legislation does bring us closer to this goal. Although our concession here will result in $4.5 million less purses, we are willing to compromise our position here in order that this legislation move forward.

HB4194 Evens Splits on Breakage – HB4194 gives horsemen their fair share of breakage and is another important first step in fixing some of the problems facing racing in Illinois today. This is good legislation.

HB4194 Contains No Money for Pre-race Drug Testing - The IHHA had suggested that $1.5 million of the tax revenues from slot revenues be directed to the Illinois Racing Board to conduct comprehensive testing of racehorses in order to preserve the integrity of our industry. This assistance needs to be addressed in the final version HB4194.

HB4194 Allows Advance Deposit Wagering (ADW) – IHHA supports in concept the idea of legalizing advance deposit wagering in Illinois. Millions of dollars are lost each year because Illinois does not allow ADW as do other venues. This language does need modification and clarification. We need to insure that all Illinois licensed ADW providers take and transmit Illinois live racing to Illinois residents desiring to place wagers on the Illinois product as per language proposed by the Illinois Racing Board.

HB4194 Returns Harness Racing to Fairmount Park- Harness racing currently has no downstate venue. This would appear to be contrary to good business practice and is detrimental to the standardbred industry. HB4194 creates an opportunity for standardbred racing to return to Fairmount Park and provide needed opportunities for downstate Illinois horsemen. The IHHA have agreed to a position with Fairmount Park wherein we would receive minimum of 25 racing days, again a compromise from our initial suggestions of 45-60 days, and a 57/43 split of the purses generated by slot revenues. In exchange for this concession we agreed to give up 70% of our nighttime simulcasting revenues generated through Fairmount’s system. The language is this draft does not appear to reflect this position. We would suggest that this related language be modified and clarified or at least provide for a deferral of some of this intended standardbred revenue be directed to Illinois State and County fair programs to support downstate Illinois horsemen.

Conclusion

The IHHA believes, that with a understandable modification and clarification, HB4194 will provide a stable revenue stream for horse racing in Illinois, preserve jobs, and provide benefit to the State and the more than forty-thousand (40,000) persons involved in this industry essential to the Illinois economy.

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Information re: 2008 Agreement

There will be no interruption in racing. The IHHA has a tentative Agreement with Maywood/Balmoral Licensees. Please refer to the 2007 Agreement which is available on this website and insert the changes as listed below. (Note: The full text of the 2008 Agreement will be available on this website soon.)

Agreement

The below listed items of the agreement are to be incorporated into the 2007 Agreement (with all years changed to reference 2008 Agreement) All other terms and conditions of the 2007 Agreement shall remain the same as in the 2008 Agreement.

Contract expiration date" 12/31/08

Page 2 & 3 Section 2,B

-- Provides for stakes monies of $1,182,000 for 2008 (No change from 2007)

Page 18, Section 27

-- The IHHA and LICENSEES agree that for trainers and owners that have not had 20 starts at Balmoral or Maywood Park in 2007 or 2008 or 30 starts in 2006 and 2007, or 2007 and 2008 combined, horses entered in a race with a purse of less than that of a $14,000 claiming race shall not be accepted to race unless ICF or Illinois owned..... (provides for increased number of starts for eligibility).(Remainder of this section remains unchanged)

Page 20, Section 34

-- ADD TO END OF SECTION: In the event the Licensees are closed for remodeling, renovations, or construction and are not racing during calendar year 2008 and extending into calendar year 2009, Licensees shall provide at no charge to horsemen, stall facilities, use of racetrack, and housing with appropriate utilities at Maywood Park and Balmoral Park for horses and tenants at whichever facility those horses and tenants would normally be stabled and housed. (This provision shall not apply to those 2008 race dates at Hawthorne Park Race Course unless agreed upon by all parties) (This insures that in the event of favorable legislation and decision by the tracks to reconstruct facilities and possible not conduct a race meeting at either facility (perhaps shifting one to the other) , horses and horsemen facilities will be maintained as above)

Page 24, Section 44,A

-- Delete IRB and Replace with ANY JURISDICTION: (This provides that should a trainer receive a penalty in any jurisdiction, the wait period to change trainers is the same as when a penalty is incurred in Illinois. There is now consistency and uniformity in this provision.) (Remainder of this section remains the same)

Exhibit B:

-- Change to read: Sulky insurance at Maywood Park and Balmoral Park will be limited to sulkies and jog carts only (no wheels and tires) Damage must be incurred while on or entering the race course from the paddock between the start of a race program and until the horse has returned to the paddock at the conclusion of the race.

Damaged sulkies and jog carts will be paid for as per the following schedule

Age Sulky Amount Covered Jog Cart Amount Covered

0-2 years $2000.00 $ 800.00

3-4 years 1700.00 600.00

5 years/older 1200.00 500.00