OKLAHOMA HORSE RACING COMMISSION

Transcription

1 OKLAHOMA HORSE RACING COMMISSION GENE BLEDSOE, D.C., CHAIR PATRICK GRIMMETT, VICE-CHAIR JIM BOWERS, MEMBER MEL BOLLENBACH, MEMBER WAYNE CARTER, MEMBER CASSIE BARKETT, ESQ., SECRETARY RANDY CALVERT, ESQ., MEMBER JOHN SMICKLAS, MEMBER MALCOLM SAVAGE, ESQ., MEMBER Thursday,, 9:30 a.m. Meeting Location: Remington Park Eclipse Room One Remington Place Oklahoma City, OK Address of the: OKLAHOMA HORSE RACING COMMISSION 2401 NW 23 rd Street, SUITE 78 OKLAHOMA CITY, OKLAHOMA (Located In SHEPHERD MALL, N.W. 23 rd Street & Villa Avenue) TELEPHONE: (405) ; FAX: (405) WEBSITE: POSTED IN ACCORDANCE WITH THE OKLAHOMA OPEN MEETING ACT. All customers who attend public meetings of the Commission who need special accommodations, i.e., Sign Language Interpreter, amplification device, large print materials, Braille materials, audio cassette materials, readers or other special accommodations must notify the Commission by the deadline date and time for acceptance of agenda requests.

2 CALL TO ORDER...Dr. Bledsoe, Chair ROLL CALL...Dr. Bledsoe, Chair BUSINESS...Dr. Bledsoe, Chair A. MINUTES The drafted Minutes of the August 16, 2007 Commission Meeting [Item A.1] will be considered for approval. THE FOLLOWING MATTERS ARE PRESENTED FOR CONSIDERATION AND ACTION, IF ANY, DEEMED APPROPRIATE BY THE COMMISSION. B. Continued Deliberations in an Individual Proceeding Regarding the Claim from Mr. David Alsip, Claimant, for Payment of a Pari-Mutuel Wager by Remington Park At the August 16, 2007 meeting, the Commission held a Hearing regarding Mr. Alsip's claim for payment of $ for a pari-mutuel wager placed at Remington Park on May 23, After hearing from Mr. Alsip and representatives of Remington Park, the Commission approved unanimously that Remington Park must pay Mr. Alsip the balance due on the pari-mutuel ticket because Remington Park failed to present sufficient evidence of the Ohio hub technical problems and did not have sufficient proof of refunding policy approval. The Commission instructed Commission Staff to draft an Order for review at the next meeting to include a statement that Mr. Alsip did not accept the $ refund from Remington Park. The drafted Order has been distributed to Commissioners. Possible Executive Session Pursuant to 75 O.S. 312, 25 O.S. 307(B)(8) and 311 (B)(1), an Executive Session is proposed for the purpose of continued deliberation in an individual proceeding regarding Mr. Alsip's claim for payment of a pari-mutuel wager by Remington Park 1. Motion and Vote to Go Into Executive Session for the Purpose Stated Above 2. Vote to Reconvene in Open Session Possible action may include, but is not limited to: taking no action, taking final action to adopt or amend the proposed Order, taking final or preliminary action in reaching a different conclusion, or further continuing deliberations. 2

3 C. Continued Deliberations in an Individual Proceeding Regarding the Appeal of Mr. Ray Enlow of a Board of Stewards' Decision At the August 16, 2007 meeting, the Commission held a Hearing regarding the appeal of Mr. Ray Enlow, Owner/Trainer, of a decision of the Board of Stewards at Fair Meadows at Tulsa [FMT] regarding the entering of a horse, ZELENAS ALIBI, that did not meet FMT's eligibility rules. After hearing from Mr. Enlow and Mr. Corey, the Commission voted 8-1 to take preliminary action to sustain the Stewards' Order and instruct Commission Staff to draft an Order for review at the next meeting. The drafted Order has been distributed to Commissioners. Possible Executive Session Pursuant to 75 O.S. 312, 25 O.S. 307(B)(8) and 311 (B)(1), an Executive Session is proposed for the purpose of continued deliberation in an individual proceeding regarding Mr. Enlow's appeal of a Board of Stewards' decision. 1. Motion and Vote to Go Into Executive Session for the Purpose Stated Above 2. Vote to Reconvene in Open Session Possible action may include, but is not limited to: taking no action, taking final action to adopt or amend the proposed Order, taking final or preliminary action in reaching a different conclusion, or further continuing deliberations. D. Remington Park's Request to Refund Wagers According to the Commission's Rules of Racing Rule 325:65-7-2(f), Guest Jurisdiction Participation in Interjurisdiction Common Pools: "If, for any reason, it becomes impossible to successfully merge the bets placed into the interjurisdiction common pool, the organization licensee shall make payoffs in accordance with payoff prices that would have been in effect if prices for the pool of bets were calculated without regard to wagers placed elsewhere; except that, with permission of the Commission, the organization licensee may alternatively determine to either pay winning tickets at the payoff prices at the host track, or declare such accepted bets void and make refunds in accordance with the applicable rules." Mr. Scott Wells, Vice President and General Manager of Remington Park, submitted an October 11, 2007 letter [Item D.1] requesting Commission approval for the rest of CY 2007 to refund wagers to customers when wagers by Remington Park or one of its Off-Track Betting facilities are not successfully merged into the common pools of host tracks. This issue is also being addressed later in the agenda through a proposed rule amendment under permanent rulemaking procedures that, if approved, would not take effect until May or June,

4 Possible action may include, but is not limited to: taking no action, approving the request in whole or in part; denying the request in whole or in part; or continuing the matter to the next meeting. E. Proposed Delegation of Authority to Executive Director to Approve Refunds Under Commission Rule 325:65-7-2(f), Guest Jurisdiction Participation in Interjurisdiction Common Pools Under Title 3A, Oklahoma Horse Racing Act, Section 204.B.1., Powers and Duties of the Commission, the Commission may delegate any of its authority to the Executive Director to fully implement and effectuate the purposes of the Act. Commission Staff recommends that the Commission consider delegating authority to the Commission Executive Director to consider requests from racetracks for refunding wagers to customers when wagers are not successfully merged into the common pools of host tracks. This delegation would provide continuous administrative oversight while the proposed rule amendment is being considered. Possible action may include, but is not limited to: taking no action, delegating the authority to the Executive Director, continuing the matter, or not delegating the authority to the Executive Director. F. Magna Entertainment Corporation's Request for Approval of Stock Purchase by Fair Enterprise, Ltd. Magna Entertainment Corporation [MEC], the parent company of Remington Park, has advised the Commission that Fair Enterprises, Ltd. of Jersey is a prospective buyer of $20 million of MEC stock. Fair Enterprises is a company owned by Frank Stronach, MEC Chairman, and his immediate family members. The Commission Law Enforcement Division conducted a background investigation of Fair Enterprises' five Directors and Stronach family members and advised the Executive Director that there was no adverse information found. Commission Counsel, Mr. Leader, has advised that because this is not a stock transfer of the Licensee, Remington Park, Inc., there is no requirement that the Commission approve this transaction. In point of fact, Counsel points out that, MEC stock is sold daily on the Stock Exchange. Finally, the percentage of change in ownership resulting from the proposed $20 million stock sale is far less than 3% of MEC's stock. This is included as an action item, so that the Commission, if it disagrees with Counsel's advice, may take action today, as opposed to waiting to the next meeting. 4

5 Possible action may include, but is not limited to: taking no action, approving the request, denying the request, or continuing the matter to the next meeting. G. Review of CY 2008 Horsemen's Directives On November 1, the horsemen's organizations are required to file their Directives which direct the use of Tulsa Participating Fund among the various racetracks. Those Directives are required to meet various statutory requirements. The Commission will consider whether to instruct Commission Staff and Counsel to review the Horsemen's Directives prior to the Commission's next meetings, and report to the Commission whether each of the Directives fully complies with the statutory requirements. Possible action may include, but is not limited to: taking no action or instructing Commission Staff and Counsel to review each of the Directives and report back to the Commission whether they meet all of the statutory requirements imposed upon such Directives. H. Proposed Rule Amendments Under Permanent Rulemaking Procedures Commission Staff recommends that the Commission consider amending the following rules under the permanent rulemaking procedures which approval would authorize the Notice of Rulemaking Intent to be published in The Oklahoma Register and the scheduling of a Public Hearing for public comment. 1. Mr. Constantin Rieger, Commission Executive Director, proposes amendments to Rule 325: , Ambulance Service, to clarify the requirements of an ambulance as it relates to emergency services on the racetrack. The proposed amendments are as follows: Subject to the approval of the Commission, the organization shall provide the services of a medical ambulance and its properly qualified attendants [at least one EMT/paramedic] at all times during the running of the race program at its meeting and, except with prior permission of the Commission, during the hours the organization permits the use of its race course for training purposes. The ambulance shall be properly equipped to provide emergency medical services. The organization shall also provide the service of a horse ambulance during the same hours. A means of communication shall be provided by the organization between a staffed observation point (Stewards' Tower and Clocker's Stand) for the race course and the place where the required ambulances and their attendants are posted for prompt response in the event of accident to any person or horse. In the event an emergency 5

6 necessitates the departure of a required ambulance, the race course shall be closed until an ambulance is again available within the enclosure. Possible action may include, but is not limited to: taking no action, approving the beginning of the permanent rulemaking process by authorizing publication in The Oklahoma Register and scheduling of a Public Hearing, or continuing the matter. 2. Mr. Constantin Rieger, Commission Executive Director, proposes an amendment to 325: Workers' Compensation Act Compliance, to add disciplinary action for a licensee without proper workers' compensation insurance. The proposed amendments are as follows: A. No person may be licensed as a Trainer, Owner, or in any other capacity in which such person acts as the employer of any other licensee upon the racetrack enclosure operated by an organization licensee at any time during the calendar year for which the organization license has been issued, unless his/her liability for Workers' Compensation has been secured in accordance with the Workers' Compensation Act of the State of Oklahoma, 85 O.S., 1 et seq., and until a Certificate of Insurance or other appropriate evidence of self-insurance evidencing such security for liability is provided to the Commission. Should any such required security for liability for Workers' Compensation be canceled or terminated, any occupation license held by such person may be subject to summary suspension and may be grounds for revocation of the license. Engaging in any profession acting as the employer on the grounds of an organization licensee without proper workers' compensation insurance may result in a fine no less than $500 and/or suspension of the occupation license. B. If a license applicant or licensee certifies that s/he has no employees that would subject him/her to liability for Workers' Compensation, s/he may be licensed until such time as s/he has employees, when s/he must inform the Commission of such employee(s) and furnish a Certificate of Insurance or other appropriate evidence of self-insurance evidencing that the employee(s) are covered by Workers' Compensation Insurance. Possible action may include, but is not limited to: taking no action, approving the beginning of the permanent rulemaking process by authorizing publication in The Oklahoma Register and scheduling of a Public Hearing, or continuing the matter. 6

7 3. Mr. Constantin Rieger, Commission Executive Director, proposes an amendment to 325: , Qualifications for License as Horse Owner, to remove Commissioners from the list of those who cannot be licensed also as an Owner due to the 2006 statutory change to Section 201 of the Horse Racing Act. The proposed amendment is as follows: No person may be licensed as a horse Owner who is not the owner of record of a properly registered race horse which s/he intends to race in Oklahoma and which is in the care of a licensed Trainer, or who does not have an interest in such racehorse as a part owner or lessee, or who is not the responsible managing owner of a corporation, syndicate or partnership which is the legal owner of such horse. No Commissioner, Commission employee, or person licensed by the Commission as a Jockey, or person licensed by the Commission as a practicing Veterinarian, Racing Official, Assistant Starter or Official Veterinarian and his or her assistants, Jockey Room Custodian, or Valet shall be licensed also as a horse Owner. A horse Owner's license shall be granted to individual natural persons only. 4. Mr. Constantin Rieger, Commission Executive Director, proposes an amendment to 325: Duties of the Starter, to add statewide consistency to the starting gate procedures. The proposed amendments are as follows: The Starter shall have complete jurisdiction over the starting gate, the starting of horses, and the authority to give orders not in conflict with the provisions of the Act and the rules in this Title as may be required to ensure all participants an equal opportunity to a fair start. The Starter shall appoint his/her assistants; however, s/he shall not permit his/her assistants to handle or take charge of any horse in the starting gate without his/her expressed permission. In the event that organization starter assistants are unavailable to head a horse, the responsibility to provide qualified individuals to head and/or tail a horse in the starting gate shall rest with the Trainer. The Starter shall establish qualifications for and maintain a list of such qualified individuals approved by the Stewards. No Assistant Starter or any individual handling a horse at the starting gate shall in any way impede, whether intentionally or otherwise, the start of the race; nor may an Assistant Starter or other individual, except the Jockey handling the horse at the starting gate, apply a whip or other device in an attempt to load any horse in the starting gate. No one other than the Jockey shall slap, boot, or otherwise attempt to dispatch a horse from the starting gate. Possible action may include, but is not limited to: taking no action, approving the beginning of the permanent rulemaking process by authorizing publication in The Oklahoma Register and scheduling of a Public Hearing, or continuing the matter. 7

8 5. Mr. Constantin Rieger, Commission Executive Director, proposes an amendment to 325: , Careless Riding, to eliminate potential disputes regarding disqualifications whereby unintentional striking could still be considered by the Stewards. The proposed amendments are as follows: A Jockey shall not ride carelessly or willfully so as to permit his/her mount to interfere with or impede any other horse in the race. A Jockey shall not willfully or unintentionally strike at another horse or Jockey so as to impede, interfere with, or injure the other horse or Jockey. If a Jockey rides in a manner contrary to this Section, the horse may be disqualified and/or the Jockey may be fined and/or suspended or otherwise disciplined. Possible action may include, but is not limited to: taking no action, approving the beginning of the permanent rulemaking process by authorizing publication in The Oklahoma Register and scheduling of a Public Hearing, or continuing the matter. 6. Mr. Constantin Rieger, Commission Executive Director, proposes amendments to 325:65-7, Guest Jurisdiction Participation in Interjurisdiction Common Pools, to give Organization Licensees the opportunity to refund unsuccessfully merged wagers. The proposed amendments are as follows: (a) With the prior approval of the Commission, pari-mutuel wagering pools may be combined with corresponding wagering pools in the host jurisdiction, or with corresponding pools established by one or more other jurisdictions. (b) The Commission may permit adjustment of the takeout from the pari-mutuel pool so that the takeout rate in this jurisdiction is identical to that at the host track, or identical to that of other jurisdictions participating in a merged pool. (c) Where takeout rates in the merged pool are not identical, the net price calculation shall be the method by which the differing takeout rates are applied. (d) Rules established in the jurisdiction of the host organization licensee designated for a pari-mutuel pool shall apply. (e) The Commission shall approve agreements made between the organization licensee and other participants in interjurisdiction common pools governing the distribution of breakage between the jurisdictions. (f) If, for any reason, it becomes impossible to successfully merge the bets placed into the interjurisdiction common pool, the organization licensee shall make payoffs in accordance with payoff prices that would have been in effect if prices for the pool of bets were calculated without regard to wagers placed elsewhere; except that, with permission of the Commission, the organization licensee may alternatively determine to either pay winning tickets at the payoff prices at the host track, or 8

9 declare such accepted bets void and make refunds in accordance with the applicable rules refund all wagers. Possible action may include, but is not limited to: taking no action, approving the beginning of the permanent rulemaking process by authorizing publication in The Oklahoma Register and scheduling of a Public Hearing, or continuing the matter. 7. Mr. Constantin Rieger, Commission Executive Director, proposes amendments to 325: , Transportation of Gaming Machines Into the State, to further expand and explain the storage devices which shall be removed prior to shipping and provide for disciplinary action. The proposed amendments are as follows: (a) A Gaming Machine is shipped or transported into the State when the starting point for shipping or transporting begins outside the State and the shipping or transporting terminates in the State. (b) A licensed Manufacturer shipping or transporting a Gaming Machine into the State for use at a Gaming Facility must provide the following information to the Commission, prior to shipment, on forms provided or approved by the Commission: (1) the full name, address, and license number of the Person making the shipment; (2) the method of shipment and the name of the carrier, if any; (3) the full name, address, and license number of the Person to whom the Gaming Machines are being sent and the destination of the shipment, if different from the address; (4) the number of Gaming Machines in the shipment; (5) the serial number of each Gaming Machine; (6) the model number and description of each Gaming Machine; (7) the expected arrival date of the Gaming Machines at their destination within the State; and (8) All controlled program storage devices certified by a Commission licensed Independent Testing Laboratory or deemed controlled by the Commission Law Enforcement Division that require signature verification prior to installation must be removed from and shipped separately from all gaming machines being shipped. (9) All controlled program storage devices that are shipped to a Racetrack Gaming Operator Licensee must arrive at least five week days prior to installation addressed to the Commission Agents for signature verification, unless a written waiver is given by the Commission; and (8 10) such other information as required by the Commission. (11) Non-compliance shall result in disciplinary action. 9

10 Possible action may include, but is not limited to: taking no action, approving the beginning of the permanent rulemaking process by authorizing publication in The Oklahoma Register and scheduling of a Public Hearing, or continuing the matter. 8. Mr. Constantin Rieger, Commission Executive Director, proposes amendments to 325: Transportation of Gaming Machines Between Commission Licensed Gaming Facilities in the State, to further expand and explain the storage devices which shall be removed prior to shipping and provide for disciplinary action. The proposed amendments are as follows: (a) Manufacturer Licensees, Distributor Licensees, and, subject to the limitations set forth in these rules, Racetrack Gaming Operator Licensees are authorized to transport Gaming Machines within the State. (b) Except as otherwise provided in these rules, any authorized Person transporting a Gaming Machine from one location to another in the State for use by a Gaming Facility licensed by the Commission must notify the Commission before transporting the Gaming Machine and provide the following information on forms provided or approved by the Commission: (1) the full name, address, and license number of the Person transporting the Gaming Machine from its current location; (2) the reason for transporting the Gaming Machine; (3) the full name, address, and license number of the Person to whom the Gaming Machine is being sent and the destination of the Gaming Machine if different from that address; (4) the name and address of the carrier and the method of transport; (5) the model and serial number of the Gaming Machine; (6) the Gaming Machine License number, if any; (7) the Manufacturer of the Gaming Machine; (8) the expected date and time of delivery and/or installation of the Gaming Machine at the new location; (9) All controlled program storage devices certified by a Commission licensed Independent Testing Laboratory or deemed controlled by the Commission Law Enforcement Division that require signature verification prior to installation must be removed from and shipped separately from all gaming machines being shipped. (10) All controlled program storage devices that are shipped to a Racetrack Gaming Operator Licensee must arrive at least five week days prior to installation addressed to the Commission Agents for signature verification, unless a written waiver is given by the Commission; and (9 11) such other information as the Commission may require. (12) Non-compliance shall result in disciplinary action. (c) This section does not apply to the movement of Gaming Machines within the same Gaming Facility. Such relocation is subject to Commission approval pursuant to these Rules. 10

11 (d) A Racetrack Gaming Operator Licensee may sell or transfer a Gaming Machine only to another Racetrack Gaming Operator Licensee or to a licensed Distributor, Manufacturer, or licensed Distributor/Manufacturer, or a federally recognized Indian tribe that is operating under a Compact. The Racetrack Gaming Operator Licensee must notify the Commission in advance by providing the information required by this section. Possible action may include, but is not limited to: taking no action, approving the beginning of the permanent rulemaking process by authorizing publication in The Oklahoma Register and scheduling of a Public Hearing, or continuing the matter. I. Remington Park's CY 2008 Simulcast-In Revenue Distribution Split Between Race Meetings Commission Rules of Racing Rule 325: , Horsemen's Purses, provides that: (a) Purses at Commission-sanctioned race meeting(s) shall consist of statutorily designated revenue to purses from: (1) wagering at the organization licensee's facilities, (including the organization licensee's offtrack wagering facilities) on live races run at the organization licensee's track and revenue from simulcasting the organization licensee's races to other tracks and/or wagering facilities; and (2) wagering revenue which accrues to purses from the receipt by the organization licensee (including the organization licensee's offtrack wagering facilities) of races simulcast to the organization licensee, from other racing facilities, plus non-statutory money added to purses, including nomination payments, sponsorship money, and money designated to go to purses from any other source not provided by statute. Organization licensees licensed to conduct only mixed breed race meeting(s) shall establish and distribute purses subject to approval by the Commission and subject to paragraph (c) of this rule. Licensees who conduct race meeting(s) by single breed or by single breed and mixed breed, shall pay as purses during each race meeting statutorily-designated revenue generated from (a)(1) above, during each race meeting, subject to paragraph (c) of this rule. Statutorily-generated revenue from (a)(2) above shall be divided between the race meetings, if more than one, based on an agreement (on a calendar year basis) between the organization licensee and the duly elected horsemen's representative organizations recognized by the Commission as representing the breeds authorized to race at the respective race meetings. In the absence of an agreement by October 1 of each calendar year, the parties failing to agree shall immediately apply to the Commission for an Order directing the division of such purse monies between the respective race meeting(s). 11

12 In an August 24, 2007 letter [Item I.1], the Thoroughbred Racing Association of Oklahoma advised the Commission that it has reached an agreement with Remington Park, the sole racetrack that has both Mixed Breed and single breed race meetings, on the CY 2008 simulcast-in revenue distribution between race meetings. To the knowledge of Commission Staff, no agreement among all of the parties has been reached regarding the simulcast-in revenue at RP and the October 1, 2007 deadline has passed and no one has applied to the Commission for an Order of the Commission directing the division of such purse monies between the respective race meetings. Possible action may include, but is not limited to: requesting a status report of the paties, entering a Commission Order continuing the splits from last year until such time as a party apprises the Commission that an agreement has been reached or one or more of the parties applies to the Commission for an Order directing the division of such purse monies between the respective race meetings. J. Continued Consideration of CY 2008 Racing and Gaming Applications At the August 16, 2007 meeting, the racetrack managers presented their respective application for CY 2008 racing and gaming licenses. The Commission continued deliberations to the next Commission meeting. Item J.1 reflects the requested CY 2008 live race dates. Commissioners, Commission Counsel and Commission Staff may ask questions. 1. REMINGTON PARK Remington Park, Inc. [RP] has applied to conduct two race meetings: a Quarter Horse, Paint and Appaloosa race meeting, 50 days in length, from March 7 through June 1, 2008 and a Thoroughbred race meeting, 67 days in length, from August 21 through December 14, As noted at the August 16, 2007 meeting, the Oklahoma Quarter Horse Racing Association submitted its objection to RP's application regarding the 90%/10% simulcastin revenue distribution requested by RP. Subsequent to the August 16, 2007 meeting, the Commission received a press release from Magna Entertainment Corporation, the parent company of Remington Park, regarding its announcement of a debt elimination plan, funding arrangement through private placement and new bridge loan facility, and the appointment of a new independent director [Item J.2]. Item J.3 contains recent related articles from the Daily Racing Form, CBS, and the Journal Record including the announcement that Remington Park may be sold as part of the debt elimination plan. 12

13 The Commission received an October 18, 2007 letter [Item J.4] from Mr. Scott Wells, RP Vice President and General Manager, amending Exhibit C.10.1 [Page 39] of the application regarding the over/underpayment for the Mixed Breed race meeting to an overpayment projection of less than $100,000 and an underpayment projection of zero by the end of the race meeting and $4,052,917 by December 31, The letter also amended the construction of new stabling to reflect two, rather than one, 76-stall barns. Horsemen's Agreement In an August 24, 2007 letter [Item J.5], the Thoroughbred Racing Association of Oklahoma advised the Commission that it is willing to sign a CY 2008 Horsemen's Agreement similar to the existing 2007 one that is silent on any simulcast revenue distribution formula with RP. RP countersigned the letter indicating its willingness to also sign the Agreement. The CY 2008 Horsemen's Agreement between the Thoroughbred Racing Association of Oklahoma and Remington Park has been executed, and will in the near future be presented to Executive Director Rieger for approval. The Commission has received no word regarding a Horsemen's Agreement between the Oklahoma Quarter Horse Racing Association and Remington Park. 2. BACKSTRETCH, L.L.C. D/B/A BLUE RIBBON DOWNS Blue Ribbon Downs [BRD] has applied to conduct two race meetings: a Quarter Horse, Paint and Appaloosa race meeting, 3 days in length, from March 1 to March 15, 2008 and a Thoroughbred, Quarter Horse, Paint and Appaloosa race meeting, 67 days in length, from August 1 through November 30, 2008 As noted at the August 16, 2007 meeting, the Oklahoma Quarter Horse Racing Association submitted a response to BRD's application, asking that the Commission require two Thoroughbred races per day to allow for coordination with race days at Will Rogers Downs. Subsequent to the August 16, 2007 meeting, an article was published in the Sequoyah County Times regarding the Choctaw Nation's plan to sell the racetrack [Item J.6]. Horsemen's Agreement In an August 24, 2007 letter, the Thoroughbred Association of Oklahoma advised the Commission that it is willing to sign a CY 2008 Horsemen's Agreement similar to the existing 2007 one that is silent on any simulcast revenue distribution formula with BRD although the letter was not countersigned by BRD. BRD subsequently signed the letter that it was also willing to sign a Horsemen's Agreement [Item J.7]. The Commission has received no word regarding a Horsemen's Agreement between the Oklahoma Quarter Horse Racing Association and Blue Ribbon Downs. 13

14 Ratio of Races In an October 16, 2007 letter [Item J.8], BRD advised the Commission of the following proposed ratio of races to be run during the CY 2008 Fall race meeting for each race day: At least 1 race for Paints and Appaloosas An average of 2 races for Thoroughbreds [134 total races if there are 67 race days] Remainder of races for Quarter Horses to make a full race day card 3. WILL ROGERS DOWNS, L.L.C. Will Rogers Downs, L.L.C. [WRD] has applied to conduct one race meeting: a Thoroughbred, Quarter Horse, Paint and Appaloosa race meeting, 44 days in length, from February 16 through May 26, 2008 As noted at the August 16, 2007 meeting, the Oklahoma Quarter Horse Racing Association submitted a response to WRD's application, asking that WRD provide a copy of the 2008 Horsemen's Agreement with its application and make the simulcast split as required in that Agreement be a condition of the license. In response, WRD provided the drafted Horsemen's Agreement and noted that the simulcast split was not included in the license application because it was prepared prior to approval of the Joint Application for Reduction in Race Days. At the August 16, 2007 meeting, the Commission instructed WRD to draft additional dates and races for CY 2008 should the parties not agree to a Joint Application for Reduction in Race Days. Subsequent to the meeting, WRD advised the Commission that, if the conditions were not met, WRD would add 6 Sunday race days [March 2, 9, 16 and 30; April 6 and 13, 2008] with 12 races per day to make a grand total of 50 race days and 600 races as statutorily required: 270 Thoroughbreds, 270 Quarter Horses and 60 Paints and Appaloosas. WRD also advised the Commission that, prior to the November 15, 2007 meeting, WRD will submit a formal request to change the CY 2008 live race dates from February 16 through May 26, 2008 to start February 23 and run through May 27, This would also change the race days from Saturdays, Sundays and Mondays to Saturdays, Mondays and Tuesdays. Horsemen's Agreement In an August 24, 2007 letter [Item J.9], the Thoroughbred Association of Oklahoma advised the Commission that it is willing to sign a CY 2008 Horsemen's Agreement similar to the existing 2007 one that is silent on any simulcast revenue distribution formula with Will Rogers Downs. WRD countersigned the letter indicating its willingness to sign a Horsemen's Agreement. The Commission received an October 1, 2007 letter [Item J.10] from Mr. Heath Hardcastle, WRD Counsel, that it has reached a Horsemen's Agreement with the TRAO. 14

15 Mr. Hardcastle also states that WRD "believes it has an agreement for a Horsemen's Agreement with the OQHRA. The OQHRA however has not executed the document as it represented it would in the May 31, 2007 agreement." The Commission has received no further word regarding a Horsemen's Agreement has been reached between the Oklahoma Quarter Horse Racing Association and Will Rogers Downs. The CY 2008 Horsemen's Agreement between the Thoroughbred Racing Association of Oklahoma and WRD has been executed, and will in the near future be presented to Executive Director Rieger for approval. 4. TULSA STATE FAIR (TULSA COUNTY PUBLIC FACILITIES AUTHORITY) The Tulsa State Fair (the Tulsa County Public Facilities Authority) has applied to conduct one fair race meeting at Fair Meadows at Tulsa [FMT]: a Thoroughbred, Quarter Horse, Paint and Appaloosa fair race meeting at Fair Meadows at Tulsa, 34 race days in length, from May 20 through July 26, As noted at the August 16, 2007 meeting, the Oklahoma Quarter Horse Racing Association submitted its objection to FMT's application because no Horsemen's Agreement had been executed and FMT did not propose a simulcast division. At the August 16, 2007 meeting, Mr. Ron Shotts, FMT Director of Racing, advised the Commission that he preferred to extend the Fair Meet in 2008 through Sunday, July 27 in order to end the meeting on Sunday, rather than Saturday. He also stated that the request might include the cancellation of races on Wednesday, July 23. Mr. Shotts stated that FMT would prefer that the May trials be run all in one day. Horsemen's Agreement In an August 24, 2007 letter [Item J.11], the Thoroughbred Association of Oklahoma advised the Commission that it is willing to sign a CY 2008 Horsemen's Agreement similar to the existing 2007 one that is silent on any simulcast revenue distribution formula with FMT. FMT countersigned the letter, indicating its willingness to sign the Horsemen's Agreement. The CY 2008 Horsemen's Agreement between the Thoroughbred Racing Association of Oklahoma and FMT has been executed, and will in the near future be presented to Executive Director Rieger for approval. The Commission has received no word regarding a Horsemen's Agreement between the Oklahoma Quarter Horse Racing Association and Fair Meadows at Tulsa. Simulcast-In Revenue Division In an September 25, 2007 letter [Item J.12] FMT advised the Commission that the Tulsa County Public Facilities Authority ratified the August 24, 2007 TRAO letter wherein FMT agreed to the 80%/20% breed split on simulcast-in revenue with 80% for Thoroughbreds and 20% for Quarter Horses, Paints and Appaloosas. 15

16 On October 16, 2007, the Oklahoma Quarter Horse Racing Association, through its counsel, Mr. Joseph Bocock, filed its "Objection to FMT Racing Application Absent Fair Allocation of Simulcast Funds to Race Purses" [Item J.13]. The following chart summarizes the race days requested in the applications. Renewal Applicants Breed(s) Number of Live Race Days Requested Time Frame (2008) REMINGTON PARK, INC. Oklahoma City Quarter Horse, Paint and Appaloosa 50 race days 3/7/08-6/1/08 Thoroughbred 67 race days 8/21/08 12/14/08 Backstretch, L.L.C. d/b/a BLUE RIBBON DOWNS Sallisaw Quarter Horse, Paint and Appaloosa 3 race days 3/1/08 3/15/08 Thoroughbred, Quarter Horse, Paint and Appaloosa 67 race days 8/1/08 11/30/08 WILL ROGERS DOWNS, L.L.C. Claremore Thoroughbred, Quarter Horse, Paint and Appaloosa 44 race days 2/16/08 5/26/08 Tulsa State Fair (Tulsa County Public Facilities Auth.) 1 FAIR MEADOWS AT TULSA Thoroughbred, Quarter Horse, Paint and Appaloosa 34 race days 5/20/08 7/26/08 1 The full name is the Tulsa County Public Facilities Authority. 16

17 Because the issuance of organization licenses includes the allocation of live race dates, and because the Commission in allocating race dates attempts to avoid unnecessary overlap and simultaneous competition among racetracks, the Commission deliberates on all applications together. POSSIBLE EXECUTIVE SESSION FOR RACING APPLICATIONS Pursuant to 75 O.S. 312, 25 O.S. 307(B)(8) and 311 (B)(1), an Executive Session is proposed for continued deliberation in individual proceedings regarding CY 2008 organization license [racing] applications from Remington Park, Inc., Blue Ribbon Downs, Tulsa State Fair (Tulsa County Public Facilities Authority) and Will Rogers Downs, L.L.C. 1. Motion and Vote to Go Into Executive Session for the Purpose Stated Above 2. Vote to Reconvene in Open Session Possible actions may include: taking no action, allotting CY 2008 live race dates and directing Commission Staff to draft CY 2008 racing license orders for review at the November 15, 2007 meeting, or continuing consideration to the November 15, 2007 meeting. POSSIBLE EXECUTIVE SESSION FOR GAMING APPLICATIONS Pursuant to 75 O.S. 312, 25 O.S. 307(B)(8) and 311 (B)(1), an Executive Session is proposed for continued deliberation in individual proceedings regarding the CY 2008 Racetrack Gaming Operator License applications from Remington Park, Inc., Blue Ribbon Downs, and Will Rogers Downs, L.L.C. and the CY 2008 Recipient Racetrack Gaming License application from Tulsa County Public Facilities Authority [Fair Meadows at Tulsa]. 1. Motion and Vote to Go Into Executive Session for the Purpose Stated Above 2. Vote to Reconvene in Open Session Possible actions may include: taking no action, awarding CY 2008 gaming licenses and directing Commission Staff to draft CY 2008 gaming license orders for review at the November 15, 2007 meeting, or continuing consideration to the November 15, 2007 meeting. 17

18 K. Any Matter Not Known About or Which Could Not Have Been Reasonably Foreseen Prior to Posting the Agenda L. ANNOUNCEMENTS ADJOURNMENT... Dr. Bledsoe, Chair NOVEMBER, 2007 JANUARY, 2008 CALENDAR 11/6/07 Deadline for submitting agenda topics for 11/15/07 Commission meeting 11/7/07 Oklahoma-Bred Advisory Council Meeting, 11:00 a.m., Shepherd Mall Activity Center, 2401 N.W. 23, Suite 40B, Oklahoma City, OK 11/12/07 HOLIDAY [Veterans' Day] 11/15/07, Commission Regularly Scheduled Meeting, 9:30 a.m., Shepherd Mall Activity Center, 2401 N.W. 23, Suite 40B, Oklahoma City, OK /16/07 HOLIDAY [State Centennial Day] 11/22-23/07 HOLIDAY [Thanksgiving] 12/1/07 Conclusion of Remington Park's Thoroughbred race meeting 12/9/07 Conclusion of Blue Ribbon Downs' Mixed Breed race meeting 12/24-25/07 HOLIDAY [Christmas] 1/1/08 HOLIDAY [New Year's Day] 1/9/08 Oklahoma-Bred Advisory Council Meeting, 11:00 a.m., Shepherd Mall Activity Center, 2401 N.W. 23, Suite 40B, Oklahoma City, OK 1/15/08 Deadline for submitting agenda topics for 1/24/08 Commission meeting 1/21/08 HOLIDAY [Martin Luther King, Jr. Birthday] 1/24/08, Commission Regularly Scheduled Meeting, 9:30 a.m., Shepherd Mall Activity Center, 2401 N.W. 23, Suite 40B, Oklahoma City, OK