AGRICULTURE & NEW YORK STATE HORSE BREEDING DEVELOPMENT FUND

Transcription

1 2018 ANNUAL REPORT 1 AGRICULTURE & NEW YORK STATE HORSE BREEDING DEVELOPMENT FUND 2018 ANNUAL REPORT

2 2018 ANNUAL REPORT TRUSTEES The New York Sire Stakes are Administered by: Agriculture and New York State Horse Breeding Development Fund TRUSTEES PETER ARRIGENNA Agriculture and New York State Horse Breeding Development Fund Trustee RICHARD A. BALL Commissioner of the New York State Department of Agriculture and Markets and Agriculture and New York State Horse Breeding Development Fund Trustee BARRY SAMPLE Chairman of the New York State Gaming Commission and Agriculture and New York State Horse Breeding Development Fund Trustee Agriculture and New York State Horse Breeding Development Fund 1 Broadway Center Schenectady, New York Tel: Fax: info@nysirestakes.com The Agriculture and New York State Horse Breeding Development Fund (the Fund) is a public benefit corporation established in 1965 by the Laverne Law (Laws of New York, Chapter 567 of the Laws of 1965). The mission of the Fund is to promote agriculture through the breeding of standardbred horses and the conduct of equine research within the State. To carry out its legislative mission, the Fund administers the New York Sire Stakes races, Excelsior/State Fair Series races, and County Fair Races. Additionally, the Fund provides assistance to county agriculture societies and contributes to the statewide 4-H program and to the Harry M. Zweig Fund for Equine Research. facebook.com/nysirestakes twitter.com/sirestakesny #NYSireStakes #NYStandardbreds #Harnessracing Cover Photo Credit: Dave Oxford

3 TABLE OF CONTENTS Introduction ANNUAL REPORT Statement of Cash Flows... 2 Statement of Net Assets... 3 Statement of Revenue, Expenses & Changes in Assets... 4 Dispersal of Fund Money Equine Research... 9 Economic Impact New York Sire Stakes Participating Broodmares, Stallions and Yearlings Breeders Awards Program NYSS Breeder Earnings National Leading Sires New York Leading Sires Sales Results NYSS Purses Paid Purses Paid for State-Restricted Races New York Sire Stakes Program Industry Comments... 31

4 2018 ANNUAL REPORT 1 INTRODUCTION The Honorable Andrew M. Cuomo, Governor of the State of New York Agriculture & NYS Horse Breeding Development Fund Members of the New York State Legislature The Trustees of the Agriculture and New York State Horse Breeding Development Fund are pleased to present the Fund s 2018 Annual Report. Agriculture is one of New York s leading domestic economic sectors and the state is noted for its diversity of products, including Standardbred horses. The Fund administers the New York Sire Stakes program, the nation s oldest harness racing program of its kind. The Fund s primary mission is to promote and preserve agriculture through the promotion of horse breeding and the conduct of equine research in New York State. The performance of New York-bred horses in the breeding shed and on the racetrack, along with demand for them in the auction ring, demonstrate the value of the New York Sire Stakes program. Last year 743 separate events were contested for New York-breds in three different tiers to provide horses of all abilities the opportunity to earn and learn. Purses totaled $14.2 million dollars for New York-breds and breeders were returned $1 million in Breeders Awards. New York Sire Stakes stars showed their skill on the state s seven harness tracks and across the country. Four National Dan Patch divisional champions all competed in the Sire Stakes program two winning the Empire Breeders Classic and two remaining undefeated in their freshman campaigns. Almost a quarter of all the horses competing in the Breeders Crown Finals in October were bred in New York 26 of the 107 horses in 12 events. Our horses stole titles in the Hambletonian, Yonkers Trot, and Kentucky Futurity a New York-bred Trotting Triple Crown and in the Meadowlands Pace, Little Brown Jug and many other open stakes. They also toppled track and world records in a season to remember. New York stallions remained among the leading national earners and offspring were highly sought after by breeders. New York boasts the leading trotting sire in the country by average earnings per starter for both 2 year olds and 3 year olds and our stallions are consistently among the top 10 nationally at both gaits by total earnings and average earnings per starter. In addition, New York-breds continued to garner strong prices at the yearling sales, averaging $46,800 and $38,478, at both premier sales in the country, the Lexington Selected Yearling Sale and the Harrisburg Yearling Sale, respectively. In addition, the Fund provided $150,000 in monies for equine education and promotion and more than $320,000 in funds for the Harry M. Zweig Memorial Fund for Equine Research at Cornell University College of Veterinary Medicine. These efforts help the Fund fulfill its mission and purpose. As the demand and quality of New York horses continues to be strong, so will the economic and agricultural benefits that the Standardbred breeding and racing industries provide to the State of New York. The Agriculture and New York State Horse Breeding Development Fund will continue to promote and support this progress and is excited to share these results with you.

5 STATEMENT OF CASH FLOWS Year Ended* Dec 31,2018 Year Ended Dec 31, ANNUAL REPORT 2 CASH FLOWS FROM OPERATING ACTIVITES Cash received from Handle, Breakage, VLTs & Other Fees $16,093,894 $15,970,509 Cash Received From Interest on Cash & Cash Equivalents $95,348 $85,248 Cash Received From Other Income $6,000 $8,000 Cash payments for Racetrack Purses $(11,799,667) $(11,808,070) Cash payments for State, County, & Town Fair Purses $(1,259,131) $(1,317,114) Cash payments for Drug Testing Program $(108,876) $(131,546) Cash Payments for Breeders Awards $(1,000,000) $(1,099,983) Cash payments for General & Administrative Expenses $(724,480) $(963,800) Cash payments for Zweig Memorial Fund $(316,127) $(312,691) Cash payments for County Fair Repairs $(116,167) $(107,948) Cash Payments for Grants $(104,166) $(110,000) Cash Payments for 4-H Standardbred Development $(45,833) $(40,000) NET CASH PROVIDED BY OPERATING ACTIVITIES $720,796 $172,605 CASH & CASH EQUIVALENTS AT BEGINNING OF YEAR $9,174,787 $8,864,063 RECONCILIATION OF CHANGES IN NET ASSETS TO NET CASH PROVIDED BY OPERATING ACTIVITIES CHANGES IN NET ASSETS: Adjustments to reconcile changes in net assets $720,796 $172,605 Changes in handle, breakage, & VLT receivable $(558,419) $(233,742) Changes in other accrued liabilities $(349,377) $330,637 GASB 68 OPEB obligation $(5,944) $(8,776) Changes in Net OPEB obligation $(104,440) $50,000 Changes in accrued interest receivable $0 $0 NET CASH INCREASE FOR PERIOD $(297,384) $310,724 CASH & CASH EQUIVALENTS AT END OF YEAR $8,877,403 $9,174,787 *Preliminary

6 2018 ANNUAL REPORT 3 STATEMENT OF NET ASSETS Year Ended* Dec 31,2018 Year Ended Dec 31,2017 CURRENT ASSETS Cash and Cash Equivalents $8,877,402 $9,174,787 Handle, Breakage, and VLT Receivable $2,702,387 $2,143,969 Accrued Interest Receivable $0 $0 TOTAL CURRENT ASSETS $11,579,790 $11,318,756 CURRENT LIABILITIES State, County & Town Fair Obligations Payable $0 $12,895 Zweig Payable $125,004 $129,371 Other Accrued Liabilities $362,447 $694,562 Deferred Revenue $0 $0 TOTAL CURRENT LIABILITIES $487,451 $836,828 GASB 68 OPEB Obligation $2,855 $8,799 Net OPEB Obligation $447,681 $552,121 TOTAL LIABILITIES $937,987 $1,397,748 NET ASSETS Restricted For Purses $9,239,367 $7,460,976 Restricted For Other Purposes $1,256,192 $2,316,531 Unrestricted $146,244 $143,501 TOTAL NET ASSETS $10,641,803 $9,921,008 TOTAL LIABILITIES AND NET ASSETS $11,579,790 $11,318,756 *Preliminary

7 STATEMENT OF REVENUE, EXPENSES & CHANGES IN ASSETS Year Ended* Dec 31,2018 Year Ended Dec 31, ANNUAL REPORT 4 OPERATING REVENUES Handle, Breakage, and Misc. $2,708,463 $2,747,047 Video Lottery Revenue $13,087,420 $12,887,497 Nomination & Sustaining Fees $1,379,088 $1,505,137 Fees reclassed to offset purses $(1,141,752) $(1,250,385) Stallion Registration Fees $60,675 $81,213 Interest Income $95,348 $85,248 TOTAL OPERATING REVENUES $16,189,242 $16,055,757 EXPENSES Racetrack Purses $11,799,667 $11,808,070 State, County Fair Purses/Repairs/Admin $1,375,298 $1,425,062 Drug Testing Program $108,876 $131,546 4-H Standardbred Dev Grants/Grants $149,999 $150,000 Zweig Memorial Fund $316,127 $312,691 General and Administrative $724,480 $963,800 Breeders Awards $1,000,000 $1,099,983 TOTAL OPERATING EXPENSES $15,474,447 $15,891,152 OPERATING INCOME $714,796 $164,605 OTHER INCOME $6,000 $8,000 CHANGES IN NET ASSETS $720,796 $172,605 Net assets at beginning of year $9,921,007 $9,748,402 NET ASSETS AT END OF YEAR $10,641,803 $9,921,007 Preliminary

8 2018 ANNUAL REPORT 5 DISPERSAL OF FUND MONEY 2018 The Agriculture and New York State Horse Breeding Development Fund s disperses money through: a) County- and town-fair reimbursements for Repairs/property improvements (maximum $6,000) and Racing Administration (maximum $2,000 - totaling $8,000). Total of $8,000 maximum decreased by fess paid by the Fund for each fair. (2018 Fees Paid - $41,650). Total number of fairs that conducted a New York Sire Stakes racing program in 2018 was 20. b) Prize money of $24,000 plus horsemen fees allocated to competing horsemen at each of the 20 participating county and town fairs, including County Fair finals. c) Prize money, listed as Stakes Purses, for upper-echelon races (Sire Stakes and Excelsior events). This money was distributed to the seven NY pari-mutuel tracks and Goshen. he pari-mutuels are Batavia in Genesee County; Buffalo in Erie County; Monticello in Sullivan County; Saratoga Raceway in Saratoga County; Tioga Downs in Tioga County; Vernon Downs in Oneida County, and Yonkers in Westchester County. Goshen is in Orange County. d) Breeders award money was distributed to horsemen, according to their listed residence. WESTERN NEW YORK County Fair Purses Reimbursements Stakes Purses Breeders Awards Allegany Cattaraugus $160 Chautauqua $951 Dunkirk $25,450 $6,480 Erie $1,081,100 $6,619 Hamburg $25,350 $6,650 Niagara FINGER LAKES County Fair Purses Reimbursements Stakes Purses Breeders Awards Genesee $1,451,500 $7,769 Livingston $7,184 **Hemlock $25,900 $6,100 Monroe $8,322 Ontario Orleans Seneca $1,576 Wayne *Palmyra $26,400 $5,600 Wyoming Yates $1,543 * Palmyra, Wayne received $800 in grant money for the RUS program. ** Hemlock, Livingston received $800 in grant money for the RUS program.

9 DISPERSAL OF FUND MONEY 2018 SOUTHERN TIER County Fair Purses Reimbursements Stakes Purses Breeders Awards Broome $4,314 Chemung Horseheads $26,300 $5,700 Chenango $6,628 ****Afton $27,700 $4,500 Norwich $25,450 $6,550 Delaware $2,094 Schuyler Steuben $19,552 Bath $25,750 $6,250 Tioga $1,376,400 **Owego/Nichols $26,150 $5,850 Tompkins * Trumansburg $26,500 $5, ANNUAL REPORT 6 ** Tioga, Owego received $750 in grant money for the RUS program. * Trumansburg, Tompkins received $800 in grant money for the RUS program. **** Afton, Chenango received $1,000 in grant money for the RUS program. CENTRAL NEW YORK County Fair Purses Reimbursements Stakes Purses Breeders Awards Cayuga Cortland **Madison $68,854 Onondaga $80,328 Oswego * Sandy Creek $25,950 $4,442 **Madison CCE received grant money of $45,833 in 2018 for the state-wide 4-H program.. * Oswego, Sandy Creek received $900 in grant money for the RUS program. MOHAWK VALLEY County Fair Purses Reimbursements Stakes Purses Breeders Awards Fulton $2,227 Herkimer $951 Montgomery Oneida $1,345,200 $1,387 Boonville $27,750 $4,250 Otsego *Morris $26,450 $5,550 Schoharie Cobleskill $25,600 $6,400 * Morris, Otsego received $1,600 in grant money for the RUS program.

10 2018 ANNUAL REPORT 7 DISPERSAL OF FUND MONEY 2018 NORTH COUNTRY County Fair Purses Reimbursements Stakes Purses Breeders Awards Clinton Plattsburgh $25,250 $6,246 Essex Westport $25,550 $6,450 Franklin $20,964 Malone $25,650 $6,350 Hamilton Jefferson Lewis Lowville $27,050 $4,950 St. Lawrence Gouverneur $25,750 $6,250 CAPITAL REGION County Fair Purses Reimbursements Stakes Purses Breeders Awards Albany $14,807 Schenectady Columbia $3,233 Greene Saratoga $2,085,500 $19,361 Rensselaer Warren Washington MID-HUDSON County Fair Purses Reimbursements Stakes Purses Breeders Awards Dutchess $6,763 *Orange $175,593 Goshen Fair $25,900 $6,100 Goshen $178,200 Putnam Rockland $239 **Sullivan $80,000 $1,212,200 $165 Ulster $190,630 Westchester $4,868,600 $23,110 * The Harness Racing Museum in Goshen received a $45,833 grant from the Fund in 2018 and The Historic Track in Goshen received a $45,833 grant from the Fund in **Monticello Raceway in Sullivan County received $80,000 for county fair finals.

11 DISPERSAL OF FUND MONEY 2018 NEW YORK CITY & LONG ISLAND County Fair Purses Reimbursements Stakes Purses Breeders Awards Bronx Kings Nassau $1,083 Queens $3,126 Suffolk $3,226 New York $36, ANNUAL REPORT 8 TOTAL Non Resident $280,515 Totals $601,850 $116,168 $13,598,700 $1,000,000 Fair purses included funding of $5,000 and additional funding from outside sources of $1,300 for RUS races. *Not all W9 forms have been collected from breeder award recipients as of the date of this report. ** Non-resident Breeders Awards totaled $280,515 or 28.1% of the total.

12 2018 ANNUAL REPORT 9 EQUINE RESEARCH In 2018, the Fund contributed $320,494 to the Harry M. Zweig Memorial Fund for Equine Research for a variety of medical research projects. The Harry M. Zweig Memorial Fund for Equine Research honors the late Dr. Harry Zweig, a distinguished veterinarian, and his numerous contributions to the state s equine industry. In 1979, by amendment to the pari-mutuel racing and wagering law, the New York State legislature created the Harry M. Zweig Memorial Fund for Equine Research to promote equine research at the Cornell University College of Veterinary Medicine. The Harry M. Zweig Committee was established for the purpose of administering the fund and is composed of individuals in specified state agencies and equine industry positions and others who represent equine breeders, owners, trainers, and veterinarians. The Fund is proud to support the Harry M. Zweig Memorial Fund for Equine Research. This first-rate research helps to provide protection and preventative planning for the equine industry, which in turn helps to ensure a healthy and positive future for the horse racing industry. By law the Agriculture and NYS Horse Breeding Development Fund contributes two percent of its yearly revenue to the equine research fund.

13 OVERVIEW Standardbred racing and breeding in New York State generates $795 million annually. Racing at the state s seven pari-mutual harness tracks generates capital investments, local jobs and state and local taxes, while the breeding industry drives yearling auctions in the state and agricultural benefits like purchasing of farm equipment and farm products and preserving working farmlands. A 2012 study found that each racehorse in the state generates $92,100 in economic impact and 80 jobs are created for every 100 horses. Both the breeding and racing of Standardbreds in the state are interconnected to generate the largest possible impact on the economy. As you can see in the chart (next page), since the installation of VLTs at racetracks after 2001, the total economic impact of harness racing in the state increased 190% to $795 million. During the same period, total jobs generated by the industry nearly tripled to just over 6,500. RACING A state breeding program can only be successful if it attracts the quality of stallions and mares that can produce champions. The excellence of New Yorkbred horses was on display at racetracks around the country in In fact, New York-bred horses swept the Dan Patch Awards for trotters. These divisional honors are voted on by the U.S. Harness Writers Association and celebrate the best horses in the country each year. In 2018, 3-Year-Old Female Trotter Atlanta became just the 14th filly to win the Hambletonian against male horses and boosted her career earnings over $1 million. She won eight of 14 races this year, including the Empire Breeders Classic, and was second in the Breeders Crown. She easily scored in New York Sire Stakes divisions at Vernon Downs and Tioga Downs. ECONOMIC IMPACT 3-Year-Old Male Trotter Six Pack trotted a worldrecord mile of 1:50 in the Stanley Dancer Memorial, and then lowered that mark with a 1:49.1 performance in the Kentucky Futurity. He won the Yonkers Trot, Empire Breeders Classic and legs of the NYSS at Vernon Downs and Yonkers Raceway. The colt earned $970,573 in 2018 and nearly $1.17 million in his career. 2-Year-Old Male Trotter Gimpanzee (Chapter Seven- Steamy Windows) went undefeated in nine starts in 2018, including a Breeders Crown, six legs of the New York Sire Stakes and a tour of the winner s circle on the New York Night of Champions at Yonkers Raceway. He earned $591,358 in his first season. 2-Year-Old Female Trotter Woodside Charm (Chapter Seven-Fireworks) was another New York Sire Stakes and Breeders Crown Champion who went undefeated with seven victories. She won three legs of the NYSS, including a world record finish on the half-mile track at Saratoga in 1:53.4. While breeders and owners hope for a horse that can compete on the national stage for the largest purses, yearling buyers demand a strong Sire Stakes program when selecting a horse to ensure the greatest potential to earn money and New York provides a secure future. More than $14.2 million was distributed as purses for New York-bred horses in That was available for horses competing in three different tiers of the program and in the Empire Breeders Classic. A total of 26 horses earned more than $100,000 in Sire Stakes action alone in 2018 and the highest single earner took home $288,583 in Sire Stakes purses for her connections. This earning potential makes New York a very attractive destination for breeding and racing ANNUAL REPORT 10

14 2018 ANNUAL REPORT 11 ECONOMIC IMPACT BREEDING The New York Sire Stakes is unique in that it requires mares to be bred by stallions within the borders of the state. This means that while other states may only generate agricultural benefits from the stallions residing there, New York also benefits from the mares. Additionally, the state s Breeders Award program incentivizes mares who live in the state for at least 180 days, much longer than it would take to just breed them and confirm pregnancy. This longer stay enhances the economic benefit realized by the state. If the offspring of those resident mares perform well in the New York Sire Stakes program, the breeder (owner of the mare at the time of the mating) receives a financial award. Total Breeders Awards in 2018 were $1 million. Breeders also generate income from selling offspring at yearling sales. Two yearling auctions are held in the state at Goshen in Orange County and at Morrisville State College in Madison County. You can see more information on the results of these sales on page 19. As New York-bred horses continue to be desired by buyers, they will generate strong returns for New York breeders and encourage more investment in the state. ECONOMIC IMPACT % CHANGE Direct Impact $117,100,000 $336,400, % Indirect Impact $156,700,000 $458,400, % Total Impact $273,800,000 $794,800, % JOBS IMPACT % CHANGE Direct Jobs 690 1, % Indirect Jobs 1,560 4, % Total Jobs 2,250 6, %

15 NEW YORK SIRE STAKES PARTICIPATING BROODMARES, STALLIONS AND YEARLINGS Year Mares Bred* Registered Yearlings NY Stallions Nominated to program* State Breeding History Year Mares Bred* Registered Yearlings NY Stallions Nominated to program* 2018 ANNUAL REPORT , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , *Yearlings of 2018 are from mares bred in 2016

16 2018 ANNUAL REPORT BREEDERS AWARDS PROGRAM The Breeders Awards Program is an incentive to promote agriculture through the breeding of Standardbred horses in New York State. The Breeders Awards will be given at all levels of the New York Sire Stakes (NYSS) Racing Program. The Breeders Awards program provides rewards for each level of New York Sire Stakes (NYSS) racing: Sire Stakes, Excelsior Series and County Fairs. Breeders of 2- and 3-year-old horses participating in a NYSS event in each NYSS racing season will be eligible to receive a residencybased award. Only breeders of horses finishing in positions first through fifth in the NYSS racing program will benefit from the Breeders Awards program. Mares must be bred in New York to a New Yorkregistered stallion and be residents of the state for 180 consecutive days surrounding conception for the resulting progeny to be eligible to earn Breeders Awards. Each year, mare owners must certify that their mare has met these requirements and the Fund uses inspectors to verify residency status. Breeders Awards payments are based on NYSS race participation during the calendar year. In 2018, the equivalent of nearly 20 percent of a 2-year-old s earnings were returned to their breeder and more than 15 percent of a 3-yearold s earnings were returned to their breeder. This calculation is made each year depending on the pool of resident mares and the Sire Stakes program earnings of the resulting foals. In addition, 12 breeders earned more than $15,000 in Breeders Awards and 161 different entities received funds in The Fund only paid out Breeders Awards based on mare residency in 2018, having phased out performance-based awards in The new formula for Breeders Awards ensures the largest possible return to the state in agricultural benefit.

17 Top 20 Breeders 2018 NYSS BREEDER EARNINGS Breeders Earnings Total Starts 1st 2nd 3rd 4th 5th 2018 ANNUAL REPORT 14 Winbak Farm...$1,846, Blue Chip Bloodstock Inc...$842, Hanover Shoe Farms Inc...$725, Joie De Vie Farm LLC...$382, Walnut Hall Limited...$380, Order By Stable...$377, Crawford Farms LLC...$345, Brittany Farms...$343, Richard Balog...$282, Glengate Farms...$259, Fair Winds Farm Inc...$256, Deo Volente Farms LLC...$249, James L Avritt Sr...$241, The OK Corral...$235, Little E LLC...$218, Dunroven Stud LLC...$212, Morrisville Col Fdn Inc...$187, Steve Jones...$186, Diamond Creek Farm LLC...$185, Enviro Stables Ltd...$180,

18 2018 ANNUAL REPORT 15 NATIONAL LEADING SIRES 2018 Pacing Sires - 2 Year Olds Sire Name 2016 Foals Starters Earnings Avg Earnings SWEET LOU ,037, ,312 CAPTAINTREACHEROUS ,308, ,275 SOMEBEACHSOMEWHERE ,728, ,938 HESTON BLUE CHIP , ,646 ART MAJOR ,776, ,319 BETTOR S DELIGHT ,196, ,008 AMERICAN IDEAL ,544, ,359 ALWAYS A VIRGIN ,279, ,799 SO SURREAL , ,078 YANKEE CRUISER , ,449 MCARDLE , ,348 TELLITLIKEITIS , ,190 SAGEBRUSH , ,030 WELL SAID , ,987 ROCK N ROLL HEAVEN , ,887 BIG BAD JOHN , ,624 A ROCKNROLL DANCE , ,592 WESTERN VINTAGE , ,053 RUSTY S FOR REAL , ,048 MR WIGGLES , ,390 Trotting Sires - 2 Year Olds Sire Name 2016 Foals Starters Earnings Avg Earnings CHAPTER SEVEN ,900, ,796 MUSCLE HILL ,634, ,631 FATHER PATRICK ,470, ,292 E L TITAN , ,688 TRIXTON ,822, ,223 SWAN FOR ALL ,644, ,898 CANTAB HALL ,811, ,873 CASH HALL , ,748 LOU S LEGACY , ,419 WISHING STONE , ,910 BROADWAY HALL , ,791 MUSCLE MASSIVE ,456, ,169 MUSCLE MASS , ,679 MANOFMANYMISSIONS , ,613 KADABRA , ,431 FULL COUNT , ,976 CREDIT WINNER ,025, ,498 CASSIS , ,108 TRIUMPHANT CAVIAR , ,520 CRAZED , ,671 *minimum 15 registered foals in 2016

19 Pacing Sires - 3 Year Olds NATIONAL LEADING SIRES 2018 Sire Name 2015 Foals Starters Earnings Avg Earnings SOMEBEACHSOMEWHERE ,533, ,667 I M GORGEOUS ,133, ,299 BETTERTHANCHEDDAR ,884, ,816 AMERICAN IDEAL ,247, ,840 BETTOR S DELIGHT ,769, ,781 ART MAJOR ,105, ,015 A ROCKNROLL DANCE ,054, ,779 ROCK N ROLL HEAVEN ,843, ,724 MACH THREE ,778, ,977 SHADOW PLAY ,990, ,938 ALWAYS A VIRGIN ,999, ,385 WELL SAID ,339, ,874 YANKEE CRUISER , ,701 WESTERN MAVERICK , ,739 VERTICAL HORIZON , ,135 DRAGON AGAIN ,723, ,279 CUSTARD THE DRAGON , ,001 SPORTSWRITER ,865, ,765 NO SPIN ZONE , ,376 PET ROCK ,917, ,369 Trotting Sires - 3 Year Olds Sire Name 2015 Foals Starters Earnings Avg Earnings CHAPTER SEVEN ,651, ,436 MUSCLE MASS ,262, ,144 CANTAB HALL ,006, ,913 MUSCLE HILL ,735, ,579 EXPLOSIVE MATTER ,346, ,969 MY MVP ,136, ,713 WISHING STONE , ,814 STORMIN NORMAND , ,464 CREDIT WINNER ,152, ,327 HOLIDAY ROAD , ,753 KADABRA ,615, ,419 JUSTICE HALL , ,742 MANOFMANYMISSIONS ,347, ,726 SWAN FOR ALL ,279, ,304 DONATO HANOVER ,141, ,011 ANDOVER HALL ,102, ,688 DEJARMBRO ,337, ,509 YANKEE GLIDE ,013, ,344 BREAK THE BANK K , ,914 RC ROYALTY , , ANNUAL REPORT 16 *minimum 15 registered foals in 2015

20 2018 ANNUAL REPORT 17 NEW YORK LEADING SIRES 2018 Pacing Sires - 2 Year Olds STALLION Earnings Total Starts 1st 2nd 3rd 4th 5th Art Major... $1,144, American Ideal... $932, So Surreal... $522, Rock N Roll Heaven... $417, Roll With Joe... $347, Heston Blue Chip... $225, Artiscape... $20, Artist s View... $13, Crazed (P)... $11, Riggins... $6, Budd For Life... $4, Allamerican Apache... $3, Quality Of Life... $1, Quik Pulse Mindale... $ Trotting Sires - 2 Year Olds STALLION Earnings Total Starts 1st 2nd 3rd 4th 5th Chapter Seven... $955, Credit Winner... $848, Conway Hall... $778, Muscle Mass... $464, Crazed... $286, RC Royalty... $206, Muscles Yankee... $88, Lucky Chucky... $61, Deweycheatumnhowe... $53, Prayer I Am... $44, Ulay Boko... $13, Imagistic... $9, Manningly... $8, CR Excalibur... $2, Mutineer... $

21 Pacing Sires - 3 Year Olds NEW YORK LEADING SIRES 2018 STALLION Earnings Total Starts 1st 2nd 3rd 4th 5th American Ideal... $967, Betterthancheddar... $838, Rock N Roll Heaven... $719, Art Major... $661, So Surreal... $310, Roll With Joe... $266, Artiscape... $53, Bullville Powerful... $31, Quik Pulse Mindale... $29, Rockincam... $22, Panther Hanover... $12, Cams Fortune... $12, Ashton Seelster... $9, Village Jove... $7, Handsome Harry... $6, Beretta Hall... $6, Riverboat King... $5, Passailed... $5, Artist Stena... $1, ANNUAL REPORT 18 Trotting Sires - 3 Year Olds STALLION Earnings Total Starts 1st 2nd 3rd 4th 5th Muscle Mass... $1,286, Chapter Seven... $1,153, Credit Winner... $814, Lucky Chucky... $295, Deweycheatumnhowe... $157, Conway Hall... $148, RC Royalty... $148, Celebrity Secret... $13, Prayer I Am... $12, Muscles Yankee... $12, Conway Court... $10, Howd That Feel... $7, Make It Hot... $6, Mutineer... $6, Native Yankee... $4, Regal Visitor... $ CR Excalibur... $

22 2018 ANNUAL REPORT SALES RESULTS NEW YORK-BRED YEARLINGS ARE SOLD AT FOUR MAJOR SALES EACH YEAR Goshen Yearling Sale in Goshen, NY The Harrisburg Standardbred Sale in Harrisburg, PA The Lexington Selected Yearling Sale in Lexington, KY The Morrisville College Standardbred Sale in Morrisville, NY The accompanying chart provides a comparison of purchase prices for New York-bred yearlings to the purchase prices of yearlings sold from all states from 2015 through NEW YORK-BREDS IN THE SALES RING NY BRED YEARLINGS Average Sale Price all four sales $26,479 $27,216 $33,472 $28,090 Average Sale Price Harrisburg $30,593 $35,607 $39,403 $38,478 Average Sale Price Lexington $45,204 $45,949 $43,912 $46,800 Average Sale Price Morrisville $15,888 $14,299 $13,524 $13,475 Average Sale Price Goshen* $14,230 $13,007 $16,507 $13,606 TOTAL NUMBER OF NY-BRED SOLD ALL SALES Harrisburg Lexington Morrisville Goshen ALL YEARLINGS Average Sale Price all four sales $26,045 $30,236 $31,448 $31,429 Average Sale Price Harrisburg $30,818 $38,825 $39,516 $42,675 Average Sale Price Lexington $45,220 $56,304 $58,537 $56,652 Average Sale Price Morrisville $15,540 $13,656 $13,400 $13,475 Average Sale Price Goshen* $12,600 $12,158 $14,300 $12,912 TOTAL NUMBER OF YEARLINGS SOLD ALL SALES 1,827 1,659 1, Harrisburg 1, Lexington Morrisville Goshen* * First year of sale 2015

23 2018 PURSES PAID Racetrack Sire Stakes Sire Stakes Excelsior Excelsior Finals Total 2 Year Olds 3 Year Olds 2 Year Olds 3 Year Olds 2018 ANNUAL REPORT 20 Batavia Downs (4)...$380, $420, $191, $140, $320, $1,451,500 Bufalo Raceway... $380, $420, $134, $146, $0... $1,081,100 Monticello Raceway... $380, $420, $202, $209, $0... $1,212,200 Saratoga Raceway (1)...$570, $630, $235, $209, $440, $2,085,500 Tioga Downs (2)...$380, $420, $227, $249, $0... $1,276,400 Vernon Downs (3)...$380, $420, $214, $230, $0... $1,245,200 Yonkers Raceway (5)...$1,104, $1,196, $402, $366,300. $1,800, $4,868,600 Track Subtotal...$3,574, $3,926, $1,608, $1,551,900..$2,560, $13,220,500 Other Empire Breeders Classic (6)...$0... $200, $0... $0... $0... $200,000 Goshen Historic Track...$0... $0... $0... $178, $0... $178,200 County Fair (7)... $234, $287, $0... $0... $80, $601,850 Other Subtotal...$234, $487, $0... $178, $80, $980,050 Grand Total...$3,808, $4,413, $1,608, $1,730,100..$2,640, $14,200,550 (1) Includes Excelsior Finals at Saratoga Raceway ($440,000). (2) Includes State Fair races at Tioga Downs ($400,000). (3) Includes State Fair races ($400,000) at Vernon Downs. (4) Includes Consolation Finals at Batavia Downs ($320,000). (5) Includes NYSS Finals at Yonkers Raceway ($1,800,000). (6) Empire Breeders Classic races at Tioga Downs ($100,000) & Vernon Downs ($100,000). (7) Includes County Fair finals at Monticello Raceway ($80,000).

24 2018 ANNUAL REPORT MARES BRED & PURSES PAID MARES BRED IN OTHER STATES STATE NO. MARES BRED TO STALLIONS STANDING IN THIS STATE AL... 2 CA CO... 2 DE FL IA IL IN... 2,392 KS... 2 KY LA... 2 ME MD MA... 4 MI MN MS... 5 MI NJ NY... 1,239 STATE NO. MARES BRED TO STALLIONS STANDING IN THIS STATE NC ND... 3 OH... 2,510 PA... 1,525 TN... 1 TX... 7 VA... 4 WV... 1 WI PROVINCE NO. MARES BRED TO STALLIONS STANDING IN THIS PROV AB BC MB NS... 4 ON... 2,601 PE PQ PURSES PAID FOR STATE-RESTRICTED RACES STATE 2015 PURSES 2016 PURSES 2017 PURSES 2018 PURSES DELAWARE...$3,600, $3,600,000...$3,600, $3,124,622 FLORIDA...$968, $952,970...$620, $917,127 ILLINOIS...$4,446, $4,065,289...$4,625, $3,800,000 INDIANA...$8,196, $8,040,000...$8,048, $12,642,686 KENTUCKY*...$1,600, $1,489,000...$2,695, $4,148,450 MAINE...$2,113, $1,907,619...$1,851, $2,045,618 MARYLAND...$1,683, $1,716,025...$1,900, $1,793,650 MICHIGAN...$910, $818,000...$1,224, $779,455 NEW JERSEY...$2,392, $1,783,000...$1,956, $1,967,685 NEW YORK...$13,800, $13,800,000...$14,300, $14,200,550 OHIO...$5,800, $7,500,000...$15,900, $16,928,200 ONTARIO,CA...$15,962, $14,666,000...$12,350, $12,950,800 PENNSYLVANIA...$16,000, $16,000,000...$15,700, $15,726,882 *Not limited to state-sired horses

25 2018 NEW YORK SIRE STAKES PROGRAM NEW YORK SIRE STAKES The most talented NY bred two- and three-year-olds vie for enhanced purses at pari-mutuel tracks throughout the state ANNUAL REPORT 22 EXCELSIOR SERIES A second-tier program designed for late blooming two-and three-year-olds, with multiple legs leading to a lucrative final for the leading point earners in the series. Part of the Excelsior series includes the State Fair series pari-mutuel meet that features two- and three-year-old races for New York-bred trotters and pacers. Additionally, three-year-old races are held at Goshen Historic Track. The New York Sire Stakes is the state s premier harness racing program designed to promote the breeding, buying and racing of Standardbred horses in New York State. The New York Sire Stakes is the nation s oldest harness racing program of its kind. COUNTY FAIR SERIES Championship races at each age and gait give New York State s local summer fairs a unique twist. It s the best earn as you learn program in Sire Stakes racing with non pari-mutuel racing at 20 agricultural fairs throughout New York State.

26 2018 ANNUAL REPORT NEW YORK SIRE STAKES PROGRAM Sire Stakes - 2 Year Old Pacing Colts Horse Sire Starts NYSS Earnings 2018 Earnings* Melodies Major... Art Major $222,683...$222,683 Reigning Deo... Rock N Roll Heaven $187,213...$193,712 Bicorne Hanover... Art Major $108,620...$114,524 Artie s Ideal... American Ideal $96,308...$114,508 Major Blake... Art Major $84,408...$84,408 Jack Nation... American Ideal $82,351...$82,351 Hickfromfrenchlick... So Surreal $81,391...$138,541 Covered Bridge... American Ideal $76,484...$132,009 KJ Leo... Art Major $66,392...$68,292 World On Edge... Roll With Joe $52,235...$60,175 Jet Rock... Rock N Roll Heaven $40,320...$44,819 Buddy Hill... Roll With Joe $40,099...$59,331 JoJo s Place... Roll With Joe $37,918...$47,677 Chatelroll... Roll With Joe $23,090...$43,040 Cub Fan... So Surreal $16,240...$42,590 Major March... Art Major $14,645...$23,705 Hurrikane Kingklee... Art Major $13,020...$23,660 Rock America... American Ideal $9,878...$19,178 Shanghai Bobby... Art Major $6,915...$6,915 Rollonhighway... Roll With Joe $6,540...$17,809 Sire Stakes - 2 Year Old Pacing Fillies Horse Sire Starts NYSS Earnings 2018 Earnings* So Awesome... So Surreal $231,400...$232,440 Money Shot Hanover... Art Major $195,909...$203,408 St Somewhere... American Ideal $111,370...$208,868 Hurrikane Norakane... Art Major $99,437...$99,437 JK American Beauty... American Ideal $90,294...$126,695 Zero Tolerance... Heston Blue Chip $89,541...$392,891 Brooklyn Lilacs... Rock N Roll Heaven $60,660...$60,660 Topville Angelina... American Ideal $54,655...$63,805 Gia s Surreal... So Surreal $52,703...$55,192 Ladybeluckytonite... Art Major $51,315...$55,876 Meghan Lynn... American Ideal $32,730...$32,730 Crazy Cute... Art Major $32,706...$33,906 American Marilyn... American Ideal $26,825...$32,145 Apple Tina K... American Ideal $20,025...$33,209 Boogie Roll... Roll With Joe $18,283...$37,733 Prescient Beauty... Art Major $17,933...$254,127 Sun Viser... Heston Blue Chip $16,320...$42,420 Who Can You Trust... Art Major $13,549...$13,549 She s Da Boom... Rock N Roll Heaven $12,195...$17,195 Eos N Rock... Rock N Roll Heaven $10,620...$15,866 Horses in bold are the champion of their division. *As of 11/1/18

27 2018 NEW YORK SIRE STAKES PROGRAM Sire Stakes - 2 Year Old Trotting Colts Horse Sire Starts NYSS Earnings 2018 Earnings* Gimpanzee... Chapter Seven $278,858...$591,358 Thunder... Conway Hall $208,071...$213,071 Our White Knight... Crazed $119,081...$143,079 Chip Chip Conway... Conway Hall $101,469...$103,719 Horns For Three... Credit Winner $82,906...$82,906 Cavill Hanover... Muscle Mass $67,193...$67,193 Chapter Fashion... Chapter Seven $66,791...$82,315 Brady Bunch... Muscle Mass $55,360...$109,697 JNR Express... Conway Hall $54,674...$54,674 Certify... Credit Winner $50,306...$50,996 Xcuseme... RC Royalty $32,670...$34,976 Captain Krupnik... Conway Hall $28,929...$30,228 Jake G s Champion... RC Royalty $22,872...$42,091 Keystone Cash... Chapter Seven $13,875...$20,462 Kredit Karma... Credit Winner $12,786...$25,758 Whimzical Chapter... Chapter Seven $11,900...$24,949 Winning Habit... Conway Hall $11,096...$28,395 Quiksilvr Bluechip... Credit Winner $10,917...$23,417 Bazillionaire... Muscle Mass $9,624...$35,874 Okay... Conway Hall $7,605...$7, ANNUAL REPORT 24 Sire Stakes - 2 Year Old Trotting Fillies Horse Sire Starts NYSS Earnings 2018 Earnings* Winndevie... Credit Winner $227,879...$227,879 Quincy Blue Chip... Chapter Seven $181,963...$181,963 Amal Hall... Credit Winner $124,104...$124,104 Woodside Charm... Chapter Seven $87,408...$521,658 Conway Kellyanne... Conway Hall $86,872...$127,996 Sensibility... Muscle Mass $75,861...$75,861 Safe Word... Credit Winner $62,070...$62,070 With Out A Doubt... Conway Hall $51,537...$51,537 Hanna Dreamgirl... Chapter Seven $46,515...$112,844 Sweet Chapter... Chapter Seven $40,535...$45,285 Hot Chapter... Chapter Seven $36,694...$36,694 Liquorstoreblues... Conway Hall $29,486...$38,335 Stella Jane... Crazed $23,266...$63,811 Exotic Diamond... RC Royalty $22,909...$27,859 Thanks For Leaving... Muscles Yankee $21,890...$34,338 Qiss Me Blue Chip... Chapter Seven $18,885...$18,885 Blue Prayer... Prayer I Am $17,995...$19,806 Gobi Princess... Muscle Mass $17,118...$17,118 Just Priceless... Muscles Yankee $13,375...$13,375 Jumalay Mass... Muscle Mass $13,000...$29,500 Horses in bold are the champion of their division. *As of 11/1/18

28 2018 ANNUAL REPORT NEW YORK SIRE STAKES PROGRAM Sire Stakes - 3 Year Old Pacing Colts Horse Sire Starts NYSS Earnings 2018 Earnings* Rockapelo... Rock N Roll Heaven $172,352...$211,852 My Delight... Betterthancheddar $119,052...$138,956 Rootin Tootin... Roll With Joe $104,952...$117,341 Ostro Hanover... Betterthancheddar $101,536...$134,156 Heavenly Sound... Rock N Roll Heaven $95,262...$161,017 Ghost Dance... American Ideal $86,061...$117,502 Springsteen... Rock N Roll Heaven $67,629...$356,389 Twin B Tuffenuff... Rock N Roll Heaven $65,535...$91,325 Courtly Choice... Art Major $63,675...$910,603 Trump Nation... Betterthancheddar $57,130...$238,896 Ideal Feeling... American Ideal $56,667...$109,591 Topville Olympian... American Ideal $56,405...$156,170 Lyons Steel... Rock N Roll Heaven $43,320...$73,078 Hitman Hill... American Ideal $39,550...$219,043 Keystone Tenacious... So Surreal $33,226...$75,333 Real Surreal... So Surreal $31,510...$100,071 Rock Lights... Rock N Roll Heaven $25,530...$54,510 Cheese Melt... Betterthancheddar $23,647...$43,504 Mach N Cheese... Betterthancheddar $22,555...$99,741 Jersey Jim... Artiscape $20,306...$44,818 Sire Stakes - 3 Year Old Pacing Fillies Horse Sire Starts NYSS Earnings 2018 Earnings* Wisdom Tree... Betterthancheddar $288,583...$436,111 Newsday... Art Major $138,818...$150,437 Pueblo Blue Chip... American Ideal $93,845...$96,970 Alexis Faith... American Ideal $91,628...$274,903 Ubettergo Go... Art Major $80,325...$86,512 Checkered Past... American Ideal $70,968...$121,849 Solitary... American Ideal $56,161...$157,632 Ms Cheesman... Betterthancheddar $55,165...$73,169 Jewels Forreal... So Surreal $51,879...$140,903 Line Dancer... Art Major $46,489...$119,629 Better Than Happy... Betterthancheddar $43,671...$65,049 Apothic... Art Major $42,501...$71,793 Tell Me A Joke... Art Major $37,112...$63,111 Betterthangraduate... Betterthancheddar $34,596...$47,759 Pelican Blue Chip... Rock N Roll Heaven $33,180...$54,929 Painted Lady... Art Major $26,353...$87,134 Kimberlee... Rock N Roll Heaven $26,117...$77,480 Presto Blue Chip... American Ideal $24,139...$50,171 Dance Blue... Rock N Roll Heaven $22,905...$272,600 Hurrikane Shorty... Art Major $21,906...$25,118 Horses in bold are the champion of their division. *As of 11/1/18

29 NEW YORK SIRE STAKES PROGRAM Sire Stakes - 3 Year Old Trotting Colts AS OF 11/1/18 Horse Sire Starts NYSS Earnings 2018 Earnings* Helpisontheway... Chapter Seven $262,437...$510,058 The Veteran... Muscle Mass $183,320...$259,371 Don... Credit Winner $102,553...$142,216 Purpose Blue Chip... Chapter Seven $99,930...$105,342 Perlucky... Lucky Chucky $96,783...$113,664 Winning Shadow... Credit Winner $91,735...$115,577 Cruising In Style... Muscle Mass $75,071...$93,592 Six Pack... Muscle Mass $63,675...$970,573 Clive Bigsby... Muscle Mass $61,285...$89,326 Im The Muscle... Muscle Mass $59,410...$103,851 Voss Volo... Credit Winner $53,004...$102,618 Yuge... Muscle Mass $44,885...$89,644 On The Ropes... Chapter Seven $43,136...$60,648 Lindsey s Pride... Credit Winner $29,927...$127,027 Tito... Muscle Mass $19,983...$50,936 Seven Iron... Chapter Seven $16,836...$53,123 Classichap... Chapter Seven $14,938...$130,067 Fourth Dimension... Chapter Seven $9,975...$11,785 Southwind Chrome... Chapter Seven $9,975...$76,087 Chasin Dreams... Credit Winner $9,201...$73, ANNUAL REPORT Sire Stakes - 3 Year Old Trotting Fillies AS OF 11/1/18 Horse Sire Starts NYSS Earnings 2018 Earnings* Plunge Blue Chip... Muscle Mass $189,112...$576,801 Lima Novelty... Chapter Seven $125,500...$184,206 Lucky Ava... Lucky Chucky $115,691...$187,581 Repentance... Chapter Seven $102,881...$209,421 Ciao Dolce... Credit Winner $94,263...$147,518 Tribute To Seven... Chapter Seven $88,972...$107,189 Fury Road... Muscle Mass $82,629...$99,051 Natalie Hanover... Chapter Seven $79,735...$104,671 White Cheetah... Muscle Mass $57,541...$73,165 Supergirl Riley... Muscle Mass $56,749...$284,739 Atlanta... Chapter Seven $50,950...$1,017,278 Mooshka Stride... Credit Winner $33,811...$60,591 Dew To Win... Deweycheatumnhowe $31,399...$37,848 Girl Talk... Credit Winner $28,847...$60,435 Perfect Summer K... Conway Hall $28,060...$92,812 Somedew Somedont... Deweycheatumnhowe $28,824...$49,233 Golden Muscle... Muscle Mass $24,261...$67,471 Jordan Blue Chip... Chapter Seven $24,229...$40,777 A Gift For You... Credit Winner $22,837...$84,694 Cherry Peep... Conway Hall $21,038...$34,657 Horses in bold are the champion of their division. *As of 11/1/18

30 2018 ANNUAL REPORT NEW YORK SIRE STAKES PROGRAM Excelsior - 2 Year Old Pacing Colts Horse Sire Starts NYSS Earnings 2018 Earnings* Cal... American Ideal $55,400...$56,440 Murrow Boy... Art Major $39,800...$39,800 Major Escape... Art Major $32,350...$32,350 Respect Our Flag... Roll With Joe $29,100...$29,100 Shim... American Ideal $23,700...$24,740 Chatelroll... Roll With Joe $19,950...$43,040 Alex Tye... American Ideal $17,250...$17,250 American Admiral... American Ideal $16,400...$18,330 Light Wind... Art Major $15,800...$15,800 Queenace Blue Chip... Art Major $13,500...$13,500 Excelsior - 2 Year Old Pacing Fillies Horse Sire Starts NYSS Earnings 2018 Earnings* Heavens Challenge... Rock N Roll Heaven $59,300...$60,395 Major Frost... Art Major $38,050...$38,943 Siesta Beach... American Ideal $34,050...$34,050 Sun Viser... Heston Blue Chip $26,100...$42,420 Hoopla Hanover... Roll With Joe $24,350...$24,350 Justabitofcharm... Heston Blue Chip $21,630...$21,630 Final Escape... Artiscape $20,900...$28,663 Dorothy s Legacy... Art Major $19,500...$21,293 Surreality... So Surreal $17,550...$83,361 Boogie Roll... Roll With Joe $16,200...$37,733 Excelsior - 2 Year Old Trotting Colts Horse Sire Starts NYSS Earnings 2018 Earnings* Labadee AS... Conway Hall $61,250...$61,250 Jason s Camden... Muscle Mass $55,750...$67,750 Lights Come On... Chapter Seven $29,100...$35,467 Bazillionaire... Muscle Mass $26,250...$35,874 Praying Angel... Prayer I Am $22,730...$22,730 Lucky June Bug... Lucky Chucky $21,750...$25,375 Design Winner... Credit Winner $13,879...$18,519 Halliama... Conway Hall $13,800...$13,800 Pushthebuttonmax... Muscle Mass $13,250...$17,045 Crazy Every Time... Crazed $13,050...$13,050 Excelsior - 2 Year Old Trotting Fillies Horse Sire Starts NYSS Earnings 2018 Earnings* Lifetime Credit... Credit Winner $65,000...$78,393 Song Chapter... Chapter Seven $43,700...$43,700 Global Pageant... Credit Winner $32,500...$82,675 Barn Tease... Muscles Yankee $26,000...$26,750 Royal Lady... Credit Winner $24,600...$26,364 Royalpine Princess... RC Royalty $21,625...$21,625 Dew Can Dew... Deweycheatumnhowe $20,100...$21,060 Barn Blaze... Muscle Mass $17,900...$20,112 Hotfoot Hannah... Chapter Seven $16,950...$20,700 Jumalay Mass... Muscle Mass $16,500...$29,500 Horses in bold are the champion of their division. *As of 11/1/18

31 NEW YORK SIRE STAKES PROGRAM Excelsior - 3 Year Old Pacing Colts Horse Sire Starts EX Earnings 2018 Earnings* Thor De Vie... So Surreal $61,250...$139,237 Imstaynalive... American Ideal $37,225...$73,017 Casual Cool... American Ideal $28,950...$55,036 Lets Roll... Roll With Joe $27,000...$47,540 Decision Day... Rock N Roll Heaven $24,200...$89,780 Rocksapatriot... Rockincam $22,350...$25,975 American Influence... American Ideal $16,500...$38,000 Major Sugar Rush... Art Major $15,000...$25,460 Major Offense... Art Major $13,800...$53,175 Damion Diesel Hahn... So Surreal $13,442...$34, ANNUAL REPORT Excelsior - 3 Year Old Pacing Fillies... Horse Sire Starts EX Earnings 2018 Earnings* Mink Pink... American Ideal $56,200...$93,990 Special Kay Deo... American Ideal $48,650...$65,150 Psychic Blue Chip... Art Major $42,650...$55,350 KJ s Justine... American Ideal $42,150...$84,708 Majorette Angie... Art Major $41,100...$75,347 Bullvillekarla... Bullville Powerful $31,200...$62,375 So Long Darling... So Surreal $30,050...$42,950 Surreal Feeling... So Surreal $23,700...$39,083 Pasta Blue Chip... Art Major $17,700...$26,433 Escape Again... Artiscape $16,800...$54,580 Excelsior - 3 Year Old Trotting Colts Horse Sire Starts EX Earnings 2018 Earnings* Nows The Moment... Credit Winner $42,500...$84,594 Troller... Muscle Mass $40,000...$46,495 Crime Fighter... Chapter Seven $35,300...$42,300 Lunar Credit... Credit Winner $33,900...$38,605 Alex The Great... Muscle Mass $27,900...$49,394 Seven Iron... Chapter Seven $27,200...$53,123 Hashtagmadeyalook... Chapter Seven $23,325...$98,722 Seven Knights... Chapter Seven $19,350...$45,458 Im the Muscle... Muscle Mass $18,750...$103,851 Massamillion... Muscle Mass $18,450...$37,998 Excelsior - 3 Year Old Trotting Fillies Horse Sire Starts EX Earnings 2018 Earnings* Michando... Muscle Mass $48,050...$68,755 A Gift For You... Credit Winner $45,000...$84,694 Ithinkthatsmine... RC Royalty $43,050...$162,280 Pittstop Emerald... RC Royalty $37,950...$47,403 The Russian Spy... Credit Winner $37,450...$54,700 Abbie Hall... Conway Hall $30,950...$36,950 Miss Muscle... Muscle Mass $25,700...$44,202 Sevenbuyeleven... Chapter Seven $24,600...$33,202 Lady MacBeth... Deweycheatumnhowe $16,050...$29,870 Eunice... Chapter Seven $15,450...$67,970 Horses in bold are the champion of their division. *As of 11/1/18

32 2018 ANNUAL REPORT NEW YORK SIRE STAKES PROGRAM County Fairs - 2 Year Old Pacing Colts Horse Sire Starts CF Earnings 2018 Earnings* Hot Seat... Heston Blue Chip $12,630...$13,677 Send A Note... Heston Blue Chip $8,515...$10,644 Tok... Roll With Joe $7,150...$11,302 High Far And Gone... Heston Blue Chip $6,085...$6,284 Hestons Lucky Chip... Heston Blue Chip $5,575...$11,323 HD Michelangelo... Artist s View $5,170...$5,170 Scott The Great... Heston Blue Chip $4,890...$18,117 Frankie Bagel... So Surreal $4,270...$4,270 Johnny Chimpo... So Surreal $3,730...$3,730 HD Lil Sweet... Artist s View $2,275...$2,275 County Fairs - 2 Year Old Pacing Fillies Horse Sire Starts CF Earnings 2018 Earnings* Lily Hammer... So Surreal $11,325...$12,185 Qing Qong Bluechip... Roll With Joe $10,830...$12,056 Dream On A Roll... Roll With Joe $4,797...$5,131 Beach Retti... So Surreal $4,496...$4,496 So Devilish... So Surreal $4,370...$4,370 Its Only Livie... So Surreal $4,320...$12,745 HD Selina... Budd For Life $4,260...$4,260 Dana Lee... Artist s View $4,140...$4,684 Somewhere So Faire... So Surreal $3,400...$7,042 Va Va Voom... So Surreal $3,088...$3,088 County Fairs - 2 Year Old Trotting Colts Horse Sire Starts CF Earnings 2018 Earnings* Hereyago... Muscle Mass $10,162...$10,162 Keep It Winston... Manningly $8,000...$8,345 Flyhawk El Fiero... Conway Hall $7,120...$10,237 Real Muscles... Muscle Mass $6,367...$6,367 Identity Disorder... Conway Hall $5,512...$8,592 Trooper Troy... Conway Hall $3,625...$3,969 Joesmakingmecrazy... Conway Hall $3,420...$3,619 Chuckling Chucky... Lucky Chucky $3,263...$3,783 Summer Chrome... Prayer I Am $2,997...$5,541 Natural Dewey... Deweycheatumnhowe $2,502...$3,549 County Fairs - 2 Year Old Trotting Fillies Horse Sire Starts CF Earnings 2018 Earnings* Golden Gypsy... Ulay Boko $10,362...$13,762 Psycho Cinderella... Crazed $8,532...$8,532 DW s Queen Bee... Conway Hall $7,555...$9,061 Touche Away... Crazed $5,428...$8,440 Backfield N Motion... Chapter Seven $4,951...$6,917 Big Town Dreams... Lucky Chucky $4,456...$5,272 Ladynhowe... Deweycheatumnhowe $4,291...$7,415 Behati... Deweycheatumnhowe $3,275...$4,141 Sparklin Lane... Conway Hall $2,885...$2,885 Pink Cotton... Lucky Chucky $2,094...$2,094 Horses in bold are the champion of their division. *As of 11/1/18

33 NEW YORK SIRE STAKES PROGRAM County Fairs - 3 Year Old Pacing Colts Horse Sire Starts CF Earnings 2018 Earnings* Super Roll... Roll With Joe $9,950...$19,445 Buckys Brat... Quik Pulse Mindale $9,512...$13,905 Precious Blue Chip... Rock N Roll Heaven $8,342...$14,471 Night Club Hanover... Rock N Roll Heaven $6,975...$17,485 Johnnysfirecracker... Panther Hanover $6,615...$18,250 Mower Sue So Fine... Beretta Hall $6,107...$6,107 Back To Motown... Art Major $5,508...$15,297 HD Fortuna... Cams Fortune $4,881...$8,057 HD Victor... Cams Fortune $3,297...$3,297 Northern Rein... American Ideal $2,959...$4,307 County Fairs - 3 Year Old Pacing Fillies Horse Sire Starts CF Earnings 2018 Earnings* Heaven s Diva... Rock N Roll Heaven $11,688...$22,568 Successful Outlook... Quik Pulse Mindale $10,512...$42,149 Golden Pip... Ashton Seelster $9,382...$9,382 American Darlin... Riverboat King $5,415...$6,041 Steuben Iron Lady... Passailed $5,228...$9,902 Sheezshirlyabeauty... Handsome Harry $4,254...$12,710 Dreams Panther... Panther Hanover $4,157...$4,699 HD Lolita... Cams Fortune $3,999...$3,999 Get Your Tan On... Art Major $2,788...$2,788 Casie s Believer... Betterthancheddar $2,750...$15,754 County Fairs - 3 Year Old Trotting Colts Horse Sire Starts CF Earnings 2018 Earnings* Michigan Ray... Conway Court $10,541...$33,026 Celebrity Comet... Celebrity Secret $9,687...$20,058 Royal Bahama... RC Royalty $6,190...$27,124 RC s Ready... RC Royalty $6,190...$15,922 O Riley... Deweycheatumnhowe $5,985...$14,084 Incoherent... Muscle Mass $5,470...$8,167 Galahad s Quest... Credit Winner $4,702...$27,731 Bet The Bank... Chapter Seven $4,622...$4,800 Partingoftheways... Celebrity Secret $3,810...$10,616 Yankee De Vie... Muscles Yankee $3,221...$18,969 County Fairs - 3 Year Old Trotting Fillies Horse Sire Starts CF Earnings 2018 Earnings* Good Luck Ginny... Lucky Chucky $10,615...$33,223 Magdalana Royalty... RC Royalty $7,925...$14,331 Signal Hill QT... Howd That Feel $7,794...$28,450 Money Dew... Deweycheatumnhowe $6,700...$22,750 Daleys Dream Dewey... Deweycheatumnhowe $5,477...$14,049 Hot All Over... Make It Hot $5,052...$7,500 Minne Cheatum... Deweycheatumnhowe $4,831...$31,423 Bullvilleprecious... Conway Hall $4,574...$20,634 Financial Impact... Muscle Mass $3,560...$15,487 L Dees Summertime... Credit Winner $3,013...$3, ANNUAL REPORT Horses in bold are the champion of their division. *As of 11/1/18

34 2018 ANNUAL REPORT 31 INDUSTRY COMMENTS I ve raced a lot of horses in a lot of jurisdictions and for a well-rounded and well-run program you can t ask for anywhere better than New York. The New York Sire Stakes has a program for everybody the tiers and balanced approach to racing is helping further develop our industry in the state. Mark Ford, Owner Goshen Yearling Sale The New York Sire Stakes program offers a lot The New York Sire Stakes has made great progress in promoting our sport and making it more convenient to take part in it. We have just wrapped-up a great season of racing. We are fortunate to have great horses in our races. I had the chance to drive some really solid colts and fillies. I hope the Sire Stakes continues to grow and make an even bigger impact on the sport. Batavia Downs Gaming is extremely proud and excited to have been selected to host the finals of the 2019 New York Sire Stakes as this series has annually been a centerpiece of our live racing presentation since its inception in Our track has been committed to the development of New York bred horses going back to the 1950 s when we facilitated our own colt and filly stakes. The New York Sire Stakes promotes the breeding of top-flight horses that compete at the highest levels of the sport throughout North America. But it also has a profound impact on the economic infrastructure of the state by providing good, full-time jobs for hundreds of trainers, drivers and grooms as well as ancillary commerce for accompanying industries like farming, transportation, veterinary and farriers. The NYSS reaches well beyond the realm of racing alone. Todd Haight Director/GM of Live Racing Batavia Downs Racetrack Tyler Buter Among the Top 10 drivers in the NYSS

35 INDUSTRY COMMENTS 2018 ANNUAL REPORT 32 Our family has been involved with horses at New York County Fairs for generations. Since I was a child, I was taught how to develop, care for and train winning horses. All my horses are Fair horses and we re always thrilled when one proves to be a competitor at the next level. Our family is proud to be part of the New York Sire Stakes. It s a great program that promotes a great industry. We take great pride in our involvement and look forward to an exciting future for the Sire Stakes and racing in the Empire State. Joseph Chindano, Sr County Fair Leading Trainer

36 2018 ANNUAL REPORT 2018 ANNUAL REPORT 33