Live Racing

  • Class 1 tracks – to operate VLT’s, must offer, for TB and QH, the greater of number of live race days conducted for each breed in 2002, or 50 live race days for each breed (TB & QH)
  • Equals 205 TB days, 150 QH days per year
  • Class 2 tracks – to operate VLT’s, must offer, for TB and QH, the greater of number of live race days conducted for each breed in 2002, or 25 live race days for each breed (TB & QH)
  • Equals 150 TB days and 150 QH days
  • Class 3 – same as now

Revenue Distribution

  • Net Terminal Income (NTI) – earnings after payout to VLT players
  • 30% NTI to state
  • 12% NTI to Texas horse industry
  • 58% NTI to track

Track Funding Obligations

  • Track – max. 0.5% for capital improvements to racetrack which is matched by horse industry
  • Track – min. $1,000,000 accident insurance coverage for jockeys
  • Track License Fees
  • Requires initial application fees from racetracks;
  • $25 million for Class 1 tracks
  • $15 million for Class 2,3 tracks
  • $15 million for greyhound tracks
  • Total for all 13 tracks – $225 Million dollars
  • Payable Sept 1, 2011

Horse Industry Revenues

  • 11% of the 12% to racehorse industry thru a Texas Equine Development Fund (TEDF), for racing
  • 1% of the 12% to performance horse industry thru a Performance Horse Development Fund (PHDF), for non-racing

Texas Equine Development Fund (racing)

Where does the 11% go?

  • Max. 0.5% to capital improvements of tracks (matched by racetracks)
  • 0.025% to equine research in Texas
  • 65% of remainder to Horsemen’s organizations
  • 35% of remainder to state breed registries

Uses of TEDF

  • Purses
  • Texas-bred incentive programs
  • Other programs considered beneficial to the equine industry, including
    • Equine retirement/retraining/adoption
    • Improved drug testing and testing research
    • Other programs to improve the working environment in stable areas
    • Others ??

Performance Horse Development Fund (non-racing)

  • 1% NTI from each horse racetrack (10)
  • Total revenues in PHDF divided
    • 40% to American Quarter Horse Association
    • 20% to American Paint Horse Association
    • 20% to National Cutting Horse Association
    • 20% to Texas Department of Agriculture (TDA)

Uses of AQHA / APHA / NCHA funds:

Money from the Performance Horse Development Fund (PHDF) may be spent only for the development of the horse agriculture industry in this state through efforts intended to attract, retain, promote and encourage the breeding, raising, training, and exhibition of performance and recreational horses in this state.
Racehorses are ineligible for these funds
Examples of uses of AQHA / APHA / NCHA funds:

  • Added money to events
  • “Texas-Bred” breeding incentive programs
  • Marketing and promotion of performance or recreational events and activities in Texas
  • Scholarship programs
  • These Assn’s can craft their own programs within the parameters of the legislation to maximize the benefits of the PHDF as they deem appropriate

Performance Horse Development Fund – Texas Dept of Agriculture

Uses of Texas Dept of Agriculture funds

  • Cannot be used for events or activities being funded by AQHA / APHA / NCHA
  • Programs to be developed by TDA; they have openly asked for advice and assistance from the horse industry
  • Funds can potentially impact all 254 counties in Texas

Proposed VLT/Slot Machine Locations

Posted by | Categories: Quick Links |

Share with others

Get all the news you need to know delivered straight to your e-mail. Sign up now!