NEWS
CHRB chairman calls for end to ADW exclusivity
Posted: Monday, October 01, 2007 4:33 PM
The California Horse Racing Board plans to look into ways to allow bettors to wager on any California racetrack from any account wagering deposit provider.
The CHRB began the process Thursday as Chairman Richard Shapiro said the current setup, in which multiple ADW providers are required to wager on all of California’s tracks, is unpopular with players.
“I believe it is time for this board to step up and do something for our fans and do something for our industry,” Shapiro said on Thursday at the board’s monthly meeting at Arcadia City Hall. “We need to decide how we can get to the point where everybody can make wagers on any race no matter which platform they use.”
Currently some ADW providers have exclusive contracts for wagering and broadcasting content at racetracks, which prevents other ADW services from accepting wagers on races at those exclusive racetracks and from showing those races to their customers. The CHRB is focusing only on the practice of exclusivity for wagering purposes. There is no plan to alter any broadcasting rights.
The licenses will expire at the end of this year for all three ADW providers currently operating in California: Television Games Network, XpressBet, and YouBet.com. The board soon will consider new license applications effective January 1, 2008, including a fourth account wagering service in TwinSpires.com.
The existing law authorizing account wagering in California contains a sunset provision that would halt account wagering in California at the end of this year. The California Legislature has passed a bill to allow ADW and it is pending action from Governor Arnold Schwarzenegger. The Board authorized Shapiro to write the governor in support of the bill.
Shapiro cited numerous sections of the Business and Professions Code giving the CHRB responsibility for “providing for maximum expansion of horse racing opportunities in the public interest,” and granting the CHRB “all powers necessary and proper to enable it to carry out fully and effectually the purposes,” of the Horse Racing Law.
“It is time to grow our business and use every possible vehicle and means to do that,” Shapiro said. “Let’s get everybody in the room to figure out how we can achieve our goals, to determine what the conditions of licensure should be, so that we can advise the ADW companies what they need to submit in their applications by telling them what conditions we are looking for.”
A CHRB subcommittee will be formed to meet with the stakeholders to determine the best way to effectuate new conditions of licensure in this state.
Other chairmen said the current ADW system frustrates potential fans.
“There is a lot of confusion in the betting public over not being able to make particular wagers,” Commissioner John Amerman said. “It would be nice to get it to where all wagering companies offer the wagers, and let the marketplace dictate how the results come out.”
Commissioner Jerry Moss agreed.
“It’s crazy to hurt our business by having these exclusives. Let’s make it easier to enjoy the product we’re putting out there,” Moss said.
In other business:
* The board approved the racing calendar for 2008 and will continue considering the calendars for ‘09 and ‘10 in a continuing effort to put a three-year calendar in place.
The Southern California Thoroughbred and fair circuit will begin December 26, 2007, at Santa Anita Park through April 20, 2008, and then continue at Hollywood Park (April 23 through July 13) followed by meets at Del Mar (July 16 through September 3), Fairplex Park (September 5-22), Oak Tree at Santa Anita (September 24 through October 26), and finally Hollywood Park (October 29 through December 21).
The Northern California circuit will begin December 26 and run through February 3 at Golden Gate Fields, followed by meets at Bay Meadows (February 6 through May 11), back to Golden Gate (May 14 through June 22), Pleasanton (June 25 through July 6), Vallejo (July 9-20), Santa Rosa (July 23 through August 4), Bay Meadows, the San Mateo County Fair (August 6-18), Ferndale (August 7-17), Sacramento, the State Fair (August 20 through September 1), Stockton (September 3-14), Fresno (October 1-13), and finally back to Golden Gate (September 17 through December 21).
The Board approved the calendar for Northern California after receiving assurances that Terry Fancher, head of the Bay Meadows Land Company, had expressed his intention to keep the San Mateo track open for stabling through the end of the year, subject only to safety considerations should demolition of the grandstand begin as part of the company’s plan to develop the property.
* The board adopted regulatory amendments making relatively minor technical changes to amendments previously approved in April establishing strict penalty guidelines for medication violations and related drug classifications that apply to all licensees, including trainers, horse owners, and veterinarians. The newly amended regulations, which still must be reviewed by other state authorities, are expected to go into effect within 90 days.
* The board approved a conflict of interest and ethics code that largely reflects policies that have been in place since 1981, formally establishing standards applicable to all gubernatorial appointees, including CHRB members. The racing commissioners attended a training session in June that included sections on conflict of interest and ethics.
* The board approved the license for Pacific Racing Association to conduct a Thoroughbred race meet at Golden Gate Fields from November 7 through December 22.
