IN THE MATTER OF THE RACING COMMISSION ACT, [S.O. 2000, c. 20](https://www.canlii.org/en/on/laws/stat/so-2000-c-20/latest/so-2000-c-20.html);

AND IN THE MATTER OF 2004 LIVE AND INTERTRACK RACE DATES

On October 9, 2003, Chair Lynda Tanaka, Vice-Chair Larry Todd, and Commissioners Patricia Bullock, Bernard Brennan and Brenda Walker convened to hear the applications.

Executive Director Jean Major, Legal Counsel Don Bourgeois and Manager of Information Services Wendy Hoogeveen appeared for the Administration.

The Ontario Racing Commission, after hearing the submissions from the applicants and the parties to the hearings, approved the following:

Live Race Dates

Thoroughbred Dates

Woodbine Racetrack 167

Fort Erie Racetrack 117

Quarter Horse Dates

Picov Downs Racetrack 30

Standardbred Dates

Woodbine Racetrack 150

Mohawk Raceway 111

Flamboro Downs Raceway 260

Windsor Raceway 153

Georgian Downs Raceway 103

Kawartha Downs 106

Sudbury Downs 66

Grand River Raceway 50

Hanover Raceway 31

Quinte Exhibition and Raceway 26

Dresden Raceway 21

Intertrack Race Dates

Woodbine Racetrack 364

Fort Erie Racetrack 364

Picov Downs 30

Mohawk Raceway 364

Flamboro Downs Raceway 364

Windsor Raceway 364

Georgian Downs Raceway 364

Kawartha Downs 364

Sudbury Downs 364

Grand River Raceway 364

Hanover Raceway 364

Quinte Exhibition and Raceway 364

Dresden Raceway 364

All post times were approved as applied for.

Calendars of the approved Live Dates form an attachment to the ruling. A complete calendar for all tracks is available upon request.

Dated at Toronto this 17^th^ day of October, 2003.

BY ORDER OF THE COMMISSION

_____________________________

Jean Major

Executive Director

On October 9, the representatives of the race associations appeared before the full Commission to speak to the approval of Live Race Dates, Intertrack Race Dates and Off Track Wagering Dates at teletheatres for both domestic and foreign product for 2004. Implicit in the granting of dates is the renewal of a racetrack’s existing teletheatre licenses. In order to utilize race dates each track will require renewal of its Racetrack Licence. This function is performed by the Director of the Commission pursuant to the provisions of the Racing Commission Act, 2000. Representatives of the Horsemen’s Benevolent and Protective Association (HBPA) and the Ontario Harness Horse Association (OHHA) were also present, as were representatives of the Canadian Pari-Mutuel Association (CPMA). The applicants provided information useful to the Commission covering such items as simulcast issues and their backstretch improvement plans in their presentations. Following on the representations we are indicating approval of some of the race dates but as noted below because of the materials filed by OHHA and their representations on the Rideau Carleton application, we are unable at this time to approve all the dates.

Where the application is approved, the HBPA or OHHA respectively indicated their support on the application and we have not noted that support in the disposition of each application.

We note that the benchmark system has proven to be a useful tool to measure success, or otherwise, and to frame the debate on options for going forward.

The physical plant of the tracks with respect to the facilities for the public, the backstretch and the track surface are matters of concern to the Commission. We recognize, in terms of track improvements, the initiative that has resulted in the retainer of Mr. Rick Cowan by the Administration. Many of our concerns as to track conditions were not the focus of the discussion at the hearing because we knew this initiative was underway and will in all likelihood have an impact on future track improvement. We expect that initiative will be reflected in the applications for 2005. We note particularly the actions of some tracks recently to undertake work this fall to improve the racing surface.

We approve the following applications as presented in the materials filed:

Thoroughbred

1. The application of Woodbine Entertainment Group for 167 days as requested and all Intertrack Race Dates and Off Track Wagering Dates at teletheatres as requested is approved. The post times are 12:55 p.m., except 6:45 p.m. on Wednesdays, but we note the debate as to the Thursday and Wednesday post times which is to be worked out in the next two months with HBPA. The parties are to advise the Commission of any change as soon as possible. It was agreed that small fields are inappropriate and do not encourage wagering. We direct Woodbine to address the small fields that are acknowledged to be hurting the handle on live racing in a proactive way and to report to the Executive Director on June 30, 2004 on those efforts and the extent of any progress, and to the Commission as part of the race date application in 2005.

2. The application of Nordic Gaming Corporation for the Fort Erie track for 117 Live Race Dates as requested and all Intertrack Race Dates and Off Track Wagering Dates at teletheatres as requested is approved. The post time is 1:05 pm but, after the conversion from daylight savings time in the fall of 2004, the post time will be 12:10 p.m. In terms of the considerable backstretch improvements required, we note particularly that the backstretch road work identified is to be completed at the earliest opportunity and must be completed in early 2004.

Quarterhorse

The application of Picov Downs Inc. for 30 Live Race Dates and the Post Time as requested and all 30 Intertrack Race dates as requested is approved. We note that the horsemen's association sent a letter agreeing to the dates and post times. The Off Track Wagering Dates at Teletheatres in Ajax, Pickering and Whitby is also approved as requested. This is done provided the betting permit issued for these teletheatres remains in the name of the Woodbine Entertainment Group which also received our approval for these dates, and that an Agreement between the WEG and Picov to operate these teletheatres remains in effect through 2004.

Standardbred

1. The application of Woodbine Entertainment Group for 261 days of live racing at Woodbine and Mohawk at the post times as requested and all Intertrack Race Dates and Off Track Wagering Dates at teletheatres as requested is approved.

2. The application by MacRanald Enterprises Inc. for Sudbury Downs for 66 live race dates at the Post Times as requested and all Intertrack Race Dates and Off Track Wagering Dates at Teletheatres as requested is approved. We note that no representative of the Northern Horsemen's Association was present and no letter supporting or opposing the application was filed on its behalf.

3. The application of Kawartha Downs Raceway for 106 Live Race Dates and Post Times as requested and all Off Track Wagering Dates at teletheatres as requested is approved on the condition that the track provide a detailed marketing plan by December 1, 2003, satisfactory to the Administration. In the event that the Administration is not satisfied with the marketing plan or the plan is not filed then the Commission will reconvene to deal with the matter. We note that the materials filed with us had a 7:30 p.m. post time and that that was corrected orally to a 7:20 p.m. post time. Further, starting on June 1, the track will be racing on Tuesdays at 4:00 p.m. rather than 7:20 p.m.

4. The application of the Belleville Agricultural Society for the Quinte Exhibition and Raceway for 26 Live Race Dates and Post Times as requested and all Intertrack Wagering Dates as requested is approved. We note that the race date application is essentially unresponsive to issues that have been important to the Commission, specifically back stretch improvements and marketing plans. This is the last year of racing at this facility and is to be a transition year to a new facility. The Commission was advised last year that the new facility would be available for 2004 race dates and it is not. We are concerned that the existing facilities present real issues for the safety of the horse and human population racing there. This race date application is only acceptable for a year as an interim measure. If the new facility is not ready for the 2005 season, then next year's race date application will have to deal in a proactive way with improvements to the existing race facility and the backstretch. We are not to be taken in any way to be constraining the discretion of the Commission or the Administration in the 2004 season to make appropriate orders to deal with health and safety issues at the existing facility, should such issues come to the fore in the course of the season. The track is to report to the Executive Director no later that March 31^st^, 2004 and then on a monthly basis at a minimum, in writing, as to progress on the move to new facilities.

5. The application of Flamboro Downs Holdings Limited for Flamboro Downs Raceway for 260 Live Race Dates and Post Times as requested and all Intertrack Race Dates and Off Track Wagering Dates at teletheatres as requested is approved, subject to the condition that the track advise the Executive Director of the capital improvements referred to in the application that receive corporate approval as referenced in the material. If the Administration is not satisfied with the extent of that plan, then the matter can be brought back before the Commission to deal with.

6. The application of Georgian Downs Limited for Georgian Downs Raceway for 103 Live Race Dates and Post Times as requested and all Intertrack Race Dates and Off Track Wagering Dates at teletheatres as requested is approved. We congratulate the track on the success of the second full season at the new location. We urge the track to increase the use of the new facilities by pursuing opportunities for additional race dates. These race dates provide further opportunities for the betting public to attend at the track for the races, additional racing opportunities for the horses, and the potential to increase the handle. We do, however, recognize that an appropriate balance must be struck between the need to provide appropriate racing opportunities without incurring costs that are disproportionate to the incremental increase in the handle.

7. The application of the Woolwich Agricultural Society for the Grand River Raceway for 50 Live Race Dates and Post Times as requested and all Intertrack Race Dates and Off Track Wagering Dates at Teletheatres as requested is approved. We encourage the track to look at further race dates for 2005 with the benefits noted above in our discussion of the Georgian Downs application. We are confident that the management of this track will prove to be a credit to the community in which it is now to be located.

8. The application of Hanover Bentinck & Brant Agricultural Society for Hanover Raceway for 31 Live Race Dates and Post Times as requested and all Intertrack Race Dates as requested is approved. We note that the matter of the available cameras and the sufficiency of the camera coverage for use by the judges is an issue that is not yet resolved. It is vital to the integrity of the sport that we ensure that the judges have sufficient camera coverage to be able to properly assess the conduct of the race. The Commission will deal with this outside the ambit of this order.

9. The application of Windsor Raceway Inc. for Windsor Raceway for 153 Live Race Dates and Post times as requested and all Intertrack Race Dates and Off Track Wagering Dates at teletheatres as requested is approved, but with the condition that the track is to provide to the Administration deadlines for completion of backstretch and other improvements as noted in the application as soon as possible. Specifically the Drivers’ Room needs to be completed in 2003.

10. The application of Winrac Development Inc. for Dresden Raceway for 21 Live Race Dates and Post times as requested and all Intertrack Race Dates as requested is approved. We note that paddock improvements are required and are regarded by this Commission as very important. These improvements should not be delayed.

Hiawatha Raceway, Clinton Raceway, Woodstock Raceway and Western Fair

With respect to the race date applications for Hiawatha Raceway, Clinton Raceway, Woodstock Raceway and Western Fair, a presentation was made by Mr. John Walzak on behalf of OHHA. He requested significant increases in the live race dates for each track to allow greater opportunities for the membership to race as well as a much broader policy debate with respect to the pari-mutuel system in Ontario and perceived inadequacies.

Unfortunately Mr. Walzak did not circulate the written submission he filed to the tracks or to any of the other parties or the Commission, despite the obvious issues of notice and the interrelationships of the race date schedule, especially for the purposes of simulcast. The race associations requested an opportunity to review the material filed.

We therefore order OHHA to circulate a copy of the written material filed to all the parties who were given notice of the race date hearing. The parties are requested to provide their comments to the Executive Director by the 15^th^ of November, 2003 so that the Commission can consider what order it should make. The parties should feel free to address issues such as any further procedure that might be appropriate to deal with the OHHA submission to facilitate further discussion. Further we invite the parties to bring forward any submissions on the specifics of the track race date applications as presented or as proposed by OHHA to be altered. Given the broad nature of the matters raised by OHHA, the parties may believe that there are other issues that are raised by the discussion paper, including, for instance the impact of Ontario Sires Stakes on racing opportunities, etc..

With respect to Hiawatha Horse Park, the application was for 63 live race dates and a full Intertrack Schedule. At the hearing we were advised that if Hiawatha is to be carried on the WEG simulcast, the only time is on Tuesdays, a day the track had not applied for. If the track decides to race on Tuesdays then there may be an increase in the live race dates in any event simply by virtue of the process of that amendment. It may be that OHHA's goal of additional racing opportunities may be accomplished in that way. We therefore require that Hiawatha advise the Administration by October 29 as to whether or not it wishes to amend the application to respond to WEG and the simulcast schedule so that the matter can be dealt with at the Commission meeting this month. We do not wish to engage in a practice of frequent or substantial amendments to race dates in the course of the year.

The Commission will defer the approval of the race dates as applied for by Hiawatha, Clinton, Woodstock and Western Fair until it has the opportunity to review the submissions made in response to this order. Since the submission of OHHA is to add and not to delete any of the race dates applied for, it is open to the Commission to approve the applications as presented as a minimum, pending further discussion on the OHHA submission. The only reason we are not issuing that order at this time is because of the lack of circulation to all the parties and the desire not to limit the discussion. This process also permits the specific tracks and OHHA to discuss the matters to attempt to achieve agreement at this time so as to avoid later major amendments to race dates already approved.

The process followed by Mr. Walzak meant that all the parties went through an even longer hearing than was originally scheduled. The Commission members were deprived of the opportunity to consider the OHHA submissions prior to the hearing, as is the normal practice, and other parties were taken by surprise. We do encourage industry participants to engage in thoughtful co-operative consideration of issues of importance, noting that the industry on its own can accomplish much without engaging the regulatory power of the Commission. Appropriate notice is required and should be the norm for any future submissions of this nature.

The Rideau Carleton application:

Rideau Carleton Raceway Holdings Limited has applied for 131 live race dates and a full Intertrack Schedule. Again OHHA provided both oral and a significant volume of written material which had not previously been made available to the Commission members requesting that the track provide additional racing opportunities in the winter months. On that basis, the application of Rideau Carleton Raceway Holdings Limited for Rideau Carlton Raceway is deferred and will be dealt with separately with the intent that separate reasons will issue, once we have had a chance to consider the significant volume of material that was filed in the course of the hearing.

Again we note that it would be more effective and efficient if parties would provide to the Administration the briefs that they intend to refer to in advance of the hearing date so that the Commissioners and the other parties can be prepared to deal with the issues. The process followed in this case meant that the Commissioners were not able to read, and therefore could not ask questions based on their reading of, the substantial volume of material. Significant hearing time was taken to go through items that otherwise could have been read in preparation outside the hearing room. In addition, the process used created a confrontational environment that was unnecessary and created difficulties for all concerned that could have largely been avoided. The Commission expects parties to be mindful of their obligations to assist the Commission and to make disclosure in advance of the hearing.

Fire Safety Plans

The Commission required that each applicant provide details of the Fire Safety Plans in wake of the renewed awareness of fire issues as a result of recent events. Except as noted above, the plans are accepted. We urge the tracks to implement appropriate improvements as the opportunity or need may present.

Customer Benefits

All applicants were required to submit annual proposals for the expenditure of available funds under this program. Except as noted above, the Commission accepts the proposals.

Backstretch Improvement Plans

Applicants are required to submit a Backstretch Improvement Plan for 2004 and a statement of the improvements completed in 2003. In this decision the Commission has noted concerns and imposed conditions. The Commission with those conditions accepts the plans as filed.

In closing, we wish to thank all parties who attended the Race Date Hearing and those who provided extensive written material.

Dated this 17^th^ day of October, 2003

Lynda Tanaka

Chair