Dispute over simulcasts comes to a head in Arizona

A scheduled hearing Thursday of the Arizona Racing Commission may well decide the long-term viability of live racing inside the state’s borders just weeks ahead of the opening day of the 2021 Turf Paradise season.

The main point of order in the meeting is to review a November decision keeping in place an agreement between the owners of Arizona Downs and the Monarch Content Management’s proposed simulcast order with Turf Paradise, which is slated to open for live racing on Monday, Jan. 4. 

For nearly a year, horseplayers in Arizona have been cut off from wagering on several major tracks after the Arizona Racing Commission ordered simulcast signals distributed by MCM, a subsidiary of The Stronach Group, to be blocked from tracks, off-track-betting facilities and advance-deposit wagering customers in the state.

This effectively meant that Santa Anita Park, Gulfstream Park, Golden Gate Fields and Laurel Park, all owned by TSG, were cut off from the horseplayers residing in Arizona.

Thursday’s meeting is aimed at putting an end to a nearly year-long stalemate as well as bringing back a full simulcast menu.

The issue surrounds a state law passed in 2019 requiring simulcast providers that send their races into Arizona to offer the products uniformly to all tracks and associated OTBs. In January, the Arizona Department of Gaming said that because of Monarch’s failure to comply, all signals into the state must be turned off.

Monarch then filed a lawsuit claiming the 2019 law is unconstitutional because it is pre-empted by the Interstate Horseracing Act of 1978, a federal law that covers simulcasting.

The lawsuit claimed the selling of signals to the Arizona Downs OTBs “would be deleterious to the business interest of Monarch, Laurel Park, and the other out-of-state-racetracks, as the location of Arizona Downs’ OTB sites would create dilution of the wagering product and depress the overall consumption of content.” 

Monarch had been distributing its signals to Turf Paradise in Phoenix and a network of nearly 60 OTBs but opted not to offer the same signals to seven such facilities operated by Arizona Downs.

Due to the lack of revenue earned from Arizona Downs-associated betting parlors, the Prescott Valley facility closed in 2019 after having previously been reopened that year.

During the past year, which has been a time of tumult for nearly everyone involved in racing in Arizona, there has also been a growing rift between horsemen and racetracks within the state.

In a series of exchanges last September between Turf Paradise management and the leaders of the Arizona Horsemen’s Benevolent and Protective Association, likely in response to the scheduled opening of the upcoming racing season, certain conditions were demanded by each side. 

Bob Hutton, president of the Arizona HBPA wrote, in part, “We offer you all we have to help make Turf Paradise the venue for racing it can be and once was.” Hutton went on to write that the condition of the facility and grounds “gives us pause as to the genuineness of your proposal.” 

Vince Francia, general manager of Turf Paradise, countered with a letter of his own, representing the facility, arguing that Hutton’s “personal feelings” toward (Turf Paradise owner Jerry) Simms and the track itself were “clouding his judgement” about the upcoming season. 

“The HBPA is to be neutral, treating all tracks equally, but Turf is treated differently,” Francia wrote. “When Arizona Downs abbreviated their race meet they continued to simulcast without racing live. When that track announced that it would not be able to conduct a meet because of concerns about the coronavirus, Arizona Downs, without objection from the (Arizona HBPA), maintained their simulcasting and OTB system. Why not the same for Turf?”

Francia hopes the Thursday meeting will put this story and this dispute to rest.

“(Racing) fans in Arizona are partial to these tracks,” Francia said this week. “Horses go back and forth between Gulfstream and Santa Anita, and they’re very popular signals, which we’d like to have.” 

Francia would not say how the rift between the president of the Arizona HBPA and executives of Turf Paradise could be repaired. 

“The commission will hear testimony from all sides, and hopefully bring this to a conclusion,” Francia said. “I don’t want to speak on the reactions or decisions of other people.”

Hutton, who is among those scheduled to speak at Thursday's meeting, hopes the simulcast dispute can be resolved and be a benefit for all involved.

“Bettors here would love to have the signals restored, but the question will be at who’s expense?” he said. “In all realities, we would have loved to have had a decision made before now.”

Hutton hopes that the meeting will establish better ties within the racing community with the new racing season right around the corner.

“The backstretch (at Turf Paradise) is going to be full this season,” Hutton said. “With full fields and great competition, the impact of this decision is going to be huge for them.”

The meeting scheduled for 10 a.m. MST (noon EST) will be streamed on the Arizona Department of Gaming website: https://gaming.az.gov/racing-commission-meeting-12102020.