This great benefit (slots at tracks) which the tracks are about to receive comes to them because of their involvement in racing as racetrack occupational licensees. The General Assembly and senior leadership has made it abundantly clear to the ITHA leadership that the intent of SB 744 is not to make a few racetrack operators wealthy, but ratherto increase revenue to the state and to enhance the racing, breeding, and agribusiness of Illinois .
Of the 13 states that currently conduct live horse racing associated with electronic gaming the benefit that occurs to the racing venue is clear: purses have increased two to three times the normal. The ITHA went to extraordinary measures to negotiate what we feel are among the highest rates in North America.
These significant rates that are based on a sliding scale derived from adjusted gross receipts combined with current purse levels and elimination of recapture, will enhance overnight purses, and insure a rebirth of Illinois’ floundering breeding industry.
SB 744 Statutory Language Regarding Horseman Rates from Electronic Gaming
"Amounts shall be paid to the purse account at the track at which the organization licensee is conducting racing equal to the following: 12.75% of annual adjusted gross receipts up to and including $75,000,000; 20% of annual adjusted gross receipts in excess of $75,000,000 but not exceeding $100,000,000; 26.5% of annual adjusted gross receipts in excess of $100,000,000 but not exceeding $125,000,000 and 20.5% of annual adjusted gross receipts in excess of $125,000,000."
As an example, if Hawthorne were to do an adjusted gross receipt of $125 million in a year, the purse account at Hawthorne would get more than $21 million for that year. If Arlington were to do an adjusted gross receipt of $200 million in a year, the purse account at Arlington would get more than $36.5 million for that year.
