by Don Clippinger

The Thoroughbred Horsemen’s Group, representing 18 horse owners’ groups in negotiations with advance-deposit wagering companies, has secured its first contract, and it covers a sizable piece of all wagering in the United States.

Bob Reeves, president of the Thoroughbred Horsemen’s Group, revealed Friday at the National Horsemen’s Benevolent and Protective Association summer meeting in Hershey, Pennsylvania, that an accord was reached earlier this year with the six New York off-track betting corporations.

The contract, negotiated through the New York City Off-Track Betting Corp. acting as agent for the other regional OTBs, was approved by the New York State Racing and Wagering Board on May 30, he said.

Reeves, who has been at the forefront of efforts to obtain a greater share of ADW wagering for horse owners, said the deal will increase contributions to purses by 50% over two years on interstate wagers. In addition, a licensing fee will be paid to the Thoroughbred Horsemen’s Group.

The owners’ negotiating agent is seeking a one-third contribution to purses on all ADW wagers, and currently is locked in negotiations with Churchill Downs Inc., owner of Churchill Downs in Kentucky and Calder Race Course in Florida. Among other tracks, the Thoroughbred Horsemen’s Group also is in talks with Presque Isle Downs in Pennsylvania, Magna Entertainment Corp.-owned Lone Star Park in Texas, and Harrah’s Louisiana Downs.

Reeves said the agreement with the New York OTBs was not disclosed earlier because the Thoroughbred Horsemen’s Group did not want to create additional turmoil at New York City OTB, which is in the process of being taken over by the state following a threatened shutdown in June.

He declined to reveal specific percentages that will go into purses from interstate wagers, but “we were very upfront that they have to go to the new model eventually. We gave them a lot of flexibility,” he said.

Reeves said his organization has shown considerable flexibility toward the ADW providers, including TrackNet Media, which is owned by Churchill Downs Inc. and Magna.

“We’ve been willing to talk about a phase-in,” he said.

He said reaching accord on the ADW wagering was crucial to owners and the sport as a whole. From nothing in 1996, ADW wagering grew to $1.5-billion last year, or approximately 10% of total wagering handle.

“Someone said you better get on this before it gets too big,” Reeves said. “I think it is big.”

Don Clippinger is editorial director of Thoroughbred Times