ORC Letterhead - Ontario Racing Commission

Ontario
Racing
Commission
Office of the Chair
Commission
des courses
de l’Ontario
Bureau de président
Suite 400
10 Carlson Court
Toronto, Ontario
M9W 6L2
Tel 416 213-0520
Fax 416 213-7827
Bureau 400
10 Carlson Court
Toronto (Ontario)
M9W 6L2
Tél 416 213-0520
Téléc 416 213-7827
December 19, 2006
Notice to the Industry
From: Rod Seiling
Chair
Re:
2007 Race Date Applications
Flamboro Downs
Windsor Raceway
The Governing Board of the Commission met on Friday, December 15, 2006 to consider the
issue of the approval of race dates, simulcast dates and Backstretch Improvement Plans for
2007 for Flamboro Downs and Windsor Raceway. The Commission had before it the
applications as well as correspondence from the Ontario Harness Horse Association (OHHA).
The following is the outcome of the Governing Board’s deliberations.
Application for Flamboro Downs from Great Canadian Gaming Corporation
The new application dated December 7, 2006 was considered by the Commission at its meeting
of December 15, 2006. The Commission had hoped that subsequent to its ruling of November
28, 2006, which did approve the requested post time but did not approve the “substantial”
reduction in live race dates from 258 to 208 as requested by the track owner Great Canadian
Gaming, that the OHHA and Flamboro Downs could have reached an agreement as to the
number of live race dates for 2007. This did not occur.
Therefore the Commission was left with the question of determining the optimal level of live race
dates for Flamboro Downs that are in the best interests of the public and for the business of
horse racing.
The Commission reviewed the information supplied by both Flamboro Downs and the OHHA
with respect to the new December 7, 2006 race date application. Upon this review and a further
review of the information supplied to it with respect to the November 13, 2006 Flamboro Downs
race date public hearing, the Commission was of the view that no new material information had
been provided related to the issues.
Therefore, it was the opinion of the Commission that another public hearing would not be
required.

Notice to the Industry - 2007 Race Dates
December 19, 2006 Page 2
The Commission continues to be of the opinion that it is not in the public interest nor in the best
interests of the horse racing industry to approve the substantial decrease in live race dates as
Flamboro Downs has been seeking in the original application. It does, however, recognize the
large decreases in business the track has experienced on its live and simulcast products and
that a corrective response is required.
The track and its horsepeople need to develop a willingness to work together for the best
interests of the public and the horse racing industry. What are the appropriate responses and
how to implement them are, in the view of the Commission, best addressed by utilizing the
considerable talents available in that market. The appropriate number of live race dates is an
obvious starting point.
There are numerous challenges facing the horse racing industry today. Some of these
challenges the industry has no control over, but others it does. The Commission urges the
industry to focus their considerable energy and business acumen on how best to identify and
successfully implement the winning strategies that will turn these challenges into opportunities.
Both sides come to the issue of the appropriate level of live race dates from a different
economic perspective, as noted in the November 28, 2006 decision. However, they both have a
mutual economic interest. More wagering customers at Flamboro Downs live racing and more
customers wagering on Flamboro Downs’ simulcast product, full fields of horses in a race, larger
purses, are all inter-related to the economic success of both the racetrack, the horsepeople and
the industry in general.
The Commission is disappointed that the operator of Flamboro Downs, Great Canadian Gaming
Corporation, has not provided material evidence as to how it plans to implement “winning”
strategies to reverse the declines in its live racing and simulcast product other than a post time
change. Controlling the amount of product in the market and reducing costs via reduced live
race dates alone is not the answer in the view of the Commission, although they may be a part
of it.
The Commission is also disappointed in the OHHA with its insistence to the need to race the
same number of live race dates in 2007 as 2006.
There also exist opinions of knowledgeable observers of the horse racing industry “that there is
too much racing”. The question before the Commission and for the industry by extension is what
is the optimal number of live race dates that the current economic model can support?
The Commission had before it an application from Flamboro Downs for 220 live race dates and
364 simulcast days, an increase of 12 live race dates from its previous application.
The OHHA continued with its previous position that Flamboro Downs should be required to
operate 258 live race days, similar to its schedule in 2006.
The Commission also had before it a recommendation from the ORC Administration to approve
225 live days of racing and 364 days of simulcast. The Administration was of the view that an
increase of 5 days in August was warranted and that with the 2 year olds then, the supply of
racehorses would not be an issue at that time.
After carefully considering all the matters provided to it, the Commission accepted the
recommendation of the Administration and approves 225 live days of racing and a simulcast

Notice to the Industry - 2007 Race Dates
December 19, 2006 Page 3
schedule of 364 days for Flamboro Downs for 2007. In making this decision the Commission
notes that Flamboro Downs will continue to host more days of standardbred racing than any
other track in the Province of Ontario.
Decreasing live race dates is not the panacea in and of itself as previously noted. The
Commission is of the view that there may be some merit in the proposed circuit concept
Flamboro management has referenced as it relates to Georgian Downs and their respective
product offerings.
In approving these 2007 race dates, the Commission requests the ORC Administration, as part
of its licensing process, to require Flamboro Downs management to provide a detailed strategic
marketing plan with the tactics. Further the track will establish benchmarks so that it will be able
to report on a regular basis as to the success of the plan with the benchmarks to include but not
to be limited to attendance, wagering on live racing and simulcast product, size of purses and
size of fields.
Application for Windsor Raceway from Windsor Raceway Inc.
The new race date application dated December 14, 2006 was considered by the Commission at
its meeting of December 15, 2006. The Commission had preferred that subsequent to its ruling
dated November 28, 2006 that Windsor Raceway and the OHHA would have been able to reach
a consensus as to the optimal number of live race dates for the Windsor market.
The Commission reviewed the material supplied to it in the new December 14, 2006 application
as well as the information contained in the previous application that had been turned down. It
also reviewed the response received from the OHHA dated December 15, 2006, the response
from the OHHA legal counsel, Mr. Arlen Sternberg dated December 15, 2006, plus the
information on file from them plus other horsepeople from the October 26, 2006 public hearing.
After review, the Commission was in full agreement with Mr. Sternberg’s comment contained in
his email that “If Windsor is trying to forward some new evidence (which it does not appear it is)
then the hearing should be reconvened so that OHHA (and anyone else) can have a fair
opportunity to respond and be heard”. Since Windsor did not bring forward new information the
Commission was of the opinion that the new Windsor Raceway 2007 race date application did
not contain any new material evidence, a public hearing would not be required.
The horse racing industry continues to operate in an ever-increasing competitive market. Some
of the competitive aspects the industry has no control over but there are others that it does and
it is in these areas the industry must focus its collective good will to identify solutions and
implement them.
Identifying the optimum level of live race dates by those operating in the market and most
familiar with the situation should, in the view of the Commission be a good starting point. With a
mutuality of interest of doing what is best for the public and for the industry, it seems both sides
should be able to find consensus.
The Commission continues to be of the view that just reducing live race dates is not the sole
solution to the turnaround for Windsor Raceway. It recognizes the significant negative impacts
that the raceway has had to deal with such as border issues, non-smoking legislation, and

Notice to the Industry - 2007 Race Dates
December 19, 2006 Page 4
competition in an ever-increasingly crowded market for customers in the gaming field to name
just some.
The negative impacts from the decline of slot revenues at Windsor Raceway are troubling. Their
impact on purse levels is significant in affecting the track’s ability to attract quality horses that
the public is prepared to wager on. Customer acceptance of the Windsor product both live and
simulcast has decreased and both require corrective action. The Commission rejects the
suggestion that the events at Windsor Raceway represent a failure of the slot program.
The Commission is aware of a proposal from Windsor Raceway to the OHHA requesting a
dialogue on purse pooling between the three tracks with common ownership, Windsor, Dresden
and Woodstock. OHHA’s reluctance to eagerly engage in such discussions as a potential
strategic initiative to help address the Windsor issues is disheartening to the Commission.
However, the Commission continues to be troubled by the continuing apparent decline of
Windsor Raceway as a desirable entertainment venue. This aspect of the business must be
addressed, as it is vital to returning Windsor Raceway to its prominent role in the Windsor
entertainment market.
The perceived lack of focus on customer service has to become a priority for improvement for
Windsor Raceway management. It is accepted fact in today’s highly competitive entertainment
marketplace that customers demand and expect a certain level of service and amenities. The
business and the industry cannot wait for the opening of Icetrack for improvements in these key
areas.
Icetrack appears to be an exciting concept and the Commission wishes Windsor Raceway Inc.
and its backers well in its speedy development. However, work must be done now to ensure
there is a healthy fan base and horse racing industry in place when it opens.
In addition to the apparent lack of appeal by the public of the physical plant and its service
levels, the customer has indicated a lack of interest in its simulcast offerings as well. This would
seem to point out a relationship to the perceived quality of the product. Support for this
perception was supplied by the track on page 3 of its December 14, 2006 application. The
Commission also notes the negative impacts on Windsor Raceway purses from the ongoing
decline in revenues from the slot program and the relationship between purse levels and
perceived quality of the race product.
The Commission was disappointed that Windsor Raceway did not provide a business plan that
addressed areas such as customer service, marketing and capital improvements. These
elements are essential to any meaningful turnaround strategy in the view of the Commission.
Reducing costs and controlling product availability will not do it on a stand-alone basis.
The Commission reviewed the information provide to it by Windsor Raceway in its December
14, 2006 race date application as well as the information contained in its September 15, 2006
application. The Commission also reviewed the information supplied to it by the OHHA including
its December 15, 2006 letter and its communication dated October 13, 2006 regarding
submission for 2007 race date applications, as well as the information provided during the public
hearing of October 26, 2006.
Windsor Raceway’s new date application was for 111 days of live racing and a simulcast
schedule of 364 days. The new application represented an increase of 11 days of live racing
from its rejected September 14, 2006 application.

Notice to the Industry - 2007 Race Dates
December 19, 2006 Page 5
The OHHA communications requested the Commission to require Windsor “to apply for and
race the racing schedule from 2006 of about 139 live race dates”.
The ORC Administration provided the Commission a recommendation to approve the 111 days
of live racing and a simulcast schedule of 364 days.
After careful consideration of the information provided to it, the Commission agreed to accept
the Administration’s recommendation and therefore approves the Windsor Raceway 2007 race
date application of 111 days of live racing and a simulcast schedule of 364 days.
The Commission, in reaching this decision, notes it is a further decrease in live racing
opportunities for horsepeople and it is a concern. However, the decrease occurs in the summer
time when other area tracks like Dresden, Woodstock and Hiawatha are operating. As well,
Michigan horsepeople traditionally remain in the United States during the summer months
thereby reducing the pressures on the “entry” box for Ontario horsepeople in this market.
Returning Windsor to a fall/winter/spring operation returns the track to its traditional operating
months in its heyday.
The 2007 schedule put forward by Windsor is directly related to the amount of money available
for purses. By not racing in the summer months Windsor will not have to compete for horses at
this time, an important consideration since the Sunday business has seen meaningful
decreases. It will also enable the Windsor purse account to replenish itself so that it can offer
higher purses when the track re-opens for live racing in October. It is expected that this new
schedule will provide the means for the return of the Windsor Raceway product to the calibre its
fans locally and in the simulcast markets will wager on, thereby stimulating growth in both
attendance, handle and purses.
The Commission agrees with the ORC Administration “that the request for the reduction has not
been accompanied by a more public declaration of the company, showing where it intends to
invest in the racing product to ensure growth”. The slot program, as referenced previously was
and is for the enhancement of horse racing. Clearly, in the view of the Commission, the
promotion of the product would be included in any definition.
Therefore, the Commission requests the Administration, as part of its licensing process for
Windsor Raceway to require management of the racetrack to provide a strategic marketing plan
with tactics, customer service initiatives and capital improvements for the physical plant. Further
the track will establish benchmarks so that it will be able to report on a regular basis as to the
success of the plan with the benchmarks to include such things as attendance, handle on both
live racing and simulcast product, customer service satisfaction levels, purse levels and size of
fields.
Original signed
Rod Seiling
Chair
December 19, 2006