Michigan Gaming Control Board issues purse pool executive orders

The Michigan Gaming Control Board issued a pair of executive orders Friday addressing the status of the state’s Thoroughbred simulcast purse pool while a live meet still hangs in the balance for 2011.

The orders freeze distributions from the Thoroughbred simulcast purse pool account and place the funds in escrow until a Thoroughbred race meeting license is issued.

Gaming Board executive director Richard Kalm also issued a series of comments and reiterations in the same document to discuss the current state of the purse pool, who controls it and exactly how the funds are supposed to be used according to the Michigan Horse Racing Act of 1995.

Among the key points stated by Kalm in the order, he noted that, “at this time, excluding a mixed breed race meeting licensee, there is no race meeting licensee in the State of Michigan approved to conduct a full schedule of  thoroughbred horse racing.”

The mixed breed licensee referred to in the above statement is Mount Pleasant Meadows in central Michigan. Whether or not the state’s three harness tracks can apply for the Thoroughbred meet in the future was not clearly stated in the document.

Kalm also pointed out that the purse pool money is to be used solely for purses and administrative costs. Unauthorized use of the monies, including operating expenses, loans and obligations to maintain a race meeting, would be met with stiff penalties.

To read the Gaming Control Board’s executive orders, click here.


Filed under Politics

10 responses to “Michigan Gaming Control Board issues purse pool executive orders

  1. Carol Cook

    Only one Executive Order came up from your link. Can we get access to the second one?

  2. June

    So what this order says is Pinnacle (or any other track) can no longer take monies from the purse pool for their expenses. That means Pinnacle will never re-open. I also got from this order that MHBPA is no longer entitled to their “administrative expenses” from purses. I thought that for a long time as the racing law states they must have a current contract with a track licensee, and they don’t. At least purse monies will continued to be earned and escrowed for awhile. We can only hope that Hazel Park decides to race some flat races next summer. I think all is lost for 2011.

  3. mibredclaimer

    The way I interpreted the language, “administrative expenses” meant oversight from the state. In the past, the HBPA has taken money from the purse pool to pay for the stewards, drug tests, etc. without issue, and the executive order makes it sound like that is still fine. However, with no live racing, there is nothing to regulate, so the HBPA doesn’t need to draw from the pool to pay those costs.

    What I think they don’t want to see is licensees using the purse pool money to pay the light bill, general upkeep or use for whatever purposes the licensee sees fit – “operational costs” as opposed to “administrative costs”.

    It’s like a college scholarship. You can use the money for tuition or books, but not for stereos or beer.

  4. June

    I don’t think that’s what they are referring to here. The law allows for a specific percentage of the purse pool to be paid to certified horsemen’s organizations that have a contract with a licensed racetrack. If you read the order, specifically in the order it says neither Pinnacle or MHPBA have any claim to the purse monies, meaning to me that neither can be paid from it at this time. Why would the MHBP continue to be paid their “fee” when they no longer have a contract with a licensed racetrack? The best they could hope for would be if their monies were escrowed also. Why would they be addressing paying Gaming Oversight when the thoroughbreds have no race meet and no need of oversight at a track? No, I think they are addressing the law as it was written to accomodate taken illegally by Pinnacle from horsemen’s purses and monies that the HBPAS can no longer legally collect.

  5. Old Time Race Fan

    It is a sad state of affairs. Does this mean that MPM won’t be putting on any of the Michigan bred stakes at all this year?

  6. mibredclaimer

    Well, it looks like the Gaming Control Board is having its monthly meeting today, so perhaps that question will be answered shortly.

  7. Old Time Race Fan

    By the way Joe, nice article on Mr. Mast. It is too bad it has to happen, but you can understand why he has shifted South to Indiana.

  8. MPM may not be running this year.

    They are having a meeting today with Walter Bay. His time is up. He has to show this MGCB today if he can meet the conditions of his license.

    Two HBPA board members took it upon themselves to go to the MGCB about running there when they then found out that he hadn’t yet met the conditions of the license.

    We don”t want my imput, the truth might drive people away. You can thank the HBPA state of affairs on James Jackson who made the motion to send the MGCB a letter of non-support of PRC, when they never had to give them a letter of SUPPORT to begin with.

    I don’t believe Campbell had any intention of opening in 2011. How could he, Huron Twp. seized the building for non payment of taxes.

    He lost a lawsuit to the tune of $486,000.00 + fees with the kitchen management company he had hired so they put a lien on the building.


    Have second link but it now will not come up with info. But I copied it when it did come up.

    May 14, 2009

    Sodexo Management, Inc. v. Post It Stables Hospitality, LLC
    Track this case

    Parties »
    Dockets Events »
    Case Number:
    Michigan Eastern
    Nature of Suit:
    Contract: Other
    Cause 28:1332 Diversity-Breach of Contract

    Stephen J. Murphy, III
    Dickinson Wright
    April 18, 2011 00:00

    Document: 16
    STIPULATED ORDER OF FINAL JUDGMENT in favor of plaintiff against defendant in the amount of $ 486,000.00, plus post-judgment interest and attorney fees. Signed by District Judge Stephen J. Murphy, III. (NHol)

    But the HBPA gave him an excuse to throw in the license so he could blame everybody but himself.

    They are all fools and have lost their minds. I Have more truth but I’ll stop here.

  9. Walter Bay asked for an extension to meet the conditions of his license for MPM. New date: July 5th.

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