Michigan Gaming Control Board issues statement on Mount Pleasant Meadows

From the Michigan HBPA website…

MGCB ISSUES DECISION TO YESTERDAY’S ATTENDEES, rec’d at 4:19pm July 15, 2011:

“Gentlemen,

Based upon our discussion yesterday, there exist some outstanding matters that need resolution prior to any live racing at Mt. Pleasant Meadows.

Foremost, as discussed, the outstanding breakage needs to be paid and all aspects of the race meet application that require modification need to be amended, including details of capital improvements as discussed in our meeting.

The legality of the use of the purse pool to fund track operations was brought up last year by the HBPA and the MGCB was asked to look into the matter. In doing so, the advice from the Attorney General’s office was that purse pool funds could not be used for track operations, thus the purse pool order was issued earlier this year. Additionally, audits of the purse pool were conducted to further identify its usage.

Based upon review and internal discussion of the information from yesterday’s meeting and contracts recently provided between the associations and the track, the contracts denote that the purse pool remains to be used to fund operations through the use of assessments. Although this may have been prior practice by the tracks, it is by no way an “industry standard” and based upon advise from the Attorney General’s office we cannot find it to be a viable use of the purse pool funds. The track must find alternative methods to fund operations outside of deriving money from the purse pool, even if indirectly through a horsemen’s account. The MGCB is not opposed to the use of fees prior to a race, such as a starter fee, which are not derived from the purse pool.

Until the aforementioned information is addressed and we are provided contracts which adhere to the racing act and purse pool order, live racing cannot commerce at Mt. Pleasant Meadows.”

Thank You
Erik Pedersen, Deputy Director
Division of Horse Racing, Audit & Gaming Technology

With a week to go before Mount Pleasant’s scheduled opening day, and just days before the races draw, this is not promising news. One can only hope the situation is promptly rectified and racing in Michigan can finally get off the ground as planned.

UPDATE: The Michigan HBPA has put out a response to the Gaming Control Board’s ruling…

MT PLEASANT MEADOWS: Efforts are currently underway to address and comply with ALL request made in Erik Pedersen’s letter.

The MI-HBPA, GLQHA and MPM are amending contracts to meet requirements to permit entries to be taken Tues. and continue for plans for opening day Saturday July 23, 2011. A meeting is scheduled for Sat. and the MGCB will be available as the process continues.

Information will be updated ASAP.

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1 Comment

Filed under Mount Pleasant Meadows, Politics

One response to “Michigan Gaming Control Board issues statement on Mount Pleasant Meadows

  1. And the HBPA already knew this before they concocted this so-called contract with MPM with their financial troubles. I sent this email on July 6 to the HBPA.

    So in 2011 we are playing MPM Savior?
    At what cost?

    They had no money last year and requested cancellation of Live Racing.

    http://www.michigan.gov/documents/mgcb/2010_07_26_Order_to_Cancel_Racing_at_MPM_on_080810_3_328796_7.pdf

    In the matter of:

    CANCELLATION OF LIVE RACING AT

    MOUNT PLEASANT MEADOWS ON

    AUGUST 8, 2010

    ORDER AUTHORIZING THE CANCELLATION OF LIVE RACING

    AT MOUNT PLEASANT MEADOWS ON SUNDAY, AUGUST 8, 2010

    Oil Capital Race Venture, Inc., a/k/a Mount Pleasant Meadows requested the approval of the Executive Director of the Michigan Gaming Control Board to cancel live racing on Sunday, August 8, 2010.

    The reason for the cancelation of live racing on August 8, 2010 is due to the loss of the Michigan Bred Funds.

    The Executive Director received concurrence from the Great Lakes Quarter Horse Association as to the cancelation request.

    The Executive Director has determined that the cancelation is in the best interest of Michigan racing.

    IT IS ORDERED that the request made by Mount Pleasant Meadows to cancel the live racing scheduled on Sunday, August 8, 2010, is granted.

    IT IS SO ORDERED.

    Dated: July 26, 2010

    Richard S. Kalm, Executive Director Michigan Gaming Control Board

    http://www.michigan.gov/documents/mgcb/2010-11-01_Order_Mt_Pleasant_Meadows_2011_Race_Mtg_License_337530_7.pdf

    2) The Executive Director hereby allocates to Oil Capital Ventues, Inc., d//a Mount

    Pleasant Meadows, the following mixed breed horse racing dates in 2011 on which live horse racing shall be conducted by the licensee during the term of its 2011 Mixed breed Race Meeting license:

    A total of 23 Mixed Breed race dates, from Saturday, May 14, 2011 through Sunday, August 21, 2011; One day per week, Saturdays, from

    Saturday, May 14, 2011 through Saturday, June 4, 2011; Two days per week, Saturdays and Sundays, from Saturday, June 11, 2011 through Sunday, August 21, 2011; with the following exceptions: No racing on August 7, August 13, and August 14, 2011.

    http://www.michigan.gov/documents/mgcb/2011-02-22_Horsemens_Simulcast_Purse_Pool_2011_Distribution_Order_346292_7.pdf

    Excerpt:

    3. IT is FURTHER ORDERED that if a race meeting licensee does not receive an interstate and/or intertrack simulcast signal, and does not contribute to the Horsemen’s Simulcast Purse Pool, then the related certified horsemen’s organization shall not withdraw or distribute funds from the simulcast purse pool accounts.

    4. IT is FURTHER ORDERED that the HBPA, MHHA, and GLQHA shall at their own expense provide each 2011 race meeting licensee and the Michigan Gaming Control Board with either continuous computer on-line account summaries or written monthly statements from PNC Bank listing all transfers that have been made to and from the Horsemen’s Simulcast Purse Pool accounts. Such account summaries or statements shall include the following information:

    (a) the name of each depositor
    (b) the date and amount of each deposit
    (c) the date and amount of each transfer

    5. IT is FURTHER ORDERED that, effective January i, 2011, pursuant to Rule 431.2061, the HBPA and GLQHA shall receive from the 1.5 percent of deposits to the horsemen’s simulcast purse pool for thoroughbred (running horse flat racing) certified horsemen’s organizations, the following amount to use for general expenses: Horsemen’s Benevolent and Protective Association 1.3309% of total deposits

    Great Lakes Quarter Horse Association o. i 691 % of total deposits

    6. IT is FURTHER ORDERED that, effective January 1, 2011, pursuant to Rule431.2061, the MHHA shall receive from the 1.5 percent of deposits to the horsemen’s simulcast purse pool for standardbred certified horseman’s organizations, the following amount to use for general expenses: Michigan Harness Horsemen’s Association 1.5 % of total deposits

    7. IT is FURTHER ORDERED that under the act and the administrative rules, the only authorized distributions from the horsemen’s simulcast purse pools are to pay prizes for horse races and limited general expenses.

    ” The act does not authorize distributions to pay for race meeting licensee obligations, race meeting licensee debt obligations, or racetrack operational expenses “.

    8. IT is FURTHER ORDERED that failure to abide by the requirements of the act, administrative rules, or the provisions of this order may result in sanctions including, but not limited to, revocation or suspension of a license, exclusion from racetrack grounds, or a fine of up to $25,000 for each violation of the act or administrative rule promulgated under the act. Additionally, improper withdrawals will be required to be refunded to the Purse Pool Account(s).

    IT is SO ORDERED

    Dated: February 22,2011 ..:!’£. ..”1.. ~

    ~~~~~~~~

    In reality all this was ORDERED by Richard Kalm in Feb. 2011.

    But Kalm in stating precise wording of this document. HBPA hands are tied from running anywhere. No longer can you fund Pinnacle in the future through pools. So how can you spend money on MPM? And for how many Thoroughbred Days?

    MGCB gave them 23 days in total for mixed breed.

    End
    _________________________

    So they already knew all this. They all saw the June Order that basically said the same as Feb.

    I have no idea what planet the HBPA are on. The MPM facebook page talk of Dates, Times, Posters, Ready for some racing?

    Delusional and as far as I’m concerned the one HBPA board member who is also a AQHA member needs to stop this leading the cheerleading squad to nowhere.

    One thing to be hopeful but when you outright mislead and jump the gun before you knew what the final word would be is downright disheartening.

    I knew this would be a No Go and how did I know this? Because I can read and comprehend what I read. Certain members of the HBPA are so busy living in la la land they don’t have time to read ORDERS let alone understand the wording of them.

    I feel sorry for all but they refuse to listen. They continue on their mistake after mistake route and it hurts no one but themselves.

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