Minutes of Public Meeting - April 9, 2025

In accordance with §3-302, General Provisions Article, Annotated Code of Maryland, the Maryland Racing Commission (“Commission” or “MRC”)) met in person and by the Google Meets platform in open session at 12:30 p.m. at Laurel Park in the Tycoons Lounge. Chairman George Mahoney took a roll call of the Commission members and confirmed that all were present, except Commissioner Shawn Wright. A quorum was present for the meeting.

Call to Order

Chairman Mahoney called the Commission to order at 12:30 PM.

Introduction of Commissioner Nicole Earle

Chairman Mahoney introduced Nicole Earle as a new Commissioner. Chairman Mahoney touched on Commissioner Earle’s background in finance and real estate. He noted that she has a deep commitment to community engagement. He concluded the introduction by saying he looks forward to working with Commissioner Earle and indicated that she will be a big asset to the Commission. Ms. Earle advised that she was looking forward to serving on the Commission.

Chairman Mahoney thanked Commissioner Zavian for her work on the New Commissioner On-Boarding kit, which will provide new Commissioners with a better understanding of what it takes to be a Commissioner.

APPROVAL OF March 4, 2025, MINUTES

The Commission waived a reading of the open minutes of its meeting on March 4, 2025. Chairman Mahoney asked for a motion to approve the minutes. Commissioner Lafferty made the motion. Commissioner Lillis seconded and the motion passed unanimously.

EXECUTIVE DIRECTOR REPORT

Executive Director Merz started his report by thanking Commissioner Earle for coming out to Laurel Park for training. She was able to meet Dr. Elizabeth Daniel, the MRC’s Equine Medical Director, the stewards and two investigators who work for the Commission. Commissioner Earle also joined Mr. Merz on a farm tour to MidAtlantic Horse Rescue. He thanked Beverly Strauss for her hospitality and Jessica Hammond for setting up the tour. He said the discussion focused on funding, aftercare exposure and rising costs. Mr. Merz stated that the next tour will be at Foxie G Farms on April 17.

Prior to the day’s Commission Meeting, Executive Director Merz advised that he participated in a Horse Industry Leadership Meeting. This meeting brought together all horse industry participants. Mr. Merz said the theme of the meeting was to work together and wipe the slate clean. The horse industry relies on everyone, and he noted that stakeholders need to work together to forge a better industry.

He continued his report by talking about the Maryland Horse Industry Board Health Advisory Committee meeting that took place on March 13. He said the topics discussed were a shortage of vets and possible solutions, money issues within the horse industry, infectious diseases among horses and other animals and changing the Board’s focus. He said the Board was originally put together to prevent the spread of infectious diseases in animals in Maryland. He said the Board felt they had accomplished that goal and the Board wanted to change its focus.

Mr. Merz directed the Commissioners to the racetrack audits that were provided in their packets. He told the Commissioners if they had any questions regarding the audits, to reach out to him.

He informed the Commissioners that a job was posted for Maryland Racing Commission Veternarians. He informed the Commission that he is looking to add three more veterinarians to the team and would keep the Commission updated on the progress.

Executive Director Merz said on Monday the MRC in conjunction with Rosecroft Raceway and The Maryland Jockey Club (TMJC) security team led by Major Singletary performed a stable area search of Rosecroft. Mr. Merz thanked Major Singletary and his team for their attention to detail, dedication and integrity during the search. He also thanked MRC Chief Investigator Dennis O’Neill and Investigator Enrique Jurado for putting the plan together and leading the search. Mr. Merz said a report is currently being prepared and will be given to the Commission once it is completed.

Executive Director Merz ended his report by asking the Commissioners to take a vote on the Preakness Bonus. The bonus is $500,000 to a Maryland Bred/Sired horse who wins the Preakness Stakes. Mr. Merz said this bonus is authorized under Section 11-403(b) of the Business Regulation Article. Chairman Mahoney asked for a motion to approve the bonus. Commissioner Lillis made the motion. Commissioner Zavian seconded and the motion passed unanimously.

OCEAN DOWNS 2025 RACING CALENDAR APPROVAL

Executive Director Merz informed the Commission that Ocean Downs requested to run 48 live racing days from May 25 to September 3rd, 2025. Post Time would be 6:40 PM on a Sunday, Monday, Wednesday basis in June and August and will run a Sunday-Wednesday schedule in July. Chairman Mahoney asked for a motion to approve the racing dates. Commissioner Lafferty made the motion. Commissioner Lillis seconded and the motion passed unanimously.

OCEAN DOWNS – RACING FACILITY REDEVELOPMENT ACCOUNT

Executive Director Merz informed the Commission that Ocean Downs was seeking Racetrack Facility Renewal Account reimbursement for 2024 Capital Improvements consistent with its Capital Improvement Plan. Mr. Merz told the Commission that the plan was approved in February of 2024 and the work had been completed and confirmed by an outside auditor contracted by the MRC.

Chairman Mahoney asked Mr. Merz if the auditors go into the field to see if the work was actually done or if pictures were provided. Mr. Merz said no. Chairman Mahoney said that it would be a good idea moving forward to physically observe these changes. Commission Wayson agreed with Chairman Mahoney. Commissioner Zavian asked if the vote could be held off until the May meeting to confirm that these improvements had been made. The vote was tabled until May.

Mr. Merz went on to say that also included was the Ocean Downs Capital Investment Plan for 2025. Mr. Merz said they were only voting to approve the plan and not specific capital improvements until reviewed by the auditors. Chairman Mahoney asked for a motion to approve the Ocean Downs Capital Investment Plan for 2025. Commissioner Lafferty made the motion. Commissioner Wayson seconded and the motion passed unanimously.

MARYLAND-BRED RACE FUND, STAKE AND BONUS OUT-OF-STATE REQUEST

Executive Director Merz said that there were three items that needed to be voted on regarding the Bred Fund. He said he would describe each item first.

Item 1: A bonus that is given to the Owners and Developers of Maryland Bred/Sired horses that run in Delaware and Virginia from July 4-August 17, 2025. Bonuses will be paid using funds coming out of the account for the Maryland Bred Fund.

Item 2: A bonus given to the breeder and stallion of Maryland Bred/Sired horses that race in Delaware and Virginia from July 4-August 17, 2025 Bonuses will be paid using funds coming out of the account for the Maryland Bred Fund. Mr. Merz said that bonuses can be paid for running horses out of state through an amendment to the Racing statute that happened in 2012, when cutting racing days was being threatened.

Item 3: A combined stake schedule that will have Maryland Bred and Sired and Virginia bred and Sired horses running together. The races run in Virginia will be paid out of the Virginia purse account. Races run in Maryland will be paid out of the Maryland Purse Account. This stake schedule is a one-year trial.

Commissioner Wayson made the request to Chairman Mahoney to have public testimony on these issues. Chairman Mahoney agreed and said for the sake of being time efficient, testimony would be limited to three minutes. Chairman Mahoney asked to take each item separately.

Executive Director Merz asked if there was any public testimony for Item 1. Hearing no one, Commissioner Zavian asked for historical context of what was being proposed. Mr. Merz said all items being asked for are being done for the first time. Commissioner Wayson said this would be for a one-year trial basis. Commissioner Zavian asked if other jurisdictions around the country do this. Mr. Merz confirmed that other jurisdictions offer out-of-state bonuses to support the breeding sectors of their industry. Hearing no other questions or testimony, Chairman Mahoney asked for a motion to approve the Owner and Developer Bonus. Commissioner Wayson made the motion. Commissioner Lillis seconded and the motion passed unanimously.

Mr. Merz continued to Item 2 and asked if there was any public testimony. Hearing no one, Chairman Mahoney asked for a motion to approve the Breeder and Stallion Bonus. Commissioner Wayson made the motion. Commissioner Lillis seconded and the motion passed unanimously.

Mr. Merz asked if there was any public testimony for Item 3. Trainer John Robb asked if someone will present the schedule. Mr. Merz said it had been through multiple boards including trainers, breeders and stakeholders.

Testimony: John Robb-Trainer: started his testimony by thanking the Commission for letting him speak. Mr. Robb said he is on the MTHA purse committee and got an email regarding the combined stake schedule and was surprised by it. Mr. Robb stated his wife is on the Breeders Board and she claimed to know nothing about Item 3. Mr. Robb claimed he asked the MTHA to have a meeting to explain the schedule and was told no explanation would be given since it had already been voted on by the MTHA Board. He said if the program was approved that the 3,000 members of the MTHA would be hearing about it for the first time. Mr. Robb urged the Commission to uphold their duties and appropriate the money in a more effective manner. Mr. Robb discussed the logistics and difficulties of getting to Virginia. He said there is a lot of misinformation out there and before the Commission votes, to consider everything.

Testimony: Katy Voss- President of the MTHA, Director of Maryland Horse Breeders Association (MHBA) and member of Maryland Bred Advisory Board. Ms. Voss stated that last fall they were told that a reduction of racing days would happen for the 2025 racing season. Discussions started happening with Delaware and Virginia on a possible collaboration of racing schedules. She said that over the past few years Maryland had been struggling to fill races because they had to run against Delaware and Virginia. Ms. Voss then went on to talk about the program and said that Maryland Bred/Sired horses would be running for $1.8 Million instead of $1.05 million. Virginia was putting in $750,000 of their own money. She ended her testimony by saying if there was no benefit to Maryland, the schedule would be revised.

Commissioner Wayson asked if the Maryland Bred Fund would be paying for any of these races. Mr. Merz said the bred fund could pay for out-of-state bonuses but not purse money for races. He explained the purse account was funding the stakes.

Commissioner Zavian asked Ms. Voss why there was no communication with members. Ms. Voss deferred the question to David Richardson, Executive Director of the MTHA. Mr. Richardson said they have open meetings. He went on to say that this plan has been going on for more than a year. The MTHA needed to come up with a creative plan to still support year around racing when live racing in Maryland was dark. He said attendance to their meetings are open, but attendance to the meetings are low at times. The MTHA acknowledged that their membership had not been notified of Item No. 3.

Testimony: Alan Foreman- Counsel for the MTHA: Mr. Foreman started his testimony by telling the Commission they have the right to vote against the proposal. Mr. Foreman said there was a mandate written by the Maryland Thoroughbred Racetrack Operating Authority to help the breeders. He went through how the idea came up. He talked about racing days being reduced by 20%. He went on to acknowledge the legal constraints on working on this schedule. He also acknowledged the lack of communication from the MTHA regarding this issue.

Commissioner Lillis asked when the last open MTHA meeting was. Mr. Foreman said it is on the website. Commissioner Lillis advised that he and Commissioner West walked the barn area, and they said the biggest complaint they heard was no one knows when or where meetings are held. Mr. Foreman then repeated if the Commission doesn’t like the program it can vote against it. Commissioner Lafferty said Mr. Robb indicated the schedule was already approved and posted. Mr. Robb then provided the documents to the Commission. Chairman Mahoney then asked someone from the MHBA to come up to speak.

Testimony: Cricket Goodall- Executive Director of the MHBA. Ms. Goodall introduced the Board’s President, Kent Murray. Ms. Goodall said they needed Commission approval, because the Commission has oversight over the Bred Fund. She went on to say that the bonuses need to be paid out to keep breeders and stallion owners a source of income during the summer hiatus. Commissioner Lillis asked if it gets 4-6 months in and if things aren’t going well, do they have to continue the program for the whole year? Ms. Goodall said they could reevaluate.

Mr. Robb asked to speak again and it was granted. He said it was explained to him that if they do not run these stakes on a combined schedule, they would not run them. He told the Commission that Maryland races 10 months a year and they could have found other places to run the races. Mr. Robb restated that if this is approved, people are going to find out about it with no prior knowledge of it. Commissioner Zavian asked if there were other ideas proposed and what type of effect would there be if this was tabled until May.

Mr. Richardson stated they had a discussion with Delaware about a program, but talks fell apart. He said tabling of the stake schedule is not viable and would need to be voted on so horsemen could plan. Commissioner Zavian asked if a one-month trial could be done and then reevaluate.

Testimony: Bill Knauf- General Manager of TMJC. He said that stakes are planned far out for recruiting purposes. Waiting to publish this schedule could be detrimental to the racing program. With this schedule, it will increase field size and handle.

Testimony: Justin Nixon-Trainer (Online). He said he supports the schedule. He said without this schedule there would be nowhere to run until Timonium. He opined that this is a positive step and to give it a chance to work.

Testimony: Gina Robb-Breeder on MHBA Board. She said she voted no in the breeders meeting on the plan. There was no newsletter or announcement about the schedule. Ms. Robb stated that she feels the MHBA Board does not speak for all breeders. She has her own plan called the Mid Atlantic Challenge. She is afraid this schedule will take away from small breeders.

Commissioner Lillis said this has been a very complicated issue and all members of the organization should have known about this. He said the MRC is trying to do what’s right and good for Maryland Racing. He said he was not pleased with the discord and encouraged stakeholders to be better communicators. Chairman Mahoney called for a Motion to approve the Stakes Schedule. Commissioner Lillis made a motion to approve the stake schedule. Commissioner Dr. Jennifer Wright seconds the motion. Executive Director Merz asked for a roll call vote. Commissioners Zavian, Laffety, and Earle voted to approve the motion; Commissioner Wayson and West voted against it.

The motion passed with five in favor and two against.

Chairman Mahoney made a statement to everyone that moving forward that everyone needs to be informed of changes of this nature and communication needs to be better.

ADOPTION OF NEW COMMISSIONER ON-BOARDING KIT

Executive Director Merz talked about the changes to the On-Boarding Kit that was brought to the Commission in February. Mr. Merz said the changes focused on what the Commission has oversight of and details about the Video Lottery Terminals and how they are used. Chairman Mahoney asked for a motion to approve the On-Boarding Kit. Commissioner Zavian made the motion. Commissioner Wayson seconded and the motion passed unanimously.

Commissioner Zavian asked Mr. Merz to review the packet every January to keep it updated. Commissioner Zavian also asked to have an update put on the September agenda regarding the On-Boarding kit.

ROSECROFT RACEWAY DATE AND POST TIME REQUEST

Executive Director Merz informed the Commission that Rosecroft Raceway made a request to add May 11th to the racing calendar to make-up for one of their two cancelations, with the other make-up day to be run in their fall meet. Chairman Mahoney asked for a motion to approve the race day. Commissioner Lafferty made the motion. Commissioner Wayson seconded and the motion passed unanimously.

Mr. Merz continued and said Rosecroft is requesting permission to move their closing day of Saturday, May 17 to Sunday, May 18, with a noon post time. Chairman Mahoney asked for a motion to approve the change. Commissioner Lafferty made the motion. Commissioner Wayson seconded and the motion passed unanimously.

LAUREL PARK SUMMER MEET RACE DATES APPROVAL

Executive Director Merz brought to the Commission’s attention The Maryland Jockey Club’s (TMJC) request for Laurel Park Summer meet race dates. He informed the Commission that the dates being requested were from May 19 to August 21, 2025. He also added the request also included Tuesday August 26, 2025. TMJC was requesting 18 days of live racing and 78 days of simulcasting. A Friday-Sunday schedule with first post at 12:10 will be used. Chairman Mahoney asked for a motion to approve the racing dates. Commissioner Lillis made the motion. Commissioner Wayson seconded and the motion passed unanimously.

Maryland Jockey Club REQUEST FOR HANDICAPPING TOURNAMENT

Executive Director Merz said the TMJC requested approval to have hybrid handicapping tournaments throughout the year. These tournaments will consist of both onsite wagering as well though various authorized account wagering platforms. The first contest will be held on Preakness Preview Day on Saturday, April 19, 2025. Chairman Mahoney asked for a motion to approve the Handicapping Tournament. Commissioner Wayson made the motion. Commissioner Lillis seconded and the motion passed unanimously.

ARABIAN RACE AND TRAINER BONUS REQUEST FOR PREAKNESS DAY

Executive Director Merz brought forward a request by 1/ST Racing to have the $150,000 UAE President Cup, a race exclusively for Arabian horses, to be run as the 14th race on Preakness Day. Mr. Merz explained that no money from the purse account would be used to fund the race. Chairman Mahoney asked for a motion to approve the race. Commissioner Wayson made the motion. Commissioner Lafferty seconded and the motion passed unanimously.

Mr. Merz described the trainer bonus that 1/St Racing would be funding for Black Eyed Susan and Preakness Day. The bonus being offered is $150,000. $100,000 of the bonus is for trainers participating in the stakes races and the other $50,000 is for trainers who participate in non-stakes races. Chairman Mahoney asked for a motion to approve the bonus. Commissioner Wayson made the motion. Commissioner Zavian seconded and the motion passed unanimously.

ROSECROFT RACEWAY UPDATE

Executive Director Merz called on Lisa Watts for a Rosecroft Raceway update. Ms. Watts thanked the MRC for participating in the racing integrity inspection that took place on Monday, April 7. She thanked the Commission for approving the race date changes. Ms. Watts said the track held an all-woman’s female driving race. She thanked Gina Maybee for putting it together. Ms. Watts also advised that Rosecroft is hosting an event to bring people to the races for the first time and give them an opportunity to be close to the horses.

THE MARYLAND JOCKEY CLUB UPDATE

Executive Director Merz called on Bill Knauf to give the Maryland Jockey Club Update. Mr. Knauf started his report by saying the operations are progressing well. He is working with Mike Rogers from 1/ST Racing on Preakness lead up and planning. Mr. Knauff advised that March has been a difficult month for racing. Barn 31 was quarantined for 21 days which took 131 horses out of the horse population. He also advised that moving of post time to 12:10 has been very positive and they are getting more handle in their first two races. He commented that the Commission approved Early Pick 5 carryover is going well. He also stated that Pimlico will open for training on April 14. Finally, Mr. Knauff said that on April 19, Laurel will host Preakness Preview Day, the turf course will open, and they are hosting a handicapping tournament.

EQUINE MEDICAL DIRECTOR REPORT

Equine Medical Director Dr. Elizabeth Daniel delivered the report. Dr. Daniel spoke about the Barn 31 quarantine and thanked the TMJC for being cooperative. In March, Dr. Daniel advised that there was a training fatality. On March 23rd two breakdowns occurred in Race 7 and Race 8.

Public Comment

April Smith- Ms. Smith of Friends of Pimlico said the stake barns at Pimlico need to be saved. She also said the grandstand needs to be saved as well. She concluded her comment by saying that the old Pimlico needs to be saved as much as possible.

Andy Cashman- Maryland State Fair. Mr. Cashman advised the following: The Fasig-Tipton sale will be May 19-20. Horses will be on the grounds at the beginning of May. The off-track betting area will have a new restaurant in April. A yearling show will take place at the end of June.

Commissioner Lillis mentioned that a racetrack reunion will be taking place Sunday, April 13, 2025. Everyone should attend who working in racing.

Having no other public comment, Chairman Mahoney asked for a motion to end the meeting. Commissioner Wayson made the motion, Commissioner Lafferty seconded, and the motion passed unanimously. The meeting came to an end at approximately 2:00 PM.

/s/ George P. Mahoney, Jr.      

Chairman