Stuart S. Janney III:

Thank you very much, Meghan. It’s tremendous what this campaign and the NTRA have accomplished for Thoroughbred racing over the last year, and I’m proud that we’ve been part of it. California is an important state. We all know it. We all know it’s challenged. It’s important for breeding. It’s important for racing. Important for handle. Gary Fenton, who is a member and just elected steward of The Jockey Club, is going to tell us where California racing is, where it’s headed. Gary.

Gary Fenton:

Thank you, Mr. Chairman. It is an honor to sit here today and discuss the greatest place to race a Thoroughbred — Southern California. I am grateful for the opportunity to be in this industry and fully aware of what it does for me and my family. Sitting in my role as the chairman of the Thoroughbred Owners of California, my fellow board members and I never lose sight that we are motivated to serve our constituents. We report to them and that always keeps one grounded. I appreciate this role every day and will for as long as I have it.

This industry is a wheel, and to keep it turning we must always engage vigorously, but after the battle, shake hands and walk off the field together. We share one common goal: to maintain and grow our vibrant industry. We cannot do it alone. Our customers see us as one industry, not individual states, owners, trainers, or jockeys. As the saying goes, no one is bigger than the game. We are all stewards.

The state I reside in, California, is a major part of the horse racing brand. Iconic racetracks such as Santa Anita Park and Del Mar have been part of the horse racing landscape coming up on 100 years. Del Mar, where we sit today, was built by Bing Crosby, who at the time was like Taylor Swift, the biggest star in the world. Stories of Bing bringing his Hollywood friends such as Desi Arnaz, Lucille Ball, W.C. Fields, and Ava Gardner, to Del Mar to frolic in the summer sun are legendary. Most of you probably don’t know, but we start at 2:00 PM in honor of Bing who once asked his racing team if they could start later so the boys could get in a round of golf. Of course, everyone knew the real reason was that some of the biggest stars in the world were out into the early hours of the morning and couldn’t get up to make a noon post.

Through Bing’s weekly radio show, which he broadcast right from this racetrack, Del Mar became a household name, but Bing wasn’t done. He also wanted Del Mar to be part of the American racing landscape. He bought Ligaroti to match race against Seabiscuit in 1938, and later seeing too much controversy with three stewards standing over the finish line trying to determine who won a close race, hired a cameraman from Paramount Pictures to invent the first ever photo finished camera.

Just up the road, Santa Anita Park with its mountainous backdrop has its own legendary history hosting more Breeders’ Cups than any other racetrack. In fact, starting with the first Breeders’ Cup at Hollywood Park, which I attended, through next year, California will have hosted 18 of the first 42 Breeders’ Cups more than any other state, including 10 of the last 14. Recently, the California product exported throughout America continues to be at the top levels of racing. California has produced six of the last 13 Kentucky Derby winners who all prepped in California for not one, but three separate trainers. And in September we’ll invest again in the future of our sport by unveiling California Crown Day at Santa Anita Park, which hopefully becomes the next big marquee day.

Celebrities and sports figures still attend the races regularly. Just recently, both NHL Star and horse owner Erik Johnson and the Golden State Warriors coach Steve Kerr celebrated their time with the Stanley Cup and Larry O’Brien trophy on the very same day at Del Mar.

But it isn’t the decades of iconic horse racing moments that sticks out most in my mind. What I’m most proud of was the responsive leaders, stakeholders, and our horsemen and women after 2019. You’ll hear from Dr. Benson in a minute, but thanks in part to her efforts and that of the Stronach Group team, the California response to the 2019 incidents at Santa Anita created more effective safety reforms than any other stretch in American horse racing history, and it is clear from America’s reaction to 2019 that we badly needed it.

I was fortunate to be in the room when Dr. Benson, Aidan Butler, and Belinda Stronach laid out the initial and ambitious plan. Trainers do a tremendous job on the back stretch, but 20 eyes on a horse are better than two. The detailed plan crafted by California and carried out with the support of stakeholders and horsemen laid the blueprint for helping get HISA over the goal line. And here we are, five years later, with historic declines in fatalities. It has never been safer to race in California, and we did it with dirt tracks.

Economically, California is a major engine in the US ecosystem. Nearly 25% of all US handle is derived from California horse players or bet on California product. Up to 20% of the Keeneland Yearling sales is derived from California buyers, and, equally, we carry a big stick with Fasig-Tipton. Kentucky breeders are exporters and California horse owners are importers, the biggest state outside Kentucky and Florida. Can you imagine these sales without California’s biggest owners like an SF Bloodstock or Kosta Hronis?

Out here, we maintain the 3,500 horse population, and we do it on our own island, and with just income derived from wagering. California receives no ancillary subsidy like HHR or slots, and we divide that income in two. Whatever is bet in the north, stays in the north which up until last month consisted of Golden Gate Fields and the CARF summer fair circuit. This amounts to $25 million in purses. The south generates about $85 million in purses. The generation is based on handle on our own brand and handle derived from California gamblers betting on the rest of the country. We are all connected.

What’s striking about the numbers? The results are obtained notwithstanding the competitive imbalance. California is certainly outkicking its coverage. The handle on our product ranks second in the nation only behind New York. How much more successful do you think premium brands like Santa Anita or Del Mar would be with subsidies? The incremental increases would carry forward and dramatically increase the bottom line of every sector of American racing.

While our island has its limitations, we also afford many attractive opportunities, like the ability to run on turf all year long. In fact, 45% of our races in Southern California are carded on turf, and thanks to the exceptional annual weather, over 96% stay on turf. Del Mar summer generally has a perfect record with no races taken off the turf.

One of the 2019 safety changes was also the new notion of shifting cards and preventing loss days. Always running on inclement weather days was something our father’s horses did. In doing so, we’ve maintained the fabric and legacy of our sport, but adapted to the times using technology and creativity. Shifting cards is safer for our horses and the comprehensive advanced warning protocols allow horsemen to keep schedules intact. We took a risk, and it worked from both a safety and economic perspective. And earlier this year, a new Tapeta training track was introduced at Santa Anita to eliminate any interruption in morning preparation on those rare California days when rain enters the equation.

Also on this island is an incredible nook we call Del Mar. Through two weeks of racing this summer, average field size is over nine horses per race and all key metrics remain strong down here in Del Mar. On the flip side, it isn’t always rosy out here. Like many places in America, we’ve seen contraction with Golden Gate Fields the latest casualty. And you may have heard we’re having a spirited discussion on whether to continue with two circuits, one in the north and one in the south, or just one that would primarily reside in the south. Transitioning from an all-weather and turf surface to dirt only will be challenging for the north. CARF, which operates the fair circuit during the summer, applied for the Golden Gate dates. They promised fresh investment and the creation of a new brand and the California Horse Racing Board agreed to the opportunity.

This prevented the shifting of most of the $25 million in the north to the south region, but thanks again to the California leadership, this opportunity is not without guard rails. Objective benchmarks have been approved. The north must achieve viable numbers that support all of California. There is no doubt we want two circuits exported to the rest of the country. Two viable circuits generate the most revenue. However, if you can’t maintain two circuits at proper economic levels, you might reduce your brand to one mediocre and one bush league circuit. Both sides are to be commended for coming to the table and setting objective benchmarks with all of California in mind, not just their individual circuits.

As for what’s next, California is actively seeking ancillary revenue streams within and outside our state to increase purses and lead to the economic growth for both California and the rest of the country. It is priority number one. But our goals are also more expansive and organic, like increasing the awareness of our sport. I’m reminded of something the great actor, Ted Danson, once said. When his biggest show Cheers ended, he felt years later his relevancy had waned. He said everyone used to recognize him. But now, kids said things like, “You are my dad’s favorite actor.” Then it became, “You are my grandfather’s favorite actor.” He was forced to reinvent himself with roles that opened his world to new audiences. Like Cheers, we were once at the top of the sports world, and like Ted Danson, I now get stories from newbies telling me how their parent or grandparent used to love going to the races. With the safety reforms in place, this is a pivotal moment for us to reinvent ourselves in the eyes of so many Americans who have never been to the racetrack, only heard stories from a parent or grandparent.

If there is a call to action today regarding California, it isn’t to just send us money or horses. It’s far deeper and more nuanced. Obviously, keeping California healthy is incredibly important. Long tested data has shown when product goes away, the gambler, for example, doesn’t simply shift the same dollars to other racetracks. A healthy percentage disappears. However, while economic relief is helpful, these are just Band-Aids on a sport that needs more. Subsidies do disappear and we need to get to the root of the systematic issues and create our own growth. And this starts with a mentality that we are all connected, not just individual circuits or states. California buys horses from Kentucky farms, and breaks them at Florida farms, and then ships them back to California racetracks. The best ones are sent back to different states again to race and breed.

California shouldn’t have to seek external assistance. The American horse racing model should inherently support premium brands like Santa Anita Park and Del Mar, ensuring the industry’s health and sustainability. If California has issues, it isn’t just a California problem. It is a Kentucky problem, a New York problem, a Florida problem. We are all connected.

The good news is that being on the front lines, I see progress is already underway. HISA has taken the first step to unify the states with uniform safety and medication roles. Another positive development is the strengthening relationships between leadership in California and across America. Within California, Santa Anita, Del Mar, and TOC collaborate better than in years past, acknowledging that while we have different agendas, compromise leads to better outcomes. By extension, I can’t remember a time when leadership groups across America had a better relationship and mutual respect. Keeneland, Breeders’ Cup, and The Jockey Club are all taking active first steps to harmonize and look at the bigger picture over their own slice of the pie.

While my primary task today is to provide an update on California, I also want to share my optimism for the future of California and our sport. We have highlighted for you many of our advantages, and I’m sure everyone participating in today’s roundtable understands who we are and what we bring. Building on these strengths, we recognize the need to closely monitor the best resources to support 2025 race states here in California. We encourage creative solutions from industry stakeholders to protect and preserve California and, within that scope, ask that California be fully considered as a state to race your horses. Just the addition of 200 race-ready horses would add tens of millions of dollars to ours and your bottom lines.

When you think about it, that’s a Todd Pletcher, Steve Asmussen, Chad Brown, and Brad Cox sending a string of 50 horses. It won’t take much to improve California’s already premium brand and by doing so, the bottom lines of so many around the country are dramatically increased. I believe we are on the brink of a new beginning. Just as poker, a nearly-200-year-old game reinvented itself with the introduction of the hole card, we too can rejuvenate this tremendous sport if we work together.