[Scav]

Illinois Racing Board response to Advance Deposit Wagering customers



The Illinois Racing Board is aware that last week some out-of-state programs were removed from internet wagering sites by virtue of a statutory cap imposed on interstate simulcast fees. A limit on the amount of fees that may be paid to an out-of-state track by an internet wagering site is required by the same Illinois law that authorizes internet wagering on horse races. The exact same cap has existed in Illinois for almost 30 years on interstate fees paid by Illinois off-track wagering facilities to out-of-state tracks for their simulcasts. These interstate fees come largely from revenues that would otherwise be paid to Illinois horsemen in the form of purses on Illinois races. The purpose for the cap on interstate fees is to preserve and promote the interests of Illinois horsemen and Illinois racing relative to other states. Such caps are common in other states for the same reason. For example, the state of California has a cap which is far more stringent than Illinois’. It is important for internet customers to understand that some internet sites operating in Illinois, such as TwinSpires, Xpressbet and Youbet.com, are owned by public corporations that own a multitude of out-of-state tracks which regularly simulcast into Illinois. These tracks are primarily interested in seeking higher fees for their simulcasts in order to maximize their own revenues irrespective of the interests of Illinois horsemen. These sites have vigorously opposed the cap on interstate fees, have threatened to have their sister tracks and others withhold simulcasts into Illinois, and are now encouraging their customers to complain to the IRB about the limit on their fees. The cap on interstate fees was established based on the desire of a majority of Illinois licensees and Illinois horsemen in accordance with a legislative mandate to protect Illinois racing. The IRB will continue to monitor and adjust the cap as the interests of Illinois racing warrants.