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Ellis cancels due to ADW dispute

Owner Ron Geary has canceled the Ellis Park meeting that was scheduled to begin on Friday due to a dispute with horsemen. Geary filed for a restraining order with the Federal Court in Owensboro, Kentucky, against the Kentucky Horsemen's Benevolent and Protective Association (KHBPA) on Tuesday to prevent them from blocking Ellis Park's racing signal. The Federal judge ruled Wednesday that a restraining order could not be issued, therefore clearing the way for the KHBPA to block Ellis Park from participating with the Advance Deposit Wagering (ADW) companies that take bets by phone and online.

The disagreement between parties will close the 86-year old Ellis Park due to a lack of available revenues. 

"Ninety percent of our revenues come from off track, internet and television broadcast wagering," Geary explained. "The leadership of Kentucky HBPA has an ongoing dispute with these ADWs and Ellis Park is caught in the crossfire."

The Kentucky HBPA sent a letter to Geary on June 26 stating they would block Ellis Park's racing signal to all ADWs. Geary had negotiated aggressively with the ADWs for 2008 coverage of the live meet and has more than tripled the potential commissions for Ellis Park and the KHBPA -- from $4 million in handle (wagers) to an estimated $15 million. Commissions are split between Ellis Park and the Kentucky HBPA purse fund. By blocking Ellis Park's signal, the income is lost.

"It is shocking to think that the KHBPA would choose to close down Ellis Park rather than take advantage of the additional revenue already negotiated with the ADWs for 2008," Geary said. "They know it and they don't care. All the KHBPA is focused on is hurting the ADWs this year so they can negotiate a higher percentage next year. What they are doing is a scorched earth strategy with huge collateral damage to the Tri-State (region)."

The Henderson, Kentucky, track is responsible for more than 500 jobs in the area and has an estimated economic impact of $60 million. Ellis was scheduled to run through September 1.

"They cut off their own nose to spite their face," Geary said. "Ellis Park was at a critical point. Since I purchased the track, I have invested millions and lost millions getting her back to her old glory. We were set to open this Friday, the Fourth of July, and it was going to be a spectacular year. I love this track and I love horse racing. I am not, however, in the business to continue to spend millions of dollars per year keeping her going just to have the Kentucky HBPA pull the rug out from underneath us. It is a tragedy."

The Kentucky HBPA and affiliate HBPA organizations nationwide have blocked signals to 10 tracks so far.

"I am truly ashamed of the Kentucky HBPA leaders who orchestrated this ploy," Geary stated. "They want more of a cut from the television and internet wagering sites. I have been willing to work with them to negotiate an equitable long-term agreement with the ADWs on their behalf. I offered to give them anything above and beyond the signed contract I already have with the ADWs for this year. Then I recommended a slower percentage increase than the jump they are demanding. It's all fallen on deaf ears."


 


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