TrackNet Media reaches agreements to offer rebates

TrackNet Media announced Wednesday that it has reached agreements with Elite

Turf Club (Elite) and Racing & Gaming Services (RGS) that formalize certain

standards regarding the payment of cash incentives, also known as rebates, to

customers placing pari-mutuel wagers on the racing content of

TrackNet-affiliated racetracks.

Both Elite and RGS have carried the racing content of TrackNet-affiliated

racetracks since the formation of TrackNet in early March. The agreements serve

to formalize both the continued use of the TrackNet content by Elite and RGS,

and the newly established rebate standards.

Subject to the ongoing consent and approval of applicable horsemen

associations and regulators, the agreements allow customers of Elite and RGS to

wager on Churchill Downs, Santa Anita Park, Gulfstream Park, Fair Grounds Race

Course, Arlington Park, Pimlico, Golden Gate Fields, and other

popular racing venues offered through TrackNet.

The newly established rebate standards contained in the agreements specify,

among other things, that rebates on TrackNet content generally may not be paid

to any customer unless that customer places annual pari-mutuel wagers of $1

million or more. The agreements also require Elite and RGS to comply with

Wagering Security and Integrity Standards established by TrackNet, including the

requirement to undergo additional background screening and investigation.

"Almost all industries -- from casinos to airlines to credit card companies

-- offer incentives to their premium customers," said Scott Daruty, chief

executive officer of TrackNet. "We at TrackNet recognize that such incentives

are necessary in our industry as well. At the same time, we must be careful that

the payment of rebates to premium customers does not inhibit our ultimate goal

of ensuring a fair return to the racetracks and horsemen that put on the live

races. We believe our new rebate standards appropriately balance these competing

interests by limiting the payment of rebates to high-volume players who we

believe are bringing significant new money to the racing industry."

"This agreement helps to strike a balance that properly recognizes the

interests of the tracks, the horsemen and the unique customers that support

racing at the highest level," said Kirk Brooks, chief executive officer of RGS.

"This agreement is representative of an overall effort by RGS to work

cooperatively with all parties in the industry to support and protect the

integrity of the sport and the revenues for the live product."