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Correspondence
Sent: Wednesday,
December 05, 2007 11:43 AM
Subject: IMPORTANT MESSAGE - Debt Repayment Plan
I am writing further to my November
23, 2007 e-mail and my December 3, 2007 meeting with Mel
Snow, Harold Barroby, David Aldred and Jim Vinnell. This
correspondence deals specifically with the repayment of the
thoroughbred sector's debt to the standardbred sector.
In my November 23, 2007 e-mail, I
noted that temporary slot machines were made operational at
Hastings Racecourse on November 10, 2007.
While slot machines remain operational
at the temporary location at Hastings Racecourse, the
revenue sharing resulting from slot machine revenue at any
BC racetrack, calculated from November 10, 2007 forward,
will reflect the formula where:
Up to
15.5% of the Province's net slot machine revenue
from Fraser Downs Racetrack & Casino will be paid
fully to the standardbred sector; and Up to
15.5% of the Province's net slot machine revenue
from Hastings Racecourse will be paid fully to the
thoroughbred sector.
Once slot machines are operational at
a permanent location at Hastings Racecourse, the revenue
sharing resulting from slot machine revenue at any BC
racetrack will be adjusted to incorporate the repayment of
the thoroughbred sector's debt to the standardbred sector.
Specifically:
Up to
15.5% of the Province's net slot machine revenue
from Fraser Downs Racetrack & Casino PLUS the
appropriate repayment by the thoroughbred sector
will be paid fully to the standardbred sector; and
Up to
15.5% of the Province's net slot machine revenue
from Hastings Racecourse LESS the appropriate
repayment by the thoroughbred sector will be paid
fully to the thoroughbred sector.
As agreed with the BC Standardbred
Association and the Horsemen's Benevolent and Protective
Association of BC, the repayment scheme will be based on an
annual payment which includes:
A
$750,000 annual Basic Payment; and
A
possible "performance payment" in the event the
"gross payment" of slot machine revenue to the
thoroughbred sector (i.e.: the amount that would
have been paid if there was no debt) exceeds $8
million in any given year. In such cases, the
"performance payment" will be one third (1/3) of the
amount by which the "gross payment" exceeds $8
million.
This payment schedule will be used
until the full amount of the debt is repaid. At present, we
anticipate the final total amount that is to be repaid will
be about $7.2 million. We will confirm the final number as
soon as possible.
Thanks,
Derek Sturko ADM, Gaming Policy &
Enforcement Know your limit,
play within it.
MEMORANDUM RE REVENUE
SHARING AGREEMENT
WITH STANDARDBRED INDUSTRY
The HBPA of BC is pleased to advise
that pursuant to a document dated October 30, 2007 it has
reached a revenue sharing agreement with BC Standardbred
Association, which agreement is for an eight year period
commencing on October 30, 2007 and expiring on November 1,
2015.
The revenue which is subject to
sharing under the said agreement consists of that which is
derived from the following sources:
a) simulcast wagering at TBC
Teletheatre BC sites, excluding Fraser Downs and
Hastings Racecourse,
b) IVR telephone account wagering, and,
c) British Columbia’s 7% provincial tax levy as it relates
to teletheatre and IVR wagering
Presuming "fiscal years" which run from November 1 to
October 31 the aforementioned revenue will be shared on the
basis as noted hereunder:
a) 2008 fiscal year - 70% to
thoroughbred / 30% to standardbred;
b) 2009 fiscal year - 71% to thoroughbred / 29% to
standardbred;
c) 2010 fiscal year - 72% to thoroughbred / 28% to
standardbred;
d) 2011 through 2015 fiscal years - 73% to thoroughbred /
27% to standardbred.
November 25, 2007
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