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    Greyhound Racing 2010 DECISION
    Posted byadmin on Friday, November 12 @ 14:54:03 EST
    Contributed by admin

    In the Matter of the Arbitration Between

                                                                            Iowa Greyhound Association


                                                                              Iowa West Racing Association

    Appearances:Gerald 'W.Crawf,ord, Esq., Jim Quilty, Esq., and Mark
    McCormick, Esq. For Iowa Greyhound Association
    Lorraine J. May, Esq. For Iowa West Racing Association

                                               DECISION AND AWARD

    By prior agreement of the parties, the above matter was submitted

    to binding arbitration on October 21, 2010. The lowa Greyhound

    Association appeared by its attorneys, Gerald W. Crawford, Jim

    Quilty and Mark McCormick. The Iowa West Racing Association

    appeared b;, its attorney , Lorcaine J. May.

    Now on this å'lh day of Octob er,2010, the undersigned arbitrators

    enter their Decision and Award as follows:

    The issues to be addressed are as follows:

    1. The percentage or amount of gambling revenue from

    Bluffs Run Casino (Casino) that shall be used to
    supplement the purses for 2010.

    2. The amount of gambling revenue from the Casino that

    shall be used to supplement the Iowa Breeders' Classics

    (generally referred to as the Iowa Stake Race) for 2011

    and the amount of gambling revenue from the Casino that
    shall be used to supplement five additional stake races.

    In reaching its decision, the panel has reviewed and considered all

    of the materials submitted by the parties as well as their excellent

    arguments. In addition, in reaching that decision, the panel

    considered and followed the following strong legislative policy

    articulated in Iowa Code section 99F.6(a)@):

    All parties to the negotiations...shall consider that the dog

    racetracks were built to facilitate the development and

    promotion of Iowa greyhound racing dogs in this state and

    shall negotiate and decide accordingly (emphasis added).

    Moreover, more to the point, as one former arbitration panel said

    in interpreting this provision:

    The clear meaning of the statute is that the fCasino] is a dog

    track with ancillary slot machines, not a casino with an

    ancillary dog track (emphasis in original). As such, the purse

    supplement should be significantly large in the context of

    all revenues so that proper deference is given to this clear

    legislative directive.

    The issues are resolved as follows:


    The 201 I purse supplement shall be $9,500,000. This represents

    an increase of a little more than $70,000 over the 2009,2010

    purse supplements. The panel has chosen to use a dollar amount

    rather than a percentage because it provides stability and

    predictability while at the same time being faithful to the

    legislative directive.

    In considering the amount of the supplement, the panel decided

    to maintain the status quo. The panel is of the opinion that the

    $9,500,000 supplement will accomplish the legislative police

    while at the same time it will not have the effect of punishing

    the Casino. In reaching this opinion, the panel notes that the

    Casino has not had a signif,rcant increase in adjusted gross

    revenue in the last two years of the parties' agreement. In fact,

    its adjusted gross revenue for the fiscal year 2010 was less than

    its adjusted gross revenue for fiscal year 2009.

    Moreover, as the record reflects, 93 .8o/o of the purses paid at the

    Casino were received from gaming revenue at the Casino.

    Accordingly, the panel believes the Casino is presently abiding

    by the legislative directive in terms of dollars. It is interesting

    to note that a previous arbitration panel suggested cappin g aII

    future supplements. The latest agreement between Dubuque

    Racing Association, LTD and Iowa Greyhound Association

    does just that. In line with what the present panel is doing,
    another panel suggested that the parties not expect automatic or

    continuing purse increases in the fluture.

    ISSUtr 2

    In keeping with its goal of status quo awards, the panel decided

    that the Iowa Stake Races for 201 I shall be supplemented in the

    amount of $500,000. This supplement shall be in addition to the

    $9,500,000 supplement. For the same reason, the panel decided

    that the five $60,000 stake races to be run in 2011 shall be

    funded from the $9,500,000 supplement. Should the $9,500,000

    supplement be inadequate to fund these races, the deficit shall

    be satisfied from the escrow funds.

    Notice of this Decision and Award will be provided to the parties

    and to the Iowa Racing and Gaming Commission by facsimile and

    by mailing copies to the attorneys named above and to the

    Commission no later than November 1, 2010.

    Louis A. Lavorato, Arbitrator

    John A. Nahra

    Roland Dale Peddicord

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