CDI, Florida horsemen reach agreement

The agreements pave the way for Calder to resume distributing its signal to the simulcast network throughout the country, including off-track betting ("OTB") facilities and racetracks, beginning with races on Thursday, July 10.

"As important as these agreements are for the Florida horsemen and Calder, they are most important for our loyal customers who have been inconvenienced by this issue," said Kevin Flanery, senior vice president of Churchill Downs Incorporated, Calder's parent company. "Today's announcement means that our customers throughout the country will enjoy access to Calder's races through their local racetrack or simulcast outlet effective Thursday, July 10. We hope that states who have blocked their signals from entering Florida will re-evaluate those decisions based on today's announcement. This is a good day for everyone involved and an important step forward."

CDI and the FHBPA will continue to work toward a resolution of the remaining outstanding issue, which concerns signal distribution to national account wagering platforms. "We are happy that our fans who wager through racetracks and OTBs will soon be able to enjoy the Calder product, and we are committed to working with the FHBPA to ensure that our customers will also have the opportunity to wager via TwinSpires.com and other online wagering platforms as soon as possible," Flanery continued. "We appreciate the hard work put into these negotiations by the FHBPA on the slots and purses issues and look forward to productive discussions moving forward."

Under the terms of the slot agreement, Florida horsemen are guaranteed $14.375 million for purses in the first three full years of the slots operation and 6.75 percent of slot revenue for the remainder of the ten-year term. Additional provisions provide for the horsemen to share in the upside should the Calder slot facility generate specified slot revenue minimums in the second and third full years of operations.

"Over the past few years, our company has invested millions in the various efforts to approve alternative gaming in Florida, including $3.1 million for the 2008 referendum alone," said Flanery. "We will also invest tens of millions of dollars in the construction and operation of a slots facility at Calder. According to the terms announced today, we estimate at this time that horsemen will benefit from CDI's investments to the tune of approximately $50 million, potentially, over the term of the agreement. This underscores our company's commitment to the horse racing industry."

CDI has also announced that it has agreed to dismiss without prejudice the lawsuit filed on April 24 against the FHBPA and its officers. The suit, filed in the United States District Court for the Western District of Kentucky, alleged violations under the Sherman Antitrust Act and will continue against the remaining parties, including the Thoroughbred Horsemen's Group.