3 17 14 Work Session Slide Presentation_Greyhound Racing LegislationMYSTIC`
CASINO
DIAMOND JO ;>.
DUBUQUE RACING ASSOCIATION C A S I NO
BACKGROUND
Opening on June 1, 1985, Mystique Casino formerly Dubuque Greyhound became the
nation's first non-profit greyhound track. The facility is owned by the City of Dubuque
and is run under the guidance of the Dubuque Racing Association, a volunteer board
comprised of 21 directors. Profits from the race track go to the City and area charitable
organizations, and pari-mutuel and gaming taxes provide revenue for the City, County
and State.
MISSION STATEMENT
Dubuque Racing Association through its racing, gaming and entertainment facilities
provides for social, economic and community betterment and lessens the burden of
Dubuque City and area Government, while contributing to the growth and viability of
Dubuque area tourism.
VISION STATEMENT
The Dubuque Racing Association is a dynamic community resource, acting as a
catalyst to enhance the quality of life and financial well being of the tri-state community
by operating a model greyhound racetrack and gaming facility which is a premier,
growth oriented, diversified tourism destination.
HISTORY
1984 — Iowa State Legislature passes the Pari-Mutuel Wagering Act, allowing
greyhound and horse racing. The Dubuque Racing Association forms.
1984 - Dubuque citizens pass a $7.9 million general -obligation bond to fund the
racetrack.
1985 — Dubuque Greyhound Park opens as the nation's first nonprofit greyhound track.
1989 — Iowa State Legislature passes a bill permitting riverboat gambling. Dubuque
Racing Association becomes the non-profit license holder for the Dubuque Casino
Belle.
1 3/17/2014
1991—DRA pays off the remaining $2.7 million of the original $7.9 million general
obligation bond, 14 years ahead of schedule, making Dubuque Greyhound Park the first
debt -free racing facility in Iowa.
1994 — Iowa State Legislature passes a bill permitting racetracks to install slot
machines. Dubuque Diamond Jo replaces the Casino Belle.
1995 — Dubuque Greyhound Park & Casino opens its 11,675 square -foot casino with
600 slot machines.
2002 — Dubuque County passes a countywide referendum to reaffirm their desire to
have gaming in the county, with an overwhelming 80 percent approval.
2005 — Dubuque Greyhound Park & Casino completes a $33 million renovation,
increasing the casino size to 29,600 square feet.
2006 - Dubuque Greyhound Park & Casino adds table games in March.
2008 — Diamond Jo Casino opens land based operation. Dubuque Racing Association
receives 4.5% of the adjusted gross receipts.
2009 - Dubuque Greyhound Park & Casino renamed Mystique. A $13.5 million
renovation includes incorporating a French theme throughout the casino, as well as
adding a new steakhouse, buffet, and entertainment area.
2010 — Dubuque County passes a countywide referendum to reaffirm their desire to
have gaming in the county, with an overwhelming 82 percent approval.
REINVESTING IN OUR COMMUNITY
A large majority of all monies wagered at Mystique Casino's pari-mutuel windows and
slot machines go right back to the guests themselves, as they cash their winning tickets
and play the slot machines. At the end of each operating year, after paying all
expenses, the DRA distributes excess profits to the City of Dubuque and to local area
charitable organizations. The City receives 50% and the area charitable organizations
receive 50% of the excess profits after the Association's retention for capital
improvements, debt retirement, and reserve funds.
In addition to the distribution of excess profits, the City of Dubuque receives lease
payments and also receives revenues from pari-mutuel and casino taxes. Total
payments made to the City of Dubuque since 1985 have been over $171 million.
To date since 1985, over $37 million has been distributed to charitable organizations.
THE FACILITY
Mystique Casino is scenically located on an island in the Mississippi River, adjacent to
highways 151 and 61. The 44,200 square foot casino features approximately 1,000 slot
2 3/17/2014
machines, 23 table games and a poker room. Also located within the facility is a 9,000
square foot pari-mutuel area. Live greyhound racing is conducted from May through
October and simulcast pari-mutuel wagering year-round.
Other amenities include Champagne full service restaurant, Bon Appetit buffet, a deli in
the pari-mutuel area, TPC sports bar located in the upper casino, Encore stage in the
main casino and Cabaret Showroom.
Mystique Casino is connected via an enclosed walkway to the Hilton Garden Inn and
Houlihan's Restaurant.
3 3/17/2014
Business Case
Y Unsustainable
Y Over 15 years of supplementing a unprofitable and declining
industry. Enough is Enough
> Rise and Decline of Racing
`r National
Y Iowa
Y Onerous to DRA, City, Community
Y Purse supplement vs. Charitable Contribution
Y Communities adversely affected
Glossary
Pari-Mutuel Wagering: A betting system in which all bets of a particular
type are placed together in a pool; taxes and the house take are removed,
and payoff odds are calculated by sharing the pool among all winning bets.
Handle The total amount of money wagered on a race.
Breakage: The odd cents by which the amount payable on each dollar
wagered in a pari-mutuel pool exceeds a multiple of ten cents. 73% goes to
purse supplement, 25% goes to the Iowa Breeders Stake Race, and 2% goes
to the Iowa Greyhound Association.
Purse: The total prize money awarded in a race. Currently 4.5% of the live
wagering handle and 4.5% of imported simulcast handle.
Casino Purse Supplement: Additional money added to the live purse to
attract additional wagering. Mandated by Code and Negotiated with the
Iowa Gaming Association.
60
50
Greyhound Race Tracks with Live Racing 1985 - 2012
46 47
44
::f
20
10
0
54 54 54
1985 1986 1988 1989 1990 1991 1992 1993 1994 1995 1996 2000 2001 2002 2004 2005 2006 2007 2008 2009 2010 2011 2012
49
'
Dc
51
52
49
48
46
45
43
40
I
I
3-8
34
31
24
23
21
21
I
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I
■
1985 1986 1988 1989 1990 1991 1992 1993 1994 1995 1996 2000 2001 2002 2004 2005 2006 2007 2008 2009 2010 2011 2012
8
7
6
5
4
3
2
1
Q
Greyhound Race Tracks Closed since 1990 by State
2
i
3
5
2
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7
1
1
3 3
2
2 2
1
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Currently only 7 States offer Live Greyhound Racing:
Alabama -2, Arizona -1, Arkansas -1, Florida -12, Iowa -2, Texas -1, West Virginia -2
300,000,000
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
National Revenues from Greyhound Racing 1959 to 2010
i i i i 1 1 I I I I 1 1 1 1 11 1
i
1959 1964 1969 1974 1979 1984 1989 1994
1999 2004 2009
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
Purse from Live Handle at Dubuque Greyhound Park 1985 - 1990
$1,943,180
7
$1,276,916
$2,009,091
$2,041,179
$1,990,166
$1,304,374
1985 1986 1987 1988 1989 1990
Wisconsin Opens 5 Greyhound Tracks in 1990
4
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
Purse from Live Handle at Dubuque Greyhound Park 1990 -1996
$1,304,374
$1,050,027
$875,004
-,-
$652,802
$474,968
$475,283 $474,215
1990 1991 1992 1993 1994 1995 1996
Casino Belle Riverboat Casino opens in Dubuque 1991
Purse from Live Handle at Dubuque Greyhound Park 1996 - 2012
$500,000
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
1
I
7
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
300.0% -
250.0%
200.0%
150.0%
100.0%
50.0%
0.0%
Purse as a Percent of Handle
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
$80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0
Live Handle vs. Total Purse
1985 - 2012
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Live tPurse
I
$5,000,000
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000 -
$2,000,000 -
$1,500,000 -
$1,000,000
$500,000
$0
Combined Purses: Live Handle & Casino Purse Supplement 1996 - 2012
1
1
i i
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
■ Purse from Handle ■ Purse from Casino
Purse Supplement starts in November of 1995
I
■
I
■
li
$4,500,000 -
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000 -
$500,000 -
$0
Casino Purse Supplement 1996 to 2012
r
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2012 Supplement = $3,276,690 (win -tax) * 7.1%
Additional Costs to Operations
> Not included in next slide
—Surveillance Coverage and recording
— Utilities
— Kennel expenses
• Kennels provided at no charge
- Maintenance
• Track and Kennels
i
I
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
-$1,000,000
-$2,000,000
-$3,000,000
-$4,000,000
-$5,000,000
-$6,000,000
Net Income (Loss) from Greyhound Operations
1985 - 2012
I
I
1 Htl I II! 1 1
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1 1
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1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Racing Department Net Income numbers only include wages for Pari-Mutuel,
Racing and Kennel Security and Casino Supplement
Opportunity Costs
• Communities
• Charities... Critical starting in 2008
• Sponsorships
• Other Non Profits
• Schools
• City
• $14.6 million In 2005 & 2006
• Only slightly above $6.3 million
Charitable Distribution vs. Supplemental Purse to 1996 - 2012
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0
$37e4r000
$48,250,600
■ Charitable Distribution ■ Kennel and Dog Owners
J
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
Casino Supplement Purses vs. Charitable Distributions
I
i
I
1
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
P Casino Supplement Purses • Charitable Distributions
2012 Supplement $3,276,690 2012 Charitable Distribution $1,143,000
I
f
a
7
4
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
Contributions to City of Dubuque
N
N
• •
1
1-
I
M
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
I
N
$80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0
Handle 1985 - 2012
:II :IIIIiiiiiII1 II:!1:
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
P Live F Simulcast
• The next slide is a Memorandum of Understanding signed
with The Machinist Union that ensures our Pari-Mutuel
employees a soft landing in the event that Greyhound
Racing were to ceased in Dubuque.
MEMORANDUM OF AGREEMENT REGARDING FUTURE
DISCONTINUATION OF PARI-MUTUEL DOG RACING
This MEMORANDUM OF AGREEMENT is entered into this ILLI day of 31 , 2013,
between Dubuque Racing Association, Ltd. d/b/a Mystique Casino icrcinaiter referred to as
"DRA") and LOCAL 1238 OF THE INTERNATIONAL ASSOC. OF MACHINISTS &
AEROSPACE WORKERS, DUBUQUE, IOWA (hereinafter referred to as "Union").
If and when DRA eliminates greyhound racing at Dubuque Greyhound Park/Mystique Casino
when such elimination has been authorized by Iowa law, DRA and UNION agree that the
following arc fair, reasonable, and satisfactory alternatives for the transition of employees in the
Pari-Mutuel bargaining unit, to take effect only at the time of such elimination of greyhound
racing:
1. DRA will provide employees in the pari-mutuel bargaining unit the choice of either (hu
both) of the following options:
(a)
Severance pay and reimbursement of employee's cost for CO
health insurance coverage for up to six months follow]
mutuel employee's separation from employment, R
(b) Transfer into the casino bargaining unit as
These options are further described below.
2. For those selecting severance
carry over from the pari-mutuel bargaining unit. DRA will provide training for each position
into which the employee is transferring. immediately upon transfer, the employee will be part of
the casino bargaining unit and be subject to all the terms and conditions of the collective
bargaining agreement for the casino bargaining unit at the time of transfer; the pari-mutucl
bargaining agreement shall be of no force or effect after the pari-mutuel employee's transfer into
the casino.
5. Pari-mutuel employees will be required to select option 1(a) or 1(b) no later than two
weeks befanticipated date of the elimination of the Pari-Mutuel Department. DRA will
provon specific casino positions to which employees may transfer at least two
date by which employee must select which option they accept. If a pari-
eloyee fails to make any election on or before the deadline, the employee's
ojinent will be terminated and any claim to rights under this Memorandum of Agreement
be forf 'tc
(a) DILA will pay ri-mutuel
dollars ($1,000, for cad
bargaining unit at the time o
will be paid out as a lump sum
withholdings, AND
everance pay, one -thousand
year of service in the pari-mutucl
from employment. This severance
s income tax, payroll tax and other required
(b) As a condition precedent to receiving severance pay and COBRA health
insurance reimbursement under option 1(a), pari-mutuel employees electing
option 1(a) will be required to execute a release of all employment-related
claims against DILA, its employees, officers and directors, and to execute any
other documents necessary for this purpose.
3. Reimbursement of the employee's COBRA continuation for up to six months, pursuant to
1(a), will terminate earlier if and when the employee becomes eligible to be covered by other
health insurance (through other employment, coverage under a spouse's or other person's health
plan, or coverage by Medicare).
4. For pari-mutuel employees who elect the option at 1(b) above, DRA will transfer the
employee into the casino bargaining unit into a position selected by DRA. The employee will
start in the casino as a new employee for seniority and job -bidding purposes; no seniority will
nrandtun shall not constitute nor may it be used as evidence of past practice for
uel mutuel bargaining unit or any other bargaining units in DRA facilities
ted by Union or other collective bargaining agents.
This Memorandum of Agreement shall take effect as of August r3 I , 2013, after
signature by both parties, which may be executed in counterparts.
Dubuque Raci g nation, Ltd., d/b/a
Mystique C : r��
By:
Its pa
Signature date: q• s' da).
INTERNATIONAL ASSOC. OF
MACHINISTS & AEROSPACE
WORKERS, LOCAL1238,
DUBUQUE, IOWA,
By:
Signature date:
By: _.
Its z
Signature da e:1-' t3 0 '
By: , d
Its
Signature date: } - v- ?'° /
L.
Greyhound Purse Payment Data Calculation
The data used for this analysis comes from the 1099s of the greyhound
owners of record that received purse payment during 2013 at both
Mystique and Bluffs Run.
• Methodology: Viewing the list sorted by last name does not give a true picture
of the various entities that receive purse money.
• Ranking: The ranking were derived by first sorting the data by last name and
adding an ID number to individuals with the same name. Next the list was re-
sorted by city, address, and last name to combine any purse recipients at the
same mailing address. As examples, Mickim Kennel, Inc. is owned by Cheryl
Canapp and Superior Kennel, Inc. is owned by Alan Hill, Iowa Racers, LLC. is
owned by David and Mary Robinette. Looking at a sorted list would not give you
this information.
• Graphs: The graphs were constructed using the combined data from Mystique
and Bluffs Run sorted by the ID developed from the ranking.
States Total Purse % of Purse Top 10 Kennels City State Purse Paid
IA $7,847,838.86 58.370% BOECKENSTEDT KENNEL Bellevue IA $1,351,157.89
KS $2,331,833.24 17.343% HARDISON KENNEL Onawa IA $1,108,740.77
TX $1,364,831.77 10.151% PLUM CREEK Holyrod KS $916,196.19
FL $607,867.42 4.521% BLACK KENNEL Miramar FL $610,148.23
OK $445,901.72 3.316% IOWA RACERS LLC Villisca IA $609,293.58
CO $359,977.86 2.677% SUPERIOR KENNEL Radcliffe IA $547,040.92
WA $130,033.55 0.967% KEEPER- RED ROCK KENNEL Humble TX $532,658.13
NY $61,230.44 0.455% HARLAN BROS KENNEL INC Slaton TX $514,996.45
WI $56,134.19 0.418% BARTLEY CORPORATION Abilene KS $490,004.44
WV $41,746.57 0.310% MICKIM KENNEL INC Underwood IA $443,901.05
AZ $37,834.32 0.281%
MS $36,598.35 0.272%
KY $29,903.94 0.222%
SD $28,983.50 0.216%
NJ $12,036.53 0.090%
NE $8,276.82 0.062%
IL $7,632.75 0.057%
SC $7,429.81 0.055%
MA $6,356.82 0.047%
AR $4,818.03 0.036%
OR $4,571.76 0.034%
NC $3,041.68 0.023%
GA $2,757.60 0.021%
MD $2,607.74 0.019%
CT $1,801.21 0.013%
OH $1,259.10 0.009%
PA $582.20 0.004%
MO $512.02 0.004%
LA $375.73 0.003%
RI $257.03 0.002%
Grand Total $13,445,032.56 100%
Purse Payment by State
Out of State,
$5,597,193,
42%
Iowa,
$7,847,838,
58%
Purse Recipients
73
72
■ Purse Recipients over $10,000 Purse Recipients under $10,000
Top 10 Purse Recipients vs. Bottom 50 Purse Recipients
$60,683
$7,124,138
Top 10 Bottom 50
Top 10 Purse Recipients vs. Remaining 135 Purse Recipients
$7,124,137 $6,320,894
53% 47%
Payments toDubuque County_RurseRecipients
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
Total Purse Dubuque County
$3,500,000.00
$3,000,000.00
$2,500,000.00
$2,000,000.00
$1,500,000.00
$1,000,000.00
$500,000.00
2013 Mystique Purse Supplement
•
$0.00 $3,333,&27 $347,918
• Supplement • Paid to Dubuque County Purse Recipients