A national horseplayer’s group is hoping to head off a takeout increase of 2% to 3% for exotic wagers on California races being discussed by Thoroughbred interests and the speaker of the state Assembly.

The Horseplayers Association of North America is urging its membership to contact elected officials to protest the rate hike after language to amend a pending horse racing bill by Democratic Assembly Speaker John A. Perez of Los Angeles was circulated July 28.

According to the four-page proposal, the increase would be used to augment Thoroughbred purses, which are falling statewide in the face of declining handle. The takeout hike would be for 2% on exotic wagers involving two betting interests (such as an exacta or double), and 3% on exotic wagers involving three or more wagering interests (trifecta, superfecta, and the pick six, for example). Everyone making such wagers on California races, whether inside the state or out, would be affected.

The current California takeout rate is 20.68% on all Thoroughbred exotic wagers except for the state and county fairs, which deduct 22.02%, according to the document. Higher takeout means less is returned to bettors for winning wagers.

The current rate on win, place, and show wagers is 15.43% and 16.77% for the fairs. Those rates would not be affected by the plan.

“I hate it,” said HANA president Jeff Platt when contacted July 29. He believes higher takeout will reduce the handle because people will be less likely to wager, and he points to a big downturn in handle at Los Alamitos Race Course after it received approval for a 2% takeout increase this year as an example.

“I feel it is the wrong action to take,” Platt said. “They should be lowering (rates), not increasing them.”

But Platt admits that he expects the bill, AB 2414, to be amended as planned. If it is signed into law, he’s hoping the California Horse Racing Board will have the ultimate say on whether the hike goes into effect.

The recent extension of the takeout at Los Alamitos by unanimous vote of the board, however, leaves him concerned about where the CHRB would stand.

While discussions of the takeout increase have apparently been ongoing between Thoroughbred owners, the tracks, and Perez’s office, nothing has been brought publicly to the CHRB, which has a legislative committee headed by board chairman Keith Brackpool.

Arnold Zetcher, recently elected chairman of the Thoroughbred Owners of California, said it would “be a little premature to be talking about it.”

“The document is still in the formative stages,” Zetcher said. “At the proper time, I’ll be more than happy to talk about it.”

Action would need to come quickly, however. The state Legislature adjourns for recess at the end of August, so it must be added to the current bill or another racing measure by then if the hike is to have any chance of success before a target date of Dec. 24. That is when the increase needs to be in place in order to allow enough lead time to negotiate rates with “out-of-state betting systems” for 2011, the document states.

George Wiley, an aide to Perez on horse racing concerns, noted the original bill was intended to convince the Breeders’ Cup to relocate in California permanently by providing a minimum of $2 million annually for promotion of the event, which he said “would be good for the economy and good for horse racing.”

“The speaker continues to be concerned about the deteriorating condition of the California horse racing industry and the impact of this on the state’s economy,” Wiley said in an e-mail. “(He) is additionally aware that there are conversations occurring involving the CHRB and the state’s racing industry that are focusing on whether it would make sense for California to adjust its takeout to be more competitive with other states so that more revenue could be generated for owner purses, which is critical to the viability of the state’s racing industry. 

“Because our industry does not have the option of supplementing its purses by other means of gaming as is the case in some other states, all options must be considered here, including adjusting the takeout. California state government has all but eliminated the license fees the state’s racing industry pays to the state, and so the use of the takeout represents one of the few, if only, tools available left to help this industry.”

The New York Racing Association remained in reduction mode in cutting the purses for 12 races and shelving nine others from its stakes schedule for the Belmont Park and Aqueduct fall meets.

Stakes purses for the two meets will total $8,740,000, down from more than $11.3-million in 2009. NYRA cut $1.4-million from its stakes program for the Belmont spring and summer and Saratoga Race Course meets earlier this year.  

“Our fall stakes programs rank among the tops in the industry and we are looking forward to great racing at Belmont Park and Aqueduct,” NYRA President Charles Hayward said. “The changes that we made to the meets are a reflection of the current economic climate and the nationwide reductions in the horse population.”

Belmont’s Matron Stakes (G2), Futurity Stakes (G2), and Jerome Handicap (G2) have been placed on hiatus this year, along with the Lonesome Glory Steeplechase Stakes, and the Joseph A. Gimma Stakes and Bertram F. Bongard Stakes for New York-breds.

NYRA cut purses for Belmont’s Beldame Stakes (G1), Joe Hirsch Turf Classic Stakes (G1), Flower Bowl Invitational Stakes (G1), Empire Classic Stakes, Vosburgh Stakes (G1), Champagne Stakes (G1), Frizette Stakes (G1), Garden City Stakes (G1), and the Mohawk Stakes and Ticonderoga Stakes for New York-breds. The Beldame took the biggest hit, dropping from $600,000 to $350,000.

In 37 dates, Belmont will offer 29 stakes for a total of $6.1-million, down from 34 stakes for $8.1-million in 2009. The Kelso Stakes (G2) on October 3 has been changed from dirt to turf.

Aqueduct loses the New York Stallion Series Cormorant and Perfect Divisions and the Stuyvesant Stakes (G3). The Cigar Mile Handicap (G1) and Gazelle Stakes (G1) both were reduced by $50,000 to $250,000. 

Aqueduct’s 36-day schedule through December 31 includes 22 stakes for a total of $2,640,000, down from 27 stakes for $3,240,000 in 2009.

Starting July 23 at Saratoga and continuing at Belmont Park and Aqueduct, the stewards’ race-day decisions involving the official order of finish will be communicated via the simulcast feed and will also be posted to NYRA.com.

Jockey Patrick Valenzuela, “permanently” suspended by the California Horse Racing Board in September 2008 following a drunk driving conviction, was given the opportunity to continue his career in the state by the same board following a closed session July 22 at Del Mar.

The path to a conditional license in California was opened to Valenzuela, 47, under the terms of a stipulated agreement approved by board members that will require him to submit to hair follicle testing, according to the CHRB. The testing will be conducted under the auspices of the CHRB and the results known before he is licensed.

The agreement will be in force for as long as Valenzuela is licensed to ride in California, according to the CHRB.

Valenzuela, has been riding in New Mexico and Louisiana the last two years. He had previously failed to regain his license in California during a career marked by substance abuse and numerous suspensions and reinstatements.

“We understand that Valenzuela has been given many chances here in California, and for that reason we have taken great care in reviewing this request for licensure, even to the point of contacting authorities in Louisiana, where he has been riding for the last two years, to learn about his status there,” explained CHRB Chairman Keith Brackpool.

Brackpool said Roy Wood, the former executive director of the CHRB and now the state steward in Louisiana, said Valenzuela has passed all drug and alcohol tests during that time.

“Wood attested to Valenzuela’s good citizenship in Louisiana and said Valenzuela has greatly matured over the last few years,” Brackpool said. “Wood’s evaluation was one of our considerations.

“We believe the conditions of the stipulated agreement will insure the protection of the public, other jockeys, the horses, and Valenzuela himself.”

Valenzuela won the 1989 Kentucky Derby (gr. I) on Sunday Silence and has won 4,141 races in his career.

He recently hired Tom Knust to be his agent, and he visited the backstretch at Del Mar prior to the opening of the track’s season July 21. It was not immediately clear when he plans to resume riding in the state.

According to the CHRB, other conditions of his license include:

–Valenzuela must completely abstain from the possession, injection or consumption of all psychotropic (mood-altering) drugs, including alcohol. He will be subject to random biological fluid and drug screening testing, including hair follicle testing, for the detection of alcohol, narcotics, hypnotics, dangerous drugs, or other controlled substances.

–The Board has the right to charge Valenzuela for the cost of such testing.

–Valenzuela must obey all federal, state, and local laws, and he must provide a full and detailed account of any and all violations of law to the CHRB in writing within 72 hours of occurrence.

–Before Valenzuela may apply for license, he must enter into a contract with the Winners Foundation. He must abide by the organization’s requirements, including attendance at three meetings a week of a 12-step recovery program dealing with the treatment of alcoholism.

–If Valenzuela fails to participate in random, biological fluid and/or drug screening testing within the time frame specified by the board or has any confirmed finding of the presence of alcohol, narcotics, hypnotics, dangerous drugs, or other controlled substances in his body, the probationary license issued as a result of the stipulated agreement will be immediately suspended.

The Del Mar main track was closed for training on Thursday morning, a day after the track’s opening card, but live racing was on schedule for the afternoon.

Del Mar Director of Racing Tom Robbins said track superintendent Richard Tedesco and his crew spent the morning mixing the synthetic Polytrack surface after some materials separated in overnight maintenance.

“They’re finishing it up right now,” Robbins said a little less than four hours before the 2 p.m. PDT post time for the first race. “That’s what it needed.”

The track was closed shortly after training hours began early Thursday because of inconsistent areas, particularly in the stretch.

“We believed we wouldn’t need to get in and do our rototilling until this coming Monday, but now it appears we overestimated how long we could go without turning the track fully over,” Del Mar President Craig Fravel said in a press release. “We’ll rototill this morning and be back on schedule in time to race today.”

Trainer Bob Baffert observed Wednesday that the track was deep when champion Lookin At Lucky worked six furlongs. Baffert said the track was like quicksand.

Trainer Julio Canani said Thursday that he had been satisfied with the surface since his stable arrived.

“It’s been fine, no horses have broken down or anything,” Canani said. “I don’t know what’s going on [Thursday], but I haven’t had any problems.”

Tedesco, also the track superintendent at Santa Anita Park, replaced Steve Wood at Del Mar this year.

Many horsemen have complained since Polytrack was installed at Del Mar in 2007 that the surface has varied, often changing from mornings to afternoons.

With Tedesco at the helm, Del Mar began turning and loosening the surface over each night starting on July 10 in a procedure called power harrowing, to try to ensure consistency for training hours.

In rototilling, equipment digs deeper into the surface for a complete remix.

James Gammon, a long-time character actor who owned a Thoroughbred farm in Ocala, died on July 16 at age 70.

Gammon and his wife, Nancy, established Milagro, a nine-acre farm, in 1988 and considered Marion County their permanent home, according to the Ocala Star-Banner. They named the farm after the movie The Milagro Beanfield War, in which Gammon played a horse thief.

Perhaps best known for his role as Cleveland Indians manager Lou Brown in the comedy Major League, Gammon bred 2000 Santa Ynez Stakes (G2) winner Penny Blues with his wife and raced her in partnership with Don Johnson, his co-star in the television series “Nash Bridges.”

Penny Blues also won the 2001 Davie Stakes at Hialeah Park and placed in five other stakes races.

The Gammons bred 2004 Tropical Park Oaks runner-up Cold Wynnter in partnership with T. Wynn and Mary Jolley and Christian Chiari.

Playwright Sam Shepard told the Orlando Sentinel that he owned a Thoroughbred with Gammon and did several plays about horse racing with him.

Hollywood Park concluded its 57-day spring meet July 18 with a 10.4% average decline in attendance and a 10.3% drop in average daily wagering.

According to a release from the Southern California oval, attendance averaged 12,676, compared with a daily average of 14,149 during its 55-day meet in 2009.

Average daily handle in Southern California of 4,794,545 represented a decline of 10.6% from the average of $5,365,2931 during the corresponding meet a year ago. All sources average handle declined 10.3% from $10,561,323 in 2009 to $9,474,780 in 2010.

“Although we are disappointed with the numbers, we thought the meet was exciting from a racing standpoint,’’ Hollywood Park president Jack Liebau said in a release, noting that one of the meet highlights was the 17th consecutive victory for the undefeated mare Zenyatta.

Liebau said one positive aspect of the meet was the successful experiment of Thursday night racing. He said Hollywood Park plans to begin its fall meet with a night program Nov. 4.

Jockey Joel Rosario defended his crown with 79 winners, four more victories than runner-up Rafael Bejarano. Rosario has won the last three meets at Hollywood Park, including the fall season in 2009. Trainer Doug O’Neill won his fifth spring-summer title. He finished with 28 victories, one more than Bob Baffert, who started 77 fewer horses (162-85). O’Neill has won nine training championships at Hollywood Park.

La Canada Stables topped the owners’ standings by wins, with 16 victories. In terms of earnings, Mace and Samantha Siegel’s Jay Em Ess Stable led for a second year in a row, with purses totaling $456,920.

In spite a slight gain in average daily attendance, on-track wagering and overall handle declined during the 60-day meet at Lone Star Park that concluded July 18.

According to a release from the Grand Prairie, Texas, track, attendance totaled 417,096 for a daily average of 6,952. Lone Star averaged 6,883 for the 65-day meet in 2009.

The track reported on-track wagering of $17.4 million this year, for a daily average of $290,569, which was down 9% from last year’s average of $320,709.

Average daily all-sources wagering slipped 23.3% from $1.96 million last year to $1.63 million in 2010. Total all-sources handle was $97.8 million this year, compared with $127.5 million in 2009.

Lone Star reported the biggest decline in wagering during 2010 was on the track’s outgoing simulcast signal. Off-track simulcasts of the track’s live racing decreased by 25% from $1.1 million per day to $834,000.

“We are pleased that we were able to attract more fans per day to Lone Star Park at a time than other tracks across the country that are seeing lower attendance numbers,” Lone Star Park president and general manager Drew Shubeck said in a release. “Obviously, the decline in our wagering handle is disappointing. The biggest drop, in our off-track numbers, is consistent with other tracks in the state indicating the quality of Texas racing has declined to the point where it’s becoming irrelevant on the national level. Racing fans in other states are telling us they are not interested in wagering on our races. It’s a strong message that we need to improve the quality of racing at Lone Star Park.

“The other decreases in on-track wagering and all-sources handle are consistent with what’s happening throughout the country and are largely due to the slow national economic recovery and the continued penetration of internet wagering into our market despite the fact it is illegal,” Shubeck continued. “At a time when ‘every dollar counts,’ Texas’ prohibition of advanced deposit wagering is costing us jobs and horsemen valuable purse dollars.”

Lone Star reported a slight decline in average field size, with 4,689 runners in 564 races for an average 8.3 horses per race. Fields averaged 8.7 runners per race in 2009 when there were 5,385 starters in 616 races.

Average daily purses decreased by 15% from $177,089 last year to $150,871 in 2010.

Jockey Chris Landeros successfully defended his title with 101 winners, one victory shy of tying Lone Star Park’s record of 102 wins in a season.

Bret Calhoun captured his first Lone Star Park training title with 62 wins, 14 more than Danny Pish’s 48 trips to the winner’s circle. Lone Star Park all-time leading trainer Steve Asmussen finished third with 45 wins.

For the third straight year, the owner’s race was won by Tom Durant, who set a new season record with 37 victories.

A number of groups, including the New York Racing Association, have approached state officials about taking over all or part of the New York City Off-Track Betting Corp.

“We’re moving at warp speed,’’ NYCOTB Chairman Larry Schwartz said of a process to reorganize the money-losing operation in its seven-month-old Chapter 9 bankruptcy case.

Schwartz, who is also the chief of staff to New York Gov. David Paterson, said NYRA and others have expressed possible interest in taking over the NYCOTB’s betting platform or managing betting branches.

“I believe the only way New York City OTB survives is if somebody takes it over or we create a partnership,’’ Schwartz said.

The new OTB chairman said a number of top officials at the agency, which has been owned by the state for a couple of years, have been let go. They are also getting rid of  OTB’s controversial fleet of cars as well as several consulting contracts, and are actively planning the closure of at least 11 betting parlors.

“The things we said… should have been done a year ago have begun,” Schwartz said.

NYRA in the past has expressed interest in getting a piece of t NYCOTB’s betting operations, and there has long been talk about the various OTBs in the state merging with NYCOTB.

“It can’t be any longer ‘let’s talk about it, meet about it.’ And then everybody gets into a turf battle. I’m not going there. I’m determined, on behalf of the governor, to solve this problem before he leaves office,’’ Schwartz said. Paterson’s term ends Dec. 31.

Besides NYRA, Schwartz said some OTB agencies and harness tracks have discussed having a possible role or stake in NYCOTB. He did not name them. He said he was doubtful there could be enough administrative- or legislative-approved savings to permit  OTB to remain as a stand-alone corporation.

“The corporation is in bankruptcy, and we’re not going to get out of bankruptcy unless we restructure and reorganize the organization,’’ the OTB chairman said. “Part of that is reducing costs, eliminating inefficiencies.’’ He said at least 11 branches will close within the next one to four months; how far the workforce will be cut to save money is uncertain.

“Everything is on the table,’’ Schwartz said of an OTB reorganization plan. He added, “So, if you want to be part of the solution you’ve got to get on the same path. We’re not interested in having prolonged discussions.’’

Greg Rayburn, the new president of NYCOTB, said the first task during his first week on the job has been to deal with the corporation’s immediate cash-flow problems. “In my line of work, cash is oxygen. I need to maximize the oxygen so we can be viable long-term,’’ said Rayburn, a corporate reorganization expert whose most recent stint was at Magna Entertainment Corp.

Rayburn said that has meant some high-level terminations at the agency over the past week and making plans to close “negative cash flow’’ branches.

“The company is living on borrowed time,’’ Rayburn said of the cash-flow crunch affecting its bottom line. He said it is uncertain where  OTB is headed–whether it will be privatized or face some sort of cooperative deal with NYRA or other OTBs in the state. But he said it will take the backing of its bankruptcy creditors, the unions that represent its 1,000 or so workers, and the legislature.

“Before we go out and start negotiating a plan and a vision, we have to do everything we can on the internal things we can control,’’ Rayburn said.

Rayburn was appointed to what state officials say will be a temporary job overseeing NYCOTB’s restructuring. He is making $125,000 a month.

It’s safe to say it’s very unusual for a 10-year-old pregnant Thoroughbred mare that hasn’t raced in seven years to return to training.

But after Pennsylvania-based owner-trainer Andrew Davidovich’s mare Violet Eyed Diva, who is 2 1/2 months pregnant to his farm stallion Draft Age (by Storm Cat), was entered in a July 1 claiming race at Presque Isle Downs & Casino but then scratched by stewards, Davidovich began working to prove his mare was in fact healthy enough to race and deserved to make a comeback in spite of the extraordinary circumstances.

According to Pennsylvania State Horse Racing Commission officials, though Davidovich presented a compelling argument in the form of a letter stating the details behind the mare’s strong training and positive veterinary exams, regulators want to take a closer look before approving the mare to race at the Erie track.

Davidovich outlined how during her racing days in 2002-03, Violet Eyed Diva won three of 12 starts and earned $79,000. After having surgery to remove chips in her knee, however, the mare was no longer performing up to par, and Davidovich decided to retire her from racing to become a broodmare.

Violet Eyed Diva produced three foals, two of which never made it to the track. The one foal that did race—Justhitoverdrive (by Rahy)—has failed to hit the board in six starts.

After Violet Eyed Diva had spent seven years at Davidovich’s Mt. Pleasant, Pa., farm, her poor produce record, combined with the fact she “acted like she wanted to stretch her legs a bit more” led Davidovich to try and put the mare back in training. After confirming his decision with the approval from a few other horsemen, Davidovich breezed Violet Eyed Diva at Mountaineer Casino, Racetrack & Resort in West Virginia and was pleased with the results.

He then began working her steadily with the intention of running her in the July 1 race at Presque Isle. But two days before the event, Pennsylvania state steward Hap D’Angelis told Davidovich Violet Eyed Diva would be scratched due to the length of time since she had last raced. D’Angelis initially told Davidovich he could work the mare in front of the stewards, but then changed his mind.

Racing commission officials said it was too close to the time of the race to be able to fully evaluate the mare’s condition.

Davidovich said D’Angelis told him that allowing Violet Eyed Diva to race at Presque Isle would stir up “bad publicity,” and that he should pursue racing her at Mountaineer instead.

Davidovich said the commission told him it needed to “gather more information” from himself and others about Violet Eyed Diva before they could approve the mare to race at Presque Isle.

“If there’s no decision made in three or four weeks, I might as well give up on the idea, because there’s no way I’m going to race her when she’s four or five months pregnant,” said Davidovich, who noted he wouldn’t race his mare on dirt at Mountaineer. He said he wants to race Violet Eyed Diva, who had excelled on turf during her career, on Presque Isle’s synthetic surface.

Davidovich, who has owned horses since the 1960s and took out his trainer’s license in the 1970s, said he would continue working Violet Eyed Diva until the situation is resolved. The mare last worked four furlongs in :51 at Presque Isle July 13. She has been deemed fit for racing by both the Pennsylvania and West Virginia state veterinarians, as well as the Mountaineer board of stewards Davidovich said.

“Some horses you know don’t want to race anymore, but (Violet Eyed Diva) is still going good and is sound, and I want to race her if at all possible,” Davidovich said.