Gross Inaccuracies in the Commonwealth Racing Q&A Posted on the Town Website

On 12/19/22, the Select Board posted a document to the town website from Commonwealth Racing with answers to questions raised by townspeople. There are almost a dozen places where the information provided by Commonwealth Racing contradicts Massachusetts state law, Gaming Commission rules, their own draft Host Community Agreement, and/or their Gaming Application. These answers were given to attendees in a handout at last night's Select Board meeting, in addition to being posted on the town's website. This gives those answers the appearance of an official endorsement. This is highly inappropriate. At this late date, given that our town vote on this proposal is mere weeks away, it is inappropriate and unfortunate that Commonwealth Racing has published and disseminated inaccurate and highly misleading information. Below are the questions and answers, including the true answers:

Question 1:

The second paragraph of the HCA states that the equine center "also includes live and simulcast horse racing and related sports betting." CEAC is intending to submit an application for a sports betting license. How will CEAC be utilizing this license?

Answer from CEAC:

Simulcast betting is a simultaneous live video transmission of a race to other tracks or other outlets for wagering, most likely on a mobile device, around the state and the country. Sports betting, like DraftKings, also occurs on individual’s mobile devices in Massachusetts and *around the country. That means all wagering, except limited wagering on a live race on a race day in a temporary kiosk, will take place on a mobile device and not in person. Hardwick will benefit through those revenues even without the overwhelming majority of wages not taking place in the town. For example: If someone in Salem bets on the Red Sox game from the comfort of their home, **Hardwick and the CEAC will benefit from that wager. There will be no permanent wagering structure or facility in Hardwick.

Real Answer:

* According to Massachusetts law, sports betting is only legal for wagerers physically in Massachusetts. In fact, all the sports wagering apps will be geo-locked with special software code. This information provided by Commonwealth Racing is incorrect.

** According to CEAC's own draft HCA, this is incorrect - Hardwick is only promised 1.5% of simulcast race revenues. There is no mention anywhere in any of CEAC's documentation that Hardwick will be paid sports betting revenues.

Question 2:

Does CEAC, regardless if a location has been identified, plan to have a retail sports betting location in Hardwick?

Answer from CEAC:

CEAC will never have a casino, sports bar or sports book, or any gambling facility in the Town of Hardwick. The simulcast and sports betting occurs on mobile phones around the state and the *country. CEAC has stated in their draft of the Host Community Agreement that they will never apply for a casino license.

Real Answer:

* Again, by law, sports betting is not allowed for wagerers outside of Massachusetts. Also, gaining the sports betting license allows CEAC to have a retail site license for sports betting. Where will CEAC put that?

Question 3:

Without the racetrack existing in Hardwick, CEAC would not be eligible for a sports betting license. Will Hardwick receive a percentage of earnings from sports betting?

Answer from CEAC:

* Hardwick will receive a portion of sports betting revenue in the annual fee paid to the community, a minimum of $500,000. If there is no license, there is no funds to be received by either CEAC or the Town of Hardwick.

Real Answer:

* According to CEAC's own breakdown of the revenues promised to Hardwick:

• $240,000 = 1.5% estimated simulcast betting revenue (called community impact fee)

The rest of the money is from anticipated meal's tax revenue, property taxes, and additional payment to make up the 500,000 promised amount. In addition, CEAC folds in the real estate taxes that the property is already paying to Hardwick in their $500,000 amount, which would continue to be paid to the town regardless of who owns the property. There is no mention of Hardwick receiving any sports betting revenue.

Question 4:

What land alteration is specifically required, planned, or expected for the horse racing track? There are other tracks in the US of similar description, but to this point, CEAC has stated that they do not need to adhere to those same guidelines. Why are they exempt from following the same requirements at other tracks? (fill, turf type, etc.)

Answer from CEAC:

* The track will be a one-mile grass oval utilizing existing subsurface conditions with minor alterations to limit its angulation to five percent. This will require only two corners of the track to be filled with materials from elsewhere on the site consistent with APR requirements, increasing the overall pasture area. No off site materials, including sand, need to be brought onto the property.

A grass track provides horses with the safest racing surface and limits disruption to the soil and the fields. **The Great Meadowbrook pastures will continue to be hayed as they have been for more than a century. The view from Upper Church Street will look and feel no different than it looks today (not including on festival days). While grass tracks cannot handle large race meets, it is ideal for 1–2 day race meets.

All racing facilities are temporary and installed before the festival. Upon completion of the festival, those facilities will be removed. CEAC will ensure the ***guidelines of APR are followed and that the open space is preserved for future generations.

Real Answer:

* In CEAC's Massachusetts Gaming application, over 8 million dollars is allocated to site prep and track construction. This is not consistent with their claim of 'minor alterations'. This is confusing. They need to clarify what this money will be spent on if there will be minimal changes to the landscape.

** This answer is ambiguous - will the track continue to be hayed? Or just other pastures?

*** This is misleading - the racetrack will require a special permit from Massachusetts Dept. of Agricultural Resources because it is outside of standard APR uses.

Question 5:

What infrastructure, permanent and temporary, above ground and below ground, is required for the horse racing track?

Answer from CEAC:

*There will be no cables or pipes installed in the track. The fencing, gates, tote boards, etc. are all temporary. The track will be watered, as necessary between races, from a water truck. CEAC will not install any power lines or water and sewer lines in Upper Church Street — no wires and no trenches.

Real Answer:

* Misleading. This only lists what is not needed. We request specific information of what infrastructure is required that is temporary.

Question 6:

Will any chemicals be used to maintain the race track? What chemicals, method of application, quantity, and frequency?

Answer from CEAC:

*All applications will be done using best practices, consistent with APR requirements.

Real Answer:

* The CEAC Massachusetts Gaming application has a line item for $10,000 per race weekend for fertilizer/weed killer and $2000/weekend for seeding. This seems like a significant amount of maintenance and external inputs. Is there a plan to handle run off from these inputs?

Question 7:

How will the applicant supplement the HCA if there are days over what is promised to be requested?

Answer from CEAC:

CEAC is legally bound by the HCA. As such, *CEAC will NOT race any more days than what they agree to in the HCA. Every year CEAC will go in front of the Board of Selectmen to apply for the licenses needed to hold our festival racing days.

Real Answer:

* According to the MA Gaming commission, while CEAC may request exemption from the Mass Gaming minimums, there is no guarantee exemptions will be given. Also, CEAC has requested the ability to simulcast/wager on 'dark days' when no live racing will happen. There is no mention of how many days this will be or how many visitors will come to the track for these 'dark days'. In addition, CEAC mentions additional days (Up to 20/year) for non-horse related festival days. Will those days also require setup/takedown? Closure of Upper Church street?

Question 8:

What is the power of the HCA agreement? vs Gaming Commission, etc.

Answer from CEAC:

The Host Community Agreement is their legal contract with the Town of Hardwick. It is a legal document enforceable by law. *If CEAC violates any part of the contract, the Town can fine the CEAC or take them to court. All legal fees will be paid by the CEAC. The Gaming Commission takes the HCA into consideration, but it is not their contract with Hardwick. **If the Gaming Commission requires CEAC to race more days than requested, and the CEAC’s contract with Hardwick says CEAC can only race fewer days, then CEAC will not race and not receive a license. Full stop. CEAC is required to follow BOTH the HCA and the Gaming Commission.

Real Answer:

* While an HCA is a legal contract, enforcing such a contract is arduous and expensive. And just this week, both Springfield and Everett are facing significant issues with broken promises from the gambling businesses in their towns, despite HCAs being in place. When CEAC says "All legal fees will be paid" do they mean that they will pay the full cost of any legal fees or lawsuit if the town of Hardwick must sue them for any breach of the HCA? If abutting towns sue us for impacts?

** This is a confusing and misleading statement. All the information from the Gaming Commission states that they can grant waivers to CEAC regarding numbers of race days, but are not required by law to do so. They are also not required to honor any race restrictions in a town's HCA. All matters pertaining to racing rest with the Gaming Commission as a matter of law. In fact, the HCA states "the parties recognize that the number of race days are subject to approval by the MGC"

Question 9:

In consideration of the report by Spectrum funded by CEAC, how will this proposal be profitable?

Answer from CEAC:

CEAC will lose millions of dollars maintaining Great Meadowbrook Farm, and in breeding, training, retiring and racing thoroughbreds, but it will make money through off-site mobile wagering. The Commonwealth provides this “subsidy” to preserve the 1200 horse farms all over Massachusetts, *as was envisioned in John Mullin’s 2016 UMass Report.

Real Answer:

* According to this report, the Great Meadowbrook property does not actually fulfill the requirements in their plan. Their study, for example, assumes 70-75 racing days and 15 non-horse events per year, as well as a location within an hour from several major cities to be profitable. Hardwick is 90 minutes under best traffic condition from Boston.

Question 10:

How many days per year are required for there to be races (festival days or not)? Festival races are races.

Answer from CEAC:

The state legislature has set an aspirational goal of 20 race days per year. The Legislature and the Gaming Commission know there are not enough horses nor sufficient purses to race more than a few days each year. State law gives the Gaming Commission the authority to waive these days as necessary for a track to operate. CEAC has committed to race the following schedule for the next five years:

• 2023: One Weekend (two days)

• 2024: One Weekend (two days)

• 2025: One Weekend (three days)

• 2026: Two Weekends (four days)

• 2027: Two Weekends (four days)

*Next year CEAC would race only two days, September 13 and 14. CEAC will review its race schedule with the Select Board each and every year prior to requesting any days from the Gaming Commission.

Real Answer:

* See earlier note regarding the question of 'dark days' and simulcasting, as well as how many non-horse related festival days are planned. The Gaming Commission still controls the number of race days

Question 11:

What are all of the committees that must review the proposal and in what order if the town votes in favor of the racetrack at Great Meadowbrook?

Answer from CEAC:

CEAC is at the very beginning of the process. Like the start to any project, CEAC need to obtain approvals and permits. The Hardwick Select Board must approve Great Meadowbrook Farm for horse racing and adopt the Host Community Agreement. A Host Community Agreement is a standard term for a contract between a municipality and an entity. It outlines expectations, finances, timeframe, responsibilities of both parties. *This document gives the Town control over the project. CEAC included in the proposed HCA a citizen-driven oversight board to advise the Select Board activities.

After this initial step, the Commonwealth of Massachusetts will review and decide on the application for a two- day Racing Meeting license for next September 13 and 14.

Additionally, the Agricultural Land Preservation Committee will also review the proposal for compliance with appropriate laws and deeded restrictions. CEAC will also need approval from permitting agencies, such as the Planning Board. Each year the Town of Hardwick will review and decide on a parking plan, road closure request, and common victual and liquor licenses for festival days. In addition, the Commonwealth of Massachusetts will conduct a hearing in Hardwick each year prior to making a decision on a Racing Meeting license for the farm.

Real Answer:

As per Massachusetts Gaming laws, once the site is approved as a site for horse racing, the town no longer has any control over its future use. It can always be used in this way. (Verified by Hardwick's Town Council 12/19/22)

VOTE NO Saturday, January 7th from 12:00-7:00 PM at the Hardwick Elementary School