from the Woodbine Entertainment Group

Toronto, ON — The contract between Woodbine Entertainment Group (WEG) and the Ontario Harness Horse Association (OHHA) expires on December 31, 2008. Certain issues remain unresolved, so to avoid any confusion or misrepresentation of facts, below are some of the important issues you should be aware of:

• WEG is not proposing any change to the sharing of wagering revenue from the previous contract. In 2009 purses are expected to grow by C$4 million, and will exceed C$80 million.
• WEG is required by contract with the OLG to share slot revenue on a 50/50 split basis. This agreement expires in 2014 at Mohawk and 2015 at Woodbine, well beyond the end date of the proposed agreement with OHHA.
• WEG expects its contracted partner to support honest racing. Our customers are telling us that they have serious concerns regarding the integrity of our harness racing, and this has contributed to a decrease in wagering of approximately 20 percent over the last five years. As purses are tied to wagering, in order to retain the current high level of purses, it’s in the interest of the racetrack and horsepeople to be able to resolve serious integrity issues within the contract. In the event WEG exercises its private property rights to exclude an individual, generally as a result of a serious performance enhancing drug violation, and OHHA wishes to reverse the exclusion, WEG is proposing a binding dispute resolution mechanism within the contract. The agreement would not preclude an individual from seeking relief from the ORC or the courts.
• WEG is proposing a minimum level of annual race dates in the agreement at 225. Our position remains that the number of race dates will be based on the ability to fill programs with quality racing that will generate wagering pools of at least C$1 million. In 2009, WEG applied for 235 race dates and does not intend to reduce that level of dates provided the above conditions for the long term benefit of the industry are satisfied. While hopeful that conditions will exist that support more racing, WEG is prepared to guarantee 225 race dates within the proposed three year term of the agreement.

WEG intends to offer live racing despite the call by OHHA to boycott the entry box. WEG will conduct racing for every scheduled card even if field size is small.