MGCB Director Richard Kalm’s Latest Contradictions.

Letter to Harness Horsemen by Richard Kalm on Jan. 24, 2014.

I love this excerpt:

The entry/starter fee is paid to the track management to cover track related matters. “This money is not co-mingled with the purse pool money. The starter bonus is an amount of money negotiated by the CHO and track to be paid from prizes awarded out of the purse pool” for horsemen who start each race.

WTF??? LOL Isn’t this the same damn thing. We all know it’s a “back door” deal. $$$ going and coming from same source. Unbelievable.

This is the one thing that pissed off the MIHBPA about MPM, having to do this to begin with. Who is kidding who here?

In it’s entirety.

January 24. 2014

Harness Horsemen of Michigan:

On October 31, 2013, and November 1, 2013, Executive Orders were issued granting Hazel Park and Northville Downs Race Meeting Licenses to conduct live and simulcast racing. The Race Meeting Licenses awarded race dates, but were breed neutral, meaning the breeds to be raced were not specified. This was done to give the tracks the opportunity to submit additional information regarding their proposed and requested thoroughbred track conversion plans. It also permitted a cooling off period to allow Michigan Harness Horsemen’s Association (MHHA) and the Gaming Board to explore the possibility of expanding Harness Race date opportunities with the tracks. The orders were issued as required by Nov. 1st.

During this process I complied with our statutory responsibilities by approving the race meeting licenses to applicants that met the contract demands of the Certified Horsemen Associations (CHO) involved at their tracks. The applicants (tracks) made the decision to present a different product to their customers with the goal of increasing interest in the sport and perhaps making a profit. The Executive Director can only act on the applicant’s requests not those of other parties.

The 2014 Orders allow for 10 months of racing, perhaps different breeds and less days, but still horse racing. MHHA contracts do not specify a number of race days a track must race. The contract they signed with the tracks runs through 2014. The law prohibits the Executive Director granting more dates than adequate horse supply will support. It also does not allow us to order an increase at a specific track. In contrast, Michigan Horsemen’s Benevolent and Protective Association (MiHBPA) and Great Lakes Quarter Horse Association (GLQHA) have each historically set specific days in their contracts with the tracks. The approved days for Northville Downs and Hazel Park are within those guidelines.

After waiting an extended period of time in order for MHHA and the tracks to resolve the race day issue, my staff held a meeting with representatives from Northville Downs and MHHA on January 3, 2014. There was again a discussion about increasing the race days, and the staff left the two groups alone to work out an agreement. No movement was made. As the meeting concluded staff urged both groups to work together to resolve the issue. At my direction, Gaming Board staff separately talked with Northville Downs concerning increasing their days, and Northville Downs proposed a 15-day meet in May instead of a 10-day meet in March. On January 17, 2014, MGCB staff talked to MHHA representative Phil Stommen and MHHA President Brett Boyd. Mr. Boyd rejected the 15-day meet in May stating they would rather race 10 days in March. Later that day, my staff received a request from the MHHA to delay issuing any Executive Orders to allow them to send another proposal to Northville Downs. Gaming Board staff received a copy of the proposal at 4:19 p.m.and the Executive Orders were put on hold until January 21, 2014. Upon no deal being reached between Northville and the MHHA, the Executive Orders were issued January 21st.

I along with my staff have examined the issue of entry/starter fees and do not believe this is against the Horse Racing Act or Rules. The entry/starter fee is a negotiated amount agreed upon by the certified horsemen Organization (CHO) and the track. The entry/starter fee is paid to the track management to cover track-related matters. This money is not co-mingled with the purse pool money. The starter bonus is an amount of money negotiated by the CHO and track to be paid from prizes awarded out of the purse pool for horsemen who start each race. If the horse does not start, the track will refund the entry/starter fees. The tracks and the CHO are willing participants.

Our intent is, and has always been, to maximize live racing opportunities for the horsemen. However, we are unable by law, to increase days or decide which CHO a track must negotiate or contract with. The actions we take here at the Gaming Board have to comply with the racing act as interpreted by our Attorney General advisors.

The reference to “moral and legal implications” caused by the Gaming Board, as recently stated by MHHA leadership regarding our efforts to follow the law, is inappropriate. We can only encourage the CHOs and tracks to work together. We don’t negotiate contracts, we can’t mandate to a track the product they choose to provide whether it be Thoroughbred, Standard bred, or Quarter horse. We will not involve ourselves in disputes between internal factions of the industry. We won’t take action that would breach either party’s legally negotiated contract. I am confident the Gaming Board has done and will continue to do our duty under the racing act to guard the integrity of the “whole” racing industry during this very tough time and annual decrease of racing activity.

Thank you,
Richard S. Kalm
Executive Director


Again I refer to the reasons behind the original denial of NVD.

In the matter of:

John Carlo, Peter Battista, Margaret Zayti Partnership, d/b/a Northville Downs Application for a 2014 Standardbred, Thoroughbred and Mixed Meet Race Meeting License and 2014 Simulcast Permit Amended to reduce live race days from 26 to 10 on October 22, 2013. ORDER DENYING NORTHVILLE DOWNS A 2014 THOROUGHBRED AND MIXED MEET RACE MEETING LICENSE Northville Downs filed an application on August 30, 2013, for a 2014 Standardbred, Thoroughbred, and Mixed Meet Race Meeting license and a 2014 Simulcast Permit with the Executive Director of the Michigan Gaming Control Board. The application was filed under the Horse Racing Law of 1995, Public Act 279 of 1995; MCL 431.301 et seq., and the promulgated administrative rules. On October 22, 2013 Northville Downs submitted a significant and untimely amendment to their application to decrease live race days from 26 to 10. That request was denied on November 1, 2013.

On November 1, 2013 the Executive Director granted the application of the licensee for a Standardbred 2014 Race Meeting license at Northville Downs for the 26 live race days requested in the original application. While the Horse Racing Law of 1995 does not provide for the submission of race meeting applications after September 1 of each year, the Executive Director, in the best interest of racing, allowed Northville Downs to submit an amended application subject to certain conditions listed in that order and referenced below. Northville Downs represented that the amended application was for the primary purpose of converting its track to allow for
thoroughbred racing. The conditions for considering the amended application for a Thoroughbred and Mixed Meet Race Meeting license included the following:

(a) Amend the application for a 2014 Race Meet license by answering all questions as they pertain to the horse breed(s) contracted to race at the 2014 Northville Downs race meet.

(b) The licensee must submit a signed contract with all certified horsemen’s organization(s) representing the breed(s) of horses the applicant intends on racing.

(c) The licensee must submit a business plan detailing how the combination and/or changeover from Standardbred to Thoroughbred and mixed breeds will occur. That plan should detail the costs, funding and timeline involved with converting the track.

Replies to the above conditions were required to be adequately and sufficiently submitted to the Executive
Director by December 1, 2013 to allow for these amendments to be considered. However, Northville Downs has failed to meet the above conditions.

Specifically, Northville Downs has failed to demonstrate a definitive, specific, and detailed plan that could be approved according to the Horse Racing Law of 1995. The Executive Director finds the following deficiencies:

1. The licensee failed to supply a convincing plan to assure sufficient numbers of Thoroughbred horses and Quarter Horses for the proposed meet.

2. No assurance that sufficient simulcast purse pool money will be available for such a race meeting.

3. The amended application is untimely due to the ordered race dates commencing in January 2014 which does not allow for complete vetting of the application.

4. No assurance that the track will be safe for the proposed function and on par with industry standards.

5. No assurance of funding for the track conversion.

6. The submitted plan does not appear to be in the best interest of horse racing in the State Of Michigan for 2014.

Accordingly, Northville Downs’ amended application for a Thoroughbred and Mixed Breed race meeting license is denied.


Date: December 18 2013


Dec. Denial: “under the Horse Racing Law of 1995, Public Act 279 of 1995; MCL 431.301 et seq., and the promulgated administrative rules”

Jan. Approval: “The actions we take here at the Gaming Board have to comply with the racing act”

Can he get any more contradictory?

And this “I am confident the Gaming Board has done and will continue to do our duty under the racing act to guard the integrity of the “whole” racing industry during this very tough time and annual decrease of racing activity.”

Why has it decreased? Because the MGCB allotted racing days then TOOK THEM BACK. Case in point: Pinnacle Race Course 2010: Allotted 84 days, then took them all back but 3.

This is all f’n absurd.

All I know is the MIHBPA should be ashamed of themselves getting suckered in by both, the Harness Tracks & the MGCB.

“Insanity: doing the same thing over and over again and expecting different results.”

But this group likes getting played, after all they let Dan Adkins play them from 09′ to this point and the MGCB ever since the State of Mi. threw us under them has been determined to kill off racing period.

Northville went from being unsafe for the proposed function and on par with industry standards for thoroughbreds, then all of a sudden to, hell let them die.

No game here, can’t see it? In the end you will.

They’ll find out again the hard way, the way they like it.

The thoroughbred horsemen/women themselves should be appalled at Kalm’s underlining bullshit.

In 2010 after Pinnacle Race Course shut their doors the MIHBPA literally went to the MGCB to complain about the money they had to pay out of their purses to buy back the dates that the MGCB slashed. Basically because Pinnacle’s owner refused to spend the money forcing the horsemen/women to pay it if they wanted to race.

In essence they sealed their own fate by complaining isn’t this illegal? that the MGCB in-fact ruled that in the future it would be illegal to use money out of the purses to pay to race. Outside of the legalities of Pinnacles liens to many that wouldn’t allow them to remain open for business, this ruling in itself would stop the track from racing unless the track paid the fees for future race dates slaughter.

The MIHBPA cut off their noses to spite their face.

Was it fair for the MIHBPA to pay for the days the MGCB took back? No, Jerry Campbell should have paid. But was it a bright Idea going to the MGCB and then cry about it?

They knew the game going on, well it’s still going on only now they are going to be paying NVD’s & Hazel Park about a million to do the same damn thing. Pay both tracks to change surfaces back & forth and for what? So harness can race 10 days?

It is a big fat joke and it’s on the MIHBPA.

Paying to kill their horses at NVD a track never in history having thoroughbreds. A small half mile track that sits between two city streets. Imbeciles flushing their money down the toilet. Hazel Park sitting back and laughing let the fools pay. No barn area to speak of.

The entry/starter fee is paid to the track management to cover track related matters. “This money is not co-mingled with the purse pool money. The starter bonus is an amount of money negotiated by the CHO and track to be paid from prizes awarded out of the purse pool” for horsemen who start each race.

MGCB: We denied Northville Downs based on the racing act law of 1995.

MGCB: We approved Northville Downs by following the rules of the racing act law of 1995.

Contradiction after contradiction after contradiction. Lies, lies and more lies. All of it is Bullshit.

What tangled webs we weave and the MIHBPA has become master weavers, this one they won’t be able to get out of. Harness tracks waiting on the changing of the guard in Nov. 2014 which will happen. Then what the House & Senate passed that Snyder pocket vetoed, Instant racing the thoroughbreds will be bound by contract to their enemy who played them and will have won it all.

Pinnacle will never open again. What the game plan by these two harness tracks were all about to start with.

That was their main focus. Ah but don’t think the MGCB won’t throw more & more road blocks even if any additional help gets passed to aid horse racing. Because the MGCB main focus is the 3 Detroit Casino’s. Always was, always will be.

“I am confident the Gaming Board has done and will continue to do our duty under the racing act to guard the integrity of the “whole” racing industry during this very tough time and annual decrease of racing activity.”

I am confident after all Richard Kalm has done and said in the past, that he is full of it past the brim.

Our HBPA has a short memory.

The MGCB & Detroit joined into a Coup.

It’s president wants to be a hero, he has no clue what he has gotten into. How could he know, he only got into horse racing business prior to 2008.

Again this whole deal is a travesty, actually more for the thoroughbreds then the standardbreds because when these harness tracks & the gaming board get through live racing of both breeds will be dead.







Filed under News, Politics

3 responses to “MGCB Director Richard Kalm’s Latest Contradictions.

  1. You obviously dont know how to uphold the law and your duty to preserve live racing.

  2. Who are you talking to?

    Better read every blog I’ve got posted under the horse racing tab or the one before this one. The reason all the horsemen/women of both breeds were bitterly against Dan Adkins petition he presented to the State board of canvassers in 2011, he left out the provisions for LIVE RACING, PURSE STRUCTURES, CONTRACTUAL AGREEMENTS & SMULCASTING REVENUE.

    It was Horse Racing that brought in $400 Million in revenue for the State of Mi. long before the word Lottery or Casino ever came into play, yet we’ve been kicked to the side. Mountaineer was the shit track of the country not long ago but they were given slots.

    Do you understand what kind of revenue has been brought to W. Virgina because of it and what it did for horse racing there.

    These are statistics that are fact.

    We deserve an even playing field and you are ignorant to these facts. Hard to preserve anything when the MGCB allotted us 84 racing days the last year of Pinnacle then took them all back but 3. So where are you coming from.

    Horse racing was here first, 1933. You add up all the money this industry generated over the years then state we don’t know how to preserve live racing. When our Office of Racing Commissioner was dissolved, then we were taken from our governing body of Agriculture and thrown to the wolves who only care about one thing Casino’s.

    There should be a horse racing representative on the MGCB.

    Hartmen & Tyner and their boy Dan Adkins who own dog tracks in Fl. & Charlestown attempted after getting slots in both States to do away with the LIVE RACING and just end up with the Casino end of it. It didn’t work, Fl. legislators told Adkins you want the slots you keep racing.

    So do you even know what you are talking about? Get a brain Tim. Northville is a shit hole that can’t maintain the surface for harness. No sane Thoroughbred owner is going to race sound horses on a half mile of nothing so they can break them down. Horses meant to race at 40 MPH having to be pulled up on quarter turns.

    This bull isn’t called preserving live racing, it’s called come kill your horse. Who in the F’ are you kidding here.

    Northville is not a viable venue for the T.B.’s period. It’s a sad joke.

  3. And to My Response to your last statement made on the MMHA site that was deleted by the site. I’ll reiterate it.

    Your statement:

    Tim Leineke

    Your right Longshot Drc, i didnt care. I really dont know the history behind your breed and why it hasnt flourished in michigan. Maybe its because michigan is a blue collar state, and throughbred racing is more of a rich mans sport. Never the less the people in charge of racing hate live racing. Its an inconvience to the track directors to have it. How are they going to hire temporary workers for 25 days of the yr. How do you hire a waitstaff, 20 extra tellers, and countless other short term jobs for 25 days of racing. That would be a nitemare! Simulcast wagering should be eliminated or limited to live racing nites. And if you want to be a track owner, you need live racing or close….period! There really should be a facility were both breeds can run..


    Why we HAVEN’T FLOURISHED? lol

    You and the MIHBPA president have a lot in common, it’s not a compliment. Where do you think “Seabiscuit” started at? You made an ass out of yourself.


    The Michigan State Fairgrounds holds the distinction of being the home of one of horse racings most famous accomplishments. In 1933 a horse named “Seabiscuit”, was born. The grandson of the famous Man ‘o War, Seabiscuit was considered a mediocre racehorse at best, until September 7, 1936, before a crowd of 28,000 people at the Detroit Race Track located at the Detroit Fairgrounds, Seabiscuit won his very first race, The Governor’s Handicap. It was the 50th race of his career. Seabiscuit and jockey, John (Red) Pollard repeated the feat on September 26, 1936 at the Fairgrounds, winning the Hendrie Handicap.

    My God, even people completely unknowledgeable about horse racing knows about The Detroit Fairgrounds, when it started and what the Thoroughbreds produced over its history here in the STATE.

    You’re pathetic.

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