CEO details award adjustments and announces new incentive program

BY STEVE KOCH

FTBOA CEO Lonny Powell appeared before the Florida Gaming Control Commission yesterday, to address critical funding adjustments and announce exciting new initiatives for Florida’s Thoroughbred breeding community. The commission unanimously approved the organization’s request after Powell’s comprehensive presentation on industry challenges and opportunities.

Breeders’ Awards Adjusted to Address Funding Gap

Powell requested a reduction in breeders’ and stallion awards from 20% to 15% for 2025, explaining the financial necessity behind this temporary adjustment. “We have consistently fought and advocated, for about 15 years, as the tip of the spear in legislative action,” Powell told commissioners. “Never would we have thought that tracks would pursue decoupling so fast after we lead the charge to secure historic financial investment packages for everyone.”

The funding shortfall resulted from recent legislative changes that allocated portions of FTBOA’s funding to two tracks seeking to decouple from racing operations. Originally budgeted for dual funding sources throughout the year, FTBOA was forced to operate on a single funding stream during the final three months of their fiscal year.

“We’ve been using just one fund and burning the balance down,” Powell explained. “Coming to you today was out of necessity because we won’t have enough balance at the end of the year for the breeders’ awards as originally planned. The 15% will correct the situation and make it manageable.”

Statute 550: “Outdated, Out of Sync”

Powell didn’t mince words about Florida’s racing statute, calling it fundamentally broken and outdated. Drawing on his background at a leading advance deposit wagering company and as a former national and state regulator, he highlighted critical flaws in the current system.

“Ninety percent of wagering is now done virtually through ADW platforms, yet breeders’ funding is tied to on-track handle,” Powell explained. “On-track handle is now about 2% of total wagering. I don’t think anyone can tell you how much is wagered on ADW or where those people are from.”

This disconnect creates a severe funding mismatch, as breeders’ awards depend on a revenue stream that has nearly disappeared. Powell noted that even on-track ADW wagering doesn’t benefit the breeding program, calling it a fundamental flaw that “short-changes the process altogether.”

All New Out-of-State Incentive Program Launches January 1

Despite funding challenges, Powell announced groundbreaking good news for the FTBOA membership. Thanks to support from the Governor and Senate through a Department of Agriculture fund, FTBOA will launch Florida’s first-ever out-of-state export win incentive program on January 1, 2025.

“It’s the first time in history that Florida’s Thoroughbred industry has done this,” Powell announced. “We’re going to reward Florida-bred horses campaigning for money elsewhere. Our horses are having a banner year all over the nation, probably one of the best ever.”

The program addresses reality in Florida’s racing landscape, where many quality Florida-breds compete nationally due to limited in-state racing opportunities. “When you have two tracks and racetrack owners wanting to be casinos, not racetracks, it doesn’t give everybody warm and fuzzy feelings about hanging around,” Powell noted.

Additional Member Benefits

Powell announced the elimination of registration fees for foals, providing direct financial relief to Florida horse breeders. “We’re trying to do that as prime relief to our hardworking Florida horse people,” he said.

The organization also maintains the distinction of operating the state’s only remaining nonprofit Thoroughbred racing permit, positioning FTBOA as a crucial stabilizing force in Florida’s evolving racing landscape.

Looking Ahead

While acknowledging industry challenges, Powell emphasized FTBOA’s solution-oriented approach. “We’re not all about complaining. We look forward to having discussions about reforms and solutions,” he told commissioners.

Powell indicated that similar adjustments may be necessary for 2026 unless substantial legislative changes occur, but expressed optimism about working with regulators on long-term solutions. “The things I mentioned today would apply not only to the current industry but to a new model under different ownership,” he noted. “These basic concepts apply regardless of structure.”

The commission’s unanimous approval of FTBOA’s request reflects recognition of both the financial necessities driving the changes and the organization’s continued commitment to Florida’s Thoroughbred industry.

Commission Response

Commission members praised Powell’s transparency and comprehensive analysis. “I appreciate your honesty, your candor, your perspective, and your insight,” said Julie Brown, FGCC Vice Chair. “I like the future plans you’re rolling out January 1—very exciting. I’m supportive of your proposal.”

With these adjustments and new programs in place, FTBOA continues positioning itself as a vital advocate for Florida breeders while adapting to a rapidly changing industry landscape.

Return to the September 12 issue of Wire to Wire