STATEMENT REGARDING THE MID-ATLANTIC COOPERATIVE’S BLACKOUT OF MONARCH TRACKS

ARCADIA, CA - To those customers unable to wager on Monarch product this weekend at Mid-Atlantic simulcast locations: Monarch and its member racetracks very much regret that customers are currently not able to watch and wager on Monarch tracks at simulcast locations that are part of the Mid-Atlantic Cooperative. The Mid-Atlantic Cooperative is a group of 23 racetracks that purchase simulcast content together. Monarch has done everything possible to try to ensure that signals remain on during our negotiations with the Mid-Atlantic Cooperative. In fact, Monarch has offered several times to extend the current terms of our simulcast agreement with the Mid-Atlantic tracks while negotiations continue in order that customers not be inconvenienced. However, the Mid-Atlantic Cooperative has refused to accept any extension, and has voluntarily ceased taking Monarch signals.

The Mid-Atlantic Cooperative was formed over a decade ago in order to keep the price that its member tracks pay for simulcast signals as low as possible. Unfortunately, this business model does nothing to reward racetracks and their horsemen partners for investing in their racing product in order to keep and create fans. Racetracks such as Gulfstream Park, Santa Anita, Del Mar and Tampa Bay Downs, together with their horsemen, have made significant investments in their product over the years, and the high quality of these racing signals has been maintained, if not improved. Continuing to invest is not sustainable if these racetracks and their horsemen cannot receive a larger share of the simulcast revenue than they historically have.

Approximately one-half of the Mid-Atlantic racetracks do not conduct any live thoroughbred racing. We believe this fact is relevant to the price these locations should pay for the thoroughbred signals they purchase. While specific pricing cannot be publicly discussed, it is important to note that even under the proposals that Monarch has made to the Mid-Atlantic Cooperative, the Mid-Atlantic tracks would still continue to retain over two-thirds of the simulcast revenue generated by wagers on the content of Monarch tracks.

We continue to remain in contact with the Mid-Atlantic Cooperative, and we will continue to encourage them to offer the Monarch content to their customers.