TUCSON, Ariz. - Greg Avioli, deputy commissioner of the National Thoroughbred Racing Association, was talking about the Breeders' Cup, about the record wagering of $116 million, about the double-digit increase in TV ratings.
"Everybody felt really good about the whole day," Avioli said. "And then came the next day."
The next day, of course, produced the news of suspected fraud in wagering in the Breeders' Cup Pick Six. That scandal has dominated the racing industry ever since, and it dominated the 29th annual Symposium on Racing held here Tuesday through Friday.
Tim Smith, commissioner and CEO of the NTRA, called it "the issue of the year, the issue of this symposium."
As nearly 1,000 racing leaders and devotees discussed the scandal in open forums and private conversations in Tucson, the final two perpetrators pleaded guilty in New York. Three former fraternity brothers, including Derrick Davis of Baltimore, had worked together to change bets after they'd been made on races, including the Breeders' Cup Pick Six. If they had been allowed to cash their fraudulent Pick Six tickets, they would have collected more than $3 million.
Much of the discussion at the symposium centered on the industry's quick response to the scandal. It launched an immediate investigation, froze the payouts, worked with totalizator companies to upgrade performance and security, hired outside security consultants and began examining wagers from the past year looking for possible fraud.
Avioli and Smith stressed that the industry's work of upgrading technology and reassuring the public, bettors and lawmakers of its progress must continue.
"It's not a quick fix," Avioli said. "This is going to be ongoing this year, next year, the following year."
At the same time, Smith said, "nothing about the racing was compromised. And there are no facts to indicate widespread problems with wagering security."
Jay Hickey, president of the American Horse Council, which represents horse racing in Washington, warned that legislators may use the Pick Six scandal to try to derail industry initiatives in the crucial growth areas of Internet and telephone betting.
"The potential fallout from the Pick Six scandal should not be underestimated at the federal level," Hickey said.
He also said the industry should brace itself for potential class-action lawsuits filed on behalf of compulsive gamblers. Two such lawsuits already have been filed against casinos in Indiana and Canada, Hickey said.
As the NTRA grappled with the betting scandal, it reached out to professional gamblers for help and advice. Jim Quinn, a bettor and author, helped conduct extensive interviews with more than 200 regular gamblers in November at Hollywood Park, Lone Star Park and Aqueduct.
He said they were most concerned about the delayed transmission of betting data in Pick Four and Pick Six wagers, the drop in win odds after races had started and the possibility that betting fraud had been happening for years.
Most people were surprised to learn, as the scandal unfolded, that betting data on Pick Four and Pick Six wagers were not transmitted to the host track until after the next-to-last race. That created an opportunity for manipulation, as happened with the Breeders' Cup Pick Six. NTRA officials said they expect tote companies by the end of this year to have upgraded all equipment so that such data are transmitted after the first race.
The late change in odds has been a gambler concern - ignored by industry leaders - for a couple of years. Focused on the problem now, officials say it's because of so much betting data being transmitted in the final seconds before the starting gate opens.
"It leads to the perception of 'past posting,' " Quinn said, referring to the term for betting after a race has begun. "It leads to the perception of a pervasive element of cheating going on."
Industry officials continue to insist that is not the case. They are working with tote companies to speed up the transmission of data on win bets so that the odds at the break are the odds at the finish.
Quinn said that until such technology is applied most gamblers support the early close of betting - such as when the first horse is loaded into the gate. However, he said, they want to be able to cancel or change their multi-race wagers when a late scratch occurs.
Slot talk
Not all the talk at the symposium was about betting scandals. Much of it was about slot machines.
Ron Barbaro, chairman and CEO of the Ontario Lottery and Gaming Corp., predicted that every racetrack in North America would have them in five years. Steve Ritto, president of the consulting firm The Innovation Group, called Maryland the "poster boy" for slots in 2003.
Lonny Powell, president and CEO of Racing Commissioners International, said the potential for racing in Maryland, if it becomes the first major racing state to get slots, is limitless.
"I think Maryland could become one of the most prominent racing jurisdictions in North America," Powell said. "And it couldn't come at a better time. Maryland racing was going nowhere fast."
Movie talk
Despite discussions about scandal and slots, perhaps the most significant event of the symposium - as it relates to the general public - was the surprise showing at Friday's closing session of Universal Studios' preview of Seabiscuit, the film based on Laura Hillenbrand's best-selling book.
The movie is to open July 25. Previews are to begin playing in theaters two days before Christmas. If the preview, where tears were rolling down men's faces, is any indication, the movie Seabiscuit will be the most significant marketing event in horse racing history.