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TUESDAY, JANUARY 2, 2018 BLOODHORSE.COM/DAILY

Fort Larned1st Crop Stakes Winner 2YO BLONDE BOMBER PLACES in BREEDERS’ CUP JUVENILE FILLIES

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IN THIS ISSUE

8 Pee Wee Reese Starts Year With Joe Hernandez Score

9 First Foal Out of Egg Drop Nears Debut

10 New Connections Score Stakes With Code Warrior

Tax Reform Gallops Across Finish Line

FAST LANE

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3 Tax Reform Gallops Across Finish Line

8 Pee Wee Reese Starts Year With Joe Hernandez Score

9 First Foal Out of Egg Drop Nears Debut

10 New Connections Score Stakes With Code Warrior

11 Sassicaia, Catalina Red to Elite Thoroughbreds

12 Ax Man Cuts Through the Competition for Baffert

13 JRA Racetrack Handle Continues to Climb in 2017

14 Rainbows and Cold Comforts

15 Results

17 Entries

18 Leading Lists

CONTENTS

BLOODHORSE DAILYEditorial Director

John K. Keitt, Jr.BloodHorse Daily Editor

Claire Novak-CrosbyAsst. Daily EditorMary ReederSenior Bloodstock ColumnistBill OppenheimVisuals DirectorAnne M. EberhardtCreative ServicesKerry HoweDigital Media GroupErin MorganChristine Wittmer

Director of Advertising SalesScott CarlingRegional Sales ManagersShirley DievertKristi HeasleyEllen LambertusAmanda RameyContact Us:Editor: cnovak@bloodhorse.comAsst. Editor: mreeder@bloodhorse.comAdvertising: advertise@bloodhorse.com

BLOODHORSE DAILY APP Providing updated news and analysis throughout the day.

Plus view recent stakes, allowance and MSW race videos, entries and more!

Download the free mobile app at BloodHorse.com/Daily

ON THE COVER Caledonia Road is a blur in a Breeders’ Cup work at Del Mar

Joao Moreira waves to the crowd on his way to the winner’s circle aboard Conte after the Jan. 1 Sunset Peak Handicap at Sha Tin

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TAX REFORM GALLOPS ACROSS FINISH LINEBy Chris Coffman

Changes from the tax reform package approved in late 2017

will have substantial economic impact on all business owners, including Thoroughbred owners, breeders, and other participants in the industry.

Keeping in line with the surprising speed with which Republicans moved their tax reform package through Congress, President Trump signed the sweeping legislation into law Dec. 22. The tax changes, which had no bi-partisan support, are the most comprehensive since the 1986 Tax Act.

With those changes beginning this year, it is important for stakeholders to be aware of possible effects the new legislation could have on their equine businesses. Given the wide-ranging and complex nature of the new law, however, this article only will identify key provisions that should be of interest to the industry.

Taxation of Passthrough Income

Most businesses operating in the Thoroughbred industry are organized as passthrough entities, where profits/losses of the entity "pass through" to each owner and are reported on each owner's tax return. Under previous law, income from passthrough entities, such as partnerships, S corporations, or limited liability companies, was taxed at the individual tax rate of the entity's owners. For the 2017 tax year, the top marginal

individual tax rate was 39.6%.Generally, under the new law,

beginning in 2018 a passthrough entity owner may deduct 20% of the "qualified business income" received from the entity's trade or business activities. The legislation makes no distinction between passive and nonpassive business owners. Because the new tax law also reduces the top marginal individual income tax rate from 39.6% to 37%, a passthrough owner using the full 20% deduction effectively reduces his/her marginal tax rate from 37% to 29.6%. As a result, the impact of the new legislation on the tax treatment of an owner of a passthrough entity is a potential 25% reduction of the owner's top tax rate on trade or business income from the entity (from 39.6% to 29.6%).

However, if an owner's taxable income (from all sources of income, not just the passthrough entity) exceeds a threshold amount of $157,500 ($315,000 for a joint return), the owner's ability to use

the deduction may be limited. First, for owners with income over the threshold amount, the deduction does not apply to any specified service business. This includes any business activity that involves the performance of services in certain fields (health, law, engineering, accounting, performing arts, athletics, etc.), and any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees or owners. Arguably, this service exclusion could impact service providers in the Thoroughbred industry, such as bloodstock agents, veterinarians, pedigree consultants, and trainers.

Second, where the entity is not a specified service business and the owner's income exceeds the threshold amount, the deduction is limited to an amount equal to the GREATER of 50% of the owner's share of the entity's total W-2 wages (compensation paid to employees), OR the sum of 25% of the owner's share of the entity's W-2 wages and 2.5% of the entity's

Under the new legislation, all gambling deductions are limited to winnings

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employees in one entity, that entity could potentially use a substantially higher qualified business income deduction because of the entity's W-2 wages and the cost of the real property. In turn, if an owner placed high-value horses in a separate LLC with no employees, depending upon the cost of the horses, the owner's ability to use the qualified business income deduction with respect to that entity could be limited. This imbalance is magnified where the "farm" entity generates less income than the "horse" entity.

Reduced Corporate Tax RateThe new legislation reduces the corporate tax rate

from a top marginal rate of 35% to a flat tax rate of 21%, and repeals the corporate alternative minimum tax. The reduced corporate tax rate is effective for tax years after Dec. 31, 2017.

Enhanced Depreciation and Expensing Deductions

Internal Revenue Code Section 179 allows a business owner to fully deduct, up to a limit, the cost

cost of any tangible property used in the business. Accordingly, if an owner exceeds the threshold income amount, and the entity has nominal W-2 wages or property used in the business, the owner's deduction may be substantially reduced. Both of these limitations are phased-in over a range of $50,000 ($100,000 for a joint return).

Passthrough Deduction and Use of Multiple Entities

Horse owners often structure their equine business using multiple passthrough entities. For example, an owner may place high-value horses in separate LLCs, and any real property used in the business in a different LLC. The new qualified business income deduction is calculated for each separate entity—that is, the entities are not grouped together.

Consequently, if an owner placed a farm and farm

Aisling Duignan, Dermot Ryan, Charlie O’Connor, Adrian Wallace or Scott Calder. Tel: 859-873-7088. Fax: 859-879 5756.

• ASHFORD • ASHFORD • ASHFORD • • ASHFORD • ASHFORD • ASHFORD •

The best son of MORE THAN READY

• Won 6 of his first 7 races by a combined 46¾ lengths• Won Haskell Invitational-Gr.1 by a record 9¾ lengths (PICTURED)• Won Wood Memorial-Gr.1 like Tapit, Empire Maker & Unbridled’s Song

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TAX REFORM GALLOPS ACROSS FINISH LINE (continued from page 3)

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Not to be confused with Section 179, the new legislation also increases bonus depreciation for certain purchases of qualifying property, including used property for which the first use is by the acquiring taxpayer. Businesses are permitted to claim a 100% first-year deduction for the cost of most tangible personal property acquired and placed in service after Sept. 27, 2017 and before Jan. 1, 2023. The 100% allowance is then phased down by 20% per calendar year for property placed in service in taxable years beginning after 2022.

These enhanced expensing and depreciation deductions are intended to encourage owners to invest in and grow their businesses. Equine business owners operating an active trade or business would generally be able to fully deduct the acquisition of horses and related farm equipment in the year that the items are acquired and placed in service. Given the similarities, there may be some economic overlap between the provisions. The specific advantages and disadvantages of either approach would need to be evaluated.

of certain new and used personal property in the tax year the property is purchased and placed into service. Under prior law, an owner could expense up to $510,000 of the aggregate cost of otherwise depreciable property purchased in a single tax year, with a $2,030,000 phase-out threshold.

Effective for purchases after Sept. 27, 2017, the new legislation increases the Section 179 deduction amount to $1 million and the phase-out threshold to $2.5 million. Additionally, the new law expands the definition of "qualified real property" eligible for Section 179 treatment to include certain improvements to non-residential real property placed in service after the real property was placed in service. This expanded definition could include improvements to barns and other farm buildings.

Aisling Duignan, Dermot Ryan, Charlie O’Connor, Adrian Wallace or Scott Calder. Tel: 859-873-7088. Fax: 859-879 5756.

• ASHFORD • ASHFORD • ASHFORD • • ASHFORD • ASHFORD • ASHFORD •

2018 fee $17,500

His first yearlings sold for $650,000,$625,000,$575,000,$425,000,$310,000,$285,000,$250,000,$230,000 etc.

“Verrazano. They looked really strong, good looking,scopey horses.” Kerri Radcliffe, Nov. 26

“Verrazano (More Than Ready) in America.”Alex Elliott, Nov. 18

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TAX REFORM GALLOPS ACROSS FINISH LINE (continued from page 4)

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Deduction of State, Local TaxesThe new legislation provides that an individual

taxpayer may only claim an itemized deduction of up to $10,000 for the aggregate of state and local property taxes, and income taxes (or sales taxes in lieu of income taxes) paid or accrued in the taxable year. Accordingly, individual taxpayers residing and/or operating their equine business in relatively high-tax jurisdictions would be disproportionately impacted by this change.

Choice of EntitySince the new law imposes a 21% flat corporate

tax rate--in addition to other changes that could have a different net economic impact depending upon the type of entity the owner uses to conduct business--equine business owners may want to explore the possible tax impact of incorporating as, or converting to, a C corporation rather than a passthrough entity. Although passthrough entities have generally been regarded as more tax efficient, the sweeping changes under the new legislation could affect the economics of that decision going forward.

Additionally, the IRS has consistently challenged whether certain equine businesses are active or passive activities. With the tax inefficiency of a C corporation mitigated to some degree by the lower corporate tax rate, it may also be worthwhile to evaluate whether operating as a C corporation would strengthen the owner's characterization of the business as a non-passive activity. Additionally, a C corporation would likely not be subject to the new excess business loss limitations discussed below.

Net Operating Loss Generally, where the expenses of an owner's

business activity exceed the business's income, a net operating loss (NOL) exists. Given that many equine businesses generate little if any income during their start-up period, and the potential for unforeseen circumstances creating loss years in long-operating

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TAX REFORM GALLOPS ACROSS FINISH LINE (continued from page 5)

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businesses, the ability to use NOLs to recapture taxes paid in prior tax years historically provided equine business owners with an indispensable tool to mitigate the economic stress of early or lean years.

The new legislation effectively eliminates the ability of taxpayers to carryback NOLs, but preserves a two-year NOL carryback period for certain NOLs incurred in the trade or business of farming. Further, for tax years beginning after Dec. 31, 2017, taxpayers can only deduct an NOL carryover up to 80% of taxable income. The taxpayer can carry the NOL forward indefinitely, and any NOLs generated in tax years after 2017 that are carried forward can be increased by an interest factor to account for inflation.

The new law expands the prior "excess business loss" provision related to farming activities to any business activity conducted through an entity other than a corporation, by a person who is an active participant. For tax years beginning after Dec. 31, 2017, owners are permitted to offset excess business losses against non-business income (e.g., compensation, etc.), but only up to $250,000 ($500,000 for a joint return). Any losses not used are carried forward and treated as part of the owner's NOL.

Meals and Entertainment DeductionsThe new tax law eliminates an entity's ability to

deduct business-related entertainment expenses, including meals, club dues, and related expenses. Many equine businesses rely on entertainment activities to develop industry connections and grow their business.

Wagering and Gambling DeductionsUnder the previous law, individuals who itemized

their deductions could deduct gambling losses to the extent of gambling winnings. Professional gamblers also were permitted to claim deductions for business expenses incurred in carrying out wagering instructions beyond the amount of winnings reported. Under the new legislation, all gambling deductions are limited to the extent of gambling winnings.

So, how is that for tax simplification? The new tax legislation presents challenges and potential opportunities for participants in the Thoroughbred industry that we are only beginning to unpack and understand. As the IRS provides additional guidance, the full impact of these extensive changes will become clearer.

Working with your tax advisor to stay on top of these changes and understand how they impact your business will help put you and your business in the best position to use the new legislation to your advantage.

J. Christopher Coffman is a member in the Louisville office of Frost Brown Todd. His practice concentrates on civil and criminal controversies. BH

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TAX REFORM GALLOPS ACROSS FINISH LINE (continued from page 6)

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PEE WEE REESE STARTS YEAR WITH JOE HERNANDEZ SCOREBy Mary LaRuet @BH_MLaRue

Owner Nicholas Alexander started 2018 off with a bang as his homebred Pee Wee Reese, named

after the late Hall of Fame shortstop for the Dodg-ers, grabbed the lead early and stole the show in the $75,000 Joe Hernandez Stakes Jan. 1.

A tough field of 10 older horses lined up for the New Year's Day race, including graded stakes winners Om, Mr. Roary, and Gold Rush Dancer.

Going about 6 1/2 furlongs on the downhill turf course, Richard's Boy jumped out of the gate with the lead but was quickly challenged and overtaken by Pee Wee Reese, who left gate 2 with jockey Joe Talamo and went on to set fractions of :21.96 and :44.64 through a half-mile.

The 4-year-old California-bred son of Tribal Rule drew clear in the stretch to win by 2 3/4 lengths in a final time of 1:12.37 on firm turf.

"You know, he was life and death to break his maiden on the dirt," Alexander said. "In his (fourth) start, we ran five furlongs down at Del Mar and I think he win by five or six, just as easy as you can win.

"This felt pretty good. He's been a real super horse for us. I loved (his dam, Bluegrass Belle) and unfortunately she died during foaling the next year. And Tribal Rule, he's gone, so he's the only one left. His mom and dad are gone, so hopefully he'll be a stallion for us."

Trained by Phillip D'Amato, Pee Wee Reese broke his maiden as a 3-year-old in August of 2016 and just recently made the jump to graded stakes with a win in the July 4 American Stakes (G3T) going a mile on the Santa Anita turf, and a third-place finish in his most recent outing, the Nov. 26 Seabiscuit Handicap (G2T) at Del Mar.

"The game plan was to just go out there and if they wanted to catch us, they'd have to try," D'Amato said. "This horse just keeps getting better and better. His weight, his confidence, the way Joe rides him with a lot of confidence—I think that's all making a big difference.

"I think the ultimate plan is the (grade 1 Frank E. Kilroe Turf Mile March 10) and we'll see how we get there with him. But he's definitely worthy of that race now. The Cal Cup (Unusual Heat Turf Classic at 1 1/8 miles on turf) is tentatively what I'm thinking of for how I'll get him to the Kilroe. Not set in stone, but the plan I had.

"I just don't know how much of today was that he's that fast or just that he makes everything look so easy when does it. When he won first time out going down the hill it looked like he was absolutely galloping and he was six in front. The way he does things on the turf makes it look so easy."

The winner paid $7.20, $4.60, and $3.60 across the board. Graded stakes-placed Next Shares made up ground for second to return $7.60 and $5.80, while Richard's Boy held on for third and paid $3.20. BH

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Pee Wee Reese gets an easy score in the Joe Hernandez Stakes at Santa Anita Jan. 1

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FIRST FOAL OUT OF EGG DROP NEARS DEBUTBy Claire Novak-Crosbyt @BH_CNovak

Thoroughbred breeders are far too familiar with the quest to reproduce greatness, and the frequent

disappointment that occurs when elusive talents fail to transfer from one generation to the next—and the over-whelming satisfaction found when such talent passes down through the ages.

At Santa Anita Park Jan. 7, members of the Little Red Feather Racing partnership hope to feel the latter emotion when Scrambled, the first foal out of grade 1 winner Egg Drop, makes his debut.

Egg Drop ranks high on the roster of success stories for Little Red Feather, whose managing partner Billy Koch wept when she sold for $1.9 million to Bridlewood Farm at the 2014 Keeneland November breeding stock sale. When Bridlewood put the gray mare's first foal, a colt by Tapit, through Eddie Woods' consignment to the Ocala Breeders' Sales 2017 March sale of 2-year-olds in training, Koch was waiting in the wings to snatch him up for $200,000.

"We had seen him grow up, and we knew was going

to be in the sale," Koch recalled. "We'd been talking to George Isaacs, who bought the mare for Bridlewood, but really the person who liked him most was (trainer) Phil D'Amato. He was kind of the driving force, he kept saying, 'You have to buy this horse.' We felt really fortunate to get him, and there are a lot of returning partners from the Egg Drop partnership, which makes it fun."

Although the colt was entered to race in the fall, "he got sick on us and missed a little time," Koch said.

Since returning to the work tab, Scrambled has turned in a steady pattern of eight drills, including a five-furlong outing Jan. 1 from the gate in 1:01 3/5, 18th of 34 at the distance on the day. A 6 1/2-furlong maiden special weight over Santa Anita's downhill turf is his goal.

"Ever since he's come back, he's worked really well," Koch said. "We've thought all along he's going to be best on turf, because Egg Drop was really good on grass, and Tapit also produces runners that do well on grass. I think he will ultimately be best going long on the grass."

Whether Scrambled has inherited the talent that enabled his dam to win the 2013 Matriarch Stakes (G1T) remains to be seen, but one thing is for sure.

The colt, out of a mare whose nickname around the barn was "the white witch," definitely has his mother's tough personality.

"He's very much like his mom," Koch said. "He's a rambunctious, tough little sucker. When he works, he pins his ears and tries hard like her. And around the stall, you'd better be careful. He's definitely a colt and he's definitely her son." BH

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Little Red Feather Racing’s Scrambled training at Santa Anita Park

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NEW CONNECTIONS SCORE STAKES WITH CODE WARRIORBy Ron Mitchellt @BH_RMitchell

When owner Robert Marzilli and trainer Michael De Paulo went to the 2017 Keeneland Novem-

ber breeding stock sale, they had their sights on Code Warrior, a grade 3 winner they had been watching at Woodbine.

The pair achieved their goal, buying the daughter of Society's Chairman for $190,000 from ELiTE Sales, which consigned her on behalf of J. C. Racing Stable, Wachtel Stable, and Gary Barber.

On Jan. 1, the new owner and trainer took the first step toward recouping their investment, when the now-5-year-old mare won the $75,000 Abundantia Stakes at Gulfstream Park, running her record to 5-3-3 from 16 starts and increasing her earnings to $269,564.

In the Abundantia, Code Warrior received a ground-saving trip under Tyler Gaffalione before kicking on through the stretch to score by 1 1/4 lengths in the five-furlong turf stakes for older fillies and mares.

"We'd been following this filly for a long time," said De Paulo, who along with Marzilli had struck it big with another daughter of Society's Chairman named Caren, who was voted 2016 Canadian Horse of the Year honors. Society's Chairman stands at Shannondoe Farm near St. Thomas, Ontario, where his 2018 fee is CA$5,000.

For Code Warrior, who

captured the six-furlong Hendrie Stakes (G3) over Woodbine's all-weather track in June, the New Year's Day stakes victory was her first on turf in her second grass start. In her other turf try, Code Warrior finished fourth in the Royal North Stakes (G3T) at Woodbine.

Code Warrior paid $18.60 for the win, while 7-1 shot Girls Know Best finished second after setting the pace under Javier Castellano. Brandy's Girl, the 4-5 favorite who defeated colts and geldings in a stakes two starts back, finished a non-threatening third under Jose Ortiz.

"They weren't sure she really liked grass, because she only ran on it once and finished fourth. But that race is the best sprint they have up there on turf—the Royal North," De Paulo said.

"The filly broke sharp. Mike told me to just be patient with her," Gaffalione said. "We had a perfect position going into the turn, sat right behind the speed, and coming into the stretch a spot opened up. Once I put her in there, she really accelerated. I wasn't too worried. I had a lot of horse around the turn and I just had to wait for my spot."

Bred in Florida by Pamela Edel, Code Warrior was initially purchased by Mal McGuire for $6,000 as a "short yearling" at the 2014 Keeneland January horse

of all ages sale. Sent back through the Keeneland ring at that same year's September yearling sale, she was sold for $10,000. She went through the ring again in April of 2015, where she was bought by John Sanguinetti for $18,000 at the Fasig-Tipton Texas sale of 2-year-olds in training. BH

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Code Warrior wins the Abundantia Stakes at Gulfstream Park Jan. 1

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SASSICAIA, CATALINA RED TO ELITE THOROUGHBREDSBy BloodHorse Staff

Sassicaia, a grade 3 winner from the Fall Aspen family and a former

Fasig-Tipton Florida sale-topper, has been retired to stand at Michele Rod-riguez's Elite Thoroughbreds in a deal brokered by Chad Schumer of Schumer Bloodstock. Grade 2 winner Catlina Red will also stand at the Folsom, La., farm.

A son of Bernardini, Sassicaia first made headlines when sold by Hartley/De Renzo Thoroughbreds for a sale-topping $1.6 million to Steve Young at the 2013 Fasig-Tipton Florida select 2-year-olds in training sale.

"This was the best horse in the sale and one of the fastest Bernardinis I've seen," Young told reporters. "It's from the same cross as (grade 1 winner) Turbulent Descent."

Sassicaia went on to win four races for owner Robert LaPenta, including the grade 3 Toboggan Stakes at Aqueduct, defeating subsequent Carter Handicap (G1) winner Green Gratto, who finished third. A tough and consistent performer, he retires with a record of 4-6-2 from 20 starts and earnings of $307,127.

Bred in Kentucky by Masaichiro Abe, Sassicaia is out of the Forestry mare Hishi Aspen. Grade 1 winner Northern Aspen is his third dam and the blue hen mare Fall Aspen, is his fourth dam.

Fall Aspen's dynasty is responsible for a number of group/grade 1-producing stallions, including Dubai Millennium, who left behind leading sire Dubawi in his sole crop, and champion sire Fort Wood.

"Sassicaia demonstrated speed and talent from an early age, as he showed when topping the Fasig-Tipton Florida Sale, which he went on to maintain during a successful and durable career," said Chad Schumer. "Not only that, he has a pedigree out of the top drawer being a Bernardini from the famed Fall Aspen family.

We are confident that he has all the attributes to excel in the Louisiana market."

A syndication is being formed for Sassicaia and a number of lifetime breeding rights are available. His fee will be set at a later date.

Churchill Downs Stakes (G2) winner Catalina Red will also join the roster at Elite Thoroughbreds with a 2018 fee to be determined.

The son of Munnings, out of the stakes-placed Freud mare Lovely Dream, has a race record of 5-1-3 from 13 starts and $549,885 in earnings.

In addition to the Churchill Downs Stakes, Catalina Red won the Inaugural, Pasco, Jackson Bend, and Hilton Garden Inn/Hampton Inn and Suites Sprint stakes. He also finished third in the 2016 Alfred G. Vanderbilt Handicap (G1) behind A.P. Indian and Holy Boss. BH

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Catalina Red in the paddock before his victory in the 2016 Churchill Downs Stakes

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AX MAN CUTS THROUGH THE COMPETITION FOR BAFFERTBy Mary LaRuet @BH_MLaRue

Debuting as a 3-year-old Jan. 1, Patti and Hal Earnhardt's Ax Man gave trainer Bob Baffert

a possible ace in his sleeve, coasting to an easy 9 1/2-length win in a $54,000 maiden special weight at Santa Anita Park.

The six-furlong race over the main track was reduced to a field of 10 sophomore colts and geldings after the late scratch of Soltero.

Ax Man led the field from the start through fractions of :21.73, :44.64, and :56.82 through five furlongs, while chased by Lombo. The son of Misremembered and half brother to grade 1 winner Indian Blessing and grade 3 winner Roman Threat drew off around the turn and continued to pull away in the stretch. He completed the distance in 1:09.43 with only a few taps of the whip from jockey Drayden Van Dyke.

A homebred for Hal Earnhardt, Ax Man is out of the Flying Chevron mare Shameful, who has now produced eight winners from eight starters. Aside from her graded winners, Shameful is also the dam of stakes winners Maker or Breaker (Empire Maker) and Nightly News (Misremembered).

The colt had a string of steady workouts at both Los Alamitos and Santa Anita coming into his maiden score, including several bullet drills.

More Honor got up for second and Lombo held for third. BH

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Stellar Wind, outside, edges Vale Dori in the Beholder Mile

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Stellar Wind, outside, edges Vale Dori in the Beholder Mile

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June 10, 2017 | No. 23Dedicated to the improvement of Thoroughbred breeding and racing

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Jockey Drayden Van Dyke lets Ax Man glide across the finish line in his Jan. 1 debut at Santa Anita

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JRA RACETRACK HANDLE CONTINUES TO CLIMB IN 2017By Naohiro Goda

Japan Racing Association's 2017 season concluded Dec. 28, when the JRA held its final race day of the

year at both Nakayama and Hanshin racecourses.The JRA reported annual betting handle of

¥2,747,662,484,800 (approximately US$24.1 billion) from it's 10 tracks, a 2.9% increase compared with 2016.

In 1997 handle from JRA racetracks peaked, clearing ¥4 trillion. However, the handle steadily declined for 14 consecutive years after when the economy of Japan was dull. It hit bottom in 2011, at ¥2,293,578,053,600, almost 60% less than that of 1997. An upward trend has occured in the last six years, and 2017 proved wagering handle is continuing to rebound.

Total on-course attendance for JRA racetracks in 2017 was 6,175,238, down 2.0% from the previous year.

In 2018 the JRA has a total of 288 race days scheduled—the same as past years, starting Jan. 6 at Nakayama and Kyoto racetracks.

Upon review, some races received upgrades. The March 3 Tulip Sho for 3-year-old fillies at Hanshin—run on the same course and at the same distance as the grade 1 Oka Sho and recognized as the most important prep for the first leg of Triple Tiara—has been promoted from a grade 3 to a grade 2. The May 26 Aoi Stakes, over 1,200 meters on the turf at Kyoto for 3-year-olds, was promoted from a listed race to a grade 3. No races were downgraded.

Naohiro Goda is a freelance writer. BHs Share this story

Online: Wednesday, January 3, 9 a.m. – Friday, January 5, 3 p.m. (est)

Telephone Bidding: Friday, January 5, 9 a.m. – 3 p.m. (est)

Celebration featuring Select SeasonsSunday, January 7, 5:30 p.m.

Keeneland Entertainment Center, Lexington, KentuckyFor more information and tickets please visit TCA.org or call (859) 276-4989.

28th Annual STALLION SEASON AUCTION & CELEBRATION

Presented by LNJ FOXWOODS

Sponsored by: LNJ Foxwoods, Rosenberg Thoroughbred Consulting, PBI Bank, Hagyard Equine Medical, Bourbon Lane, McMahon of Saratoga Thoroughbreds, L.V. Harkness, Horseco, TDN, TOBA, The Horse, Fasig-Tipton, Keeneland, and BloodHorse.

Patrons packed the stands at Tokyo Racecourse to watch Cheval Grand take the Nov. 26 Japan Cup

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RACINGCOMMENTARYwith Bob Barry

RAINBOWS AND COLD COMFORTSBy Bob Barry

As a huge swath of frigid arctic air enveloped the northern United States Dec. 28, a field of 12 juve-

nile maidens lined up for the nightcap at Gulfstream Park.

The bitter cold stuck around like unwanted company and lay waste to thoughts of weekend racing at Aqueduct and Hawthorne and even places as far south as Laurel Park. But in the comparatively balmy conditions at Hallandale Beach, it took only about 98 and one-half seconds for the racing gods to administer the coldest of bad beatings to one unlucky horseplayer.

Gulfstream is a dependable destination for any handicapper looking to harpoon the white whale of pari-mutuel payoffs known as the "life-changing score." As its name suggests, a pot of gold awaits any handicapper lucky enough to have the lone winning ticket needed to claim the huge jackpot that is typically available in Gulfstream's Rainbow Pick-6 wager.

In Thursday's nightcap, a victory by either of two horses would have resulted in a single bettor taking down a jackpot-fueled payout of more than $570,000. And when a colt named Cryogenic bounded clear inside the sixteenth pole, the jackpot seemed all but won.

But Cryogenic, competing in only his second race, ducked to the inside after taking a right-handed smack, and unseated jockey Emisael Jaramillo in the shadow of the wire. Fortunately and remarkably, Jaramillo escaped serious injury.

Cryogenic, named for the branch of physics that studies the effects of extreme cold on materials, was unharmed. The condition of the unlucky bettor—a worthy subject for any intrepid student of cryogenics—apparently remains unreported.

Jackpot bets such as Gulfstream's Rainbow 6 are a controversial addition to the Thoroughbred betting menu. Like Pick-5 bets with a 50-cent minimum that have achieved widespread popularity, the Rainbow 6 similarly offers the chance for a huge score.

But unlike the popular low-rake Pick-5, the Rainbow 6 extracts a 20% takeout and, absent a single winner, takes another 24% to fund the jackpot, tying up potential wagering dollars for weeks at a time.

It's been exactly 40 years since Andrew Beyer completed a landmark year of betting that resulted in his great book My $50,000 Year at the Races.

If a profit of $50,000, about $200,000 in today's dollars, doesn't seem like much, it's important to remember the effect that Beyer's rollicking narrative had on a generation of horseplayers. Even if the goal of

making a living at the betting windows ultimately proves elusive, Beyer made you believe that through hard work and dedication, it was possible to beat the races.

Try finding such sentiment today. Maybe this is why racetracks push lottery-like bets such as the Rainbow 6. Your life-changing score could be just around the corner. Right there, just at the end of the rainbow.

Bob Barry is a freelance writer. BHs Share this story

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BLOODHORSE DAILY PAGE 15 OF 17TUESDAY, JANUARY 2, 2018Download the FREE smartphone app

WATCH RACE REPLAYS OF NORTH AMERICAN RACES BY CLICKING ON THE RACE NAMERACE RESULTS

STAKES RESULTS

Abundantia S.Gulfstream Park, 1/1, $75,000, 4yo/up, f/m, 5f (turf), :55.82, course firm.

1–Code Warrior, 122, dk b/br m, 5 ....... $45,570 Society's Chairman–Lady Natalie, by Run-away Groom O–Robert Marzilli, B–Pamela Edel (FL), T–Mi-chael P. De Paulo, J–Tyler GaffalioneSale History: 2017 KEENOV, $190,000, 2015 FTTAPR, $18,000, 2014 KEESEP, $10,000, 2014 KEEJAN, $6,000.

2–Girls Know Best, 118, ch f, 4 ........... $14,700 Caleb's Posse–Now U Know, by Maria's Mon O–Chenvert, Brian and Kenneally, Eddie, B–Don Von Hemel & Todd Dunn (KY), T–Eddie Kenneally, J–Javier Castellano

3–Brandy's Girl, 122, dk b/br m, 5 ........ $7,350 Posse–Don't Stop Dreamin, by West Acre O–Edwin T. Broome, B–Edwin T. Broome (FL), T–Edwin T. Broome, J–Jose L. Ortiz

Margins: 1¼, 1½, 1¼. Others: Sylphide ($3,675), Touch of Bling ($2,205), More Royalty ($750), Attyia ($750). View Equibase Chart

Janus S.Gulfstream Park, 1/1, $75,000, 4yo/up, 5f (turf), :55.35, course firm.

1–Successful Native, 122, dk b/br h, 7 $45,570 Successful Appeal–Picketline, by Street Cry (IRE) O–Marco Thoroughbred Corp., B–Fares Farm LLC (KY), T–Aubrey A. Maragh, J–Tyler Gaf-falione

2–Hogy, 122, dk b/br g, 9 ................... $14,700 Offlee Wild–Floy, by Petionville O–Michael M. Hui, B–Dr. John E. Little (KY), T–Michael J. Maker, J–Jose L. OrtizSale History: 2010 KEEJAN, $17,000.

3–Vision Perfect, 122, dk b/br h, 6 ........ $7,350 Pollard's Vision–Steamy, by Speightstown O–Mr. Amore Stable, B–Robert Spiegel (KY), T–Jason Servis, J–Nik Juarez

Margins: 2¼, 1, ½. Others: Platinum Prince ($3,675), Sandy'z Slew ($2,205), Extravagant Kid ($750), Flasha-way ($750). Scratched: Chestnut Johnny, Crackin Jon. View Equibase Chart

Joe Hernandez S.Santa Anita Park, 1/1, $75,000, 4yo/up, a6.5f (turf), 1:12.37, course firm.

1–Pee Wee Reese, 124, dk b/br h, 5 .... $61,500 Tribal Rule–Bluegrass Belle, by Unbridled's Song O–Nicholas B. Alexander, B–Nick Alexander (CA), T–Philip D'Amato, J–Joseph Talamo

2–Next Shares, 122, dk b/br g, 5......... $16,000 Archarcharch–Two Dot Slew, by Evansville Slew O–Dunn, C., McClanahan, J., Marasa, W.,

Taylor, M. and Robershaw, R., B–Buck Pond Farm, Inc. (KY), T–Richard Baltas, J–Rafael BejaranoSale History: 2017 KEENOV, $190,000, 2014 FTKOCT, $87,000.

3–Richard's Boy, 120, gr/ro g, 6 .......... $12,300 Idiot Proof–Marissa's Joy, by Cee's Tizzy O–Rockingham Ranch, B–Harold Tillema & Pamela Tillema (CA), T–Peter Miller, J–Flavien Prat

Margins: 2¾, 1¾, ½. Others: Om ($4,800), Tribalist ($2,050), Mr. Roary ($345), Cimpl Man ($345), Krsto Skye ($345), Law Abidin Citizen ($345), Gold Rush Dancer ($345). Scratched: Sycamore Lane, Conquest Daddyo, Smokey Image. View Equibase Chart

ALLOWANCE RESULTS

Fair Grounds, Race 3, ALW1/1, $45,000, 4yo/up, f/m, 6f (dirt), 1:10.33, track fast.1–Ours to Run, 119, b f, 4, Half Ours–Brown Eyed Baby, by

Mineshaft, $27,000, O–Colonel Thoroughbreds LLC, B–Clifford Grum (LA), T–J. Larry Jones, J–Joe Bravo

Margin: 4, 6 starters. View Equibase Chart

Fair Grounds, Race 6, AOC1/1, $44,000, 4yo/up, f/m, a5.5f (turf), 1:03.86, course

firm.1–Calamity Jane, 119, ch m, 5, Cowboy Cal–Ringbang

City, by Carson City, $26,400, O–Keith Plaisance, B–J. Ad-cock & Hume Wornall (LA), T–Edward J. Johnston, J–Jack Gilligan

Sale History: 2015 OBSJUN, ($70,000 RNA), 2014 OB-SAUG, $22,000, 2014 OBSJAN, $13,000.

Margin: 1½, 11 starters. View Equibase Chart

Fair Grounds, Race 8, AOC1/1, $40,000, 3yo, f, a8f (turf), 1:38.88, course firm.1–Pretty Lady, 120, dk b/br f, 3, Scat Daddy–Classic

Strike, by Smart Strike, $24,000, O–Breeze Easy, LLC, B–Merriebelle Stable, LLC (KY), T–Mark E. Casse, J–Jose Valdivia, Jr.

Sale History: 2017 FTFFEB, $550,000, 2016 KEESEP, ($450,000 RNA), 2015 KEENOV, $270,000.

Margin: 1¼, 11 starters. View Equibase Chart

Golden Gate Fields, Race 3, AOC1/1, $27,000, 3yo, 8f (all-weather), 1:37.04, track fast.1–Mugaritz, 118, dk b/br g, 3, Dialed In–Flag the Mint

Down, by Flag Down, $16,200, O–Alejandro Mercado, B–Sean Speck & Barbara Speck (KY), T–Jonathan Wong, J–Frank T. Alvarado

Sale History: 2017 OBSAPR, ($37,000 RNA).Margin: nose, 6 starters. View Equibase Chart

Golden Gate Fields, Race 8, ALW1/1, $27,000, 4yo/up, f/m, 9f (turf), 1:51.12, course good.1–Please Do, 122, dk b/br f, 4, Comic Strip–Eclisse (FR),

by Ski Chief, $21,060, O–Hunsucker, Lester and Stubbs, Carrol, B–Dr. & Mrs. William T. Gray (CA), T–Victor M. Trujillo, J–Pedro M. Terrero

Margin: head, 11 starters. View Equibase Chart

Gulfstream Park, Race 6, AOC1/1, $51,000, 4yo/up, 9f (turf), 1:48.24, course firm.1–Markitoff, 121, ch c, 4, Giant's Causeway–Myriad, by

Ghostzapper, $26,400, O–Three Diamonds Farm, B–Alpha Delta Stables, LLC (KY), T–Michael J. Maker, J–Tyler Gaf-falione

Sale History: 2015 KEESEP, $160,000.Margin: ¾, 8 starters. View Equibase Chart

MAIDEN RESULTS

Fair Grounds, Race 4, MSW1/1, $38,000, 4yo/up, a8f (turf), 1:37.88, course firm.1–Zorzor, 123, b c, 4, Bodemeister–Spottswoode, by

Master Command, $22,800, O–Shortleaf Stable, Inc., B–JMJ Racing Stables, LLC (KY), T–Brad H. Cox, J–Shaun Bridgmohan

Sale History: 2015 KEESEP, $180,000.Margin: 2, 8 starters. View Equibase Chart

Golden Gate Fields, Race 7, MSW1/1, $26,000, 3yo, 5.5f (all-weather), 1:03.14, track fast.1–Sunrise Journey, 120, ch c, 3, Good Journey–Pleasing

Sunrise, by Speightstown, $20,280, O–Slo Racing Stable, B–Slo Racing Stable (CA), T–Andy Mathis, J–Rocco Bowen

Margin: 7½, 9 starters. View Equibase Chart

Santa Anita Park, Race 2, MSW1/1, $54,000, 4yo/up, 8.5f (dirt), 1:44.92, track fast.1–Boogalute, 122, dk b/br g, 4, Midnight Lute–Bridal

Song, by Vicar, $32,400, O–Slugo Racing, B–Buck Pond Farm, Inc. (KY), T–Mike Puype, J–Drayden Van Dyke

Sale History: 2015 FTKOCT, $150,000.Margin: 3¾, 7 starters. View Equibase Chart

Santa Anita Park, Race 4, MSW1/1, $54,000, 3yo, a6.5f (turf), 1:13.96, course firm.1–Raven Creek, 122, b c, 3, Old Fashioned–Trashi Diva,

by More Than Ready, $32,400, O–Sims, William J. and Platts, Joey, B–William Jack Sims (CA), T–Jeff Mullins, J–Tyler Baze

Margin: 1¼, 10 starters. View Equibase Chart

Santa Anita Park, Race 6, MSW1/1, $54,000, 3yo, 6f (dirt), 1:09.43, track fast.1–Ax Man, 122, b c, 3, Misremembered–Shameful, by

Flying Chevron, $32,400, O–Earnhardt III, Patti and Hal J., B–Hal J Earnhardt (KY), T–Bob Baffert, J–Drayden Van Dyke

Margin: 9½, 10 starters. View Equibase Chart

BLOODHORSE DAILY PAGE 16 OF 17TUESDAY, JANUARY 2, 2018Download the FREE smartphone app

UPCOMING ENTRIES

LA VERDAD S.Aqueduct, Saturday, January 6, Race 87f (dirt), $100,000, 4yo/up f/m, 3:50 PM (local)

P # PP Horse Sire Age/Sex Jockey Weight M/L Owner 1 Frosty Margarita Frost Giant 5/m Trevor McCarthy 117 - Gabrielle Farm 2 Bee Noteworthy Read the Footnotes 6/m Kendrick Carmouche 121 - Check Mark Stables LLC 3 Holiday Disguise Harlan's Holiday 4/f Junior Alvarado 121 - Lady Sheila Stable 4 Wonderment Cosmonaut 5/m Dylan Davis 121 - Walking L Thoroughbreds and Magdalena Racing

(Sherri McPeek) 5 Absatootly Mineshaft 5/m Rafael Manuel Hernandez 121 - Newman Racing 6 Quezon Tiz Wonderful 6/m Joseph Rocco, Jr. 121 - Keller, MarcBreeders: 1–Gabrielle Farm; 2–Sequel Stallions New York, LLC & Willard C Freeman; 3–Dr. William B. Wilmot & Dr. Joan M. Taylor; 4–Michael S Landers; 5–Donald New-man; 6–Apache Farm LLC.Trainers: 1–Rudy R. Rodriguez; 2–H. James Bond; 3–Linda Rice; 4–Kenneth G. McPeek; 5–Charlton Baker; 6–Robert Ribaudo.

Providing updated news and analysis THROUGHOUT THE DAY

Plus view recent stakes, allowance and MSW race videos, entries and more!

BLOODHORSE DAILY PAGE 17 OF 17TUESDAY, JANUARY 2, 2018Download the FREE smartphone app

Rank Stallion Sire, YOB ’18 Stud Fee Farm Chief Earner (Earnings) ’17 Earnings 1 Cowtown Cat Distorted Humor, ’04 $2,000 Mapleton Thoroughbred Farm, OH Tiger Blood ($141,100) $2,009,800 2 City Weekend Carson City, ’02 $2,000 Meadow Springs, OH City Slammer ($82,766) $693,499 3 Indy Wind A.P. Indy, ’02 $2,000 Poplar Creek Horse Center LLC, OH Starship Jubilee ($262,311) $603,387 4 Alcindor Unbridled's Song, ’07 N/A N/A True Cinder ($190,650) $505,988 5 Parents' Reward Mr. Prospector, ’98 $1,500 Poplar Creek Horse Center LLC, OH Leona's Reward ($257,576) $485,876 6 Added Edge Smart Strike, ’00 $1,500 Raimonde Farms, OH Foxy Fleda ($51,038) $480,283 7 Factum Storm Cat, ’08 N/A Poplar Creek Horse Center LLC, OH Faithful Sue ($34,390) $458,160 8 Kiss the Kid Lemon Drop Kid, ’03 $2,500 Poplar Creek Horse Center LLC, OH Extravagant Kid ($119,940) $426,708 9 Mobil Langfuhr, ’00 $2,000 Mapleton Thoroughbred Farm, OH Mobil Solution ($75,290) $425,852 10 Mr. Mabee Storm Cat, ’01 N/A N/A She Mabee Wild ($106,970) $409,415

Listed below are the top 10 leading sires in Indiana by 2017 Northern Hemisphere earnings through January 31, 2017. Only stallions that stand, will stand, or stood in North America (excluding stallions that died or were exported prior to the 2011 breeding season), and have runners in North America are included. Racing statistics are 2017 Northern Hemisphere only.

2017 LEADING SIRES IN INDIANA

Rank Stallion Sire, YOB ’18 Stud Fee Farm Chief Earner (Earnings) ’17 Earnings 1 Notional In Excess, ’04 $2,000 Swifty Farms, Inc., IN Cake Pop ($189,040) $1,552,442 2 Fort Prado El Prado, ’01 $1,000 Swifty Farms, Inc., IN Prado's Sweet Ride ($159,980) $1,113,518 3 Victor's Cry Street Cry, ’05 $25,000 Holden Farm, IN Singandcryindubai ($140,137) $969,378 4 Pass Rush Crown Ambassador, ’99 $2,500 Swifty Farms, Inc., IN Peyton's Pass ($118,535) $866,600 5 Lantana Mob Posse, ’05 $2,500 Southern Indiana Equine, IN Supreme Justice ($140,576) $579,158 6 Strong Hope Grand Slam, ’00 Died N/A Defining Hope ($146,509) $377,121 7 Unbridled Express Unbridled's Song, ’04 $2,000 Swifty Farms, Inc., IN Express Run ($131,698) $368,099 8 Monba Maria's Mon, ’05 $2,000 Nicks Farm, IN Rolling Mo ($54,471) $365,099 9 Deputy Storm Forestry, ’01 $1,500 R Star Stallions, IN Jonah ($71,045) $362,375 10 Skylord Sky Mesa, ’08 N/A Breakway Farm, IN Double Tuff ($98,453) $359,319

Listed below are the top 10 leading sires in Michigan by 2017 Northern Hemisphere earnings through January 31, 2017. Only stallions that stand, will stand, or stood in North America (excluding stallions that died or were exported prior to the 2011 breeding season), and have runners in North America are included. Racing statistics are 2017 Northern Hemisphere only.

2017 LEADING SIRES IN MICHIGAN

Rank Stallion Sire, YOB ’18 Stud Fee Farm Chief Earner (Earnings) ’17 Earnings 1 Unbridled Energy Unbridled's Song, ’02 N/A Hubel Farms, MI Huntstown ($109,567) $434,152 2 Equality Mt. Livermore, ’99 N/A Dickinson Farms, MI Boo Dutton ($51,251) $240,625 3 Gun Power Unbridled, ’97 $1,000 Campbell Stable, MI Circle Can Win ($39,235) $149,180 4 Baptistry Deputy Minister, ’01 N/A N/A Runnin Gun ($23,396) $148,417 5 Fire Blitz Storm Cat, ’99 Died N/A Dorthys Blitz ($43,030) $125,777 6 Zulu Magic Johannesburg, ’05 $1,000 Davidson's Tracks-N-Time, LLC, MI Brother Z ($46,259) $121,369 7 Elusive Hour Elusive Quality, ’00 $1,000 Campbell Stable, MI High Legend ($36,267) $118,499 8 Perfect Circle Unbridled, ’02 N/A N/A Artavia ($44,910) $105,368 9 Beau Classic Beau Genius, ’00 N/A N/A Classic Twist ($30,099) $103,411 10 Meadow Prayer Meadowlake, ’95 Died N/A On the Lead ($14,440) $94,502

Listed below are the top 10 leading sires in Ohio by 2017 Northern Hemisphere earnings through January 31, 2017. Only stallions that stand, will stand, or stood in North America (excluding stallions that died or were exported prior to the 2011 breeding season), and have runners in North America are included. Racing statistics are 2017 Northern Hemisphere only.

2017 LEADING SIRES IN OHIO

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Ohio-bred Runners! 77 S. High St. , 18th Floor, Columbus, Ohio 43215

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