PURPOSE: The purpose of this rule is to set forth the requirements for disclosure of financial plan for Class A licenses.

1. (1) The applicant for a Class A license must disclose its financial projections for the development period and for the conducting of the race meets.
2. (2) Separate schedules based on the number fits; of racing days and the types of pari-mutuel wagering must be included.

3. (3) The disclosure must include:

   1. (A) A projection of the type and length of race meeting anticipated;

   2. (B) The applicant’s requirements for breaking even, including the optimum number of racing days, for each meet anticipated

      1. 4. Nonoperating expenses, including

and the anticipated type of betting; anticipated expenses for—

1. (C) The following assumptions and the support for them for the first five (5) years of racing (Provide assumptions and support for identification of method used; and both live on-track racing and simulcast racing.): the identification of the method used;

   1. 1. Average daily handle;

      1. (E) Projected cash flow including assess-
   2. 2. Average daily attendance; and ments of:

   3. 3. Per capita wager;

      1. 1. Income, including:

2. (D) Provide financial projections regarding the operation at the end of the development period and each of the first five (5) years of racing setting forth the following elements, including assumptions and support for them.

   1. 2. Disbursements, including:

(Provide separate schedules for live on-track racing and simulcast racing and a combined schedule of both.):

1. 1. Revenues—

   1. A. Retainage;
   2. B. Breakage;

   3. C. Outstanding tickets;

      1. (F) Project balance sheets as of the end of
   4. D. Admission; the development period and for the requested
   5. E. Parking; race meets setting forth—

   6. F. Program sales;

      1. 1. Current fixed and other noncurrent
   7. G. Concession (food and beverage); assets;

   8. H. Interest; and

      1. 2. Current and long-term liabilities; and
   9. I. Other (specify);

2. 2. Racing expenses— 3. Capital accounts.

   1. A. Purses;
   2. B. Breeders awards; (4) The applicant must also disclose an
   3. C. Breakage; accountant’s report of the financial projec-
   4. D. Outstanding tickets; tions.

1. E. Pari-mutuel tax; and
2. A. Marketing;
3. B. Legal;
4. C. Audit;
5. D. Insurance (property);
6. E. Insurance (liability);
7. F. Insurance (other);
8. G. Repair and maintenance;
9. H. Printing (program);
10. I. Printing (other);
11. J. Consulting fees;
12. K. Membership;
13. L. Equipment rental;
14. M. Totalizer rental;
15. N. Travel and entertainment;
16. O. Utilities and telephone;
17. P. Operating supplies and services;
18. Q. Salary and wages;
19. R. Payroll taxes and employee bene-
20. S. Sales tax;
21. T. Admission tax;
22. U. Property tax;
23. V. Waste removal;
24. W. Interest;
25. X. Drug testing;
26. Y. MHRC license fees; and
27. Z. Other (specify); and
28. A. Debt service;
29. B. Facility depreciation, including the
30. C. Equipment depreciation, including
31. A. Equity contributions;
32. B. Debt contributions;
33. C. Interest income; and
34. D. Operating revenue; and
35. A. Land;
36. B. Improvements;
37. C. Equipment;
38. D. Debt service;
39. E. Operating expense; and
40. F. Organizational expense; and
41. (5) The commission will utilize financial projections in deciding whether to issue Class A licenses. Neither acceptance of a license application nor issuance of a license shall bind the commission as to matters within its discretion, including, but not limited to, assignment of racing days and design of types of permissible pari-mutuel pools.

AUTHORITY: section 313.580, RSMo 1986.* Original rule filed June 17, 1986, effective Oct. 27, 1986. Amended: Filed June 6, 1989, effective Aug. 24, 1989.

*Original authority: 313.580, RSMo 1986.