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Legal issue stalls Brockton racetrack funding plan
By John R. Ellement
Globe Staff

The state Gaming Commission on Monday tabled a $1.4 million request to upgrade the Brockton Fairgrounds racetrack, saying it may not comply with state law.

The Carney family, which owns the fairgrounds, is seeking money from the state’s horse racing development fund to bring thoroughbred horse racing back to Brockton after a 15-year hiatus. But the state’s 2011 casino law, which created the development fund, appears to limit outlays to purses, the cash prizes paid to a winning horse’s owner, trainer, and jockey.

The fund receives 9 percent of gambling revenue from Plainridge Park Casino in Plainville and a portion of licensing fees paid by casino developers.

At Monday’s hearing, Carney family attorney Michael Morizio suggested the commission could sidestep legal questions about the request by distributing the funds to the Massachusetts Thoroughbred Horsemen’s Association as prize money. The group could then funnel the money to the racetrack to pay for repairs.

“Consider the waterfall effect of the flow of the money,’’ Morizio said. “We are at the end of the waterfall ... once it’s paid to [horsemen], the color of the money is no longer public.’’

Commissioners Gayle Cameron and Enrique Zuniga questioned the legality of the plan, and asked for the Carney family to submit a written proposal by next Monday. The commission postponed a vote on the request until at least next week.

Under current law, 80 percent of the racing fund is designated for purses, while 16 percent goes to horse breeders. Four percent is put toward health and retirement benefits for workers in the industry.

The Carneys had hoped the fairgrounds would become home to a $677 million casino and hotel complex, but the state Gaming Commission voted down the project in April.

In June, Suffolk Downs in East Boston received $2.4 million from the fund to pay for purses over six days of racing this summer.

Sean P. Murphy contributed to this report. John R. Ellement can be reached at ellement-@globe.com. Follow him on Twitter @JREbosglobe.