charles scheeler | Horse Racing Free Tips

HISA Publishes Initial Draft Of Proposed Anti-Doping, Medication Control Rules

The Horseracing Integrity and Safety Authority's (the Authority) Standing Advisory Committees, comprised of experts from inside and outside the thoroughbred racing industry, and the independent U.S. Anti-Doping Agency (USADA), have published initial drafts of proposed rules on hisaus.org for public comment.

As prescribed by the Horseracing Integrity and Safety Act of 2020 (HISA), USADA has led the drafting process for the Anti-Doping and Medication Control Program. Three of the six documents pertaining to the Anti-Doping and Medication Control Program, including the proposed Equine Protocol, Prohibited List and Definitions, have been posted for public comment. The remaining documents, which include Equine Arbitration Procedures, Testing and Investigation Standards, and Standards for Laboratories and Accreditation will be published over the next two weeks.

In addition, and separate from USADA's work, the Racetrack Safety Program, which is made up of expanded veterinary exam protocols, enhanced racing and training requirements, minimum standards for surface maintenance and testing, and uniform reporting requirements has also been posted to the Authority's website for public review.

USADA and the Advisory Committees will review and incorporate relevant public feedback on the recommendations and submit them to the Authority's Board of Directors for approval. Following the Board approval process, the Authority will present its final proposed rules to the Federal Trade Commission (FTC) in early December. This will then initiate a formal notice and comment rule-making process during which stakeholders and the general public may once again weigh in by submitting comments for a 60-day period, after which the FTC will publish final regulations.

“We are honored to be involved at this stage to help draft and ultimately finalize gold-standard rules on anti-doping and medication control for the equine industry,” said USADA CEO Travis T. Tygart. “We are excited with where this process is headed and with proposed rules being published for two additional rounds of public feedback.”

“The rulemaking process is still underway, and we encourage experts, other industry stakeholders, racing fans and the general public to review and comment through our website. Although the final decision on which regulations will be approved and implemented ultimately lies with the FTC, we want to ensure that any interested party has the opportunity to offer their perspective and input,” said Charles Scheeler, Chairman of the Authority's Board of Directors. “While the FTC will authorize the final set of rules for the official launch of the Authority in July 2022, it is the Authority's full intention to continue to work with the industry to evolve and improve the rules beyond that time.”

Please visit hisaus.org to view and weigh in on the proposed regulations and follow the Authority on Twitter and Facebook to keep up with the latest developments.

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Campbell: The Horse Racing Industry Nexus

For those of you who like playing the futures, or simply enjoy speculating on odds, there is a website out there for you called Polymarket. They take compelling types of questions, (some less so, depending on your persuasion), and offer you the chance to “buy in” with either a “Yes” or “No.” It's all based on $1.00, and that is what you get for each share you buy, if you are correct.

An example: Will Britney Spears' Dad be out of her conservatorship before Oct. 1? If you don't agree, you could get shares for .63 apiece. If you do, then that will run you .37. A recent addition was, “Will the KHRC rule to disqualify Medina Spirit from the Kentucky Derby by Oct. 15?” Who knows about that one!

Cashing in on opinions continues apace. In this speculative vein, if we were to construct one of these “prop bets,” what do you think the odds are that the Horseracing Integrity & Safety Act, also known more popularly as “HISA,” will be ready during the Summer of 2022? I am hopeful of this prospect after listening to Charles Scheeler's upbeat appraisal on the current state of the federal legislation that was signed into law by the Trump Administration late last year.

On Aug. 15, The Jockey Club hosted virtually its annual Round Table Conference on Matters Pertaining to Racing. Its panel of participants included Scheeler, who was elected chairman of the HISA board in late May, after an illustrious career as a lawyer and advising George Mitchell through the well-known MLB Report that bears the former U.S. Senator's name. The Round Table topics that were discussed hit on a myriad of issues related to the sport of Thoroughbred racing, but none were as important as what Scheeler had to say, in my estimation. Nearly, everything else had the air of marketing and salesmanship, rather than true reporting of anything earth-shattering. Scheeler expressed himself emphatically, and without hesitation, which was refreshing to hear. A replay of the Round Table is available here.

It sounds like, at this point, the two HISA committees (one each for racetrack safety and anti-doping policies) are hard at work, hoping to produce a structure that can be weighed and measured. According to the chairman, that draft should be ready by the fall, and a subsequent “final copy” will be polished by next spring. The Federal Trade Commission will then review these recommendations and cherry pick the ones they think will work within the bounds of the law. In other words, they could like them all, some, or none of them. Where Scheeler provided little in the way of illumination was funding. How and who exactly is going to pay for this – the taxpayers, the sport itself, the bettors? I've been concerned about this point for quite some time now, and I know I am not alone (See Paulick Report editor-in-chief Natalie Voss' article on this topic). What we do know is that once the target date of July 1 arrives, and everything is in place, then it goes “live.”

In his presentation, Scheeler referenced the ubiquitous “industry,” mentioning that the two halves of HISA could only succeed with broad support from it. I've been struck by that word for some time now, and I wondered just exactly of whom he was speaking? Did he mean the members of The Jockey Club? The various racing and breeding organizations that exist? What about those that own or work on horse farms? The betting public or reps from the gaming sector, was that it? During the broadcast, other panelists followed with the same overt usage. I went to my trusty dictionary, and though it has several definitions, in this context its meaning appears to be a “particular form or branch of economic or commercial activity.” It is not just The Jockey Club presenter at the Round Table; “industry” or “industry-wide” regularly gets tossed around when it comes to matters pertaining to horse racing.

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Pulling the curtain back, Thoroughbred racing as an “industry” exists in several wide-ranging, and seemingly disparate pockets. It is not like steel, automobiles, or cosmetics. When it comes to the sport, there are multiple industries intricately involved. There is agriculture, which touches most. Equine-related entertainment networks and racetracks bring together connections, which in turn engages the fans and/or the bettors. Of course, gambling is probably the most prominent of all of these. It influences racing because that is where the money comes from for purse structures and keeping the lights on.

Currently, this horse racing nexus of “industries” on the whole could not continue in many states without the full support of non-racing revenue. To that end, in a state like Maryland, casino revenue given to the sport undermines the economic incentive to identify, monitor, and minimize the risks. HISA has faced stiff competition because of a hash of rules and regulations that are complex and interfere with a national agenda that includes safety and testing. It will not be easy for them to wrestle control away from locales that may not agree with the end product. What seems to be true is that horse racing supporters of this great sport continue to ensure the perpetual welfare for what could be termed a “hobby” for the wealthy. Take away non-racing revenue, and what would remain?

One need look no further than the situation in New Mexico and what has occurred this past year, to witness the utter collapse of an “industry.” When the state cut off casino funding because those entities were closed due to COVID, the horse people of the state suffered. Really and truly, all professional sport franchises, and for that matter the Olympic Games, have a similar problem when it comes to cash flow. Teams are always looking for new and better stadiums (i.e., Chicago Bears), and expect the public to fund them, despite the fact that the money is not beneficial to taxpayers whatsoever. The Thoroughbred “Industry” continues to be able to generate all the right incentives at all the wrong times. That is an investment that is not about future building, as it only exists in the present (See Donna Brothers' two-part series on this topic of survival into the future: part 1 part 2).

The Jockey Club Round Table participants spent significant time talking about growing the game. Who could lead the charge as an influencer in order to produce the next generation of supporters. I find this argument that the sport must change in order to attract new blood because the public demands it, a red herring. On the contrary, it is quite the opposite. I have come to the conclusion over the past few years that the public doesn't “think” about the sport of horse racing on a regular or even semi-regular basis, unless say, a scandal or horse deaths reach the mainstream media. The central issue is that sport is too insular, overcomplicated, and self-absorbed that it forgot that it needs new people to survive. It is like we have an expertly hand-built Ferrari, only to be left with wheels made of wood. It will not last.

With potentially an expensive set of programs that are due out in the form of HISA next year, where does that leave the sport and its grand plans for a revolution? It turns out, the so-called “industry” is sorely lacking in the stability department, with funding in several states that can be both essential and hugely detrimental. Downturns in the economy, which can affect everything from breeding operations to bettors' pocketbooks, makes for shaky ground because “help” never create self-reliance. Ayn Rand-esque warnings remind us that dependence is always subject to political winds (take Pennsylvania's travails). Will HISA suffer such a fate?

My sense is that everyone connected to Thoroughbred racing, Mr. Scheeler included, needs to think long and hard about how we respond to HISA's recommendations starting this fall. Racetrack safety and medication policies should be at the forefront of all our minds. If our “industry” cannot adequately respond, it may have a detrimental impact on the result, leading to a boutique sport on the verge of extinction. Those wooden wheels are not going to be able to drive this Ferrari, if industry-wide support does not occur. A nexus event if there ever was one … that much is certain.

As for that mythical Polymarket future wager on whether HISA rolls out by July of next year, I wouldn't necessarily bet against Scheeler and his blue-ribbon committees. Industry involvement or not, I hope they succeed.

J.N. Campbell is a turf writer with Gaming USA. His work can be found at www.horseracing.net/us.

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Scheeler: Proposed HISA Regulations Will Be Available For Public Comment By Year’s End

For those in the racing industry wondering about how the Horseracing Integrity and Safety Authority (HISA) is progressing, HISA chair Charles Scheeler said you won't have long to wait for the next step of the transition to racing's national authority. At the Jockey Club Round Table, held as a virtual event streamed on Aug. 15, Scheeler laid out a timeline for the next steps as the clock ticks down to the July 1, 2022 start date mandated by federal legislation.

Although it is widely assumed the U.S. Anti-Doping Agency will take control of drug testing for horse racing, a contract has not yet been inked to finalize that relationship. It's no secret that USADA expects to take over that role, and the organization has hired Dr. Tessa Muir as its director of equine science. Muir grew up immersed in the equestrian world in her native England, attended veterinary school in Australia, and worked as a regulatory veterinarian after graduation.

The rules set out by the national authority will come from two separate committees: the medication/anti-doping committee and the safety committee. The former is chaired by Adolpho Birch, who coordinated the medication policy for the National Football League, and the latter is chaired by Dr. Sue Stover of the University of California-Davis.

Medication regulations must, per the text of the federal law, be based on international guidelines. Once the committees have draft guidance, it will be released to the industry for public comment for a period of 60 days. Then, HISA must consider public comment and has the opportunity to tweak the drafted rules. From there, HISA will submit the proposed regulations to the Federal Trade Commission and they must be entered into the federal register for another official 60-day comment period. After that period expires, the FTC must approve the new regulations at least four months prior to their becoming effective.

With a July 1 implementation deadline for HISA, that means regulations must be finalized and published March 1 at the latest in order to take effect as required by law.

Scheeler said by late fall or winter, HISA would have solid information regarding costs of the new program. But make no mistake — it will cost more than what the industry is used to paying.

“These program costs should not be looked at expenses,” said Scheeler. “They should be looked at as investments in strengthening the industry and ensuring its future.”

Outreach and education will also be part of the plan to get HISA off the ground. Scheeler said the new authority is not designed to replace state racing commissions, but will endeavor to work with them to enhance the work they're already doing. Scheeler emphasized that HISA isn't going to work if racing industry participants don't believe in it or put their best efforts into getting it off the ground — and that it needs to work, because the status quo is untenable.

“I've joked with some folks that we have a great advantage here in horse racing because the horses don't have a union,” said Scheeler. “But maybe that's the problem. While human athletes knowingly accept a risk when they cheat, horses don't have that choice. And while there are a constellation of humans in various organizations across the industry designed to protect horses, the enforcement has been balkanized and uneven.”

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Timeline for HISA Implementation Comes Into Clearer Focus

With the July 1, 2022, implementation date looming for the nationwide regulatory Authority mandated by the Horseracing Integrity and Safety Act (HISA) to go into effect, Charles Scheeler, the chairman of the Authority's board of directors, on Sunday outlined the timetable for the sport's new ruling body to be fully operational.

Speaking via pre-recorded video during Sunday's 69th Annual Round Table Conference on Matters Pertaining to Racing that was hosted virtually by The Jockey Club (TJC), Scheeler said the Authority is currently developing its anti-doping and safety programs side by side, and that by the fall those initiatives will be shared publicly in an effort to generate feedback.

“All of this will be before we submit these proposed rules to the Federal Trade Commission (FTC), which is what is required by the Act,” Scheeler said. “And then [the FTC] will make them public; publish them in the Federal Register for a 60-day period of notice and comment. So the industry will get a second bite at the apple–another chance to comment on these rules.

“After the 60 days, the FTC will decide whether to approve all or some of these rules. We hope that they approve all of the rules that we submit to them. And then they have to be posted and finalized for a four-month period of time. So no later than March 1, 2022, for these rules to become operative on [July 1, 2022],” Scheeler said.

“We will also, in the late fall and winter, be sharing with state racing commissions our estimates of the costs for the coming year. That is required by the Act to occur no later than April 1. But it is our goal to get those numbers to the states months and months in advance of the event,” Scheeler said.

“And then, July 1, we will go live together with a new system to enforce the anti-doping and medication laws, and to make the tracks safer, and to make the sport fair for everyone,” Scheeler said.

But that timetable for implementation could face legal pushback in the form of lawsuits initiated by the National Horsemen's Benevolent and Protective Association (National HBPA) and several state racing commissions.

Speaking in a separate section of the Round Table video presentation, TJC's chairman, Stuart Janney III, said such obstructionist tactics won't prevail in the long run.

“They defend the status quo with lawsuits that are effectively protecting a few bad trainers, veterinarians, and horsemen at the expense of those who are honest,” Janney said. “They offer nothing in the alternative other than worn-out notions of state-by-state compacts in defense of the same broken system.”

Janney also reiterated a prediction he made during last August's Round Table video presentation that more federal arrests of alleged horse dopers are in the pipeline.

Six of 28 defendants arrested in March 2020 have already pleaded guilty to felony charges in the federal government's prosecution of an alleged “corrupt scheme” to manufacture, mislabel, rebrand, distribute, and administer performance-enhancing drugs to racehorses all across America and in international races.

Elsewhere in the two-hour Round Table presentation, two Columbia University researchers–Dr. Yuval Neria, a professor of medical psychology, and Dr. Prudence Fisher, an associate professor of clinical psychiatric social work–gave an update on the Man O' War Project, which uses Thoroughbreds in equine-assisted therapy (EAT) to treat veterans with post-traumatic stress disorder (PTSD).

“We plan on capitalizing on our work so far by creating the Man O' War Center at Columbia University,” Fisher said. “And its mission will be to advance the promising field of EAT. The center will coordinate and carry out many initiatives that further our work.”

Neria said another goal is to provide EAT training to others in the field.

“Over the last two to three years, we have been approached by many programs who are eager to learn from us and implement our protocols,” Neria said. “[And] we plan to adapt our protocols for use with other groups beyond veterans with PTSD. For example, children and adolescents, and also others. With support from Ambassador [Earle] Mack, this fall we will be carrying out a pilot study with anxious youths.”

Fisher added that research work on the original protocols will be expanded by undertaking a randomized, controlled trial later this year.

“This would be a larger study, and we plan on partnering with other sites that we will train to make it work,” Fisher said.

Neria added that “a critically important part of our mission is to expand the number of retired Thoroughbred racehorses that are used in the EAT programs.”

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