NY Claiming Rules Revision Would Keep Horses In-State for 60 Days

A proposed change to claiming rules in New York would double the time that a claimed horse must refrain from racing outside the state, from 30 to 60 days.

In addition, in an effort to make it easier to acquire Thoroughbreds via claims, another proposed change would extend time periods for owners to be eligible to claim horses.

Those measures, plus several other tweaks to the “Who may make claim” rule 4038.1, were advanced by the New York State Gaming Commission (NYSGC) at Thursday's monthly meeting.

There was zero discussion among commissioners prior to the unanimous voice vote.

The proposed changes must first be published in the state register and then go through a public commentary period before the NYSGC takes a final vote on them at a future commission meeting.

According to a brief written by NYSGC general counsel Edmund Burns that was included in the informational packet for the Aug. 3 meeting, some horse owners and their representatives have communicated to the commission staff that the current claiming rules “need revisions.”

Commission staff met with personnel from the New York Racing Association (NYRA), Finger Lakes, the New York Thoroughbred Breeders (NYTB), and the New York Thoroughbred Horsemen's Association (NYTHA) in crafting the language changes, Burns wrote.

With respect to the time that a claimed horse must remain in-state, Burns wrote that “current rules prohibit a claimed horse from running outside New York for a period of 30 days. The proposal would extend that general prohibition to 60 days, which would mitigate entry shortages that have been experienced at New York tracks. An exception is proposed for horses claimed at Finger Lakes Racetrack toward the end of the Finger Lakes racing season, in which case the prohibition would be limited to 30 days from the end of the Finger Lakes racing season.”

On the time extensions for owners to be eligible to claim, the current version of the rule states that an owner must have “nominated a starter in the previous or current race meet.”

The proposed rewording would change the requirement to owners who have “started a horse: (1) within the previous 120 days, including the race in which such horse started, in a race meeting of the licensed or franchised association; or (2) in the current or previous race meeting.”

New owners who have not previously been licensed would also get a time extension.

Currently, a newly licensed owner “may apply to the stewards for a certificate authorizing him or her to claim one horse during the next 30 racing days following the issuance of the certificate.” The existing version of that rule also states that the stewards “may grant an extension” to that time period “if deemed appropriate.”

The proposed new language would change the “if deemed appropriate” part to an extension of “30 racing days if the certificate holder had entered a claim but had lost” the shake.

“NYRA conducts race meetings of varying lengths and horse populations,” Burns wrote in the brief. “Consequently, the current rule, which requires an owner, in order to be eligible to claim, to have entered a starter in the previous race meeting, precludes some otherwise active owners from claiming horses.

“Some owners may not have participated in a previous meeting because of the meeting's short duration or because racing opportunities had been incompatible with the owner's stable of horses. The proposed rule would address these concerns by allowing claimants who have raced on a circuit within 120 days, which would increase the number of owners qualified to make claims,” Burns wrote.

“Additionally, due to the frequency of multiple claims on a single horse, it is possible that someone actively trying to claim may not succeed in acquiring a horse within 30 racing days, which the current rule requires,” Burns wrote.

“Allowing 30 additional days for holders of a certificate of eligibility would provide an owner with an opportunity to claim when the owner has not been successful within the first 30 days of a race meeting, because the owner has lost the opportunity to claim to another claimant when multiple claims had been made on the same horse. Creating an opportunity to extend claiming eligibility for unsuccessful claimants would allow these owners additional chances to claim a horse,” Burns wrote.

Additionally, current NYSGC regulations provide that when a horse is claimed from a particular value class, the horses is ineligible to start in the same value class for 30 days.

According to the brief written by Burns, “A review of recent data, however, indicates that horses generally run on a 28-day schedule and condition books generally schedule a value class every 28 days. Under current regulations, a claimant who wants to start a horse again in the same class may be effectively forced to wait 56 days from the date of the claim. The position has been advanced that such period is unnecessarily long and causes issues for owners, trainers and the racetrack, which seeks to fill competitive races.”

The solution, according to the proposed rewording, will be to make the regulation state that, “If a horse is claimed the horse shall not start in a claiming race for a period of 20 days from the date of the claim for less than 25 percent more than the amount for which such horse was claimed.”

A new clause would be inserted that further states, “For a period of 10 days thereafter, a horse is eligible to start for a claiming price equal to or greater than the price at which the horse had been claimed. On the 31st day, the horse may start in a claiming race for any price.”

Burns wrote that “By reducing the requisite waiting period, owners will have a greater opportunity to start a horse for the price at which the horse had been claimed, given that the owners would be able to gain access to races that had already been written in the track's condition book 28 days in advance.”

Rice penalty revision on target for Sept.

Separately, NYSGC Executive Director Robert Williams detailed the expected timeline for commissioners to revisit a possible penalty for trainer Linda Rice, who on June 8 had a New York Supreme Court Appellate Division rule that a three-year banishment imposed by the NYSGC was “entirely unwarranted.”

Linda Rice | Sarah Andrew

As TDN reported back in June, the Gaming Commission fined Rice $50,000 and revoked her license for three years in 2021 after investigating claims that Rice received favorable treatment from the NYRA racing office and that the racing office was releasing to her the names and past performances of horses that had already been entered in races, giving her an unfair advantage. It was further alleged that Rice had paid racing officials in exchange for the information, a charge she denied. She did admit to routinely giving members of the racing department, as well as the gate crew, Christmas presents.

Williams said that the court ruling upheld the commission's determination that the “improper practices” rule had been violated and that the court rejected Rice's constitutional claim. But the court overturned the three-year revocation, and sent the matter back to the commission to reassess the penalty “with the constraint that any reassessed penalty cannot contain a license revocation.”

Williams said the case materials will be recirculated to each of the commissioners, and that both the commission's counsel and Rice's legal team have been asked to update their post-hearing briefs with respect to penalty recommendations.

“The matter should be set for consideration at the commission's September meeting,” Williams said.

Brian O'Dwyer, the NYSGC chairman, said, “I urge the commissioners that, obviously, the Rice matter is something that we need to look at. In particular, three of the commissioners are new to the matter, having been appointed after the penalty had been assessed. Obviously, we're under court mandate to reassess that penalty, and I know that we'll all take that very seriously.”

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Is Kentucky’s Claiming Outflux A Real Or Perceived Problem

The Week In Review, by T.D. Thornton

Does Kentucky need to do something to stop the outflux of horses leaving the state after being claimed? And will any attempt at corrective action by rewriting regulations result in unintended consequences that could create their own problems?

Those questions were up for debate last week when the Kentucky Horse Racing Commission (KHRC)'s rule committee met to kick around ideas that could surface in a near-future proposal.

Commissioner Frank Jones, Jr., the rules committee chair, said that last year 779 Thoroughbreds were claimed out of Kentucky races. Of that number, 412 made their next start outside of the state.

“It's diluting the inventory of horses that we have,” Jones said.

“The claiming rule is a very, very intricate and difficult thing to wholesale [amend],” Jones said, adding that by his recollection over the decades, “this claiming rule has probably been changed about six times.”

But, Jones added, “You put the lid on the pot; the pot keeps boiling” with new issues.

One suggestion was to mandate that an outfit had to have started a horse at the race meet in question prior to being allowed to drop a claim slip for another horse at that track.

But Commissioner Greg Harbut was quick to point out that a problem with that methodology is that larger stables with many starters would have an edge over smaller outfits with only a horse or two.

“I believe that would give certain individuals a distinct advantage over other stables,” Harbut said, alluding to the likelihood that a sizable outfit might be able to achieve getting starters in on the first day of a meet, while smaller-scale owners and trainers are at the mercy of the condition book to determine when their individual horses might get in.

Harbut instead suggested that the rule tweak could be re-phrased to make it so that licensees who are stabled in Kentucky get preference at the claim box.

“I think if they're licensed and stabled here, it does show an intent to support Kentucky racing. I think that's all that we are looking for,” Harbut said.

Jones said that while a “residency” idea might have some traction, regulators have to tread carefully. Previous attempts at rulemaking to force claimed horses to stay in Kentucky for a longer period of time are “when we run into possible anti-trust” challenges, Jones said.

Jones also added that a residency rule might not be able to stop Kentucky trainers who claim horses for out-of-state outfits for a fee.

“Some people that are claiming horses in Kentucky, [then] you look up in 30 or 40 days and the same horse is entered in someone else's name,” in Indiana or in another nearby state, Jones said.

“There are some trainers who will claim horses for a $500 fee [and] it's been like that for at least the last five or 10 years,” Jones said.

“You will always have individuals that are going to skirt around the rules,” Harbut acknowledged, noting that regulations alone won't stop “individuals that still want to be aggressive” about claiming.

“The ownership landscape has changed in the last five to seven years,” Harbut explained. “A lot of entities are teaming together, not only in racing, but at horse sales and other things of that nature.”

Commissioner Bill May suggested that the committee step back and take in the overall landscape prior to recommending any changes.

“Is it a big enough issue that we need to actually memorialize it in the regs?” May asked. “We don't need to get in the business of writing a reg for every scenario that comes along, because we're never going to be able to address every issue.”

May continued: “I don't have the answer to whether or not [the claiming outflux] is a big problem. But if it's not a big issue, if it's only going to affect one or two people, I'm not sure it's worth fooling with. But if it's going to affect a multitude of people, then it needs to be addressed.”

Harbut brought up a related point: How many of those claimed horses eventually returned to Kentucky after briefly leaving the circuit?

Jones didn't believe that stat that had been compiled within the report he had been referencing.

“The reason I ask is that I know at the end of the racing season here in Kentucky, we no longer run dirt or turf, so a lot of those trainers that support Kentucky year-round go off to other jurisdictions such as Oaklawn, Fair Grounds, [where they] have the option of running on dirt or turf,” Harbut said.

“They, in turn, bring those horses back to Kentucky,” Harbut said.

Harbut said he would like better understanding of that seasonal give-and-take aspect of the claimed horse outflux before moving forward with any rules rewrite. The committee took no action on formally adopting any changes to the existing claiming rules.

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Lawmakers Discuss Adding KTDF Money to Claiming Races

In a meeting in Frankfort Friday, the Pari Mutuel Wagering Taxation Task Force, led by State Senator and majority floor leader Damon Thayer, outlined the advantages of allowing Kentucky-breds in claiming races to receive purse supplements.

Claiming races currently are not eligible to have Kentucky Thoroughbred Development Fund (KTDF) supplements added to their purses.

“You need claiming horses in order to provide the opportunities for allowance and stakes horses,” said Rick Hiles, president of the Kentucky Horsemen's Benevolent & Protective Association (KHBPA). “It's time to acknowledge their important role and to let all horses born in the state and sired by a stallion in the Commonwealth benefit from being a Kentucky-bred.”

In Kentucky, claiming races make up about half of the races but account for only 17% of total purses. The KTDF supplements, which often comprise 25 to 50% of a non-claiming race, are paid out only to registered Kentucky-breds. Those are horses born in the commonwealth and sired by a Kentucky stallion.

Thayer explained the best way to implement the policy was through legislation enabling the expansion, but the KHRC and KTDF advisory committee would oversee the parameters.

The Kentucky HBPA projects that KTDF on claiming races would add between $5 million-$10 million a year to those purses, if applied at the approximate percentages of other races. Claiming horses also provide a stream of revenue to the state's General Fund via the six% state sales tax applied every time a horse is claimed. Through Nov. 13, a total of 923 horses had been claimed in Kentucky for a total of $22,400,500 with 27 days of racing left in the 2021. That accounts for $1,362,030 in sales tax.

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Claiming Process Streamlined By Horse Racing Ireland

A streamlining of the claiming process for Irish claiming races, to speed up post-race procedures, has been instituted by Horse Racing Ireland and the new regulations will go into effect on Nov. 2. Pre-authorisation on the day of the race will be required for all potential claimants. The claimant's contact details, the name of the designated trainer for the horse they wish to claim, the name of the person responsible for collecting and transporting the claimed horse and the value of the horse they wish to claim should be submitted to Horse Racing Ireland up to one hour before the scheduled race time. Pre-authorisation can be done in two ways: by completing the online pre-authorisation form or by telephoning the client accounts department of HRI. For more information on the new procedures, please visit the Horse Racing Ireland website.

Jason Morris, HRI's Director of Racing, said, “The popularity of claiming races continues to grow as a medium for purchasing horses and we have seen a huge increase in the volume of activity, with upwards of 30 claims being submitted in races on occasions. This can lead to considerable delays in the post-race processing and the announcement of the successful claims.

“The changes to the regulations announced today will streamline the process for everyone involved and will also ensure the welfare of claimed horses as they transfer between trainers. The time between the race being run and the announcement of successful claims will be reduced, removing any ambiguity of who is responsible for the welfare of the horse in the period after the race.

“It is important to note that pre-authorisation must be sought each time a person intends to make a claim and that those wishing to proceed with their claim must contact the client accounts department of HRI after the race is run. No claim will be accepted after the race without pre-authorisation.”

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