Federal Trade Commission | Horse Racing Free Tips

FTC Calls For Dismissal Of Challenge To Horseracing Integrity And Safety Act

Attorneys for the Federal Trade Commission have filed a motion to dismiss a lawsuit filed in the U.S. District Court for Kentucky against the Horseracing Integrity and Safety Act, reports the Daily Racing Form, using similar arguments to those in a dismissal motion against the National HBPA's suit challenging HISA filed in U.S. District Court for the Northern District of Texas.

The Kentucky lawsuit was filed by a trio of states and their respective racing commissions: Louisiana, Oklahoma, and West Virginia. FTC attorneys argued that the creation of the HISA regulatory body does not violate constitutional doctrines regarding Congress' delegation of powers to a private entity.

“Adjudicating the merits of plaintiffs' legal claims now would require the court to evaluate HISA's framework in the abstract, unaided by any concrete facts or interpretative rules from the agency that Congress charged with the statute's implementation,” the motion states. “There is no justification for the court treading this path under any circumstances, and it is doubly improper in a constitutional
challenge.”

Jockey Club Round Table: HISA ‘Best Ever Opportunity To Right Our Badly Listing Ship’

The 69th Annual Round Table Conference on Matters Pertaining to Racing concluded Sunday with emphatic support for the Horseracing Integrity and Safety Act (HISA) by The Jockey Club Chairman Stuart S. Janney III, who presided over the conference and referenced in his closing remarks the arguments made by groups in the racing industry that have stated their opposition to HISA.

“When the history of this is written, it will be clear who the obstructionists were and who opposed this industry's best ever opportunity to right our badly listing ship,” Janney said. “I am proud to stand with those who support HISA, and I look forward to the needed reform it will bring to our industry and to seeing our ship finally sailing a straight course.”

Sunday's event was held virtually and streamed on jockeyclub.com and made available on NYRA's YouTube channel, Racetrack Television Network's respective platforms, and bloodhorse.com.

Janney was preceded by presentations from Charles Scheeler, chair of the Horseracing Integrity and Safety Authority board of directors, and Dr. Tessa Muir, director of Equine Science for the United States Anti-Doping Agency (USADA).

Scheeler described the components of the authority's work ahead, which include the establishment of an anti-doping and medication testing program and a safety program; constituency outreach; and utilizing the industry's plethora of data, much of which will be sourced from The Jockey Club's databases. In advance of the implementation of HISA next year, plans call for the authority's board and standing committees to publish proposed rules for public comment before they are submitted to the Federal Trade Commission.

“What I saw when [I looked at HISA] was a once-in-a-lifetime opportunity to make the sport safer for horses and jockeys, to serve the overwhelming majority of horse people who want to win fairly and who want to play by the rules…” Scheeler said.

Muir spoke of USADA's plans to work with the Thoroughbred industry, including leveraging expertise for both human and equine athletes to create best practices.

“Our aspiration is to establish and maintain a uniform and harmonized program that is centered on promoting and safeguarding the health and welfare of horses and protects the rights of all participants to race clean and win fairly,” she said.

Emily Lyman, founder and chief executive officer of Branch & Bramble, a digital marketing agency used by America's Best Racing (ABR), discussed how “social listening” online can be used to gauge public sentiment of horse racing and how highly publicized events can have a positive or negative impact on how the sport is viewed. She talked about how ABR's marketing strategy is influenced by this data and that influencers can be effectively used as brand ambassadors to introduce new audiences to horse racing.

“Maintaining the status quo doesn't protect a brand's long-term health,” Lyman said. “Without growth in impressions and public sentiment, your key audience will eventually die out.”

Will Duff Gordon, the chief executive officer of Total Performance Data (TPD), spoke in a presentation with Will Bradley, director and founder of Gmax Technology Ltd., on how TPD and Gmax have collaborated to create timing systems for horse races and how they are working with Equibase to determine how the tracking data can supplement and enhance the information that Equibase provides. They noted that this information will become more valuable with the expansion of sports betting in the United States.

“We do know from our European experience that sports that have the richest set of data, as well as pictures, as well as odds, capture the most betting turnover and handle,” Gordon said.

Dr. Yuval Neria, professor of Medical Psychology at Columbia University and director of the PTSD Research Center, was joined by Dr. Prudence Fisher, associate professor of Clinical Psychiatric Social Work at Columbia University, to talk about the Man O' War Project, which was founded by Ambassador Earle I. Mack. It is the first university-led research study to examine the effectiveness of equine-assisted therapy (EAT) in treating veterans with post-traumatic stress disorder.

Neria described the findings as “extremely encouraging,” noting measurable changes in the parts of the brain involved in the capacity to seek and experience pleasure among trial participants. There were also decreases in symptoms of post-traumatic stress disorder and depression.

Moving forward, plans call for the creation of the Man O' War Center, with goals to train others in EAT protocol for veterans, adopt the protocol for other groups, pursue a larger research study, and expand the use of former racehorses for equine-assisted therapy work.

“We are proud to partner with the Thoroughbred Aftercare Alliance to connect groups trained in the Man O' War protocol with accredited aftercare facilities,” said Fisher. “It's a great way to incorporate more retired Thoroughbreds in EAT programs throughout the country.”

Kristin Werner, senior counsel for The Jockey Club and administrator of The Jockey Club's Thoroughbred Incentive Program, moderated an aftercare panel with panelists Erin Crady, executive director, Thoroughbred Charities of America (TCA); Brian Sanfratello, executive secretary, Pennsylvania Horse Breeders Association (PHBA); Beverly Strauss, executive director, MidAtlantic Horse Rescue; and Dr. Emily Weiss, vice president, Equine Welfare, American Society for the Prevention of Cruelty to Animals (ASPCA).

Each panelist shared their perspectives on challenges in the aftercare landscape, from securing a safe first exit from the racetrack to placing retired breeding stock. Crady talked about the TCA's Horses First Fund, which helps Thoroughbreds in case of an emergency.

“Plan, plan, and plan some more,” Crady said. If you've prepared a business plan for your racing operation, include a section on aftercare.

“Please remember one thing that I feel is paramount to your horse's future. Make every effort to retire your horse while he or she is still sound. A sound Thoroughbred can have an unlimited future.”

Strauss talked about the kill buyer market and the frequent social media frenzies when Thoroughbreds are offered for inflated prices to save them from being sold to slaughter. She warned that individuals and organizations that participate in these practices are often scams.

“If you're contacted because one of your former horses is in a kill pen, do some research, don't just throw money at it, don't just send money blindly, do research and see that the horse truly is in a bad place and then ensure its safety,” Strauss said.

Sanfratello detailed the PHBA's stance on aftercare and its creation of a code of ethics that will sanction those who knowingly send horses registered with the PHBA to slaughter.

“Our board understands that aftercare is just as important as making sure that we increase the numbers of mares bred,” Sanfratello said.

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Weiss focused on the work of the ASPCA's Right Horse Initiative, which assists with placing horses in transition. She noted that a problem seen with placing horses is that Thoroughbreds are often not located where the demand for them exists.

“There's some disconnect between the interest in the general public and getting these horses into their hands, and part of that is just getting those horses where those people are,” she said.

David O'Rourke, the president and chief executive officer of the New York Racing Association (NYRA), provided an update on that organization's efforts to promote safety, integrity, and the sport of racing. According to O'Rourke, NYRA has allotted 50% of its capital budget since 2013 to infrastructure improvements such as new track surfaces, barns, and dormitories. He also addressed the legalization of sports betting and NYRA's belief that this represents a critical opportunity for horse racing to expand its wagering options and boost handle

James L. Gagliano, president and chief operating officer of The Jockey Club, delivered a report on the activities of The Jockey Club.

Also in his closing remarks, Janney announced that Len Coleman and Dr. Nancy Cox, co-chairs of the nominating committee of the Horseracing Integrity and Safety Authority, have been awarded The Jockey Club Medal for exceptional contributions to the Thoroughbred industry.

A video replay of the conference will be available on jockeyclub.com this afternoon, and full transcripts will be available on the same site this week.

The Jockey Club Round Table Conference was first held on July 1, 1953, in The Jockey Club office in New York City. The following year, it was moved to Saratoga Springs, N.Y.

The Jockey Club, founded in 1894 and dedicated to the improvement of Thoroughbred breeding and racing, is the breed registry for North American Thoroughbreds. In fulfillment of its mission, The Jockey Club, directly or through subsidiaries, provides support and leadership on a wide range of important industry initiatives, and it serves the information and technology needs of owners, breeders, media, fans, and farms. It founded America's Best Racing (americasbestracing.net), the broad-based fan development initiative for Thoroughbred racing, and in partnership with the Thoroughbred Owners and Breeders Association, operates OwnerView (ownerview.com), the ownership resource. Additional information is available at jockeyclub.com.

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Hank Zeitlin Named Interim Executive Director Of Horseracing Integrity And Safety Authority

The Horseracing Integrity and Safety Authority's (“the Authority”) board of directors announced Wednesday that Henry “Hank” A. Zeitlin will serve as Interim Executive Director of the Authority through the remainder of 2021. The board reached this decision after interviewing multiple qualified candidates nominated by racing constituencies and interested parties.

The Authority is also in the process of selecting an executive search firm to assist in undertaking a nationwide search for a permanent Executive Director to begin serving next year. Under Zeitlin's leadership, the Authority's anti-doping and medication control and racetrack safety standing committees will begin their work to establish uniform anti-doping, medication control, operational and accountability measures governing all 38 racing jurisdictions in the U.S. These proposed measures will be subject to the oversight and approval of the Federal Trade Commission.

“Hank Zeitlin's extensive background across multiple facets of the racing industry makes him an excellent addition to the Authority as we work toward a better and safer sport for all,” said Board Chair Charles Scheeler. “As we seek to engage both industry and external stakeholders for their insights and expertise on the various components of the racetrack safety and anti-doping and medication control programs, it is clear that Hank is the right fit for the role given his in-depth knowledge of the subject matter.”

Zeitlin currently serves as the executive vice president and a member of the board of directors at Thoroughbred Racing Associations, Inc., the trade association for racetracks in North America. He also serves as president and member of the board of directors of the Thoroughbred Racing Protective Bureau, Inc., which provides integrity services for Thoroughbred racing and wagering. Previously, Zeitlin worked at Equibase for 18 years as Executive Vice President, then President. More recently, Zeitlin served as the chief facilitator for the National Thoroughbred Racing Association's (NTRA) comprehensive update to and expansion of the NTRA Safety & Integrity Alliance's Code of Standards. His critical role in this effort involved leading three teams of experts in establishing best practices in anti-doping and medication control, racing safety and racetrack surface maintenance.

“I'm looking forward to being a part of this exceedingly important effort to develop industry-wide safety and integrity reforms at a time when those inside and outside the industry are looking for greater transparency, increased accountability and stronger enforcement mechanisms,” said Zeitlin. “We have a lot of work to do ahead of the July 2022 program effective date, but thanks to the excellent efforts of the nominating committee and the strong baseline standards laid out in HISA, we are hitting the ground running.”

“On behalf of the Authority, I'd like to thank Hank Zeitlin for agreeing to take on this role,” said vice chair of the board of directors and former Governor of Kentucky Steve Beshear. “An effort of this magnitude requires experienced and dedicated leadership at every level, starting at the top.”

Further questions and/or interview requests can be submitted to HISAuthorityUS@gmail.com.

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McConnell, Barr, Tonko File Brief Asking Court To Dismiss HBPA Lawsuit Against Horseracing Integrity And Safety Act

Attorneys representing three Congressional proponents of the Horseracing Integrity and Safety Act (HISA) have filed an amici curiae brief in support of a motion by defendants to dismiss a federal lawsuit by the National Horsemen's Benevolent and Protective Association and several affiliates alleging that the federal law establishing national oversight on medication and safety policies for horse racing is unconstitutional.

Attorneys Eric Grant of Texas and Paul E. Salamanca of Kentucky submitted the “friend of the court” brief on behalf of Kentucky Sen. Mitch McConnell, who pushed for the passage of HISA as part of omnibus funding bill in December while serving as Senate majority leader; Kentucky Rep. Andy Barr; and New York Rep. Paul Tonko. Barr and Tonko were the primary sponsors of HISA in the House of Representatives. The bill was signed into law by former President Donald Trump.

The brief pushes back against a partial motion to dismiss from HBPA attorneys filed April 30 seeking the court to declare HISA unconstitutional and order an injunction preventing the Horseracing Integrity and Safety Authority, the agency created by the law, from operating as a national oversight body.

The three points of contention countering the HBPA position is that 1) HISA is vital legislation; 2) HISA is the result of extensive legislative deliberation; and 3) HISA is structurally constitutional.

The brief argues that the racing industry recognized that an “acute safety crisis was creating an existential crisis of public confidence” and that HISA was Congress' response to that crisis.

“HISA's mandate to create national, uniform equine health and safety rules is vital to the stability and growth of horseracing,” the brief reads. “Like any regulatory regime, not everyone agrees with HISA's objectives or the means by which the statute achieves those objectives. But the question for this court is only whether Congress had an adequate and legitimate basis for enacting HiSA.”

On the second point, the brief explains the history of previous efforts to pass legislation similar to HISA, with numerous Congressional hearing taking place over the last decade, including one in 2018 and another in 2020. Among the 14 witnesses who testified in the latter two hearings, the brief contends, were four opponents of the legislation, including the CEO of the National HBPA.

The HBPA alleged in its lawsuit that HISA passed the House of Representatives on a voice vote with no debate and that it was never discussed in committee or on the floor of the Senate.

The final point of the brief states that HISA is structurally constituted and modeled on the Maloney Act, which authorized the Financial Industry Regulatory Authority (FINRA) to regulate federal securities markets. FINRA is under the auspices of the Securities and Exchange Commission, which can approve, reject or modify its policies.

Similarly, HISA will operate under the auspices of the Federal Trade Commission, which can approve, reject or modify policies. As a private entity, HISA would “propose, not promulgate” rules to the FTC, according to the brief.

“For the foregoing reason,” the brief states, “this court should grand defendants' motion to dismiss (the lawsuit).”

The McConnell-Barr-Tonko brief was not the only one submitted to the court. The North American Association of Racetrack Veterinarians (NAARV) filed a brief contending that the establishment of the Authority would deny due process to its members.

The suit was filed in U.S. District Court for the Northern District of Texas, Lubbock Division.

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