UK Government to Examine Reform of Horserace Betty Levy and Gambling Reform

The UK Government will look into the timetable for reviewing the Horserace Betting Levy, and the news has been welcoming by the British Horseracing Authority (BHA). Not due for a review until 2024 under the current legislation, the Horserace Betting Levy is now on the table for next year. The ongoing COVID-19 pandemic has magnified the funding issues of the industry, and the COVID-19 Recovery Plan, published in August, called for an urgent review as part of a wider initiative to restore industry finances. After the review was published, the BHA Chair and Chief Executive Annamarie Phelps and Nick Rust, respectively, met with the Sports Minister in September, where the issue of re-examining the Levy was raised. The Levy returns 10% of the profits on racing made by betting companies to the sport. The BHA also engaged MPs with racing interests in their constituencies, who made their own representations to the Sports Minister.

“We welcome the announcement from the Minister that DCMS will examine in 2021 the timetable for reviewing the Levy,” said BHA Chief Executive Nick Rust. “Racing industry leaders agreed that there was an urgent case for reform as part of our plans to recover from COVID-19 and have presented a united front to government. As the Minister outlined in the House today, there are ongoing conversations between the BHA and government on Levy reform. We look forward to working with DCMS officials and ministers in 2021 to ensure that the Levy is sustainable and fit for the digital age.”

Also on Tuesday, the UK Government has launched a major and wide-ranging review of gambling laws, which the BHA also welcomes. They agree with the objectives of protecting vulnerable individuals from gambling-related harm, as well as accepting the need to ensure that gambling legislation is modernised for the digital age while reflecting the significant economic contribution that gambling and associated industries make to the UK.

Rust added, “Betting on horseracing is enjoyed by millions of people safely and responsibly, with a low prevalence for gambling related harm. Despite the low levels of problem gambling in the sport, racing promotes responsible gambling and is committed to working with the betting industry to further reduce risk. We will also work closely with our partners in the betting and racing industry to formulate our response to the consultation.

“We are pleased to hear that the review will be evidence-based and we look forward to proposals that are proportionate and focused on those at risk. We know the government is aware of the potential impact on related industries such as British racing and the 80,000 livelihoods it supports. The Minister, Nigel Huddleston, made clear in his address that the challenging conditions that sports find themselves in, and the importance of legitimate commercial relationships between sport and gambling, will be considered as part of the review

“Racing and betting’s unique, interdependent relationship has been recognised by government in many ways, including through the Horserace Betting Levy. British racing has laid the groundwork for the gambling consultation with an industry group meeting for several months. Detailed submissions and representations were also made to the recent Lords Special Inquiry, which highlighted the ‘special position’ of racing and betting.”

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Competitive Edge to Valor Farm in Texas

Competitive Edge (Super Saver–Magdalena’s Chase, by Cape Town), winner of the 2014 GI Hopeful S. at Saratoga and a nationally ranked first- and second-crop sire over the past two years, was purchased by Douglas Scharbauer to stand at Valor Farm in Texas. He previously stood at Ashford Stud in Kentucky. His 2021 fee will be $5,000.

Competitive Edge, who also covered mares in the Southern Hemisphere while with Ashford, was North America’s sixth ranked first-crop sire with more than $1.3 million in progeny earnings in 2019. He is currently ranked among the Top 15 second-crop sires, with total progeny earnings of nearly $3.6 million thorough early December. He is represented by 12 stakes horses, including Saratoga stakes winners Fierce Lady and My Italian Rabbi, and graded-stakes placed Reagan’s Edge and Edgeway.

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Competitive Edge Relocated To Valor Farm In Texas

Competitive Edge, a Grade 1 winner and nationally ranked first- and second-crop sire over the past two years, was purchased by Douglas Scharbauer to stand at Valor Farm in Pilot Point, Texas.

The son of Kentucky Derby winner Super Saver previously stood at Ashford Stud in Kentucky. His 2021 fee will be $5,000. 

Bred by WinStar Farm LLC and sold for $750,000 as a 2-year-old, Competitive Edge broke his maiden at first asking by more than 10 lengths at Saratoga Race Course. Then in just his second career start, he romped to a 5 3/4-length win in the historic Grade 1 Hopeful Stakes, also at Saratoga.  

His win streak continued as a 3-year-old, when in consecutive starts he won the Tamarac Stakes at Gulfstream Park and the G3 Pat Day Mile Stakes at Churchill Downs, stopping the timer at 1:34.18. All told, he earned $519,280 on the track. 

Competitive Edge, who also covered mares in the Southern Hemisphere while with Ashford, was North America's sixth-ranked first-crop sire with more than $1.3 million in progeny earnings in 2019. He is currently ranked among the top 15 second-crop sires, with total progeny earnings of nearly $3.6 million thorough early December.

He is represented by 12 stakes horses, including Saratoga stakes winners Fierce Lady and My Italian Rabbi, Grade 2- and Grade 3-placed Reagan's Edge and Grade 3-placed Edgeway. 

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Harness Trainer Allard Included In Superseding Indictment Against Grasso, Others In Federal Drug Case

Harness trainer Rene Allard has been included in a superseding indictment filed in federal court last week against Louis Grass, Donato Poliseno, Thomas Guido III, and Richard Banca. All defendants have entered not guilty pleas to one count each of drug adulteration and misbranding conspiracy for their role in what prosecutors say was a scheme to “manufacture, distribute, and receive adulterated ad misbranded PEDs and to secretly administer those PEDs to racehorses under scheme participants' control.”

The allegations in the Dec. 3 indictment are nearly identical to those in the indictment filed against Grasso, Poliseno, Guido and Banca in February and March of this year. The timing of the indictments and arrests earlier in the year coincides with a larger case also from the U.S. Attorney for the Southern District of New York into alleged doping schemes utilized by Thoroughbred trainers Jorge Navarro and Jason Servis.

At that time, a complaint was filed against Allard but prosecutors requested several extensions of time in the case throughout the spring and summer. The complaint details Allard's involvement in the alleged scheme with his co-defendants, as recounted by FBI special agent Bruce Turpin.

Turpin stated that Grasso, who had a veterinary license, worked for Allard. Turpin also stated Grasso operated a company that manufactured adulterated and misbranded drugs. Last week's indictment explained that Grasso allowed his veterinary license number to be used by non-veterinarians calling in orders to pharmacies for a charge of $100 per prescription, despite not knowing what the non-vets were prescribing to themselves. The drugs involved in the scheme allegedly included bleeding medications, pain blockers, and EPO-like products, among others. Poliseno stands accused of purchasing and distributing the drugs made by Grasso. Guido and Banca are fellow harness trainers.

The drugs, according to the indictment, were designed to be undetectable in testing.

The substances appeared to carry significant risk to the horses, according to court paperwork. An intercepted conversation between Guido and Grasso about the death of an unidentified horse indicated Grasso thought the horse had been “over juiced” with a bleeding medication.

“I've seen that happen 20 times,” Grasso said.

The complaint filed earlier this year against Allard includes bits of a conversation intercepted by federal agents between Ross Cohen (named in the original indictment alongside Navarro and Servis but absent from a later indictment in that case) and Grasso about Allard's barn. According to the transcript of the phone call from fall 2019, Cohen referred to Allard's operation as “the Allard death camp,” referring to two or three horses that died after receiving what Grasso said was an amino acid supplement from Weatherford, Texas compounding pharmacy NexGen.

A search of an office at a Middletown, N.Y. training center where Allard kept horses revealed empty syringes, bottles of injectable products labeled “for research purposes only” and bottles with labels the agent suspected did not match the content.

The superseding indictment calls for the defendants to forfeit assets acquired as a result of the alleged criminal acts.

Allard was the winningest trainer in 2019 at Pocono Downs is one of the top trainers at Yonkers. Allard was also previously excluded from the Meadowlands by owner Jeff Gural, as was Banca, according to a report earlier this year from Thoroughbred Daily News.

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