horseracing integrity and safety act | Horse Racing Free Tips

HISA: Details Are Scant, But You Can Bet More OOCT Is Coming

Charles Scheeler, newly-elected chairperson of the board of directors for the Horseracing Integrity and Safety Authority, said that there's a lot which is still TBD for the new governing authority for horse racing. Scheeler appeared on a media call June 2 to discuss the authority's progress so far after being elected at the authority's inaugural meeting on May 27.

The authority, which is set to take over horse racing regulation in summer 2022, is still finding its feet. Scheeler was unable to specifically site any one state or organization's rules or model rules that would be picked up by the new group to govern medication use or safety policy. The rule-making for medication use and safety practices is left up to separate committees, which were just formed in early May.

It also remains unclear where the money will come for drug testing under the new authority — or how much that will cost. Scheeler anticipated that as work continues on the new group, committee members will come up with a budget for drug testing and other costs, and then determine how to charge the portions of the industry covered by Horseracing Safety and Integrity Act. He said he hoped that a larger scale drug testing contract and improved test selection procedures could reduce the per-test bill from what jurisdictions currently pay.

Scheeler pointed out that the authority could allow for more intelligence-based post-race testing, rather than requiring tests be conducted on finishers in certain positions (although that is already an option for stewards in some places). He also emphasized that boots on the ground will be a big part of the new anti-doping controls, acknowledging, as many experts have before him, that the most sophisticated cheaters tend to stay a step ahead of testing technology.

“Another piece that we want to add in a very powerful way is an investigative component to serve as a deterrent,” he said. “You will see in other sports that the greatest deterrents have often come out of non-test cases, like BALCO, like Biogenesis, like the recent work of 5Stones … some folks look at it, not as 'Should I play fair or not?' but as a very cold cost/benefit analysis. We have to make them see the costs or the risks are greater than the rewards.”

Scheeler also believes that there will be an increased focus on out-of-competition testing (OOCT) under the new authority to complement that investigative component.

“There is definitely going to be more emphasis on out-of-competition testing, but I would not necessarily assume it comes at the expense of after-competition testing because that will remain in a fully robust form,” he said.

Scheeler also anticipates that the authority will adopt some kind of system like the current multiple medication violation penalty scheme, which increases the minimum fines and suspensions handed to a trainer or owner for repeated drug offenses in the same category.

Scheeler declined to speculate too much on how the Medina Spirit case may have been handled differently under the new authority, but did point out that the case has revealed some differences in betamethasone regulation between states. Under the new authority, rules and testing will be uniform. He also hopes the new authority can serve as a central communication center to the general public to help them understand how the sport is regulated and why — something the current state commission system can't allow for.

Scheeler is a retired partner from DLA Piper and served as head counsel to former Sen. George Mitchell during his investigation of doping in Major League Baseball. Scheeler has also been involved in investigations of the Pennsylvania State University's compliance with national athletic organizations and the health and safety practices at the University of Maryland's football program.

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‘Monumental Task Ahead Of Us’: Scheeler Elected Chairperson Of Horseracing Integrity And Safety Authority Board

The Horseracing Integrity and Safety Authority's board of directors recently held its inaugural meeting and elected Charles Scheeler as chairperson of the board. This meeting marks a major step in the operational and organizational transition of the Authority from the nomination and selection process to the critical work of developing uniform safety and integrity rules for the horse racing industry.

“I'm honored to be selected by my fellow board members as the first chairperson of the Horseracing Integrity and Safety Authority. We have a monumental task ahead of us, and I want to thank the nominating committee for bringing together this outstanding group of individuals whose inherent integrity and combined expertise give me confidence in our ability to meet the challenge,” said Scheeler. “All eyes are on the thoroughbred industry as we move into the third leg of the Triple Crown, and on behalf of the board and its standing committees, I'd like to express our unwavering commitment to our mission to protect the wellbeing of human and equine athletes and the integrity of the sport.

Charles Scheeler is a retired partner at DLA Piper. His extensive background includes serving as lead counsel to former Senator George Mitchell in connection with his independent investigation of performance-enhancing substance use in Major League Baseball (the Mitchell Report). He also served as the monitor of the Pennsylvania State University investigation relating to compliance with its obligations under the Athletics Integrity Agreement with the National Collegiate Athletics Association and Big Ten Conference. Additionally, Scheeler led an investigation by an independent commission examining health and safety practices within the University of Maryland football program. The resulting report recommended an array of best practices designed to place the university at the forefront of student-athlete health and safety.

“Charles Scheeler is the right choice as the Authority's first board chair and brings a wealth of experience and leadership to the role,” said Authority board member Leonard Coleman. “His deep background and exceedingly positive reputation on issues of critical importance in sports speak for themselves, making him a strong nominee for the board. I'm very pleased to see him take on this expanded role.”

Coleman was also co-chair of the Authority's blue-ribbon nominating committee that identified the initial board of directors and standing committee members.

Prior to joining DLA Piper, Scheeler was a federal prosecutor in the U.S. Attorney's Office for the District of Maryland from 1984 to 1989. During his time in public service, he successfully prosecuted racketeering, narcotics, money laundering and fraud cases.

In addition to practicing law, Scheeler is an engaged member of the community. He serves as chair of the board of Rosedale Federal Savings and Loan Association. He also serves as chair of the Johns Hopkins Bayview Medical Center and is a member of the boards of Johns Hopkins University, Johns Hopkins Medicine and the CollegeBound Foundation. Scheeler graduated from the University of North Carolina at Chapel Hill and Harvard Law School.

“With the election of Charles Scheeler as the Authority's chair, the board of directors is moving ahead with the development of uniform safety and integrity rules and regulations for the industry,” said Nancy Cox, who will continue to serve as chair of the Authority's nominating committee. “Under his leadership, the Authority is well-positioned to recommend and implement a new and effective regulatory framework to safeguard the future of horse racing.”

Under the oversight of the Federal Trade Commission, Authority board and standing committee members are responsible for developing, implementing and enforcing a series of uniform anti-doping, medication control, racetrack safety and operational rules to enhance equine safety and protect the integrity of the sport for participants, fans and bettors.

As part of the national governing framework that will be established for the sport, the 2020 Horseracing Integrity and Safety Act (“HISA”) created a set of baseline standards and reforms from which the Authority will begin its work. The anti-doping and medication control standing committee, in partnership with the U.S. Anti-Doping Agency (USADA) will advise the Authority on permitted and prohibited substances, laboratory testing standards, in- and out-of-competition testing and programs related to research and education. The racetrack safety standing committee will advise the Authority on training and safety standards, veterinary exam protocols, racing surface quality and maintenance, centralized databases for injury and fatality tracking and analysis, uniform track safety standards, and research and education related to every facet of racetrack safety.

“The Authority is working with the Federal Trade Commission to implement a series of uniform safety standards to reform and govern one of our nation's most treasured pastimes by the July 2022 program effective date,” said Scheeler. “Our work to protect the integrity and safety of the sport for our equine and human athletes, participants and fans is the top priority for everyone involved with the Authority. We will deliver on our goals and fill the long-standing need for national oversight of this storied sport to ensure it can be enjoyed for generations to come.”

Additional information on HISA and the Authority can be found at hisaus.org.

Biographical information
Horseracing Integrity and Safety Authority Board of Directors

Steve Beshear is an independent director from Kentucky. He served two terms as the 61^st governor of Kentucky. An attorney by trade, Beshear has an extensive background in public service in Kentucky, including terms as Lieutenant Governor, Attorney General and a member of the Kentucky House of Representatives.
Adolpho Birch is an independent director from Tennessee who will chair the Anti-Doping and Medication Control Standing Committee of the Authority. Birch is senior vice president of business affairs and chief legal officer for the NFL's Tennessee Titans. Prior to joining the Titans, he spent 23 years at the National Football League's headquarters, with responsibilities that included administration and enforcement of the NFL's policies related to the integrity of the game, substance abuse, performance-enhancing drugs, gambling and criminal misconduct.
Leonard Coleman is an independent director from Florida. Coleman is the former president of the National League of Professional Baseball Clubs. He joined Major League Baseball in 1992 as the executive director of market development. Previously, Coleman was a municipal finance banker for Kidder, Peabody and Company and served as commissioner of both the New Jersey Department of Community Affairs and Department of Energy. Coleman is also a former board member of Churchill Downs.
Ellen McClain is an independent director from New York. McClain serves as the chief financial officer for Year UP, a nonprofit organization dedicated to closing the opportunity divide by ensuring that young adults gain the skills, experience and support that will empower them through careers and higher education. From 2009-2013, she served in various leadership roles with the New York Racing Association (NYRA), including as its president.
Charles Scheeler is an independent director from Maryland. Scheeler is a retired partner at DLA Piper. He has an extensive legal career in the private and public sector. Prior to joining DLA Piper, Scheeler was a federal prosecutor in the US Attorney's Office and served as lead counsel to former Senator George Mitchell in his investigation of performance-enhancing substance use in Major League Baseball. Scheeler also has extensive experience investigating and monitoring Division I athletics programs' compliance with the National College Athletics Association.
Joseph De Francis is an industry director from Maryland. De Francis is the managing partner of Gainesville Associates, LLC. Prior to this role, he was a senior executive for various Thoroughbred racing entities including the Maryland Jockey Club and Magna Entertainment Corporation. De Francis has served on several industry and charitable organization boards, including the National Thoroughbred Racing Association (“NTRA”) and the Johns Hopkins Heart Institute, among others.
Susan Stover is an industry director from California, and she will chair the Racetrack Safety Standing Committee of the Authority. Stover is a professor of surgical and radiological science and the University of California, Davis and an expert in clinical equine surgery and lameness. Her research investigates the prevalence, distribution and morphology of equine stress fractures, risk factors and injury prevention, as well as the impact of equine injuries on human welfare.
Bill Thomason is an industry director from Kentucky. Thomason is the immediate past president of Keeneland, a role he served in from 2012 to 2020. Throughout his career, Thomason has been engaged with several industry organizations, including the NTRA and American Horse Council, as well as several civic and corporate boards, including the Kentucky Chamber of Commerce and the University of Kentucky Gluck Equine Research Foundation.
DG Van Clief is an industry director from Virginia. Van Clief retired in 2006 from serving as president of the Breeders' Cup since 1996. A long-time racing executive, Van Clief was chairman of the Fasig-Tipton Company and a trustee of the Jockey Club Foundation. For several generations, his family operated Nydrie Stud in Virginia, and his grandmother bred 1947 Kentucky Derby winner Jet Pilot.

Anti-Doping and Medication Control Standing Committee Members

Jeff Novitzky is an independent member from Nevada. Novitzky is Ultimate Fighting Championship's (UFC) vice president of athlete health and performance. In this role, he partnered with the United States Anti-Doping Agency to implement UFC's anti-doping program. Prior to UFC, Novitzky was a federal agent for the Food and Drug Administration and an investigator for the Internal Revenue Service.
Kathleen Stroia is an independent member from Florida. Stroia is senior vice president of sport sciences and medicine and transitions for the Women's Tennis Association (WTA) and the WTA's representative on the board of the Society for Tennis Medicine and Science. Stroia has served on various committees related to her sport, including the International Tennis Federation Medical Commission, the Tennis Anti-doping Committee and the U.S. Tennis Association Sport Science Committee, among others.
Jerry Yon is an independent member from Florida. Yon is a retired gastroenterologist and previous member of the Kentucky Horse Racing Commission (“KHRC”), where he helped establish the Kentucky Equine Medical Director position, and is a past chair of the Equine Drug Research Council, which advises the KHRC on drug testing, regulations and penalties.
Jeff Blea is an industry member from California. Blea is equine medical director at the University of California, Davis School of Veterinary Medicine. He is also a partner/owner in Von Bluecher, Blea, Hunkin, Inc., an equine veterinary medicine and surgery practice. Blea has served on and led several equine industry organizations including the American Association of Equine Practitioners (“AAEP”), Southern California Equine Foundation and the NTRA's Safety and Integrity Alliance.
Mary Scollay is an industry member from Kentucky. Scollay is the executive director and chief operating officer of the Racing Medication and Testing Consortium (RMTC), one of the industry's foremost scientific authorities on performance enhancing drugs, therapeutic medications and laboratory testing. She has served as a racing regulator since 1987 and is an active member in several industry and professional practice organizations including the AAEP and the International Group of Specialist Racing Veterinarians.
Scott Stanley is an industry member from Kentucky. Stanley is a professor of analytical chemistry at the University of Kentucky's Maxwell H. Gluck Equine Research Center and director of the Equine Analytical Chemistry Laboratory. A research scientist with more than 30 years of regulatory drug testing experience, his work focuses on developing new anti-doping approaches and the establishment of the Equine Biological Passport project.

Racetrack Safety Standing Committee Members

Lisa Fortier is an independent member from New York. Fortier is the James Law Professor of Surgery, Equine Park Faculty Director and associate chair for Graduate Education and Research at the Cornell University College of Veterinary Medicine. Her primary clinical and translational research interests are in equine orthopedic surgery, tendonitis, arthritis and regenerative medicine.
Peter Hester is an independent member from Kentucky. Hester is an orthopedic surgeon specializing in sports medicine and previously worked for equine veterinary surgeon William Reed at Belmont Park. While in medical school, he was a night watchman at Ballindaggin Farm and has maintained a passion for the sport and rider safety.
Paul Lunn is an independent member from North Carolina. Lunn is dean of the College of Veterinary Medicine at North Carolina State University. Previously he was a professor and administrator at Colorado State University and the University of Wisconsin-Madison. Lunn's scholarly interests are in equine immunology and infectious disease.
Carl Mattacola is an independent member from North Carolina. Mattacola is dean of the University of North Carolina, Greensboro School of Health and Human Sciences. Prior to this, he was associate dean of academic and faculty affairs for the College of Health Sciences at the University of Kentucky. Mattacola's research has focused on neuromuscular, postural and functional considerations in the treatment and rehabilitation of lower extremity injury.
Glen Kozak is an industry member from New York. Kozak is senior vice president of operations and capital projects for the New York Racing Association's (NYRA) facility and track operations, which include Belmont Park, Saratoga Race Course, Aqueduct Racetrack and others. Prior to joining NYRA, Kozak worked for the Maryland Jockey Club as vice president of facilities and racing surfaces.
John Velazquez is an industry member from New York. Velazquez is one of the most accomplished and respected jockeys in the history of horse racing, having won almost 6,250 races. He is North America's all-time leading money-earning jockey and holds the record for most graded stakes wins. He is a board member of the Permanently Disabled Jockeys' Fund and co-chairman of the Jockeys' Guild. He was inducted into the National Museum of Racing and Hall of Fame in 2012.

Nominating Committee Members:

Len Coleman is the former president of the National League of Professional Baseball Clubs. He joined Major League Baseball in 1992 as the executive director of market development. Previously, Coleman was a municipal finance banker for Kidder, Peabody and Company and served as commissioner of both the New Jersey Department of Community Affairs and Department of Energy. Coleman is also a former board member of Churchill Downs.
Nancy Cox is the vice president for Land-grant Engagement and the dean of the College of Agriculture, Food and Environment at the University of Kentucky. Prior to that, she served as associate dean for research and director of the Experiment Station at the University of Kentucky. Cox championed the formation of the UK Equine Initiative (now UK Ag Equine Programs), recognizing the importance of the horse industry and its significance to Kentucky.
Katrina Adams is the immediate past president of the United States Tennis Association (USTA), following two consecutive terms as the USTA's chairman and president. A successful professional tennis player, Adams was elected vice president of the International Tennis Federation in 2015 and was appointed as chairman of the Fed Cup Committee in 2016.
Jerry Black is a visiting professor at Texas Tech School of Veterinary Medicine and is an emeritus professor and Wagonhound Land and Livestock chair in Equine Sciences at Colorado State University. He is the former president of the American Association of Equine Practitioners and former chair of the board of trustees of the American Horse Council.
Joseph Dunford is the former chairman of the Joint Chiefs of Staff, the nation's highest-ranking military officer, and was the principal military advisor to the president, Secretary of Defense, and National Security Council from Oct. 1, 2015, through Sept. 30, 2019. Prior to becoming chairman, General Dunford served as the 36th Commandant of the Marine Corps.
Frank Keating is the former governor of Oklahoma. Prior to that role, his career in law enforcement and public service included time as a Federal Bureau of Investigation agent, U.S. Attorney and state prosecutor, and Oklahoma House and Senate member. He served as assistant secretary of the U.S. Treasury, associate U.S. attorney general, and general counsel for the U.S. Department of Housing and Urban Development.
Ken Schanzer served as president of NBC Sports from June 1998 until his retirement in September 2011. He also served as chief operating officer. During Schanzer's tenure, he secured the television rights to the Triple Crown races and Breeders' Cup for NBC. Before joining NBC Sports, he served as senior vice president of government relations for the National Association of Broadcasters.

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Letters To The Editor: For The Love Of The Horse

I have been in racing for almost 50 years. I have been involved with horses my whole life, growing up on a dairy farm with various ponies and horses, fox hunting, three-day eventing, show hunters, etc. From the beginning, my only reason for riding has been my love for horses. I've always loved being around them at every level. My first memory of a race horse was looking at pictures of Swaps in the Blood-Horse magazine and thinking he was the most beautiful horse in the world.

As children we went to the Timonium Fair to watch the races, and dreamed of either owning, training, or riding a race horse. Little did I know all three of those dreams would come true! But, always, my first thoughts were of the beauty, grace, and generosity of the horse himself, and I felt it was my responsibility to treat him with the greatest respect and give him the best possible care. I came into racing at about age 21 as an exercise rider and then a trainer. I thank racing for the best moments of my life, from starting a horse in the Preakness (1980, second woman ever to do so), to having the honor of training for a few of the greatest names in American Racing (Calumet Farm, Greentree Stable, John Franks, etc).

In racing I found my husband and some of my closest friends. Racing has a camaraderie which is impossible to explain to the layman. In a business where we spend most of the day, every day, no matter the weather, our health, or any possible extenuating circumstances, with the horses, it isn't hard to understand the closeness of its people. So, a sport which has given so much to me, and to which I have given almost my entire life, is breaking my heart with what it has become. I know that, in any business, when money is involved, things can become very complicated. Racing is no different. People have enormous amounts of money invested, and, understandably, would like to see some return on investment.

Unfortunately, when dealing with a living, breathing animal things don't always go according to plan. I think that many of the owners and trainer have forgotten what the game was intended to be about. Which is, first and foremost, the love and respect for the horse himself, and, secondly, the love of the sport itself. Love for the horse and love for the sport could easily go hand in hand, but it would mean putting the welfare of the horse first and understanding that the result might not always be the intended one. I have always advised prospective owners to invest only as much money as they can afford to lose. Look at it as a game, not as a business.

It seems to me that trainers, succumbing to pressure from owners who are looking for return on investment, often follow practices that they know are wrong in hopes of a better outcome. From a lifetime of experience I can say for certain, it just doesn't work that way.

When I first came around, we would call a veterinarian for a horse who was either hurt or sick. Period. Trainers cared for their horses through their training routines, feeding programs, and lots of hard work on their legs. There was no Lasix, no Bute, and very few other drugs permitted to run on. We relied on our ability to read the horse, figure out what he needed, and enter in the “right spot.” The rest was between the rider and the horse. In today's world of super trainers with hundreds of horses, most of whom they never even see, relying on assistants to tell them what's what, owners spending millions of dollars looking for that fifteen minutes of fame, and bettors becoming increasingly distrustful of the whole business, it is no wonder we are in so much trouble!

Sadly, there are still so many of us who really care for our horses. Sad because we are getting squeezed out by the ones who may truly love the sport, but have entirely forgotten the horse. In conclusion, with the whole world breathing down our necks, it is up to us to clean up our act. I would beg the authorities in all racing jurisdictions to hold the feet of every trainer, owner, jockey, groom and hot walker to the fire. No matter the prestige of the race or the winning connections, everyone must be treated equally. No one is outside the law.

– Judith Natale, Thoroughbred owner, breeder, trainer

The extraordinary efforts of the Water Hay Oats Alliance, the Coalition for Horse Racing Integrity, the Humane Society of the United States, Animal Wellness Action and Representatives Paul Tonko and Andy Barr are paying dividends a full year ahead of the establishment of a Horseracing Integrity and Safety Authority (HISA) office. I see it in the bold rulings (temporary or permanent) by the New York Racing Association, Churchill Downs and the Kentucky and New York racing commissions. It's not too late to get on the right side of history before dealing with an investigative organization that will operate under the aegis of the federal government. An oversight body will finally have nationwide clout and every bad actor in our game – no matter how big, as we've seen this week – should be terrified.

If you're waiting for this to go away, it won't. It's as if 2021 is a last chance to start fresh. Cheaters, think twice. It's clear to me that just the existence of HISA will make horse racing safer for horses and fairer to the people who bet on them.

– Allen Gutterman, Member, HSUS Horseracing Integrity Act Council

The May 14 news article, “Horseplayers Sue Baffert, Zedan Racing Over Medina Spirit Drug Test,” illustrates how the horse racing industry has failed to clean up its act even after Congress passed the historic Horseracing Integrity and Safety Act (HISA) in December to curb the rampant use of performance-enhancing drugs.

Hall of Fame trainer Bob Baffert has finally apologized for initially denying (vehemently) that the corticosteroid betamethasone was administered to Kentucky Derby winner Medina Spirit – the fifth time one of his horses failed a drug test since May 2, 2020. Meanwhile, HISA is facing legal challenges by racing business interests and the states of Oklahoma and West Virginia; all oppose stricter drug-monitoring standards. Yet performance-enhancing drugs push thousand-pound animals to compete past their physical limits while masking pain, inflammation and other warning signs that precede catastrophic breakdowns. Indeed, the number of race horse deaths in the United States far exceeds that of other racing jurisdictions around the world.

The public must demand more transparency and accountability from the racing industry.

– Joanna Grossman, Ph.D., equine program manager and senior advisor for the Animal Welfare Institute in Washington, D.C.

I am writing as a lifelong fan of horse racing. I fell in love with the sport when I was six years old when I saw my first Kentucky Derby on TV. Even on our old black and white set in 1969, Majestic Prince was a magnificent creature. I was in first grade and just learning to read, but I begged my dad to buy me Turf and Sport Digest every month because of the wonderful color photos on each month's cover.

Love affairs with champions like Secretariat, Ruffian, Forego, Slew o' Gold, Seattle Slew, Affirmed, Easy Goer, Personal Ensign, My Flag, and Elate have intensified my love of the horses and the history of this lovely sport.

I then began writing on a freelance basis–in The Blood-Horse, Thoroughbred Times, SPUR, the Thoroughbred Heritage website, and chapters for the book Great Thoroughbred Sires of the World (2006).

This love for these wonderful creatures has made me livid at the antics of Bob Baffert. In my opinion, he should not be called the “face of Thoroughbred racing” as some racing pundits call him, but he should be called the “blight on Thoroughbred racing.”

When racing went through such scrutiny because of the tragic fatalities at Santa Anita, the disqualification of Maximum Security in the 2019 Kentucky Derby, it did not need the litany of drug violations and outrageous excuses from the sport's highest-profile trainer.

Leaving aside Justify's scopolamine positive test debacle, the fact remains this man has had nearly 30 reported medication violations in his career. It is outrageous, and the fact Baffert has had only slaps on the wrist, is disgusting.

Let's take the excuses. Gamine and Charlatan were being handled by an assistant using a pain patch and the horses were “contaminated” that way. Merneith tested positive for dextromethorphan and his excuse was beyond belief. He had workers who had had COVID and were taking cough medicine and she had to have been contaminated from that.

And now this? We go from we never gave Medina Spirit any medication to self-pitying why is this happening to me, to it's part of the “cancel culture” movement, to “I'm a Hall of Fame trainer and people are jealous and resentful of me,” to, oh yeah, we gave the horse the medicine for a skin rash and we were not aware what was in it.

If I were an owner and had a horse I had paid a million dollars for, it and had it in his care, I would want to know what medication that horse was being given and why. I would be very leery of a man who gives meds without supposedly knowing what is in it. I would be leery of a man who supposedly has a groom so disgusting as to pee on hay and feed it to the horses. I would be leery of a man who promised to do better on national TV and then failed to follow through.

And I would be leery of a man who does not have the character to admit that the buck stops with him and that everything that goes on in his stable is his responsibility and his alone.

In short, I would remove my horse from that man's care, which I hope owners do, as Spendthrift Farm has done.

Baffert thinks he is so famous that he is above the rules and regulations of the sport, and sadly, the powers that be have reinforced that by only giving him minor penalties. Churchill Downs may have banned him – for now – but it is a given he will be back at the Derby next year.

We need the Horseracing Safety and Integrity Act implemented immediately. Baffert can complain all he wants about what he feels is the absurd testing of picograms of medications. But these rules were put in place for the safety of the horses and the integrity of the sport. If Bob Baffert thinks this is ridiculous, then he has no respect for the integrity of the sport and he should find another line of work – perhaps used car salesman.

Racing is not just about wins and losses and betting. It's about people like me who love the animal and the beauty of them and the history of the great ones of the past and present. Racing is a glorious sport and does not deserve to be sullied by people who care only about winning at all costs and not the equine athletes in their charge.

– Elizabeth Martiniak, racing fan

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Wagering Insecurity: Thoroughbred Idea Foundation Issues Recommendations

This is Part 11 of the Thoroughbred Idea Foundation's (TIF) series “Wagering Insecurity.”

Faced with remarkable competitive pressure from the rise of legal sports betting, horse racing is at a crossroads.

Confidence amongst horseplayers and horse owners is essential to the future sustainability of the sport. Efforts to improve the greater North American Thoroughbred industry will fall flat if its stakeholders fail to secure a foundation of integrity, along with increased transparency of the wagering business and its participants over time. Achieving this is growing increasingly difficult after the sport has neglected its core base – horseplayers – for decades.

“Wagering Insecurity” details some of that neglect, and the need to embrace serious reform. Fortunately, there are examples across the racing world to follow.

PART 11 – RECOMMENDATIONS

North American racing has been here before…and failed.

In the aftermath of the Breeders' Cup Fix Six in 2002, the opportunity to improve customer confidence was within the industry's grasp. Nothing materialized.

As this series has outlined, the challenges in 2021 and beyond are different. Should we meet the challenge and make wagering and racing integrity the lodestar of American racing, all well-intentioned stakeholders will benefit.

The establishment of the Horseracing Integrity & Safety Authority (HISA) presents an extraordinary opportunity to blaze a new path for the industry, presenting a sport where all participants can be far more confident in its outcomes than they are now.

RECOMMENDATION 1: HISA MUST LEAD ON MATTERS PERTAINING TO WAGERING OVERSIGHT

Most involved in the American racing industry correctly believe HISA will involve track safety and anti-doping control programs. Those views are correct.

But HISA's role should be more than just establishing such important programs.

According to Section 1205 (a) (2) of the final legislation passed and signed into law, HISA shall “…exercise independent and exclusive national authority over the safety, welfare, and integrity of covered horses, covered persons, and covered horseraces…”

The mechanism of federal authority to permit HISA's creation IS wagering on horse racing:

“The term 'covered horserace' means any horserace involving covered horses that has a substantial relation to interstate commerce, including any Thoroughbred horserace that is subject of interstate off-track or advance deposit wagers…the term 'interstate off-track wager' has the meaning given such term in section 3 of the Interstate Horseracing Act of 1978.”

HISA has been endowed with the power to raise standards and protect wagering customers. This new authority should become a horseplayer's best friend while bolstering the confidence of all stakeholders.

HISA will operate under the aegis of the Federal Trade Commission (FTC) whose mission is:

“Protecting consumers and competition by preventing anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education without unduly burdening legitimate business activity.”

HISA will provide the mechanism to improve the policing of racing. Monitoring wagering can be a big step towards that. HISA has the power to lift the standards of racing in America and protect its wagering customers.

It should do so.

RECOMMENDATION 2: ADOPT MODERN, TRANSPARENT BEST PRACTICES ACROSS THE SPORT

One key observation is necessary before highlighting four modern, transparent best practices below, all of which should be adopted in North American racing: these are not the only measures to add, but should be a starting point.

It will take a long time for North American standards to be lifted to join the ranks of the rest of the developed racing world. That's OK.

These efforts cannot bring us from a hypothetical “0 to 100” overnight. Start slow, build capabilities, engage stakeholders and show progress.

Customer confidence is good for business.

A) ALL TESTING RESULTS SHOULD BE PUBLICIZED AND MODERN METHODS EMBRACED

Doping control and wagering integrity go hand-in-hand. The insight of Professor Jack Anderson, cited earlier in this series, is clear:

“Doping in a sport such as racing is often intertwined with gambling interests.”

Every pre-race, post-race or out-of-competition sample should be reported publicly, soon after it is processed. The results should be reported regardless of the finding – most will be negative.

Positive findings should be identified publicly as soon as possible after results are received and the connections receive notice, followed by an explanation of steps going forward with relevant updates provided. An initial report should include the substance(s) involved, particularly if it involves a legitimate medication.

This is standard practice in many other racing jurisdictions and benefits all participants. The appendix at the end of this installment includes a re-publishing of the entirety of the press releases from the Hong Kong Jockey Club stewards on the case, from a winner at Happy Valley in June 2017. Here is a link to the first public release of news on the finding.

The absence of confirmed details from the Kentucky Horse Racing Commission about Kentucky Derby winner Medina Spirit's positive post-race test and the failure to explain clearly the steps in the process after a positive test exemplifies the weakness of the current system, not just in Kentucky, but every jurisdiction in North America.

USADA

The United States Anti-Doping Agency (USADA) will replace the current “patchwork quilt” of state-by-state approaches as the enforcement agent of the HISA anti-doping program.

USADA's Chief Executive Officer Travis Tygart, in a February 2021 interview with the Thoroughbred Daily News, assessed the woeful state of racing's overall testing uniformity, and lack of transparency.

“I really started looking at the policies around anti-doping and medication control within the [racing] industry and they were just completely antiquated…they were years behind what the human world, as well as the equine and Thoroughbred horse racing industries around the world had done as far as uniform policies.

“Other places don't have 38 different racing jurisdictions run by the states, with frequently conflicted people that have an interest in the outcome without transparency, without good quality testing, without laboratory accreditation that is uniform. It actually reminded me of, and I drew the comparison to, what the Olympic world looked like prior to us coming into existence.

“So, having a uniform policy, where you can have confidence that when a horse runs in California, it's going to be running under the same rules and allowances and free of drugs as in Kentucky and in New York too, is going to be a game changer I think, right out of the gate.”

USADA publishes a history of athlete tests to provide full transparency, to the public and also fellow competitors. Its website explains the approach:

“By publishing our Athlete Testing History, any athlete or member of the public can see how many tests USADA has conducted for specific U.S. athletes, and in different sports, over the course of a specific time period. Instead of wondering if their competitors or role models are being tested, people can track testing data and see how USADA is working to uphold clean sport.”

The USADA portal is searchable by year, quarter, sport and name, showing the total tests administered, while maintaining a separate ledger of all sanctioned athletes with full details of the investigations.

The greater use of active investigations to supplement testing will boost confidence. Adopting intelligence-based investigations would do the same.

TIF pondered the possibilities just days after the indictments of Jason Servis and Jorge Navarro were revealed.

This discussion was front and center a month prior to that at the 2020 Asian Racing Conference when Brett Clothier, Head of the Athletics Integrity Unit, outlined that organization's efforts in world track and field, where algorithms are used to “analyze unusual performance trajectories or spikes in performance…to enable better targeting of athletes” for testing.

Clothier added:

“It's very hard to catch determined, well-resourced cheats with testing processes that are essentially random.”

Adopting modern methods, combined with transparency which has become standard in other areas of human athletics and a growing number of racing jurisdictions, will bring American racing forward, building confidence.

B) DETAILED STEWARDS' REPORTS SHOULD BE MANDATED

The world offers many compelling models of stewards' reports to emulate, as we outlined in our August 2019 paper. Stewards' reports in most North American jurisdictions fall far short of what is needed and many don't bother at all.

The goal of such reporting is simple – instill confidence in racing's participants, especially horseplayers.

When bettors are left bewildered by rides or horse performances, and no explanations are ever provided by those whose job it is to oversee the races – the stewards – confidence is shattered, conspiracy theories run amok and the business is tainted by unaddressed conjecture.

One incident from a race at Gulfstream Park on March 27, 2021 drew thousands of views from frustrated horseplayers in search of an explanation that was not forthcoming. The incident was highlighted later on a national broadcast when the horse returned in its next start too, though without any formal explanations from officials.

Stewards should review races from a central location, close to ground-level, with easy, face-to-face access to jockeys and trainers (or their representatives, assistants, etc), to enable direct questioning before and after races regarding any number of incidents, publishing easy-to-find post-race reports to explain findings for the day.

A Spanish-language interpreter should be used to facilitate the process when needed.

While many stewards around the world view races from an elevated position, they return to a more accessible location and nearly all meet face-to-face to question jockeys and trainers throughout the race day. Findings are published at the end of the day.

These reports should include key details provided to the stewards from regulatory veterinarians. Observations of bleeding, lameness, thrown shoes, reasons for scratches and voided claims must be published. Strange or unexplainable performances should get attention from the stewards and be shared with the public.

American racing cannot jump to the future and join the rest of the world with Lasix-free racing without the adoption of other key global standards of reporting which are commonplace.

It may be hay, oats and water before a race, but after a race, the public must be made aware of key observations from regulatory veterinarians whose roles are crucial for both equine welfare AND protection of the wagering public.

This level of transparency is standard in other major racing jurisdictions. North America should be no different. Anyone suggesting otherwise should be asked why.

Examples below, one from the British Horseracing Authority and one from the National Horseracing Authority of Southern Africa (South Africa) reflect the reports published from separate races in 2021, with details from regulatory veterinary officials.

Lingfield Park – Great Britain – March 6, 2021

20210306 - BHA Post-Race Report from Lingfield Park.PNG

Greyville Racecourse – South Africa – May 5, 2021 – Race 4

BREEZY GUST

A race at Pimlico on last week's Preakness undercard highlights the failings of the present system.

Breezy Gust was the 5-1 third choice in that day's Grade 3 Maryland Sprint Stakes, his first start in graded stakes company.

Claimed for $25,000 in October 2020, Breezy Gust had about three months off before returning for new trainer Daniel Velazquez to win three consecutive races by a combined 18.25 lengths with a monumental improvement in his Beyer Speed Figures and practically every other measure used to assess performance.

The gelding has a propensity to lead his races early, or at least be forwardly placed. Those tactics were executed in each of his four starts for Velazquez, whose horses were winning at a 24% clip in 2021 to that point.

Breezy Gust was judged the best turned out for his race last Saturday. That would be the only recognition he received. The chart comment from the Maryland Sprint Stakes notes the following.

“BREEZY GUST, pinched back leaving the starting gate, was pulled up near the half mile pole and walked off.”

A view of various replays of the race showed a slight brush at the start, but Breezy Gust was seemingly uninterested in running – the exact opposite of what he has shown in recent races, exhibiting no early speed.

No official record of the state veterinarian's findings, or an explanation provided to the stewards by the jockey, were provided to the public after the race.

Other jurisdictions do it differently.

Just a few hours after Breezy Gust's unexplained performance, Golden Mission was sent postward as the 2-1 favorite in the first race at Sha Tin in Hong Kong. Under leading jockey Joao Moreira, the gelding was under pressure early in the race and faded substantially to finish 11^th of 12, beaten nearly 15 lengths.

The stewards sought to inform the public about the performance. The post-race report included just about everything a horseplayer, or any other interested party, might want to know about Golden Mission's disappointing run.

“Despite being ridden along for some distance in the early stages, GOLDEN MISSION (J Moreira) was slow to muster speed and travelled wide and without cover until approaching the 600 Metres and in the Straight gave ground.

“After the race, J Moreira stated that GOLDEN MISSION did not travel strongly at any stage of the race and felt “flat”. A veterinary inspection of GOLDEN MISSION immediately following the race including an endoscopic examination showed a substantial amount of blood in the horse's trachea.

“The performance of GOLDEN MISSION, favourite for today's race and which finished towards the rear of the field, was considered unacceptable. Before being allowed to race again, GOLDEN MISSION will be required to perform to the satisfaction of the Stewards in a barrier trial and be subjected to an official veterinary examination.

A post-race sample was also collected from Golden Mission. Findings will be reported to the public when available, likely to be by the next race day on Wednesday, May 19.

North American jurisdictions may never rise to the level of Great Britain, South Africa or Hong Kong. But they need to try. “Pulled up and walked off” does not cut it.

C) INTEGRITY PLATFORMS AND BET MONITORING CAPABILITIES SHOULD BE CREATED.

The Asian Racing Federation's Council on Anti-Illegal Betting and Related Financial Crime (ARFCAIB) identifies several “good practices” in monitoring betting, all of which should be adopted.

“Critical components of a dedicated betting integrity team are a structured approach and a specialized central monitoring team, made up of experienced industry professionals who proactively assess and analyze betting information. These teams should comprise personnel with specialist skills such as form experts, race readers and statisticians, all with extensive betting knowledge and expertise and an understanding of the intelligence process.

“Direct communication between the sport and the betting industry supports the flow of relevant information to the analysts. In-house betting expertise strengthens the productivity of these relationships and avoids the misinterpretation of betting information. Regular communication between analysts and betting operators strengthens trust and understanding, which increases the flow of information to the sport.

“Betting experts may be required to provide expert witness statements forming part of the evidence in sports disciplinary hearings (i.e. against a jockey charged with corruption offenses). The betting analysis can make up a key part of the evidence in sports disciplinary hearings and therefore expert evidence is often required to explain findings.”

As outlined in Part 10 of this series, an awareness of the grey and illegal markets where betting occurs is also needed. Worldwide wagering on your races requires worldwide awareness of the threats racing faces.

Fixed odds betting on U.S. racing for domestic customers, should it occur, will introduce a different mix of betting businesses to the sport. Commercial bookmakers need to uncover betting malfeasance. There is no benefit to burying it.

In December 2020, Australian firm The BetMakers purchased the global tote business of Sportech, one of three tote companies providing services for North American racing. The BetMakers already provides integrity services for Racing Victoria, the regulators of racing in that Australian state, through their Racing Victoria Integrity Platform (RVIP).

RVIP is in use across Victoria's more than 500 annual race meetings, monitoring betting and serving as a portal for centralized reports for use by racing integrity officials.

According to this press release in 2019, RVIP capabilities include:

– Real-time tracking of data, such as price movements and associated betting patterns,

– A host engine that ingests ratings and performance indicators created by the racing authority and BetMakers, and matches these with actual performances,

– An alerts system to flag inconsistencies,

– Database and library functionality that stores and recalls any integrity comments associated with individual horses, trainers, jockeys, owners and wagering movements,

– Video analysis and management portal for tracking past performances, and

– Links to betting patterns and comments for recording and recall capabilities.

North American racing needs this kind of platform.

As a new service provider in the American space, The BetMakers may have a significant role to play. Their first foray into American racing has been in partnership with Monmouth Park to bring fixed odds betting on racing to New Jersey customers.

D) INTEGRITY IMPROVEMENTS FROM OTHER PROFESSIONAL SPORTS SHOULD BE ADAPTED TO RACING

Professional sports leagues, including the National Basketball Association (NBA) and National Football League (NFL) have been expanding their public interactions regarding officiating of games in a world where legal wagering is driving additional revenue streams. Leagues provide access to game officials for media members, publish head-office reviews of in-game incidents and their officiating, and have even admitted mistakes in past rules applications. The use of replay to adjust key officiating decisions, yielding more correct outcomes, has greatly increased.

In March, the National Hockey League (NHL) fired a long-time referee after a microphone caught him admitting he felt the need to, essentially, fabricate a penalty on one team. The Athletic's Sean Gentille called on the NHL to adopt a more transparent approach to officiating like the NBA.

“If they want an example, they can look at the NBA. Shielding refs – coddling refs, in fact – only creates space for conspiracy theories. Which, as we've learned, are sometimes true. Come up with an NHL version of the [NBA's final] two-minute report. Make officials explain themselves when the situation calls for it. Hold them accountable in a real, public way. If you're trying to fix anything, say so. Virtually every other big-time sport does this…

“The elephant in the room…is gambling.”

Some professional leagues, pro teams, collegiate conferences, universities, regulators, betting operators and technology providers are working with private integrity assurance firms, like U.S. Integrity, to provide services to monitor everything from betting markets to social media and irregular officiating.

As for American racing? Well, no, but it isn't because groups like U.S. Integrity weren't trying.

The growing firm met with one major American racing operator in 2017. U.S. Integrity's Chief Executive Officer Matthew Holt shared the experience with TIF.

“They told us better integrity does not help us bring in more customers and their main focus right now is on growing the customer base. There was no desire to connect pari-mutuel systems to any sort of integrity provider.”

Holt made it clear if the racing industry has interest, U.S. Integrity remains available.

In Australia, sports and racing actually work together in developing a modern approach to bet monitoring.

In 2018, Racing Victoria and the Australian Football League (AFL) formed a joint venture – Sports Wagering Integrity Monitoring Ltd (SWIM) – to introduce transaction-level bet monitoring platforms across the sporting landscape. The launch of SWIM was a response to the Wood Review, a nationwide study (a full copy can be reviewed here) of Australia's sports integrity arrangements commissioned by then Prime Minister Malcolm Turnbull.

The goal, of course, is to ensure a level playing field, both during the game or race for participants and in the betting markets on such events, maintaining confidence of all internal (teams, coaches, players, owners, management) and external (bettors and fans) stakeholders.

STEWART'S RULE

No group of well-intentioned racing stakeholders should be against any of the recommendations offered above. HISA provides an opportunity to accomplish far more than what has been done with a woefully-inadequate state-by-state approach. Racing in America in the 2020s has a regulatory structure more akin to the sport as it was in the 1970s.

That has to change and HISA enables such change.

Change, of course, frightens many long-time racing participants. There will be increased costs, new procedures and added scrutiny. Communication will be key.

It is easy to fret over how much transparency is enough, but North American racing desperately needs it while upgrading our provision of racing oversight in every facet. A delicate balance is required to satisfy integrity assurance and boost public confidence while not jeopardizing ongoing investigations or revealing specific trade practices.

As former U.S. Supreme Court Justice Potter Stewart famously expressed in a 1964 opinion related to a case about obscene material: “I know it when I see it.”

What exists in North American racing at present is not only not “it,” but is far from the standards of transparency that are needed to operate a professional sport to meet the expectations of modern betting customers in 2021. The recommendations offered in this series would yield substantial, desperately needed changes to the operation of American racing, but they are hardly ground-breaking – almost all of them are in place in major international racing jurisdictions.

With practical examples from abroad for the North American racing industry to follow, change may be within a more reasonable reach than many might realize.

NOTE

On March 15, 2021, the National Horsemen's Benevolent and Protective Association and 11 of its smaller state affiliates sued members of the nominating committee of HISA and the Commissioners of the Federal Trade Commission (FTC) in an attempt to stop HISA's launch.

On April 26, 2021, the states of Oklahoma and West Virginia, their racing commissions, three Oklahoma racetracks, United States Trotting Association and others, filed a separate suit.

The outcomes of both suits are pending.

Coming Thursday, May 20: Part 12 – Pravda

Miss a previous installment? Click on the links to read more.

Part 1 – Expectations

Part 2 – Intertwined

Part 3 – Volponi

Part 4 – Confidence

Part 5 – Bingo

Part 6 – Proof

Part 7 – Z

Part 8 – Damage

Part 9 – Alerts

Part 10 – Grey

Want to share your insights with TIF? Email us here.

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