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Three Lingering NY Drug Positives as Testing Transfers to HISA

On the day that Thoroughbred drug testing nationwide got transferred to the control of the Horse Racing Integrity and Safety Act (HISA) Authority, Robert Williams, the executive director for the New York State Gaming Commission (NYSGC), disclosed during that board's monthly meeting that three outstanding Thoroughbred drug positives remain unadjudicated by the commission and are still lingering at various stages in the regulatory process.

That disclosure is not only timely because of the HISA Authority's May 22 implementation of the Anti-Doping and Medication Control program. Monday's news of the three additional unadjudicated tests was important because those unresolved cases were made public nearly two weeks after a brouhaha erupted about 2-year-old champion Forte (Violence) having failed a post-win NYSGC drug test at Saratoga Race Course on Sept. 5, 2022.

The finding of meloxicam, a non-steroidal anti-inflammatory drug, in Forte's system wasn't the entirety of that controversy. A more concerning aspect of the issue was that Forte's positive was kept from the public for more than nine months, and wasn't revealed until May 9, 2023, when the New York Times first broke the story, citing as sources “two people who are familiar with the matter but are not authorized to speak about it.”

On May 11, the NYSGC formally announced Forte's disqualification from the Hopeful while imposing fine of $1,000 and 10-day suspension upon trainer Todd Pletcher. Those penalties have been appealed, and both the NYSGC and Pletcher's legal team have bickered back and forth, with each side publicly blaming the other for causing extended delays in the process that involved split sample testing and the scheduling of a stewards' hearing.

Williams described the three other currently unadjudicated drug tests as being in the pipeline “at either qualified, accredited, independent laboratories or awaiting determination through a meeting of the stewards.”

Commissioner John Crotty asked Williams, “Do you have a timeline on resolving them?”

Williams was quick to answer: “I don't know the specifics of any of those cases,” he said.

Crotty responded, “Okay…” before NYSGC chairman Brian O'Dwyer interjected.

“I suspect, Mr. Crotty, given the situation, that we will be very, very diligent in terms of making sure that those things are adjudicated much more promptly,” said O'Dwyer, ending that discussion.

Williams noted that the outstanding Thoroughbred drug positives were current through May 19, but that the NYSGC will retain control over any sampling taken through May 21.

The commission will also maintain its testing obligation in harness racing, “as HISA has yet to address that industry,” Williams said. He added that there are two outstanding Standardbred drug tests awaiting adjudication.

Williams said that the Forte controversy has sparked NYSGC changes to the way it will handle any adjudications that remain under the board's control.

“Changes to the split sample procedure have been instituted to reduce the ability of an affected party to game the system,” Williams said.

“Absent extraordinary circumstances, from now on a trainer advised of a positive drug violation will be afforded no more than two weeks to identify and make arrangements for the split sample to be tested,” Williams said.

“Additionally, upon notification of the split sample result being returned, the stewards' meeting must be conducted within three weeks. If a trainer cannot appear within three weeks' time, they will be deemed to have constructively waived their appearance before the stewards, and the matter will proceed,” Williams said.

After Williams finished giving his report, O'Dwyer said that he wanted to express “my thanks and the thanks of the commission members for setting the record straight in regards to the Pletcher matter.”

O'Dwyer continued: “I think it's very important that, and was quite unfortunate, some of the reporting that came out, [and] the board and commission and our staff needs to be commended for the way that they handled it. I understand there were some time differences. But they did everything they could to give Mr. Pletcher considerable due process, and I'm glad that [Williams] was able to correct the record in that regard.”

Pletcher's attorney, Karen Murphy, had given a contrasting synopsis of the delay to TDN back on May 11.

“One point I want to address up front is that the gaming commission has stated now two or three times that we somehow delayed the process,” Murphy said at that time. “That's a little bit shocking to me because it's false. I don't like government regulators to make false statements. [From] day one, we were on this. This delay is wholly on the gaming commission. It's because they weren't prepared to proceed with the case in a professional, orderly manner.”

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NY Times: Forte Failed Drug Test After Hopeful

The New York Times is reporting that Forte (Violence), the Kentucky Derby favorite who was scratched on the morning of the race with a bruised right front hoof, failed a drug test after his win in last September's Hopeful Stakes at Saratoga.

Forte won the Hopeful by three lengths over a muddy track at odds of 6-1.

In a story published Tuesday just after 7 p.m., the Times writes, “Shortly after leaving the winner's circle, however, Forte was given a post-race drug test, which he failed but has yet to be adjudicated before New York regulators, according to two people who are familiar with the matter but are not authorized to speak about it. The positive test was for a substance used to relieve pain and reduce inflammation, according to those two people.”

The Times story does not say what that substance was.

The story, written by Joe Drape, quotes an unnamed spokesperson from the New York Gaming Commission as saying, “This matter likely would have been adjudicated months ago but for the repeated procedural delays sought by the trainer's counsel.”

The trainer's counsel, according to Drape, is lawyer Karen Murphy, who did not issue a comment to The Times.

The story says that, “After several delays, New York racing officials are scheduled on Wednesday to hear from Forte's trainer, the Hall of Famer Todd Pletcher, about the failed drug test from September, according to the two people.”

A spokesman for the New York Gaming Commission confirmed the accuracy of Drape's story. “We see no inaccuracies in the story as published,” said Brad Maione, Director of Communications of the NYSGC, in response to a request for comment from the TDN.

Texts and phone calls to owner Mike Repole, trainer Todd Pletcher, and Murphy were not immediately returned.

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The Week in Review: Rick Dutrow Has Served His Time

Monday marks an important date for trainer Rick Dutrow and his fight to get back into the sport. It was exactly 10 years ago that he started a horse named Colossal Gift (Songandaprayer) in a claiming race at Aqueduct. Then he was forced to disappear, the result of the New York State Racing and Wagering Board revoking his license for a 10-year period, which has now expired.

The regulators acted after Dutrow, always a controversial figure, had a horse he trained, Fastus Cactus (Cactus Ridge), test positive for butorphanol in his system after winning the third race at Aqueduct on Nov. 20, 2010. Around the same time, Dutrow's barn was searched and investigators claimed to have found in a desk drawer three syringes filled with a muscle relaxer, xylazine.

“New York's racing industry has no place or patience for Mr. Dutrow,” Racing and Wagering Board Chairman John Sabini said in a statement announcing that Dutrow's license had been revoked.

Dutrow's lawyers were able to delay the matter in the courts for more than two years, but eventually ran out of legal options.

Had Dutrow merely been suspended, he would be back this week. But the process has been complicated by the fact that he had his license revoked. That means he has to start from scratch and re-apply for a trainer's license. Dutrow's attorney Karen Murphy said the application has yet to be submitted, but will be done shortly. The Dutrow legal team has grown and now includes Chris Boehning, a high-profile attorney with the firm Paul Weiss.

Murphy believes that it's just a matter of time until Dutrow is allowed to return.

“He's going to get licensed,” he said. “I can't imagine that if somebody served their penalty and paid an extraordinary fine [$50,000] like he did that they wouldn't let him back. He has served his time, he has paid his fine and he has conducted himself in an exemplary manner while he's been away. So far as how Rick has conducted himself, there hasn't been one smudge. I don't know on what grounds they could deny him a license.”

Murphy estimated the process will take “a couple of months.”

But will it be that easy?

Racing is now regulated in the state by the New York Gaming Commission, which has made a number of controversial rulings of late that have had many scratching their heads. Dutrow is a polarizing figure and there are no doubt some important people who would rather he never train again. Even though the 10 years is up, with this commission there are no guarantees his application for a new license will be approved.

In the meantime, Dutrow, who declared bankruptcy in 2017 and has not worked since his license was taken away, will have to wait, exactly what he has been doing for 10 years. Will there be a another chapter to his training career? The answer is near.

Surick Named Names

With prosecutors having submitted a pre-sentencing report last week regarding convicted drug cheat Nick Surick some of the questions revolving around the former Standardbred trainer were answered.

Surick, who has admitted to drugging his own horses, as well as assisting Jorge Navarro in his doping program, will be sentenced Thursday. He is facing up to six years in prison but the government has signed off on a lesser sentence because Surick cooperated with prosecutors and offered to testify against others. Ultimately, the government felt that Surick's testimony could not be used against others because his credibility came into question when he told investigators that veterinarian Dr. Rebecca Linke injected a Standardbred he trained named Northern Virgin with EPO. Linke was able to prove she was not around the horse at the time he was drugged. The government has accepted the possibility that Surick was not lying and, rather, had trouble recollecting the exact circumstances of the Northern Virgin incident. Because Surick had tried to assist investigators, the U.S. Attorney's Office has stated its willingness to accept a lighter sentence than what he would have been given had he not cooperated. Surick's lawyer Timothy Donohue has asked the court to sentence his client to just 12 months of home confinement.

That's what we know. What we don't know is who else Surick implicated beyond those who were named in the March, 2020 indictments. The pre-sentencing submissions from both Surick's attorney and the governor confirmed that the former trainer turned over information on individuals whose names have never surfaced. Those names were originally included in the pre-sentencing reports, but were redacted.

That raises many questions. Who did he name? How many people did he name? And did he finger people in the Thoroughbred industry, the Standardbred industry or both? Would the government have gone after those people had Surick not fouled up the Linke matter, bringing his credibility into question?

Unfortunately, those questions may never be answered. Beyond the more than two dozen people indicted nearly three years ago, the government has shown no appetite for continuing its investigation and going after a new set of alleged drug cheats. And even if the names were released there would be no guarantees that the government could build a case against those individuals, when the case could come down to Surick's tainted word versus the word of someone he implicated.

Surick has not been heard from, but through Donohue we have learned more about his mind-set. Why did he become a serial cheater? The answer is troubling.

“He rationalized his misdeeds with the idea that 'everyone was doing it,'” Donohue wrote.

Does any of this mean he should be given a break? That will be left up to U.S. District Court Judge Mary Kay Vyskocil, who has been unwaveringly tough on all the drug cheats that have entered her courtroom, never once showing any signs of leniency. So maybe Surick will be sentenced to a long stint in prison. Unfortunately, it looks like he will be taking his secrets with him.

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Thoro-Graph Sues NYRA Over Disputed $333K in ADW Partnership

A business partnership between performance-figure provider Thoro-Graph, Inc., and the New York Racing Association (NYRA) that had been billed as a “win-win-win” deal for the two parties and advance-deposit wagering (ADW) customers when it first launched in 2017 has gone sour, resulting in a lawsuit filed in New York State Supreme Court.

According to the civil complaint, Thoro-Graph is suing both NYRA and its NYRA Bets ADW platform over the alleged non-payment of at least $333,000 that Thoro-Graph believes is its rightful cut for incentivizing horseplayers to become NYRA Bets customers via a free, membership-based portal called Thoro-Graph Player Services (TGPS).

Thoro-Graph claimed in its complaint that its portal grew NYRA's betting handle by $100 million over a roughly five-year span, “solely through the joint venture resulting in $3 million in revenue” for NYRA.

When the alignment between the two entities was first announced in 2017, the deal was billed as giving Thoro-Graph an ADW partner, while NYRA Bets got a valuable pipeline of new customers.

Horseplayers would benefit too, a TGPS executive explained at the time of the launch, because they would get access to “concierge-level support,” volume-based wagering rebates, on-track visitation amenities and discounts on Thoro-Graph handicapping products.

But according to the lawsuit, “Defendant NYRA failed to perform its part of the bargain [by allegedly not paying] Plaintiff its full 50% share of its Net Revenue,” wrote Karen Murphy, the attorney for Thoro-Graph, in the Dec. 19, 2022, filing.

“That breach has resulted in hundreds of thousands of dollars in losses to date and has impacted the value of Plaintiff's corporation resulting in additional lost profits to Plaintiff,” the complaint stated.

The filing stated that the dispute involves how net revenues are calculated: “Plaintiff is entitled to its full 50% share of defendant NYRA's revenue that is generated from the handle wagered on NYRA races by non-New York residents and paid to defendant NYRA. In failing to do so, defendant NYRA is in material breach of its core financial obligation to pay Plaintiff its full revenue share under the terms of the joint venture.”

The complaint contended that Thoro-Graph attempted “good faith settlement efforts” to square up the purportedly mounting non-payments, including making a written demand for the money on June 13, 2022, and a meeting with NYRA representatives to discuss the issue.

“[NYRA's] response was to intimidate Plaintiff with the threat of termination of the joint venture and not to address the failure to pay Plaintiff its full 50/50 share,” the complaint stated.

NYRA then followed through with a letter Dec. 12 giving a 180-day notice of termination of the partnership. That action, in turn, led to Thoro-Graph's lawsuit one week later seeking “compensatory damages which are no less than $500,000 [and] estimated additional damages for the remainder of the term of the existing Agreement.”

The court has set a Feb. 10 date for the defendants to file a reply. TDN asked a NYRA spokesperson if the racing association or NYRA Bets wished to comment prior to that filing, and also asked how the termination of TGPS might affect horseplayers who use the portal.

“NYRA will honor the terms of confidentiality agreed to by the parties involved and reply to the court by Feb. 10. This contractual dispute does not and will not impact NYRA customers,” Patrick McKenna, NYRA's vice president for communications, wrote in an email.

The “Termination for Convenience” letter that NYRA served Thoro-Graph is scheduled to become effective June 10.

“That notice of termination has now been issued solely because Plaintiff made it clear it would proceed with legal efforts to protect its rights under the Agreements to receive its full share of compensation,” Thoro-Graph's complaint stated.

“Plaintiff performed its obligations under [the contracted terms] by maintaining its website as 'best in class' and offering free and reduced priced Thoro-Graph data which has resulted in NYRA Bets signing up over 1,700 horseplayers. This was accomplished by Plaintiff without any marketing assistance from the NYRA Parties…” the complaint stated.

“In 2017, Plaintiff grew the handle of defendant NYRA Bets by $3.1 million,” Thoro-Graph's court filing stated. “In 2018 Plaintiff's contribution was $10.7 million; in 2019 the contribution went to $15.3 million; in 2020 the contribution was $22.7; in 2021 the contribution reached $24 million; [At the time the Dec. 19 lawsuit was filed] Plaintiff's contribution [was] on track to reach $25 million making the total added handle over $100 million.”

Drilling the alleged non-payment issue down further, the complaint stated that NYRA's deduction of an “import host fee” from the net revenue calculation is a chief bone of contention.

The complaint put it this way: “To be clear, what defendant NYRA is claiming is an “import host fee” is simply money RECEIVED by NYRA Bets solely as a result of “Qualifying Wagers” by non-New York residents on NYRA CONTENT and then passed on to and RECEIVED BY DEFENDANT NYRA AS REVENUE.”

Attorney Murphy, when reached by the TDN, said, “For now, we will let the complaint speak for itself. We will have more to say after NYRA's response.”

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