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NTRA President, CEO Rooney Joins Writers’ Room Podcast

Tom Rooney, a former Congressman, a lawyer and an Army veteran, was hired to take over as the top man at the NTRA because the NTRA Board knew he could make a difference in Washington. Some two years later and with the swinging pendulum that is the Horseracing Integrity and Safety Act (HISA), Rooney has his hands full. This week, Rooney sat down with the team on the TDN Writers' Room podcast presented by Keeneland to discuss what he and his staff are doing to advocate for the sport. Rooney was the Green Group Guest of the Week.

The NTRA is pro-HISA, which means that Rooney was working behind the scenes to lobby lawmakers to back legislation in which language that covered HISA was changed so that it would satisfy issues brought up by a federal appeals court that declared that HISA was unconstitutional. Had the language not been changed, HISA very well could have been dead. Rooney said his efforts included discussions with both Mitch McConnell and Chuck Schumer. Ultimately, the NTRA and pro-HISA forces got their wish.

“[Schumer and McConnell] both recognized that it was important for our industry to have uniform standards and to have racetrack safety and accountability and integrity for us to move forward,” Rooney said. “We made it incumbent upon those two men especially that we needed this language fixed and we were able to get it done despite a pretty good opposition with regard to people that opposed HISA. So we had to work very hard to make sure that we pressed the issue again with those two men and the rest of the members that were going to vote that had problems with it. I was making phone calls days before to members of the Senate that I'm friends with explaining this to them. A lot of people just didn't know what it meant. They thought it meant more of a government overreach rather than something that would help our industry. And I think that once they understood that, they moved on to the next thing.”

Despite his success, Rooney said he was worried that his efforts would fall short.

“I was not optimistic at all,” he said. “I think I told the people on the phone call that we met with on a daily basis or a weekly basis that we probably had a 5% chance of success.”

The key now, is whether or not the new language will mean that the Fifth Circuit Court of Appeals will be satisfied when it comes to the constitutionality issues and allow HISA to proceed.

“I'm confident and that's because I think that we addressed exactly what the court's problems were,” Rooney said. “There is going to be litigation and there's going to be shots taken in other parts of the bill that don't have to do with the ruling. I don't think that those are fatal. And even if they were ruled against, I think that they could be separated without having to try again with a legislative fix, which would be even more difficult with this Congress.”

Looking to the future, Rooney said horse racing needs to join forces with sports betting websites so that their customers can bet on racing and be exposed to the sport. Currently, most on-line wagering on racing is restricted to the traditional ADW outlets like TwinSpires, TVG and XpressBet and sports bettors do not have access to racing.

“The one thing that I'm focused on which will help reach the next generation is what I can do at the federal level to try to get what's called a single wallet on the sports betting apps,” he said. “One of my biggest focuses for the sake of the gambler is to try to figure out a way to integrate horse racing, which, as you all know, was the only legal sport in our country to gamble on for the longest time. And now we're competing in certain states with all sports. FanDuel is one of my board members, and we were able to work with them to get horse racing on a FanDuel shared application. So you don't have to go off one app to get on another one…I remember my son asking me, 'Dad, who's going to win the Kentucky Derby? And then he's like, 'Why can't find it on my app?'”

Elsewhere on the podcast, which is also sponsored by Coolmore, the Kentucky Thoroughbred Association, the Pennsylvania Horse Breeders Association, XBTV and https://www.threechimneys.com/ West Point Thoroughbreds, Zoe Cadman, Randy Moss and Bill Finley discussed the GIII Sham S. and the incredible amount of depth the Bob Baffert has in the 3-year-old male division. Baffert finished one-two-three in the Sham and has three of the top seven horses in T.D. Thornton's Derby Top 12. There was also talk of the 2022 year-end statistics released by Equibase in which purses were up by 10.92 percent even though handle fell, by 0.87 percent. The group noted that, unfortunately, the growth of purses is attributable not to growth of the sport but solely to outside revenue from casino games. The podcastended on an upbeat note with a discussion of the remarkable recovery of jockey Joree Scriver after it was feared she was paralyzed in a spill at Sunland Park.

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Pari-Mutuel Bill Approved by Kentucky House Committee

Kentucky House Bill 607, which contains a provision to greatly benefit horseplayers by effectively eliminating breakage, was overwhelmingly approved Wednesday morning by a Kentucky House of Representatives committee. HB 607 also standardizes the tax rate on all pari-mutuel wagers placed in Kentucky and also makes claiming races eligible for Kentucky-bred purse subsidies. The bill must still be approved by the full House before being sent to the Senate.

Representative Adam Koenig, whose district in Northern Kentucky is near Turfway Park, is a primary sponsor of the bill, which also has the capacity to significantly increase revenue to the state General Fund while allowing horse racing to thrive.

“In a couple of years, we're looking at a $27-million increase, probably at a minimum,” Koenig told the committee, noting that's in addition to the $62 million projected to flow to the state from pari-mutuel taxes in 2022. “So the money is coming in from the industry. I think I found some creative ways generating additional money without hurting the product.”

The bill is the product of last year's legislative interim task force on pari-mutuel wagering that was chaired by Koenig and Kentucky Senate Majority Leader Damon Thayer, a long-time supporter of the Kentucky racing industry. Created following the passage of legislation that protected Historical Horse Racing (HHR) in the state, the task force was charged with identifying ways to increase state revenues without negatively impacting purses and without discouraging racetracks from investing in HHR operations and associated capital projects.

Penny Breakage A Positive Development…

A key element of HB 607 is the virtual elimination of so-called breakage, where tracks round down winning payoffs to the nearest dime based on a $1 wager. Under HB 607, tracks would be required to pay off to the nearest penny, resulting in greater amounts of money returned to horseplayers. Koenig cited the example of 2018 Triple Crown winner Justify paying $7.80 to win in the GI Kentucky Derby, a figure that would have been $7.92 with penny breakage.

“That is the bettors' money,” Koenig said. “I've been very interested since last year's HHR debate in making sure the bettors are taken care of. We took care of everyone else. Everyone is getting healthy on this except for the bettors, and this is how we're going to help the bettors. They're going to get paid to the penny rather than every 20 cents. In addition to taking care of the bettors, it will make Kentucky the place in North America to wager. If you're someone who wagers a lot of money, why would you bet anyplace else?” (Click here to watch Adam Koenig on a recent episode of the TDN Writers' Room podcast).

Also easily passing the “L&O” committee Wednesday were bills that would legalize betting on sports in Kentucky and provide funding for problem gambling.

Additionally, HB 607 calls for the taxation of pari-mutuel wagers at 1.5%, the same rate assessed for HHR gaming. The bill raises the current rate for bets placed through ADWs from 0.5%. The tax rate on simulcast wagers placed at a Kentucky track on an out-of-state race would drop from 3%. The majority of bets are now placed through ADWs, while simulcasting has shrunk considerably as horseplayers opt for the convenience of wagering online.

KTDF Supplements Expanded…

Currently, money from the Kentucky Thoroughbred Development Fund (KTDF) is restricted to non-claiming races, but HB 607 cancels that stipulation, a policy change that has been strongly advocated for by the Kentucky HBPA in an effort to raise purses for the lower-level races in which many horsemen compete.

Rep. Al Gentry, a member of the pari-mutuel wagering task force, called making claiming races eligible for KTDF supplements “very, very important and one of the big pieces of the bill.”

Given that HHR has helped Kentucky to be in a position to offer some of the highest purses in the world, and with HHR revenue expected to grow with the expansion of satellite facilities, HB 607 also stipulates that after KTDF money reaches $40 million and the Kentucky Standardbred Development Fund its $20 million in a year, the rate going to purses would decrease, with the difference channeled to the state's General fund.

“We believe in two or three years, when the Historical Horse Racing facilities are more mature, that we're looking at $20 million additional in the General Fund,” Koenig told the committee. “The increase in the ADW tax from one-half to 1 1/2% will immediately generate $4 million a year. That's the growth area, so that will continue to go up over time.”

Chair @repkoenig talking to press following successful Committee votes including pari-mutuel tax and breakage reform. pic.twitter.com/hACv8RpbrW

— Pat Cummings (@PatCummingsTIF) March 16, 2022

The bill also:

Provides funding to the equine programs at the University of Kentucky and Bluegrass Community and Technical College. The University of Louisville business school's Equine Industry Program already receives funding from pari-mutuel wagering.

Eliminates the 15-cent per person admission tax racetracks currently pay even if they don't charge admission (which is every track except Churchill Downs and Keeneland).

Requires tracks to maintain a “self-exclusion” list–where individuals such as problem gamblers can say they don't want to be allowed into a track or HHR facility for a given period of time–to be shared with the racing commission and the other tracks and HHR properties.

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United States House Passes Funding Package With Multitude Of Pro-Animal Provisions

The Humane Society Legislative Fund commends the U.S. House of Representatives for passing an appropriations package that features numerous animal protection provisions, including directives for better enforcement of laws that target horse soring and other animal cruelty, expanded shelter options for domestic violence survivors with pets, and measures to prevent horse slaughter on U.S. soil, enhance U.S. Department of Agriculture laboratories' compliance with animal welfare standards, and encourage the transition of egg farmers to cage-free operations.

Other animal welfare provisions approved include funding increases to implement a humane, long-term management regime for wild horses and burros on federal land, combat wildlife trafficking, protect endangered and threatened species, and address the dangers of live wildlife markets and zoonotic disease spillover, along with directives to reduce animal testing and to promote federal building designs and materials that reduce bird mortality from collisions.

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“These extraordinary gains are a testament to the power of the purse, and the clearest possible indication that animal protection enjoys strong support from the majority of House members,” said Sara Amundson, president of Humane Society Legislative Fund. “We'll move right into gear to press the Senate to follow suit, because these are all important measures that deserve to be enacted.”

The bill also prohibits funds from being used by the U.S. Fish and Wildlife Service to issue permits for the import of a sport-hunted trophy of an elephant or lion taken in Tanzania, Zambia or Zimbabwe – three countries where the species populations are in severe decline. Rep. Ted Lieu, D-Calif., led a letter seeking this prohibition signed by a bipartisan set of 33 representatives. An amendment to strike this important provision was defeated.

Additional amendments approved by a vote of 371 to 55 authorize the transfer of $2 million to the U.S. Fish and Wildlife Service to study the plight of the West Indian manatee in Florida and potential remedies, championed by Rep. Vern Buchanan, R-Fla., and direct the U.S. Department of Veterans Affairs to use $5 million for equine assisted therapy within the VA's Adaptive Sports Program, which was advanced by Rep. Andy Barr, R-Ky.

The measures are part of H.R. 4502, “Minibus #1”, which passed by a vote of 219 to 208. This package of seven appropriations bills funds several federal departments including Agriculture, Interior, and Health and Human Services, and contains many pro-animal provisions approved by earlier committee action, highlighted here and here.

House Agriculture Appropriations Subcommittee Chairman Sanford Bishop, D-Ga., proved a strong champion of animal provisions in his bill, many of which were requested by a bipartisan set of 204 Representatives and 43 Senators led in the House by Reps. Earl Blumenauer, D-Ore., and Christopher Smith, R-N.J. Rep. Barbara Lee, D-Calif., led a committee amendment to limit higher-speed slaughter lines.

“The way we treat animals reflects the values we hold. I'm thrilled to see so many of our bipartisan animal welfare provisions reflected in the appropriation bills moving forward in Congress,” said Rep. Earl Blumenauer, co-chair of the Congressional Animal Protection Caucus. “From supporting cage-free egg laying facilities to strengthening the humane handling requirements for poultry plants to stopping horse soring, we are taking critical steps to ensure better treatment of wild and domestic animals.”

By a vote of 217 to 212, the House also passed a separate appropriations bill, H.R. 4373, funding the State Department, U.S. Agency for International Development, and other agencies that adds tens of millions of dollars and key provisions to tackle the combined threats to human health and animal welfare worldwide from wildlife trafficking and live wildlife markets that are associated with zoonotic disease transmission. During debate on that bill, the House approved a good amendment on combatting the trafficking of endangered species, which was offered by Rep. Jackson Lee, D-Texas.

TRF’s Kimberly Weir Joins Board Of Directors For HORSEPOWER

Kimberly Weir, the Director of Major Gifts and Planned Giving for the Thoroughbred Retirement Foundation (TRF), has joined the Board of Directors of HORSEPOWER, Inc., a New-York based 501c3 organization devoted to the safety and well-being of equines through education, awareness, advocacy and allies.

A resident of Saratoga Springs, New York, Weir has been with the Thoroughbred Retirement Foundation since 2018 and prior to that served as the Deputy Executive Director of Mid-Atlantic Venture Association (MAVA) in Washington, DC. A lifelong horse lover, Weir graduated from the University of Virginia with distinction and went on to complete her M.B.A. through the Mason School of Business, at the College of Williams & Mary. Weir and her husband moved to New York to devote themselves to work within the Thoroughbred industry.

“At this stage in my career, I have dedicated my life – personally and professionally – to making a positive impact on the welfare of horses, with gratitude for all they have given me” said Weir. “As a member of the board of Horsepower Inc, I look forward to the opportunity to educate and engage a broad cross section of New Yorkers in the important legislative work required of all of us to keep them safe.”

HORSEPOWER, Inc. was established to protect equine health and welfare, raise awareness about inhumane practices, and effect change in public policy. Learn more at http://www.horsepwr.org

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