New Jersey Racing Commission | Horse Racing Free Tips

Audit Reveals $272K in Uncollected Commission Fines

A state audit of the New Jersey Racing Commission (NJRC) that sampled the records of 100 individuals listed as never having paid their fines for racing infractions has revealed that at least $272,000 remains uncollected, with 76% of that money being outstanding for penalties that were imposed by the NJRC as long as two decades ago.

The Office of the State Auditor, which probed various aspects of the commission for the period between July 2016 through March 2020, also stated that the commission-produced equine fatality reports “are not always complete and the timeliness of the submission of reports cannot be determined.”

Although the audit stated that the commissions finances were generally properly processed and recorded in the state's accounting systems, there were concerns over some missing cash receipts for certain licensing and fingerprinting transactions at the commission's offices at Monmouth Park, Meadowlands Racetrack, and Freehold Raceway.

John Brennan of njonlinegambling.com first reported on the audit, a copy of which can be accessed here.

“We judgmentally selected 100 of 138 licensed individuals with outstanding fines over 90 days from the NJRC List of Fines Not Collected report for the period March 13, 2000 through August 30, 2019,” the audit stated. “The individuals listed in the report did not pay their fines within the required 48 hours. We reviewed the NJRC system to verify if these individuals were suspended and placed on the security guide and noted the commission did not suspend the licenses of 18 individuals.

“In addition, for the same sample of 100 individuals, we noted 91 rulings with fines totaling $272,000 are still outstanding, of which 69 rulings totaling $215,725 range from 10 to 19 years old. If an agency is unable to collect debt within 90 days, the account should be transferred to the Department of Treasury, Division of Revenue and Enterprise Services for further collection efforts….The lack of the commission's enforcement of controls with regards to suspensions increases the risk that suspended individuals could participate in horse racing activities.”

The NJRC was allowed to attach a written response to the state audit. The commission disputed some of the audit's findings on the unpaid fines and lack of suspensions.

“We have reviewed the 18 licensees in question and found that only one licensee received a license to race in New Jersey after failing to pay a fine,” the NJRC stated. “That license was issued in 2009, and has not been renewed since then. All of the licensees who are neither deceased nor out of business, have been placed on the NJRC Security Guide. Individuals placed on the Security Guide do not obtain licensure for as long as their fines remain unpaid.

“It is important to note that the NJRC has a backup procedure in place intended to ensure that persons who do not pay fines do not race. When an individual with an outstanding fine comes in to be licensed, even if they are not on the Security Guide, the billing screen will show the outstanding, unpaid balance in red. The NJRC licensing inspectors are trained to refuse to issue a license until the fine is paid.”

With regard to the equine fatality reporting, the audit cited a lack of required tattoo numbers for some deceased horses and the omission of other required identifying information as mistakes that needed to be corrected moving forward.

“We reviewed the equine fatality reports from calendar year 2014 through calendar year 2018 to determine if the reports were complete,” the audit stated. “Eighteen of the 111 reports (16%) reviewed were submitted without the tattoo number. Thirty-four of the 111 reports (31%) were submitted with inadequate information regarding the carcass removal. Six of the 111 reports (5%) were missing the necessary signature of either the trainer, custodian, or veterinarian. Eight of the 111 reports (7%) were submitted without the owner or trainer's name being listed.

“In addition, we could not determine the timeliness of the submission of any of the reports to the commission because the reports were not date-stamped when received,” the audit summed up.

The NJRC responded that it has already proposed a series of amendments to the New Jersey Administrative Code that would improve the fatality reporting. Those amendments were proposed back in December 2019, the NJRC stated. But the commission's response didn't address why it's taken nearly 1 ½ years to get those better reporting guidelines on the books.

The NJRC is supposed to consist of nine members appointed by the governor, but there continue to be five vacancies on the commission in the governor's fourth year in office.

The commissioners are Pamela Clyne (chair), Michael Arnone, Francis Keegan, and Glen Vetrano. Judith Nason is the executive director in charge of daily operations.

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Guild’s Request to Hold off on Strict Monmouth Whip Rules Denied by NJ Commission

An attempt by The Jockeys' Guild to get the New Jersey Racing Commission (NJRC) to hold off on implementing the most restrictive anti-whipping rules in the nation until an appeal gets decided in court failed Wednesday when the NJRC voted that the Guild couldn't show that not imposing a stay would create irreparable harm or hardship to riders, horses and the public.

So when the Monmouth Park meet opens May 28, whipping a Thoroughbred will not be allowed by any New Jersey jockey or exercise rider except for the express purpose of ensuring the immediate safety of the horse or rider.

Back on Sep. 16, the NJRC voted 4-0 to implement three new rules that made the state the first in the nation to ban whipping beyond protection in an emergency situation. It was decided at the time to hold off implementing them until the start of the 2021 season.

If a jockey or exercise rider uses the riding crop in a manner contrary to the new rules, he or she will be subject to a fine, suspension, or forfeiture of the jockey's share of the purse “if, in the opinion of the stewards, the unauthorized use of the whip caused the horse to achieve a better placing.”

On Nov. 5, the Guild filed a notice of appeal in Superior Court of New Jersey, Appellate Division, based on the position that the Guild's comments and concerns were not considered during the rulemaking process. The Guild also claimed that the NJRC rushed through adopting rules that are unsafe for the horses and jockeys while creating a “dangerous precedent” that is inconsistent with any other jurisdiction in America.

“This is, indisputably, the harshest restriction in the nation. It's more restrictive than the racing crop rules in neighboring states,” said Nancy Del Pizzo, a New Jersey-based attorney representing the Guild, during the Mar. 24 NJRC teleconference meeting. “This rule is like no other rule in the nation regarding abuse of the crop.”

Del Pizzo said that implementation of the new rules could trigger a “domino effect” of economic harm based on jockeys and horse owners not wanting to race at Monmouth. She claimed that Monmouth might not even be able to fill 12-horse races because so few jockeys will be based in New Jersey this year, and that the adverse financial effects that stem from not being able to whip horses will trickle down to farms and agricultural businesses. She expressed a belief that racing might even have to shut down over the new whip rules.

Del Pizzo said that in terms being able to differentiate between a jockey's use of the whip for safety (which is allowed) or for encouraging a horse to run faster (which is not), “there's just no way the stewards will be able to comprehend these instances.”

Del Pizzo contended the NJRC voted in the new rules contrary to a state law on quorums because only four members are seated on the commission instead of the required nine. She also said that since the rules are not yet in effect, maintaining the status quo makes sense while the court appeal is pending.

Del Pizzo additionally expressed dismay that the NJRC did not allow jockeys to address the commission on this issue during Wednesday's meeting.

Steven Gleeson, a deputy attorney general who advises the NJRC, said that “The request for a stay simply hasn't shown any irreparable harm that would come about [by] having the new rules go forward this spring when racing reopens. Basically, what they've been arguing is that this rule is different from other jurisdictions. Well that's not irreparable harm.”

As for the jockeys' concerns about safety, Gleeson said, “The rules themselves directly address safety. They permit the use of riding crops when necessary for the safety of the rider or the horse.”

Gleeson also said that the Guild and riders did indeed participate in the public commentary process, and that some of their concerns did, in fact, make it into the final versions of the rules.

Gleeson said the Guild's court appeal has no likelihood of success on legal merits, and that the quorum issue is moot because common-law rule states that a majority of however many members are seated on the board is what constitutes a quorum.

Just prior to the vote, NJRC chairperson Pamela Clyne argued that the commission couldn't just roll back the rules to those that were in place previously.

“When the commission adopted the new rules we repealed the prior rules, which prohibited using the riding crop in an abusive or reckless manner,” Clyne said. “If the commission grants the stay, there will not be any rule in place to protect the horses from the use of the riding crop.”

Commissioner Glen Vetrano said he was disturbed to learn via the Guild's attorney that jockeys who had wanted to testify during the meeting were told they couldn't.

Judith Nason, the NJRC's executive director, replied that the jockeys had been excluded on the advice of the NJRC's counsel based on the determination that the Guild's attorney would be representing them at the meeting.

“We're not tying the hands of jockeys,” Vetrano said, emphasizing that safety usage is still permitted. “And I hope that [stewards] allow them to use that riding crop [for safety] when need be.”

Clyne made a motion for the NJRC to reject the request of the stay. She voted yes, to keep the rules in place, as did Vetrano and commissioner Francis Keegan, Jr.

When Nason asked commissioner Michael Arnone for his vote, he replied, “I don't understand the vote here. To deny it is a no vote?”

No one corrected Arnone or made any clarification that a yes vote was required to deny the stay. It was unclear how his vote was counted; Nason only said, “The motion carries.”

TDN asked Del Pizzo via email after the meeting to comment on the decision. She replied that the Jockeys' Guild “is unable to respond while involved in litigation.”

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New Jersey Fixed-Odds Pilot Program Cleared for 2021

Even as a separate bill to allow fixed-odds wagering on in-state horse races is making its way through the New Jersey Legislature, the state’s racing commission voted 4-0 Nov. 18 to give consent for licensees to try a fixed-odds pilot program during 2021 that would be limited to bets on out-of-state Grade I races.

The vote was unanimous but not without misgivings, as several commissioners voiced concerns prior to the vote that fixed-odds betting would cannibalize the existing pari-mutuel system and eventually erode New Jersey’s racing industry.

And one New Jersey Racing Commission (NJRC) member had to be corrected just prior to the vote because he thought the board had been discussing exchange wagering and not fixed-odds betting (It was unclear who, because commissioners often cross-talked and did not identify themselves when speaking during Wednesday’s teleconference meeting).

But the fact that the current bill, introduced Oct. 31, seems to have considerable political heft behind it appeared to be an overriding factor in the unanimous vote, as the presumed wishes of elected and appointed officials surfaced several times during the discussion.

“The pilot program would be regulated by the Division of Gaming Enforcement (DGE),” explained Judith Nason, the NJRC’s executive director. “DGE has the authority to regulate fixed-odds wagers, which [are] also known as sports wagers.

“So, the question before you today is whether the commission wants to grant its consent to fixed-odds wagers [on] Grade I stakes races of national interest that are being conducted in another state through Dec. 31, 2021, which would allow the pilot program to move forward,” Nason continued. “It would allow the attempt to gauge interest [in] fixed-odds wagers on horse racing. At the same time, there is proposed legislation that is moving forward that would broadly allow fixed-odds wagers on horse races.”

Asked by a commissioner what the benefit of the pilot program would be to New Jersey’s horse racing, Nason replied, “It would bring benefits to the sports wagering operators, and to a certain extent to, you know, that the revenue can be shared and some of it can be directed for purse money.”

Dennis Drazin, the chairman and chief executive of Darby Development LLC, which operates Monmouth Park and its sports book, weighed in with a different perspective.

“I think it’s commendable that we start with a pilot program until such time as the legislature has an opportunity [to vote on it] and the governor signs off, assuming we get to that point,” Drazin said.

“We’ve been hung up for six months on whether or not a wager on a horse race is s sports bet or a horse racing bet, because they’re handled differently. The proposed legislation says it’s a horse racing bet,” Drazin said.

“I gather that the attorney general, if I read Judy [Nason] correctly, has weighed in and feels that we should start with the pilot program for Grade I races only,” Drazin said.

Commissioner Michael Arnone expressed doubts about the long-term repercussions of fixed-odds betting prior to casting a “yes” vote in line with the other commissioners.

“I get the feeling like we’re the good monsignor getting called up to give last rites to the pari-mutuel system. I mean, I think the pari-mutuel system will lose out in the end if it has to compete,” Arnone said. “We’ll see what happens, but unfortunately, I’ve got a very negative view of it.”

Drazin said his support for trying the system is based partially on repeated complaints he hears from pari-mutuel customers about fluctuations in odds after a race goes off.

“The Australian [fixed odds] model has proven to grow their industry. And with a significantly less population in Australia than we have here, they out-handle us,” Drazin said. “I think it’s important that we look at this. Nobody knows what the future is going to be…In the early days, it will have a minimal impact [on pari-mutuels]. But five years down the road, a significant portion of the handle will be fixed odds.”

Prior to the unanimous vote, Drazin had asked the NJRC to widen to scope of the pilot program to include all graded North American stakes races, graded international races, and Monmouth’s two in-state Grade Is, the Haskell S. and United Nations S.

But Nason wouldn’t allow those modifications to the template for the pilot program, which had been handed down by the DGE. That leaves New Jersey’s bet-taking licensees with about 90 to 95 Thoroughbred races on which to offer fixed-odds wagering in 2021.

Based on Drazin’s comments, Monmouth appears set to embrace the pilot system. When asked by the commission, a Meadowlands official declined the opportunity to comment on the program.

“Lastly, I would ask you to just consider what you’re going to do if one track–and I’ll just give you an example, let’s say Churchill Downs–decides they’re going to authorize fixed odds on the [GI] Kentucky Derby, but they’re not going to give it to anybody else except to [the] Churchill [advance-deposit wagering system that] operates online in New Jersey. Do you think that that would have a negative impact on the rest of us?”

Thoroughbred Dates Approved for 2021

Also on Wednesday, the NJRC unanimously approved 2021 Thoroughbred dates at Monmouth (53 days, May 28-Sept. 26) and for a turf-only meet at the Meadowlands (nine days, Oct. 1-30).

John Heims, Monmouth’s racing secretary and director of racing, said that the track is going back to “more of a traditional” Memorial Day weekend opening like in past seasons. That calendar, he added, allows Monmouth to better dovetail with the closing meets at Oaklawn Park and Tampa Bay Downs, “so I think it actually bolsters out ability to offer a better racing product.”

In 2020, the New Jersey Thoroughbred Horsemen’s Association had approval to run 56 days at Monmouth and 19 at the Meadowlands. But the pandemic lopped off the start of the Monmouth meet and caused the cancellation of what was supposed to be the first dual-surface Thoroughbred meet at the Meadowlands since 2009. Those dates were transferred to Monmouth instead, where a total of 60 programs were run this year.

The topic of running both dirt and turf races at the Meadowlands in 2021 did not come up at Wednesday’s meeting.

Monmouth Reports $2.5 Million-plus Racing Loss

A separate section of the agenda dealt with the distribution of monies from the Casino Simulcasting Special Fund, which requires New Jersey racetracks to show evidence that their financial well-being has been negatively affected by casino simulcasting and/or that the racetrack is “financially distressed” in order to receive those funds.

During that agenda item, Nason said all three state tracks (Monmouth, Meadowlands, Freehold Raceway) met those requirements. Although a specific time frame for the financials was not mentioned, Nason read into the record that “Monmouth Park reported losses in excess of $2.5 million from racing operations while also citing the [NJTHA’s] debt obligations to the [New Jersey] Sports and Exposition Authority, which exceed $9 million through 2024.”

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Jockeys’ Guild Begins Legal Action Pertaining to New Jersey Crop Use

In light of the New Jersey Racing Commission (NJRC)’s decision and applicable new regulation to eliminate the use of the riding crop but for safety purposes in Thoroughbred racing, the Jockeys’ Guild has retained the services of Rivkin Radler LLP in Hackensack, N.J., to take legal action. A notice of appeal of the Commission’s new regulation was filed on Nov. 5, 2020, in the Superior Court of New Jersey, Appellate Division.

As the organization representing jockeys throughout the U.S., the safety of both equine and human athletes are paramount and of the upmost importance to the Jockeys’ Guild. According to the organization, the Jockeys’ Guild and its members are adamantly opposed to any animal abuse, and any person who does so should be fully punished for such occurrences. However, the jockeys must be afforded the discretion to use the riding crop in a responsible manner to safely control the horse and do what is in the best interest of the integrity of the sport.

A Steward will determine when a jockey has violated the new rule and the extent of the fine or sanction, which Jockeys’ Guild believes is unfair and subject to enhanced–not reduced–safety concerns. “We strongly believe the rule adopted by the New Jersey Racing Commission will have serious consequences and could result in even greater risks and dangers for both the horses and jockeys,” said Guild Co-Chairman, John Velazquez. “There are many instances when we need to be able to use the riding crop to prevent a dangerous situation from occurring that is not able to be seen or known by those who are not on the horse’s back. While purported to focus on the welfare of the horse, by not considering these instances, the new rule actually disregards the safety of the jockey and the horse.”

The Guild is extremely disappointed by the actions taken by the NJRC. The Guild believes its comments and concerns were not considered and that the NJRC insisted on rushing to adopt a rule that the Guild strongly believes is not only unsafe for the horse and jockey, but also a dangerous precedent and inconsistent with any other jurisdiction in the U.S.

“We believe the Commission failed to have any meaningful dialogue or recognize any input from us as the jockeys who are risking our lives,” said Guild board member and long-time New Jersey jockey Joe Bravo. “We feel that the Commission completely ignored our pleas for compromise, which is disrespectful and disheartening.”

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