New Mexico Horsemen's Association | Horse Racing Free Tips

Judge Rules New Mexico Commission Halt Use of Purses to Pay Insurance

District Court Judge Victor S. Lopez determined in his Sept. 20 order that the New Mexico Racing Commission (NMRC) improperly required horsemen, through their purse accounts, to pay half of racetracks' insurance premiums for jockeys and exercise riders, in violation of state statute.

Since 2009, more than $9 million has been taken from purse accounts at New Mexico's five racetracks to use for the insurance premiums. In late 2020, the NMHA went to court to end the practice and to get all or a portion of the purse money returned.

“[The] reality is that the practice is being questioned now; the parties presented no authority supporting the proposition that a party somehow waives a rule-making overreach by the mere passage of time,” Judge Lopez wrote. “It is neither the Commission's nor this Court's role to decide and implement policy which would essentially allow the skimming of racing revenue for the admittedly favorable purpose of protecting jockeys and exercise riders who may sustain injuries in the course of engaging in the inherently dangerous profession of horse racing.”

Judge Lopez stayed his order until at least Mar. 18, the last day of the 2023 legislative session, “to allow the parties to consider legislative intervention, if appropriate.”

Gary C. Mitchell, general counsel for the New Mexico Horsemen's Association (NMHA), added, “The battle is over the political power of the racetracks that wish to cut down on the expenses of running a racetrack and a race meet and enjoy greater income from their casinos. The great advocate standing in their way is, and has always been, the Horsemen's Association and, hopefully, the New Mexico Legislature.”

To read the complete ruling, click here.

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New Mexico Horsemen File Ethics Complaint Against Regulators

The New Mexico Horsemen's Association (NMHA) has filed an ethics complaint against the New Mexico Racing Commission (NMRC) and the New Mexico Gaming Control Board, the latest salvo from horsemen in their fight against regulators over how purse money is to be distributed.

The complaint was filed with the New Mexico State Ethics Commission last Thursday.

The dispute goes back to at least December 2020, when the NMHA filed suit in the Second Judicial District Court in Bernalillo County to stop what it alleges was a longstanding practice by the commission of taking money that should have gone to purses and, instead, allowing tracks to use the money to pay for liability insurance for jockeys and exercise riders. The horsemen say that the transfer of purse money to racetrack expenses has cost the purse fund $8 million to date.

The NMHA also charges that the racing commission has retaliated by finding a way to cut off the revenue stream for the horsemen's group.

The NMHA says that it has been funded by voluntary contributions from member horse owners when they earn purse money. The horsemen charge that the commission voted to cut off the revenue stream, alleging that the commission decided that it was a matter of purse money being improperly funneled to the horsemen's group.

Gary Mitchell, the general counsel for the NMHA, called that “an effort to silence the state's traditional, and largest, advocate for horsemen, representing more than 4,000 Thoroughbred owners and trainers.”

“If you start doing away with the advocates that appear before the various state agencies and you exact this kind of retribution, it sets a dangerous precedent,” Mitchell said.

The ethics complaint accuses the New Mexico Racing Commission and the New Mexico Gaming Control Board of conspiring for the express purpose of undermining the horsemen's representative.

According to the NMHA, the New Mexico Gaming Control Board backed the commission, even though its own hearing officer ruled in favor of the horsemen on this matter.

According to the NMHA, in Aug. 2021, a District Court Judge ruled in favor of the horsemen and stayed the commission's action, meaning the contributions from purses to the horsemen's group should have resumed. Claiming that the commission has ignored the court order that would have allowed owners to resume making contributions, the horsemen's group is asking the courts to hold the racing commission and the gaming board in contempt of court.

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New Mexico Horsemen Frustrated As Zia Park Fails To Open For Training As Scheduled

According to a contract with the New Mexico Horsemen's Association, Zia Park in Hobbs, N.M. was to have opened for training on Wednesday, Sept. 15. Instead, horsemen were turned away from the racetrack due to the lack of a staffed ambulance on-site.

NMHA President Roy Manfredi told the Paulick Report that the horsemen's attorney contacted Zia Park's attorney, who relayed that the county's only EMT had been pulled away by a family emergency, thus the track was unable to provide an EMT for morning training.

Racing at Zia Park is scheduled to begin on Sept. 26, but video posted on social media showing the track's backstretch appears to demonstrate a lack of preparedness for the meet. Manure is still piled up, and large weeds have taken over much of the backstretch area.

“When you see the condition of the backside, it doesn't appear they planned on running,” Manfredi said.

The contract between Zia and the NMHA dictates that trainers be allowed onto the backstretch on Sept. 9 to begin preparing their stalls, and that horses be allowed to ship in on Sept. 12 while training was to begin on Sept. 15. Now, the latest information indicates that it may not be until Saturday that the track is open for training.

In addition to the lack of an EMT, no outriders have arrived at the track to oversee safety during training hours. Both deficits are in direct violation of New Mexico Racing Commission rules.

However, the racing commission and the horsemen's association are engaged in an ongoing legal battle, with the horsemen charging the regulatory body with depriving racehorse owners and trainers of their civil rights and other violations, and thus no direct contact between the parties is allowed.

“It's my contention that this is a racing commission problem, because they're in violation of racing commission rules,” said Manfredi. “We have had our attorney send a letter to the racing commission's attorney, asking them to step in, and we're waiting to hear back.”

Another issue brought forward by Zia Park, according to Manfredi, is the rise of COVID-19 cases in New Mexico. Governor Michelle Grisham is expected to announce new mandates on Thursday, Sept. 16, and Manfredi said the NMHA will issue directives to its members to follow those mandates.

If Zia Park continues to fail to meet the directives stipulated in its contract with the horsemen, the NMHA has the option to pull the simulcast signal from the track.

“We're not there yet,” Manfredi said.

Images showing the backstretch of Zia Park on Wednesday, Sept. 15

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New Mexico Horsemen’s Association Holding ‘Racing Summit’ July 24 At Ruidoso Downs

The New Mexico Horsemen's Association is holding a racing summit at Ruidoso Downs with industry stakeholders on Saturday, July 24, at the racetrack chapel from 9:30-11:30 a.m. MT. All interested parties, including horseplayers and racing fans, are welcome to attend. A question and answer period will be conducted after the presentations.

A variety of speakers have been scheduled, including opening remarks on “The Importance of Horseracing to the New Mexico Economy” from state Rep. Candy Spence Ezzell. Gary C. Mitchell, P.C., attorney for the horsemen's association, will give a legal update, and a history of the NMHA will be reviewed by NMHA president Roy Manfredi and NMHA board member Larry Strain (both horse owners).

Benevolent functions of the NMHA will be outlined by Terri Montoya, NMHA administrative assistant. Montoya will also discuss “purse funds vs. owner funds” with trainer Lynette Baldwin, a horse trainer and NMHA member.

For any question, contact NMHA executive director Richard Erhard at nmhastate1@aol.com.

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