Networking Investigators School At Rillito

Rillito Park, the famed Quarter Horse track loaded with history and lore in Tucson, Arizona became a classroom Monday afternoon, as investigators from around the United States and five foreign countries ran through a series of 'stations' meant to test their detective acumen.

With record attendance at 100, the Organization of Racing Investigators (ORI) annual three-day event brings together security personnel who protect horses and the people associated with them.

Equine investigators, like other branches of law enforcement, have an evolving set of best practices. That is where the Rillito training can help advance their own tradecraft. As founding member Don Ahrens of Sam Houston Race Park put it, “It's simple, we are here to catch the bad guys because you never know when they'll show.”

ORI began as a fellowship in the early 1990s where members could share ideas and call upon one another for help when they needed assistance. Developing into a full-blown organization, its 27th training conference continues to be about networking, but attendees also have the opportunity to hear presentations from specialists across the industry. Monday morning, a wide variety of topics were offered that ranged from how cartel money is building bush tracks in places where you would least expect it to how to efficiently identify medications dispersed by veterinarians who are attending to horses along shedrows.

In the afternoon, Ahrens and his fellow board members led the teaching exercises at Rillito by planting fake evidence, like syringes, electronic shockers and other related illegal paraphernalia in the Jockey's room, around a trailer in the barn area and inside a pair of vehicles in the Rillito parking lot. A fourth location involved a practicum covering how to shakedown a rider just before they enter the gate in order to look for devices, like those electric buzzers, that could be used to hurt horses and give the jockey an advantage in the race.

In what was her first ORI Meeting, Kassie Creed, a Safety and Compliance Associate who works under Dr. Stuart Brown in Equine Safety at Keeneland said, “I am an extra set of eyes as we continually bridge security and safety every day at Keeneland, so knowing what to look for, especially in the unlikely places is great training for me.” Members of her group were given an SUV to search by seasoned investigators and ORI board members Jason Klouser of the Pennsylvania State Horse Racing Commission and Mike Kilpack with Breeders' Cup. Creed discovered a syringe that was made to look like an air freshener in one of the vents.

“What we are trying to illustrate are real-world situations that many of us have experienced time and time again,” said Klouser. “Best practices are only cutting edge if they work under extreme duress and that is why these searches help investigators develop their senses.”

Those 'senses' must be honed, especially when it comes to the backside of a racetrack, which as a world unto itself is a place seldom seen or understood by the public. There is a constant shifting of personnel during a meet, so investigators must know their territory. Tracking and tracing bad behavior comes with the job, and sometimes even the most minute tips can help.

Since COVID, ORI has expanded its membership, especially when it comes to international participation. Investigators stateside are realizing that if a problem exists somewhere else, chances are that it might not be far off.

John Burgess, the Head of Integrity for the British Horseracing Authority (BHA) is in Tucson for that exact reason. “We have challenges that are very similar and when we impart what we know to the Americans and then it is reciprocated, we are getting out in front. In other words, threats here are going to become threats there-it's inevitable.” In Europe, there is not an organization like ORI that ties all horse racing investigative units together. “I am thinking that we need to start one because ORI has such an incredible network,” said Burgess.

Working as the Head of Security and Investigations at the Irish Horseracing Regulatory Board, Chris Gordon, who also serves as the international representative for ORI said, “We are seeing today how practical applications directly relate to issues of integrity, and that is what this organization is all about. People are always excited to come because the energy, like it is today, is something we will be directly using in our own stable yards and horse boxes.”

Back at the Rillito mock vehicle search station, Kassie Creed discovered two more planted pieces of evidence in the SUV. “I'm on a roll,” she said with a big smile. Afterwards, Klouser took the group through a debriefing session by explaining techniques and showing the group other hidden compartments.

With attendance climbing, the future looks bright for the Organization of Racing Investigators, who plan to meet next year at Parx Racing in Bensalem, PA. They are expecting an even larger contingent in the coming years, which could include Asian and South American participation.

In the meantime, once the conference wraps up its sessions on Tuesday afternoon, it will be time to pack up those heightened senses from the experience in Tucson and head home. These investigators know that if they need help there is a network behind them, which is probably the best practice of all.

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McIngvale To Help Defray Costs of StrideSAFE Technology at Rillito

'StrideSAFE' Horse Safety will be instituted as part of the track's Equine Wellness Program during the 2023 racing season, and prominent Thoroughbred owner James McIngvale has pledged to cover two-thirds of the costs for the testing of Thoroughbreds.

StrideSAFE is 'a biometric sensor mechanism that slips into the saddle cloth to detect minute changes in a horses's gait at high speed.' The changes are said to be undetectable to the naked eye and are recorded in a stoplight fashion–green for all clear, varying shades of amber as warnings for possible lameness issues and red for the most potentially serious injuries.

In a study conducted by the New York Racing Association of 6,600 starters in 2022, it was reported that the StrideSAFE technology accurately detected 90% of all the catastrophic injuries. The Rillito study aims to identify horses the Track Regulatory Veterinarians should examine before they run.

The testing of 1,000 Thoroughbreds and American Quarter Horses during the meet is estimated to cost $45,000. Though the technology has only been applies to Thoroughbreds thus far, Quarter Horses will be included at Rillito. Following the research, American Quarter Horse tracks could employ the StrideSAFE sensors across the country.

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Multiple Moving Parts in Monarch, AZ Simulcasting Morass

For over two years, the simulcasting signal from 1/ST-operated racetracks, along with several others around the country, has been missing in Arizona–the residual fall-out from a long-simmering dispute between the owners of Arizona Downs and the arm of The Stronach Group (TSG) tasked with distributing the company's signal.

In both California and Arizona, stakeholders argue that this simulcasting blackout has hit both the bettors and the industry–by how much appears open to debate.

A recent analysis by the Arizona Horseman's Benevolent & Protective Association (AZHBPA) of the projected lost revenue to California purses between 2020 and 2021 pinned the number at more than $1,1 million, and another nearly $900,000 in lost track commissions.

The estimated loss to Turf Paradise alone between the years 2021 and 2022 amounts to more than $1 million, said Vince Francia, general manager of Turf Paradise. For Arizona Downs, however, the impact has been “negligible,” say track operators.

Scott Daruty, president of TSG's Monarch Content Management, also downplays the impact of the hamstrung signal to Monarch's bottom-line, saying that the resulting lost fees is only a fraction of Monarch's total business. He also disputes the AZHBPA's projected losses to the California purse account.

Monarch's umbrella extends over several California tracks–including Santa Anita Park, Del Mar, Golden Gate Fields and Sonoma County Fair–as well as Turf Paradise, Lone Star Park, Gulfstream Park, Laurel Park, Pimlico, Rosecroft Raceway, Monmouth Park, and Meadowlands.

Against the backdrop of this ongoing dispute, there are indications that 1/ST is eyeing potential inroads into the Arizona marketplace.

Within recent months, representatives of 1/ST have visited Turf Paradise with the intention of possibly purchasing the facility, said Francia. AZHBPA executive director, Leroy Gessman, said that 1/ST recently did the same at Arizona Downs.

According to two sources familiar with the situation, 1/ST has made a thus far unsuccessful bid to purchase Arizona Downs.

Daruty declined to comment whether 1/ST has indeed made any formal bid to purchase Arizona Downs but called the Arizona marketplace “one that appears to have potential.”

 

 “At that point, you're negotiating with a terrorist, right?”

The genesis of this rather convoluted simulcasting dispute goes back years.

In summary, when Arizona Downs reopened for live racing in 2019, Monarch sent its signal to the track itself but not to the track's network of Off-Track Betting parlors (OTB), and at a higher rate than its Arizonan neighbor, Turf Paradise.

In contrast, Monarch distributed its signal to Turf Paradise and its network of some 60 OTB's.

When asked about the contracting disparities between both Arizonan tracks, Daruty said at the time that Arizona Downs had been “consistently delinquent in its payments to our racetracks.”

In an effort to resolve industry stakeholder disgruntlement, the state passed in 2019 a law requiring all simulcast providers that send their races into Arizona to offer the products uniformly among all tracks and all their OTBs.

The following January, the Arizona Racing Commission passed a motion requiring the three racetracks in the state–Turf Paradise, Arizona Downs and Rillito Park–to comply with that law.

The commission also sent a letter to Monarch to “stop sending any simulcast signals to Arizona permittees racetracks and/or their additional wagering facilities.”

To all intents and purposes and despite various legal maneuverings in the interim, that state of affairs has remained, and Monarch has not beamed its signal into Arizona since.

At the start of Santa Anita's most recent winter meet, Monarch approached the operators of Arizona Downs with an offer of all Monarch content to the entire Arizona marketplace, including to Arizona Downs' network of OTBs, said Daruty.

According to Daruty, the operators of Arizona Downs made several unilateral modifications to the contract which were unacceptable. They included reducing the fees paid to Monarch tracks below the previously contracted rate between them, and a requirement for Monarch to “pre-approve” new simulcast locations without the ability to conduct legal and regulatory due diligence, said Daruty.

“At that point, you're negotiating with a terrorist, right?” said Daruty, once again raising Arizona Downs' reported history of delinquent payments.

“We can't abandon our principles and abandon our reasoned business approach to distributing our signals,” Daruty added.

Detailing a back-and-forth process of negotiations, Tom Auther, an Arizona Downs owner and partner, said that Monarch initially offered Arizona Downs a contract with non co-mingled pools–what he described as an immediate non-starter–and then an offer charging the track overall as much as twice what Turf Paradise was paying.

Monarch subsequently declined Arizona Downs' counter-offer, which was to pay Monarch 20% more in fees than Turf Paradise, said Auther.

“Twenty percent's still a lot of money,” Auther said. “If we paid what they want us to pay, the horsemen would not approve it because there'd be no money left–only three percent left in horse purses.”

When asked about Arizona Downs' reported history of defaults, Auther said that they had offered Monarch to escrow an adequate amount of money to offset the anticipated costs. “They refused it,” said Auther.

In an effort to understand the impact from the nixed signal into Arizona on California's horsemen, the Arizona HBPA contracted the firm Global Racing Solutions–founded and operated by Pat Cummings–to run the numbers.

According to GRS' calculations, California horsemen lost $1,115,000 in purse contributions between 2020 and 2021, and California track operators missed more than $877,000 in commissions during that same period.

To put that into perspective, California's purse total in 2021 was some $118 million.

TDN reached out to Thoroughbred Owners of California (TOC), who declined to comment.

As for Monarch, when they last ran the numbers, “the host fees that the Monarch tracks received out of the state of Arizona were less than one percent of the total host fees received by the Monarch tracks,” Daruty said. “It just doesn't move the needle for us.”

Daruty also said that the AZHBPA's projected California purse loss numbers were over-estimated, though added that Monarch hadn't run their own calculations.

And what of the potential impacts on the Arizona tracks? Again, there are mixed-signals.

Between 2021 and 2022, Turf Paradise lost an estimated $1,011,317 due to the missing Monarch signal, the estimated loss to the purse account was $944,915, and the estimated loss to the Regulatory Wagering Assessment (RWA)–a wagering tax used to fund the state racing department–was $61,139, according to Francia's calculations.

Auther, however, shared handle numbers with the TDN–taken, he said, from the state commission's website–comparing the year 2021 with 2018, when Turf Paradise received the Monarch signal.

According to Author's numbers, Turf Paradise lost in 2021 more than $8 million in overall handle compared to 2018. Turf Paradise operated in 2021 with 13 fewer OTBs than in 2018, however, and those OTBs were closed for 1038 days more than in 2018, according to Auther's calculations.

Auther also estimated that the annual hit to Arizona Downs' business without Monarch has been negligible. “It exists,” said Auther, about the loss. Horseplayers, however, have simply adjusted their betting patterns to other available options, he said, adding that the loss of the Monarch product to Arizona Downs was one of quality rather than numbers.

More broadly, Arizona HBPA president Bob Hutton broached what he sees as some of the more deeply felt impacts to the state's racing industry.

“With the state of racing the way it is, when we're trying to get fans to the sport, why is this good?” said Hutton, critical of Monarch's part in the negotiations. “This is costing horsemen all over the country money, and why? I don't get it.”

Turf Paradise, it should be noted, has been for sale since at least 2020.

According to Francia, 1/ST representatives recently toured the track with a potential eye to purchase the facility. “They have not made an offer but they have looked at the track,” he said.

According to Gessman, representatives from 1/ST have similarly toured Arizona Downs, adding that he was present at the visit.

According to two sources who wished to remain anonymous, 1/ST made the owners of Arizona Downs an offer for the facility which was subsequently declined.

Both Auther and Daruty refused to comment on any possible offer that 1/ST has made for Arizona Downs.

Though calling the Arizona marketplace one with potential, Daruty added that “I think all the infighting and frankly some of the regulatory dysfunction has just left it in a place that's not healthy.”

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Arizona Commission Meeting: ‘The Eyes Are On Us’

If there's a main takeaway from Tuesday's Arizona Racing Commission Meeting, it's an acknowledgement from officials and track management that the racing industry is monitoring Turf Paradise closely.

“We've got to do a better job at coming up with answers and coming up with solutions,” said commissioner Rory Goree, arguably the most outspoken member of the commission about Turf Paradise's poor equine safety record.

“I'm hopeful that here, in the near future, we as a commission will be able to talk about some of the solutions and ideas and make Arizona the light it needs to be, that we're making the change, doing the right thing instead of being the laughingstock that we are right now,” Goree added. “The eyes are on us.”

Repeated mention was given to racehorse Creative Plan (Creative Cause), who last raced at Turf Paradise Jan. 7, when a tailed off last of nine.

Creative Plan was recently euthanized due to irreversible damage to his suspensory ligaments and fetlock joints that had deteriorated over the course of weeks, according to an article in the Paulick Report Tuesday morning.

Between the time he last ran and his euthanasia, however, Creative Plan was sent to an Arizona horse auction, but went through unsold before being abandoned, the article found.

“With Creative Plan, there was a lot of finger-pointing going on, trying to cover our own butts,” admitted Goree.

In her latest track safety report, Sue Gale, the Arizona Department of Gaming's chief veterinarian, explained that Turf Paradise's race-day equine fatality rate was “creeping up.”

In a special commission meeting earlier this month, Gale said that the racing-related catastrophic injury rate was 2.8 fatalities per 1000 starts this season at Turf Paradise.

In her report Tuesday, Gale said that the fatality rate was now around 2.98 per 1000 starts at Turf Paradise.

According to the Jockey Club, the national fatality rate for 2020 was 1.41 per 1000 starts.

Gale said that she has included Creative Plan's death in the track's race-day fatality rate because he was injured during a race, “and then was put to sleep, or euthanized, this past week.”

However, another horse that fractured its fetlock earlier on in the meet, and who, despite efforts at rehabilitation was euthanized three months later, was not included within the track's race-day fatality numbers, Gale explained.

More broadly, official veterinarians, said Gale, have lately been scratching more horses on pre-race exams.

“It does seem that now we're about half-way through the meet, some of the horses are showing some wear and tear,” said Gale.

Nevertheless, one ongoing problem has been the lack of veterinarians “or administrative assistance” to help identify and red-flag horses at greater risk of catastrophic injury at Turf Paradise prior to pre-race exams, admitted Gale.

Gale said that, while she has been doing this task on a limited basis, “having someone on the staff that can do this on a more regular basis” would likely make a difference.

Rudy Casillas, the Department of Gaming's deputy director and racing division director, reported that he has asked Gale to start requiring the horsemen to submit updated veterinary medical records of every horse that is entered to race.

“That way, the veterinarians can review those medical reports of each horse that is entered to race and get a better sound picture of that horse's capability and physical status and medical status,” said Casillas. “That will be implemented coming forth, and, hopefully, that makes a difference.”

Another potential nexus of change is the state's claiming rules, said Goree.

“Seems like every morning I read the board and find out that there's a horse that's moved on, just wandering around on the backside, and I think it's because these horses are getting claimed so much they don't know where they live,” said Goree.

According to Goree, he has spoken with Rudy Casillas, the Department of Gaming's deputy director and racing division director, about the claiming rules.

“I know he's going to talk to the AG [attorney general] and see what we might be able to do,” said Goree.

Turf Paradise general manager, Vincent Francia, added more texture to the issue, reporting that there have been 441 claims thus far this season.

“That is a record here at Turf Paradise,” said Francia, pointing as a reason to the track's purses–now supplemented with both state and federal funds–with the average purse working out at about $19,000 per race.

“When you have a purse structure like we have, a lot of claiming is going to go on,” Francia said.

Another ongoing question mark at Turf Paradise has been the condition of the racing surface.

This week, Turf Paradise drafted in veteran track surface consultant Steve Wood to monitor the adding of organic materials and sand to the main track, Francia said.

The organic materials are put in to give the track “bounce” and to help maintain moisture levels, said Francia. The sand is to help prevent clumping of the clay-like materials, he added.

A problem seemingly as intractable as track conditions at Turf Paradise has been a shortage of official veterinarians. Indeed, at the commission meeting last October, Gale suggested putting a call out to practicing veterinarians in the area as an opportunity for them to “pick up some work.”

In an attempt to alleviate the burden, the gaming department has asked for funding for an additional veterinarian in the latest executive budget, said Arizona Department of Gaming director, Ted Vogt.

“It's been our number one funding issue for the past two fiscal years, so we're hopeful it'll get across the line this year,” said Vogt.

Earlier on in the meeting, the commissioners voted to approve Rillito Race Track's three-year racing permit application and the race-dates within that window, despite ongoing questions as to the facility's economic viability.

Casillas said that a prior financial review of the track found that it was “insolvent” with less than $1,000 in its bank account at the time.

Because of the importance of Rillito in the Southern Arizona racing calendar, however, “the department has worked tirelessly with Rillito staff to project Rillito's revenue streams, donations, purse monies, state and federal grant funds that are being provided to Rillito,” said Casillas.

That projected amount comes to roughly $900,000 plus. The department's original estimate of Rillito's costs to operate the race-meet was $1.2 million.

“Therefore, the division strongly recommends that Rillito tighten their belts, and be extremely vigilant and responsible and not expend needlessly,” said Casillas, who added that the gaming division would be monitoring their financial predicament closely.

“We want to openly inform Rillito that on an ongoing basis, the division will scrutinize their financial status, and expect that Rillito meet all their obligations, and more so, adopt generally accepted accounting principles to correct the past few years of disarray,” said Casillas.

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