Sports Betting Regulatory Association Announced, HISA Discussed at ARCI Conference

LEXINGTON, KY–The Association of Racing Commissioners International (ARCI) announced the official launch of the Sports Betting Regulators Association (SBRA) during the closing session of the group's 88th Annual Conference on Safe Horses and Honest Sport.

ARCI president and CEO Ed Martin explained that the formation of the SBRA has been in the works for several years and was organized to meet a growing need to support government agencies assigned with the responsibility of regulating sports betting within their jurisdiction. Sports betting in America continues to expand and has now been legalized in 33 states.

“With some of the sports that people are allowed to wager on, there is no transparency,” Martin explained. “The states have a responsibility to ensure that everything they allow people to wager on is on the up and up. It's a new era and it's an area that horse racing regulators have tremendous experience in. The world has changed in these past couple of years and there's a need. More and more states have gone into the business of regulating sports betting.”

The goal of the SBRA will be to ensure standards and best practices are set in place to promote integrity and transparency in the sports betting field. Martin said that the SBRA will function as an autonomous committee of the ARCI that will be open to all sports betting regulatory entities, including those that are not existing members of the ARCI. SBRA policies will emulate the rules and standards established already by the ARCI in horse and greyhound racing.

“This is an expansion of what the ARCI will work on,” Martin said. “We will not lessen what we do on the horseracing side in any way. The perception is that we're part of the racing industry, but the reality is that we serve the general public. Based on the integrity concerns that are going on in human sport, and when you look at the comparison of what is done in horse racing in regards to transparency of officials and anti-doping, it's that transparency that provides consumer protection for the public that is wagering on and supporting these sports.”

Martin said that the SBRA will conduct its first meeting on July 10 in Boston in conjunction with the National Conference of Legislatures from Gaming States.

Also during Wednesday's session of the ARCI conference, Ben Liebman, a Government Lawyer in Residence at Albany Law School, examined the pending federal court challenges to the Horseracing Integrity and Safety Act.

Liebman looked at the two court cases that have challenged HISA–the federal lawsuit filed by the state of Oklahoma in April 2021 and another lawsuit filed by the National Horsemen's Benevolent and Protective Association (NHBPA) that was dismissed in March 2022 when U.S. District Court Judge James Wesley Hendrix said that while the Court recognized that HISA pushes boundaries of public/private collaboration, the law as constructed stays within the current constitutional limitation.

Liebman said that one of the main issues regarding the case of HISA's constitutionality is the question of to what extent the Horseracing Integrity and Safety Authority is subordinate to the Federal Trade Commission (FTC).

Liebman used an example comparing HISA and the FTC to the Financial Industry Regulatory Authority (FINRA) and the U.S. Securities and Exchange Commission (SEC). FINRA, a private, self-regulatory authority that regulates 624,000 financial brokers, is overseen by the SEC. Liebman explained that before a rule created by FINRA goes into effect, the SEC must approve that rule. The SEC's ability to control and supervise FINRA makes FINRA constitutional.

“You have a very strong belief that because of how FINRA has worked, HISA's authority should have the powers that are accorded FINRA,” Liebman said. “This issue becomes a matter of if the Authority controls racing regulation or if it is controlled by and subordinate to the Federal Trade Commission.”

Liebman added that while the FTC can review and approve rules set forth by HISA and can suggest modifications, it cannot promulgate rules itself and has no power over authority members and their terms. This prompts the question of if the FTC has sufficient authority over HISA. In the NHBPA case, Judge Hendrix said that based on how the law is currently written, HISA is subordinate to the FTC because only the FTC can approve its rules and because the adjudicative process does satisfy due process.

Another question that could come forward in the current court cases concerns anti-commandeering, meaning that Congress cannot take over a state's governing apparatus and force it to do its bid. Liebman said the court must determine if HISA would cause states to lose their ability to fund their racing integrity programs and if it would strip law enforcement agencies into federal service via mandatory cooperation. Liebman admitted that this issue alone will likely not lead to a total invalidation of HISA and its power.

Liebman listed several changes that could be made to HISA to help it defend its constitutionality including ending the mandatory cooperation clause, giving the FTC power over Authority member terms and the ability to remove members, giving the FTC greater authority over rules or even the ability to promulgate rules itself, and making all or nearly all Authority members unaffiliated with the racing industry.

“Even if the higher courts change the concepts of delegation and public control of private regulatory power, it's hard to envision that most of HISA cannot be salvaged because it is so much like FINRA,” he said. “It is unimaginable that a court ruling would take a wrecking ball to the current system of financial regulation in the country. Maybe the Authority doesn't always win and maybe it won't get what it wants, but it is likely that it will get what it needs.”

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Body & Soul: Hey Sport, How Ya Doin’?

Your correspondent distinctly remembers interviewing a youngish financial guru over lunch at The Palm Court at the Plaza Hotel on Central Park West. It was in 1977, and it was shortly after Seattle Slew won the Triple Crown, something one doesn't forget.

What sticks in our mind, however, was not the interview. Rather he went on a rave about “Slew” after our chat uncovered a mutual obsession with the sport. We tossed out that he might be judged a “freak” by blue-blooded observers, upon which my tablemate provocatively opined that, “No, he's not a freak, he's a 'sport.'”

That caused an eyebrow to arch. We'd come across the term in biology class in college and while subsequently covering a wide variety of sports as a journalist and statistician. However, in 2021 we found this definition in the Macmillan Dictionary: “A sport is a plant or animal that is different in a noticeable way from other plants or animals of the same type.” Not exactly “part of the in-crowd,” maybe a bit of an outlier.

Rather than get into a spat over semantics, our opinion was exactly the opposite: Seattle Slew was what you might imagine would be the result if you bred his fifth dam Myrtlewood to his great grandsire Bold Ruler–he was a replica and thereby the culmination in the perfection of a physical type. He was “part of the in-crowd,” so to speak. But he was no “sport.”

This all comes to mind because of our continual research into how Thoroughbred functionality as expressed in biomechanics and pedigree research can be combined to produce insights into how the breed has evolved and, perhaps, what we can look forward to in the future. In this respect we adhere to the underlying theses set forth by Dr. Franco Varola, by virtue of the titles of his two books: The Typology of the Racehorse (1974) and The Functional Development of the Thoroughbred (1979).

Varola's development of the Dosage system has been misinterpreted by many as a pedigree tool first and foremost. In fact, he developed the system based on how the offspring of stallions performed, what types they produced, how those types functioned, how they influenced the breed typologically–i.e., biomechanically. Along the way the functionality accrued to the pedigrees, but to date there has really been no detailed research into how the two arts (or, scientific arts) have interacted–or could.

We have no issue with pedigree research or utilizing a Dosage system as a basis or supplement to insight. But what sparked our interest of late is that in going through our biomechanical database, we discovered that in the past 30 years there has been one epochal and three additional extraordinary stallions which when they retired to stud were not considered in any biomechanical or pedigree sense “part of the crowd.” They were considered somewhat like outliers. They are their own crowd phenotypically.

A bit of background here: It is axiomatic that a species has a best chance of survival if the breeding population develops leaders whose physical properties adapt to and survive challenges to their environments–ergo, the strong survive. In Thoroughbreds, one wants a balance of power for speed, stride or extension for flexibility, and body weight that neither runs out of gas sprinting (too heavy) or going long (too light).

Phenotype charts tend to place the most consistent breeders close to the center of a target–the more balanced the phenotype, the more likely it will pass on quality.

Our research has shown this to be extremely consistent–indeed, leading sires were usually very well balanced physically and were usually by excellent stallions and had historically successful family trees. Crucially, however, they were of certain types with one or two biomechanical properties that produced runners who could compete at the top levels within the demands of racing programs and market preferences at the time.

For example, the racing programs through the end of the 1970s were geared toward prepping horses for the Classics and handicap races. One of the key properties that was consistent in stallions in those days was that the combination of gears through the hip, or rump if you will, were almost always of the same lengths.

The congruency of these body parts equals balance and strength. If one of them is longer, the function provided by that part of the gears would more than likely help define the racing aptitude of the horse. Up until the 1980s, the only one of those gears that was most often longer than the others was the tibia–whose function was to provide strong, steady closing power–which was what owners of Classic and handicap horses prized.

Beginning in the 1980s and increasingly with the blending of successful European racehorses into North America we saw something more often associated with horses that excelled on the turf–the tibia was shorter than the ilium and femur. This functionality is the biomechanical explanation behind the word “kick.” The shorter the tibia, the more quickly the horse was likely to move late, more likely on the turf at any distance. The longer the ilium, the more pronounced a horse's downhill motion could be generated. The longer the femur, the stronger the thrust toward flexible speed.

Rarely, if ever, had we seen a major commercial sire prospect enter the stud with either the ilium or femur longer or shorter than the tibia–and, more importantly, few of them ever appeared among the leading sires. However, the demands of the marketplace caused breeders to alter their selection processes and, even if they were unaware of biomechanical implications, what happened is that half of the leading lifetime sires of 2020 had “mixed” rear triangles. However, they are almost all completely different from each other phenotypically and most of them are backed by extremely commercial pedigrees.

Then two in 2005 and another in 2012 with completely different pedigrees showed up with rear triangles that were completely different than what we were used to–and they were almost identical to each other phenotypically. Even more remarkable was the fact that they are virtually identical phenotypically to the qualities a previous “sport” brought to the breeding shed in the 1980s. His name was Storm Cat: his rear triangles were evenly balanced but, wow, did they deliver.

Remarkably, none of them look like you would have expected based on their sires or their broodmare sires. None comes from a distaff family that until they came along could have wedged close relatives into select portions of yearling or mixed sales. Functionally as racehorses they were brilliant miler-middle distance types–brilliance accentuated by one or more rear triangle lengths being longer or shorter than the tibia.

Does Medaglia d'Oro remind you of El Prado (Ire) or his broodmare sire Bailjumper?

Does Candy Ride (Arg) remind you of his rangy paternal grandsire Cryptoclearance or his blocky broodmare sire Candy Stripes?

Does Uncle Mo remind you of Indian Charlie or Arch?

Each is his own man, and each reproduces a replica often enough so that he has become an influencer.

Looks like they are making “sports history.”

   Bob Fierro is a partner with Jay Kilgore and Frank Mitchell in DataTrack International, biomechanical consultants and developers of BreezeFigs. He can be reached at bbfq@earthlink.net.

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