Tag: The Biz

The Federal Trade Commission (FTC) on Friday approved the rules and accreditation standards that comprise the Horseracing Integrity and Safety Authority's (HISA) Racetrack Safety Program, marking a major milestone in HISA's mission to protect the wellbeing of equine and human athletes along with the integrity of the sport. With the FTC's approval, HISA will now move forward with robust industry education efforts ahead of the program's July 1, 2022, implementation date.

“The Racetrack Safety Program's multi-faceted approach will enable veterinarians, horsemen and all racing participants to optimize the safety of every horse before they set foot on the track while also increasing our understanding of the conditions that contribute to equine injuries,” said HISA CEO Lisa Lazarus. “The importance of this program cannot be overstated as we build on advances the industry has already made by implementing national, uniform rules and regulations, increasing accountability, and using data- and research-driven solutions to enhance the safety of our horses and jockeys.  We sincerely believe that this data will generate the information we need to help prolong equine and jockey careers.”

In drafting the rules, the Racetrack Safety Committee examined existing rules and best practices in addition to seeking input from state racing commissions, racing participants and other experts and industry organizations in a comprehensive stakeholder engagement process. The interested public had further opportunities to provide input on the draft rules via the HISA website and during the FTC's public comment period.  Highlights of the Racetrack Safety Program include:

• Expanded veterinary oversight;
• Surface maintenance and measurement standards;
• Enhanced reporting requirements;
• Collection and analysis of medication, treatment, injury, and fatality data;
• A voided claim rule;
• The transfer of claimed horses' medical information; and
• Jockey concussion and medical care reporting.

Starting on July 1, all tracks that are accredited with the National Thoroughbred Racing Association (NTRA) will receive interim accreditation, while tracks that are not accredited with the NTRA will be granted a one-year provisional accreditation and be given a reasonable period to achieve compliance as long as they are demonstrating continuous progress. HISA intends to work with individual racetracks and state racing jurisdictions, recognizing that compliance with new legal requirements on day one is not realistic.

“We are gratified that after a rigorous process, the FTC has overwhelmingly approved the Racetrack Safety regulations and national accreditation standards. The next step in the process will be for HISA to share cost assessments with each of the states by April 1, 2022,” explained Dr. Susan Stover, Chair of the Racetrack Safety Committee. “These new rules will decrease fatalities by detecting horses with mild pre-existing conditions through expanded veterinary oversight and the review of medication and treatment records and training histories. They will also provide a window into understanding and preventing the development of mild injuries in the first place via uniform surface maintenance standards and ongoing data analysis.”

The post Federal Trade Commission Approves HISA Racetrack Safety Rules, Accreditation Standards appeared first on Horse Racing News | Paulick Report.

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Michigan's horse racing industry generated more than $8.1 million in tax revenue for its equine development fund in 2021, but there isn't much to do with that windfall.

Only one pari-mutuel racetrack remains in the Great Lakes State: Standardbred venue Northville Downs, which runs a fairly limited meet. Michigan hasn't had a Thoroughbred track since Detroit-area Hazel Park was abruptly closed and sold shortly before ship-in day for the 2018 season.

Both breeds have seen multiple venues shuttered across the state over the past 25 years, as surrounding states outpaced Michigan with expanded gaming at racetracks. On the breeding side, the Michigan-bred foal crop of 2020 consisted of just 13 horses.

Though momentum has not been on the side of the state's racing industry for decades, a set of bills currently working through the state legislature aims to reverse that trend, potentially granting racetracks the ability to expand gaming, and allowing a greater range for simulcast wagering.

Senate Bills 396, 397, 398, and 399, each aiming to expand and regulate gaming tied to racing, were overwhelmingly approved in the State Senate in November 2021. They currently sit in the House Committee on Regulatory Reform, where they have remained since Nov. 2.

Bills 396 and 398, which are tie-barred together, would introduce historical horse racing at licensed racetracks and permit licensed casinos to conduct on-site simulcast wagering. SB 397 would permit video lottery terminals at the state's racetracks, while SB 399 amends sentencing guidelines to the state's existing Lottery Act for manipulating the outcomes of VLTs.

Hanging in the balance is the future of Sports Creek Raceway, a shuttered harness track near Flint that was purchased in 2018 by AmRace & Sports LLC with plans to return Thoroughbred racing to the state – but only if a form of expanded gaming was approved. Minor construction has occurred on the property since the purchase, but the state's remaining horsemen realize how close the window for a comeback is to closing.

“This is our last chance,” said breeder Steve Prain, a Michigan Thoroughbred Owners and Breeders Association board member. “If this doesn't happen, I just don't think there's any more chances. I just don't feel the inertia that we had in the past when we were running and had racetracks, and didn't want to lose them. I think a lot of people have found new homes, and they're somewhat content.”

All four bills were co-sponsored by Sen. Curtis Hertel, a Democrat representing the Lansing area. The two sets of bills – the pair for HHR and the pair for VLTs – might lead to a similar destination if passed, but Hertel said it was important to offer options in order to get to said destination.

“I'm somewhat agnostic on the path,” he said. “I just want a tool that's available. I firmly believe that in order to have horse racing in Michigan, we need at least two healthy tracks. I don't think there are many states where one works. I try to remind people that horse racing creates more jobs through every dollar bet than any other form of gaming.”

Michigan is among the country's most prolific gambling destinations, with 24 tribal casinos, three non-tribal casinos in Detroit, and one harness track. However, horse racing has been uniquely handcuffed from expansion due to a 2004 ballot initiative that required tracks to pass both local and statewide votes to implement casino gaming. The proposal also exempted the tribal and Detroit casinos from those restrictions, allowing them to expand freely without a vote.

In 2013, then-Gov. Rick Snyder pocket vetoed an HHR bill on the grounds that it could not overrule the ballot measure requiring the two votes. In 2019, another HHR bill passed the Senate, but didn't make it out of the House after current Gov. Gretchen Whitmer implied she wouldn't sign it into law, PlayMichigan.com reports.

So, what makes this time different?

Rep. Julie Alexander, a Republican representing the Jackson area, said a lot has changed since 2019.

Advance deposit wagering was signed into law by Whitmer in December 2019, service became available in June 2020, and Michigan horseplayers wagered $35.8 million in its first partial year in operation. Sports betting and online casino gaming, operated through the state's casinos, opened for business in January 2021 and handled nearly $5 billion.

The $8.1 million in tax revenue put into Michigan's Agriculture Equine Development Fund in 2021, money used to promote and regulate horse racing among other equine industries, was allocated largely from those new sources, up from $2 million in 2020.

Additionally, a pilot program was launched to introduce VLTs in the state's “Millionaire Party” charitable gaming program, which did not face legal challenges or ballot initiatives.

“We now have, through legislation that was passed last term, internet gaming, sports gaming,” Alexander said. “We have so many different additional pieces that are now at the will of the legislation and Governor to put in place. Now, it's time to do the same for the horse racing industry. For what the casinos received in the last package, now is the time to give equal and fair opportunity to another industry.”

Alexander said the bills would likely have the votes to make it through the State House, and conversations have been promising with the governor's office, should it reach her desk.

For that to happen, the bills will need to advance out of the House Committee on Regulatory Reform, which PlayMichigan.Com reports declined to advance them following a December hearing.

The committee is chaired by Rep. Roger Hauck, a Republican representing the Mount Pleasant area which is home to the Soaring Eagle Casino, Michigan's largest tribal gaming center, operated by the Saginaw Chippewa Indian Tribe. The tribe has been a longtime opponent of horse racing's expansion in the state, and Tribal Chief Tim Davis spoke out against the bills in December.

Despite a recent bipartisan, bicameral push to advance the bills, little has changed since that hearing.

“We heard testimony on this package of bills in early December, but have no plans to move it quickly because Rep. Hauck feels the legislation needs more work,” said Alex Porrett, Hauck's legislative director.

It's a clear and present setback, but Hertel remained hopeful that an agreement could be reached to get the bills out of committee and beyond.

“This is a complicated time in Michigan, where we still haven't spent a lot of [American Rescue Plan Act of 2021] dollars, and budgets are still being negotiated,” he said. “There haven't been a lot of policy bills that have gone through this session. I think last year was one of the most unproductive years in Michigan history. I wouldn't take the slowness of it being anything other than conversations happening, but just a little slow. I think we're heading in the right direction at this point.”

The post ‘This Is Our Last Chance’: Package Of Bills Aims To Revive Michigan’s Thoroughbred Industry appeared first on Horse Racing News | Paulick Report.

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Equibase, North American racing's official database, has released its February statistics for the industry's economic indicators, including field size, wagering, and other data, along with 2019 and 2020 comparables. The 2019 data is included as a  pre-COVID-19 comparison.

Equibase is continuing to provide monthly reporting of its Economic Indicators Advisories as a service to the industry and in consideration of the economic changes resulting from the COVID-19 pandemic. The Advisory is typically disseminated on a quarterly basis to provide key metrics used to measure racing's performance throughout the year.

Total wagering on U.S. races rose 8.4 percent in February this year, compared to the same month in 2021, topping $911 million. However, the average wagering per race day dipped significantly, by 7.6 percent.

A simple explanation is that there are simply more races occurring this year than last: 2,159 this February as compared to 1,928 in the same month last year. With the corresponding decrease in average field size, down 1.8 percent, it makes sense that while total wagering is up due to the increased number of races on offer, the slightly lower field size and only mild increase in available wagering dollars equates to the dip in average wagering per race day.

As compared to February of 2020 and of 2019, prior to COVID's shutdowns of racetracks and OTBs, average wagering per race day has shown increases in 2022, by 16.4 percent and by 18.6 percent, respectively. Along the same vein, total wagering showed an increase of 1.1 percent from February of 2020 to the same month of 2022, and an increase of 13.3 percent from February of 2019 to February of 2022.

February 2022 vs. February 2021
Indicator	February 2022	February 2021	% Change
Wagering on U.S. Races*	$911,115,787	$840,562,361	+8.39%
U.S. Purses	$75,817,377	$62,100,791	+22.09%
U.S. Race Days	257	219	+17.35%
U.S. Races	2,159	1,928	+11.98%
U.S. Starts	16,364	14,880	+9.97%
Average Field Size	7.58	7.72	-1.79%
Average Wagering Per Race Day	$3,545,198	$3,838,184	-7.63%
Average Purses Per Race Day	$295,009	$283,565	+4.04%

2020 Comparison:

February 2022 vs. February 2020
Indicator	February 2022	February 2020	% Change
Wagering on U.S. Races*	$911,115,787	$901,272,610	+1.09%
U.S. Purses	$75,817,377	$77,336,485	-1.96%
U.S. Race Days	257	296	-13.18%
U.S. Races	2,159	2,477	-12.84%
U.S. Starts	16,364	19,362	-15.48%
Average Field Size	7.58	7.82	-3.04%
Average Wagering Per Race Day	$3,545,198	$3,044,840	+16.43%
Average Purses Per Race Day	$295,009	$261,272	+12.91%

2019 Comparison:

February 2022 vs. February 2019
Indicator	February	February 2019	% Change
Wagering on U.S. Races*	$911,115,787	$804,192,002	+13.30%
U.S. Purses	$75,817,377	$69,055,700	+9.79%
U.S. Race Days	257	269	-4.46%
U.S. Races	2,159	2,334	-7.50%
U.S. Starts	16,364	18,266	-10.41%
Average Field Size	7.58	7.83	-3.15%
Average Wagering Per Race Day	$3,545,198	$2,989,561	+18.59%
Average Purses Per Race Day	$295,009	$256,713	+14.92%

* Includes worldwide commingled wagering on U.S. races.

The post Economic Indicators: February Handle Jumps 8.4 Percent, Average Wagering Declines appeared first on Horse Racing News | Paulick Report.

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At a special meeting called on March 4, the Kentucky Horse Racing Commission voted to uphold a decision by KHRC executive director Marc Guilfoil not to grant a stay of trainer Bob Baffert's 90-day suspension for a betamethasone positive after last year's Kentucky Derby.

Ten commissioners — Frank Jones, Jr., Dr. Naveed Chowhan, Michael Dudgeon, Jim Gates, Jr., Greg Harbut, Douglas Hendrickson, Kenneth Jackson, Bill Landes, Mark Simendinger, and James Worley — voted not to grant the stay.

Three commissioners — Kerry Cauthen, Lesley Howard, and Charles O'Connor — abstained due to an actual or perceived conflict of interest.

One commissioner, Dr. Tom Riddle, did not have his vote registered by voice on the teleconference.

No commissioners voted to grant the stay.

It is now likely that Baffert will appeal the commission's decision to Franklin County Circuit Court, where it will be heard by Judge Thomas Wingate. Wingate held a hearing earlier this week in which he determined Baffert needed to take up Guilfoil's denial of the stay with the full commission before Wingate could legally rule on it in court. Wingate will hear arguments from both sides about the stay on March 17, and said he expected to issue a decision on March 21.

The commission voted after spending roughly 30 minutes in executive session, which was closed to the public. Attorneys for the respective sides were given ten minutes to present arguments, and were limited by a timer which appeared on screen for participants in the teleconference. Those arguments were made during the public portion of the meeting. Clark Brewster, who is part of Bob Baffert's legal team, presented his argument first and ultimately had his mic cut off when time expired.

Brewster said that a 90-day suspension would require Baffert to disband his stable of 88 horses, jeopardizing his 70 employees, dealing the operation “a virtual death blow.” Much of his arguments, however, focused on the question of whether Baffert could persevere in his attempts to appeal the ruling itself. Brewster reiterated his well-publicized argument that the presence of betamethasone in Medina Spirit came from a topical and not an injectable and as such, did not warrant a suspension.

He also raised questions about the process stewards used to make their ruling last week, disqualifying the horse, suspending Baffert, and fining him $7,500. Brewster pointed out that there were no 'findings of fact' attached to the ruling and as such, he doesn't know what evidence the stewards considered among the information presented to them.

Other recent rulings on the KHRC website do not include a section titled 'Findings of Fact.'

Jennifer Wolsing, counsel for the KHRC, made reference to Baffert's recent history of drug violations. Medina Spirit's overage was the fourth for the trainer in a 365-day period, following one in Kentucky for the same substance after Gamine's runner-up effort in the Kentucky Oaks. She also pointed to Baffert's public declarations at the end of 2020 that he would more closely oversee operations in his barn and welcome more veterinary input on how to clean up his protocols to prevent overages.

After he was notified about a pending positive for Medina Spirit, Wolsing said that “Mr. Baffert did not take responsibility, but instead began to hold press conferences advancing conspiracy theories, stating there was an unnamed problem in racing but it was not Bob Baffert, and shifting his story as to the source of the positive. The effect of this was to diminish trust in an entire industry — racing, breeding, and sales.”

Wolsing said that the commission is not required to grant a stay of suspension, but is allowed to when they find a “good cause” to do so.

She also disputed Brewster's assertion that the source of betamethasone would exempt this positive from punishment. The KHRC believes its regulations are clear that no level of betamethasone is permitted in a horse's body post-race, regardless of source — and that a topically-absorbed medication does, by design, enter a horse's body.

“Maybe this betamethasone did come from Otomax, and maybe it didn't,” she said. “When you look at our regulations, that doesn't make a difference. When you look at the science, it doesn't make a difference, either.”

Watch the full proceedings below.

The post Kentucky Commission Votes Not To Give Baffert A Stay appeared first on Horse Racing News | Paulick Report.

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