The Friday Show Presented By Icon Global: Merging Sports Betting With Horse Racing

Kentucky recently became the 37th state to approve sports betting since the Supreme Court ruled in 2018 that a federal law banning such wagering was unconstitutional. While Kentuckians will have to wait until later this year or early in 2024 to place their first legal sports bet in their home state, the number of people betting on sports and the volume of wagering across the United States quickly surpassed horse racing's totals and continues to grow.

This year, for the first time, individuals in many states with sports betting or fantasy sports accounts through FanDuel will have the opportunity to wager on horse racing's biggest race, the Kentucky Derby, without having to open a separate advance deposit wagering account.

The introduction of the so-called “single wallet” promises to introduce horse racing to a new, younger generation of gamblers, states Andrew Moore, general manager of racing for the FanDuel Group.

Moore joins Ray Paulick and Joe Nevills in this week's Friday Show in a wide-ranging discussion on the latest developments on the sports betting front and how horse racing can benefit between the merger of the two types of wagering.

Moore also discusses the rebranding of TVG to FanDuel TV, pointing out that the FanDuel Group's investment in horse racing continues to expand, citing as one example more on-the-scene coverage of major races from Florida to Louisiana to Kentucky and California.

Watch this week's episode of The Friday Show below:

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Manganaro: Undemocratic Kentucky HBPA Needs Reform

Rick Hiles' strident defense of the National Horsemen's Benevolent and Protective Association's opposition to nationwide safety and drug-testing standards is misleading, off the mark, and reeks of hypocrisy.

Instead of engaging in name-calling, let's discuss the critical issues at hand – the legitimacy and questionable practices of the Kentucky Horsemen's Benevolent and Protective Association (Ky HBPA), its entrenched directors' vise-like control over board nominations, and the secretive conscription of “members” into this trade organization.

Contrary to claims that the Ky HBPA is accountable because it is “duly elected” by its members, the group is controlled by a small clique of long-serving directors and staff who have held sway for decades.

While a few younger trainers have joined the board in recent years, an aging, core group continues to hold a vise-like grip on the organization – as it has done for decades. One director has been in place nearly 40 years; its treasurer has been ensconced for 35 years; another director is in his third decade, and the president has been glued to his position over 25 years. Also, its recently retired executive director had been in place for 47 years.

These men hold sway over who can run for a board seat, creating an undemocratic system that perpetuates their control. The board appoints a “nominating committee” that, more often than not, simply re-nominates the existing directors. The resulting process can hardly be called fair elections.

There is no indication the Ky HBPA has given complete and adequate notice of meetings or elections for years. Owners and trainers, if they are lucky, might happen to stumble across a notice of a membership meeting buried in the back of an online magazine put out by the National HBPA. The group's election process is incredibly obscure.

That is intentional: The Ky HBPA doesn't want owners and trainers to know they are members of this organization. The group hides its by-laws and maintains conflicting and misleading web pages concerning membership.

The Ky HBPA is neither open nor transparent. It enforces mandatory “membership” for all licensed thoroughbred owners and trainers participating in Kentucky races – whether they want the Ky HBPA to speak for them or not.

These shady membership and election practices must end. This group long ago abandoned its “benevolent and protective” role, transforming into an opaque, unaccountable trade association with tentacles into nearly all aspects of thoroughbred racing in Kentucky.

The Ky HBPA could have used its power responsibly to bring about uniformity in testing, increased safety, and a level playing field. Instead, the board of directors blew it.

It is outrageous that the Ky HBPA collects millions in track revenues without any transparency, accountability, or public oversight of its membership and finances. The disgraceful practice of automatic membership for licensed thoroughbred owners and trainers must end.

Its monopolistic tactics have led to the false claim that it represents “the majority” of horsemen, as defined in the federal Interstate Horseracing Act of 1978. This falsehood lets the Ky HBPA wield undue influence over thoroughbred racing at Kentucky tracks. That is unacceptable.

Only after months of phone calls, letters between attorneys and the threat of legal action did the Ky HBPA agree to release a copy of its bylaws. That sort of bunker mentality is inexcusable. It indicates to me the Ky HBPA has something to hide.

Horsemen deserve better. It is time for the Ky HBPA to disclose its records and implement reforms. We must press the Ky HBPA to take, at a minimum, the following steps:

  • Cease its deceptive practice of asserting all licensed owners and trainers are automatic members. Membership should be voluntary and dependent on paying dues. The membership list should be publicly disclosed.
  • Stop representing owners and trainers who are not dues-paying
  • End the directors' control over board nominations. Allow a democratic process for board elections. Provide clear deadlines for director nominations. Conduct open, fair elections.

All horsemen should make their voices heard and demand from the Ky HBPA accountability and openness. It is high time this group provides answers and acts with transparency in the best interests of thoroughbred racing. No more excuses.

Anthony Manganaro is CEO of Siena Farm LLC in Paris, Ky.

 

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The Friday Show Presented By Icon Global: Jareth Loveberry Talks Two Phil’s

Jockey Jareth Loveberry's saddle has taken him a lot of places over the course of his career, but the top of the Kentucky Derby points standings was uncharted territory until last weekend.

Following a convincing victory in the Grade 3 Jeff Ruby Steaks on March 25 at Turfway Park, Two Phil's sits at the top of the list with 123 qualifying points, assuring the son of Hard Spun a spot in the Kentucky Derby on May 6. Loveberry has been aboard Two Phil's for all but one of the colt's career starts, and this would be his first Kentucky Derby mount.

A start the Derby would continue an amazing career progression for Loveberry, whose riding career began at Great Lakes Downs in his native Michigan. He has won meet titles at Mountaineer, Canterbury Park, and Hawthorne Race Course, and he was the final leading rider at Arlington Park in 2020 and 2021. He most recently finished third in the jockey standings during the recently completed Fair Grounds meet in Louisiana.

On the Chicago circuit, Loveberry became the first-call rider for perennial leading trainer Larry Rivelli, who conditions Two Phil's for owners Patricia's Hope LLC and Phillip Sagan.

On this week's episode of The Friday Show, Loveberry discusses his Jeff Ruby trip aboard Two Phil's, recovering from a hairline fracture to his fibula that could have put that mount in jeopardy, and his journey through the blue-collar tracks of the Midwest and Southwest to potentially ride in the biggest race on the calendar.

Watch this week's episode of The Friday Show below:

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HISA Anti-Doping And Medication Control Program Delayed 30 Days By Texas Judge

Saying the Federal Trade Commission jumped the gun by giving the Horseracing Integrity and Safety Authority (HISA)  the go-ahead to launch its Anti-Doping and Medication Control program on the same day the FTC approved its regulations on March 27, a federal judge in Texas ordered the program's implementation to be delayed until May 1, 2023.

Judge James Wesley Hendrix, U.S. District Court Judge for the Northern District of Texas in Lubbock, made the order in response to a motion from plaintiffs in a lawsuit  seeking a preliminary injunction to stop the HISA program from going into effect as planned.

Hendrix agreed with what he called a “narrow procedural claim” made by the National HBPA and a number of affiliates that “not enough time passed between when the rule was published as final and when the rule took effect.”

Ruling that when an agency makes a “substantive rule” (described as one that “controls our behavior”) it must ordinarily wait 30 days for it to take effect, Hendrix wrote in his order that the delay “ensures that regulated parties have the time to challenge the rule's validity or bring themselves into compliance.”

Section 553 of the Administrative Procedure Act was cited as the basis for the required 30-day waiting period. HISA officials said the program was launched on March 27 based on a statement in the Federal Register indicating the rule would take effect immediately on approval by the FTC.

“Obviously we are disappointed by the decision,” HISA chief executive officer Lisa Lazarus said during a media call. “As a result we're going to suspend operations for 30 days … we're going to hand the keys back to the states.”

HISA will continue to operate its racetrack safety program, which is unaffected by the District Court order.

Lazarus said 700 samples were collected in HISA's first five days of operations, but those samples now will be subject to the state racing rules that were in place before March 27 – not the HISA rules approved by the FTC. State rules will be reinstated until the 30-day delay is over on May 1.

“We discussed appealing, or trying to reverse the order, but ultimately we are here to serve the industry and I think that just creates more chaos,” Lazarus said.  “We felt that, weighing all the interests and considering the importance of bringing as much stability to such an unstable scenario to the industry, it's best to accept the decision, communicate it, plan for it and use this 30 days to improve our processes and our functions.”

John Roach, outside general counsel for HISA, said the transition back to the states should not be a problem, as the personnel used to collect samples for HISA previously worked for state commissions.

“We're going to bend over backwards following the order but also to offer assistance and transition in any way we can,” Roach said.

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