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The Friday Show Presented By Monmouth Park: Sports Betting And Fixed Odds On Horses

Sports betting has shown steady growth across the United States in the three years since the Supreme Court overturned a federal ban on the activity, with more than $53 billion legally wagered on sports since June 2018.

More and more states are authorizing sports betting, with Canada close to approval as well. New Jersey lawmakers have recently passed legislation that would permit fixed odds wagering on horse racing, allowing bookmakers there to set betting prices on horses as they do on baseball, football and other sports.

Are there opportunities for horse racing to grow, even though the amount already being wagered on sports far exceeds horse racing's annual betting handle? While fixed odds wagering opens up new types of bets and guaranteed payoffs, could it have unintended consequences on racing's traditional pari-mutuel pools or on the computer-assisted “whales” who get rebates in return for their betting volume?

To discuss these and other issues, Pat Cummings, executive director of the Thoroughbred Idea Foundation (www.racingthinktank.com), joins Ray Paulick and Joe Nevills in this week's edition of the Friday Show. Ray and Joe also review Woodbine's Star of the Week, LNJ Foxwoods' Boardwalk, a Constitution filly who won her first graded stakes last week in the Whimsical Stakes.

Watch this week's show, presented by Monmouth Park, below:

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Wagering Insecurity: Avoiding Another ‘Medina Spirit Mess’

In one corner of racing's integrity infrastructure, one trillionth of a gram – a picogram – is regulated.

In the other, jockeys and trainers go unquestioned about in-race decisions or tactics, state veterinarians are not required to report publicly about episodes of bleeding or lameness after races, provide detailed reasons for scratches and voided claims, thrown shoes, or other measures which are standard across the rest of the racing world.

The gap must be narrowed.

In the concluding installment of “Wagering Insecurity,” we offer four observations from the process of compiling this series.

PART 12 – PRAVDA

In this final installment of “Wagering Insecurity,” we make four observations which have become clear. These are the product of input from many individuals, both named and anonymous, whose support throughout this series and whose assistance made it possible. .

The Thoroughbred Idea Foundation supports the growth of the North American Thoroughbred racing industry. We want more horseplayers and more horse owners. That sort of future is impossible without beginning the process of adopting the recommendations offered previously and considering the observations below.

OBSERVATION #1

Medication use has dominated public discourse on North American racing integrity over the last three decades. The history is long and contentious.

For context, the 2021 Kentucky Derby was the first run since 1985 where the entire field ran without Lasix. Five years after that, the topic was front and center on Derby Day as exemplified in this video below, of the 1990 Kentucky Derby broadcast, where Al Michaels and Dave Johnson spoke of a Jockey Club study about the potential impact of Lasix use.

Michaels said it would be a story to follow throughout the summer. Regardless of the study's specifics, it took more than three decades for action.

Anti-doping control programs are a necessary component of a broader suite of integrity measures. But balance is needed; progress must be shown in other areas of the integrity arena, too.

There are many factors which have contributed to North American racing's issues with doping, including a weak regulatory structure, a laissez-faire culture about drugs and a general failure to be active overseers of the sport, protecting the betting public.

One area where racing has gotten it right is in constantly improving thresholds of testing. A wealth of well-educated experts has ensured that as science and testing improve, racing's approach to testing evolves as well.

But the contrast with other forms of racing's integrity infrastructure should not be lost.

In one corner, one-trillionth of a gram can be measured. Penalties may be assessed becaue of that microscopic finding. In another corner, jockeys and trainers go unquestioned about in-race decisions or tactics, state veterinarians are not required to report publicly any episodes of bleeding or lameness noticed after a race or provide reasons for scratches and voided claims, thrown shoes, or other measures which are standard across the rest of the racing world.

That gap needs to be closed.

OBSERVATION #2

North American stewards fall short of those in the rest of the developed racing world. The blame resides with the regulators and track operators (yes, sometimes stewards are hired directly by the tracks) who have allowed these roles to degrade over time.

They have less training, are paid less and have not been given responsibilities commensurate with the worldwide expectations for such positions. As many veterans of the stewards' stand and other officials have retired, their replacements are often even less prepared.

A positive development in this space came in August 2019 when the Jockey Club and Racing Officials Accreditation Program announced the launch of a global exchange program which would give North American stewards the opportunity to learn and practice in other countries. The pandemic delayed implementation, but the program should be embraced as the world reopens.

The Horseracing Integrity & Safety Authority (HISA) presents a vehicle for uplifting these standards.

TIF founder Craig Bernick is hopeful HISA evolves to tackle these issues, and the opportunities raised in Part 11 of this series.

“This time, it actually feels different. HISA offers racing a unique opportunity because it has superseding power over existing industry organizations.

“Past efforts to reform our sport have failed because of two main reasons – either the groups or organizations involved were not empowered to effect change or those involved were too focused on their own bottom line or retaining some semblance of control.”

While many horse and racetrack owners may have enjoyed slot-supplemented revenues and purses over more than the last two decades, additional funding has not found its way to racing's integrity infrastructure and the neglect shows.

Several stewards and racing officials consulted during TIF's research for the “Wagering Insecurity” series, who all requested anonymity to speak forthrightly, shared examples of poor working conditions, obsolete technology and general concerns over their ability to do their job well at present.

Uplifting standards will not be cheap, but the cost of not improving will be far greater for everyone who makes their living in racing.

OBSERVATION #3

A troublesome factor which belies all of the detail shared in this series is the absence of a robust, independent racing media in North America.

While racing has several influential trade publications and broadcasts with some very talented, knowledgable staff which contribute significantly to the sport, mainstream, independent coverage is practically non-existent.

Steve Crist, former publisher of the Daily Racing Form, lamented the state of racing coverage in March 2021 remarks to TIF for this series.

“Anyone from the outside who has seen the evolution of coverage of the sport can say that the kind of journalism which existed, even 10 years ago, is just not being done.

“This is a huge issue. It's nearly impossible to hold anyone accountable for anything.”

Crist recalled a time when he was a young reporter for the New York Times in the early 1980s, covering the ongoing hearings and legal wranglings around race-fixing from the 1970s. The coverage was endless, Crist recalls.

“I was working for the Times and there were three other racing beat reporters from each of the tabloids doing the same. Everyone wanted to be first.”

His work included eye-popping ledes, like the following from a 1981 piece:

“A former New York-based trainer has identified Jacinto Vasquez, a leading rider who has twice won the Kentucky Derby, as the man who offered the jockey Mike Hole a $5,000 bribe to hold back a horse at Saratoga in 1974, according to a deposition given to the State Racing and Wagering Board.”

Adjusting for inflation, a $5,000 bribe in 1974 would be about $26,000 today, the equivalent jockey's cut for winning a race with a purse of more than $400,000.

Most public racing coverage is restrained because advertising dollars come from within the industry itself. Mainstream coverage, when it happens, is often fleeting.

Crist thinks this is dangerous for a sport whose foundation is grounded in wagering.

“A media outlet in racing should not be compared to a propaganda machine like Pravda from the old Soviet Union, but in at least one case, that's what we now have.”

The line between journalism and publicity has been increasingly blurred.

Industry publications are hard-pressed to hold tracks, tote companies, ADWs and other-related organizations accountable for the degradation of the sport's integrity infrastructure when those same entities are their primary source of income through advertising. Years ago when he was with the New York Times, Crist and his mainstream media colleagues were in those roles. Today, coverage is mostly limited to the trades.

Several racing writers and broadcasters questioned by TIF acknowledged these issues are ever-present in their daily work. They all asked to remain anonymous because of a fear of reprisal from their employers and contacts within the industry. Staffing within industry media has contracted substantially in recent years, reducing the opportunity for deep coverage. Those in place are doing the best they can with what they have, but it is a delicate balance. One said the situation has devolved to such a degree that they know instinctively what topics are off-limits.

Criticism about the industry's integrity failings and other myriad issues could come at significant cost to racing media.

Those with substantial investments in horses, farms, associated agribusiness and other economic drivers of the sport should recognize that racing media must be given the freedom to hold the business to a higher standard than at present.

In the long run, the truth benefits the greatest number of stakeholders.

OBSERVATION #4

The overall wagering space is changing rapidly. Fixed odds betting for racing in North America is a necessity for one key reason – all new betting customers expect to know what price they are getting on their bets. While pari-mutuel betting still has a future, particularly in exotic wagers, the tote monopoly which has existed for generations on U.S. racing is coming to an end, as it should.

The tote protocol in use now, relying on a decades-old approach known in the industry as ITSP, is likely on its way out. Global commingling is more important than ever and TIF has learned from several major players in the pari-mutuel wagering technology space that a much-revised modern system of bet processing and information sharing will be needed. Support for antiquated tote technology is fading fast.

Customers must still be protected in the interim, and whatever new systems are developed should have proper oversight measures at its core.

CONCLUSION

The “Wagering Insecurity” series is unlike anything we have researched and published at the Thoroughbred Idea Foundation. We hope lessons can be learned from it.

“TIF was created to improve the prospects of horse owners and horseplayers, whose participation fuels racing's sustainability,” said Bernick.

“We have focused on issues related to pricing, transparency, technology and access to data. Racing has huge obligations too – now more than ever: aftercare, backstretch programs, jockey health and equine research. The best way to meet these obligations and sustain the business is to grow revenue through wagering. Doing so will be impossible without the greater industry accepting the serious issues raised and recommendations provided by this series.”

Ensuring integrity in horse racing takes a team effort. It's hard work. And it requires drive and support from horse owners, breeders, racing fans and most especially, the customers who need the most significant protection – the horseplayers.

It will take significant capital from the greater industry, investing in the appropriate resources to build an acceptable standard of integrity oversight. That does not go unnoticed. Under no circumstances should the costs for such programs come from increasing takeout – the cost of betting. There would be no more counterproductive effort than that.

The long-term costs to racing and its stakeholders' investments, if we do not upgrade racing's integrity infrastructure, will be far more substantial than the short-term costs of filling those needs.

We must restore and build confidence in existing horseplayers and horse owners, which will help us attract future customers. Little that racing in North America is doing now will accomplish that, particularly given our general embrace of opaque practices.

Racing must be operated more sustainably than it is now and we need to adopt the measures recommended here, and others, to bring the industry forward.

The path to better securing racing's wagering business is challenging and getting there will require exposing some long-standing failings.

For sports and racing integrity expert Jack Anderson, there is no choice.

“In the immediate, U.S. racing needs to look within. It needs to consult and review its own stakeholders and undertake a clear-eyed, hard-headed analysis of the state of the sport.

“That process may be a painful one. It may shock the racing public. It may, in the short term, undermine the reputation of the sport even amongst the most sympathetic of its supporters in the wider American sporting public.”

These improvements are needed to make North American racing better, to sustain the interest of bettors and secure the substantial investments of owners and breeders, as well as the reach of racing's economic impact.

The role of the Horseracing Integrity & Safety Authority offers a tremendous opportunity for ALL parties in the sport going forward and should be leveraged in every capacity to yield much-needed, uniform control over the integrity of U.S. racing. As previously outlined, HISA is required to report to the Federal Trade Commission.

Outside the FTC's Washington D.C. headquarters are a pair of sculptures created by Michael Lantz in 1942 entitled “Man Controlling Trade.” Each sculpture depicts a man holding a horse.

Our collective opportunity for improvement is real. There are countless examples for North American racing to follow.

Miss a previous installment? Click on the links to read more.

Part 1 – Expectations

Part 2 – Intertwined

Part 3 – Volponi

Part 4 – Confidence

Part 5 – Bingo

Part 6 – Proof

Part 7 – Z

Part 8 – Damage

Part 9 – Alerts

Part 10 – Grey

Part 11 – Recommendations

Want to share your insights with TIF? Email us here.

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Wagering Insecurity, Part 11: Recommendations

The following is the 11th of a 12-part series on wagering insecurity in American racing from the think tank the Thoroughbred Idea Foundation.

A growing firm in the sports integrity business approached a major racing operator in 2017.

“They told us better integrity does not help us bring in more customers and their main focus right now is on growing the customer base.”

The reality is different in almost every other major racing jurisdiction. Integrity oversight is a necessity to ensure acceptance and participation. Customer and stakeholder confidence is paramount.

Last weekend at Pimlico, the disparity between America's existing, substandard practices and the rest of the developed racing world could not have been clearer. Two races, held within hours of each other, served to highlight the gap.

After 10 installments, the “Wagering Insecurity” series has reached its recommendations phase.

The passage of the omnibus spending bill which created the Horseracing Integrity & Safety Authority (HISA) was undoubtedly a massive step for American racing.

But just how big could it be? Is it clear how broad its possible powers over the sport could be, in a positive way for horseplayers and all well-intentioned stakeholders, upon full implementation?

HISA must lead on matters pertaining to wagering oversight while also adopting modern, transparent best practices that elevate American racing to join that of the rest of the developed racing world.

The recommendations across this series are hardly novel. Reinvention of the proverbial wheel is not required. That's a good thing!

Read Part 11 of “Wagering Insecurity.”

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Wagering Insecurity: Thoroughbred Idea Foundation Issues Recommendations

This is Part 11 of the Thoroughbred Idea Foundation's (TIF) series “Wagering Insecurity.”

Faced with remarkable competitive pressure from the rise of legal sports betting, horse racing is at a crossroads.

Confidence amongst horseplayers and horse owners is essential to the future sustainability of the sport. Efforts to improve the greater North American Thoroughbred industry will fall flat if its stakeholders fail to secure a foundation of integrity, along with increased transparency of the wagering business and its participants over time. Achieving this is growing increasingly difficult after the sport has neglected its core base – horseplayers – for decades.

“Wagering Insecurity” details some of that neglect, and the need to embrace serious reform. Fortunately, there are examples across the racing world to follow.

PART 11 – RECOMMENDATIONS

North American racing has been here before…and failed.

In the aftermath of the Breeders' Cup Fix Six in 2002, the opportunity to improve customer confidence was within the industry's grasp. Nothing materialized.

As this series has outlined, the challenges in 2021 and beyond are different. Should we meet the challenge and make wagering and racing integrity the lodestar of American racing, all well-intentioned stakeholders will benefit.

The establishment of the Horseracing Integrity & Safety Authority (HISA) presents an extraordinary opportunity to blaze a new path for the industry, presenting a sport where all participants can be far more confident in its outcomes than they are now.

RECOMMENDATION 1: HISA MUST LEAD ON MATTERS PERTAINING TO WAGERING OVERSIGHT

Most involved in the American racing industry correctly believe HISA will involve track safety and anti-doping control programs. Those views are correct.

But HISA's role should be more than just establishing such important programs.

According to Section 1205 (a) (2) of the final legislation passed and signed into law, HISA shall “…exercise independent and exclusive national authority over the safety, welfare, and integrity of covered horses, covered persons, and covered horseraces…”

The mechanism of federal authority to permit HISA's creation IS wagering on horse racing:

“The term 'covered horserace' means any horserace involving covered horses that has a substantial relation to interstate commerce, including any Thoroughbred horserace that is subject of interstate off-track or advance deposit wagers…the term 'interstate off-track wager' has the meaning given such term in section 3 of the Interstate Horseracing Act of 1978.”

HISA has been endowed with the power to raise standards and protect wagering customers. This new authority should become a horseplayer's best friend while bolstering the confidence of all stakeholders.

HISA will operate under the aegis of the Federal Trade Commission (FTC) whose mission is:

“Protecting consumers and competition by preventing anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education without unduly burdening legitimate business activity.”

HISA will provide the mechanism to improve the policing of racing. Monitoring wagering can be a big step towards that. HISA has the power to lift the standards of racing in America and protect its wagering customers.

It should do so.

RECOMMENDATION 2: ADOPT MODERN, TRANSPARENT BEST PRACTICES ACROSS THE SPORT

One key observation is necessary before highlighting four modern, transparent best practices below, all of which should be adopted in North American racing: these are not the only measures to add, but should be a starting point.

It will take a long time for North American standards to be lifted to join the ranks of the rest of the developed racing world. That's OK.

These efforts cannot bring us from a hypothetical “0 to 100” overnight. Start slow, build capabilities, engage stakeholders and show progress.

Customer confidence is good for business.

A) ALL TESTING RESULTS SHOULD BE PUBLICIZED AND MODERN METHODS EMBRACED

Doping control and wagering integrity go hand-in-hand. The insight of Professor Jack Anderson, cited earlier in this series, is clear:

“Doping in a sport such as racing is often intertwined with gambling interests.”

Every pre-race, post-race or out-of-competition sample should be reported publicly, soon after it is processed. The results should be reported regardless of the finding – most will be negative.

Positive findings should be identified publicly as soon as possible after results are received and the connections receive notice, followed by an explanation of steps going forward with relevant updates provided. An initial report should include the substance(s) involved, particularly if it involves a legitimate medication.

This is standard practice in many other racing jurisdictions and benefits all participants. The appendix at the end of this installment includes a re-publishing of the entirety of the press releases from the Hong Kong Jockey Club stewards on the case, from a winner at Happy Valley in June 2017. Here is a link to the first public release of news on the finding.

The absence of confirmed details from the Kentucky Horse Racing Commission about Kentucky Derby winner Medina Spirit's positive post-race test and the failure to explain clearly the steps in the process after a positive test exemplifies the weakness of the current system, not just in Kentucky, but every jurisdiction in North America.

USADA

The United States Anti-Doping Agency (USADA) will replace the current “patchwork quilt” of state-by-state approaches as the enforcement agent of the HISA anti-doping program.

USADA's Chief Executive Officer Travis Tygart, in a February 2021 interview with the Thoroughbred Daily News, assessed the woeful state of racing's overall testing uniformity, and lack of transparency.

“I really started looking at the policies around anti-doping and medication control within the [racing] industry and they were just completely antiquated…they were years behind what the human world, as well as the equine and Thoroughbred horse racing industries around the world had done as far as uniform policies.

“Other places don't have 38 different racing jurisdictions run by the states, with frequently conflicted people that have an interest in the outcome without transparency, without good quality testing, without laboratory accreditation that is uniform. It actually reminded me of, and I drew the comparison to, what the Olympic world looked like prior to us coming into existence.

“So, having a uniform policy, where you can have confidence that when a horse runs in California, it's going to be running under the same rules and allowances and free of drugs as in Kentucky and in New York too, is going to be a game changer I think, right out of the gate.”

USADA publishes a history of athlete tests to provide full transparency, to the public and also fellow competitors. Its website explains the approach:

“By publishing our Athlete Testing History, any athlete or member of the public can see how many tests USADA has conducted for specific U.S. athletes, and in different sports, over the course of a specific time period. Instead of wondering if their competitors or role models are being tested, people can track testing data and see how USADA is working to uphold clean sport.”

The USADA portal is searchable by year, quarter, sport and name, showing the total tests administered, while maintaining a separate ledger of all sanctioned athletes with full details of the investigations.

The greater use of active investigations to supplement testing will boost confidence. Adopting intelligence-based investigations would do the same.

TIF pondered the possibilities just days after the indictments of Jason Servis and Jorge Navarro were revealed.

This discussion was front and center a month prior to that at the 2020 Asian Racing Conference when Brett Clothier, Head of the Athletics Integrity Unit, outlined that organization's efforts in world track and field, where algorithms are used to “analyze unusual performance trajectories or spikes in performance…to enable better targeting of athletes” for testing.

Clothier added:

“It's very hard to catch determined, well-resourced cheats with testing processes that are essentially random.”

Adopting modern methods, combined with transparency which has become standard in other areas of human athletics and a growing number of racing jurisdictions, will bring American racing forward, building confidence.

B) DETAILED STEWARDS' REPORTS SHOULD BE MANDATED

The world offers many compelling models of stewards' reports to emulate, as we outlined in our August 2019 paper. Stewards' reports in most North American jurisdictions fall far short of what is needed and many don't bother at all.

The goal of such reporting is simple – instill confidence in racing's participants, especially horseplayers.

When bettors are left bewildered by rides or horse performances, and no explanations are ever provided by those whose job it is to oversee the races – the stewards – confidence is shattered, conspiracy theories run amok and the business is tainted by unaddressed conjecture.

One incident from a race at Gulfstream Park on March 27, 2021 drew thousands of views from frustrated horseplayers in search of an explanation that was not forthcoming. The incident was highlighted later on a national broadcast when the horse returned in its next start too, though without any formal explanations from officials.

Stewards should review races from a central location, close to ground-level, with easy, face-to-face access to jockeys and trainers (or their representatives, assistants, etc), to enable direct questioning before and after races regarding any number of incidents, publishing easy-to-find post-race reports to explain findings for the day.

A Spanish-language interpreter should be used to facilitate the process when needed.

While many stewards around the world view races from an elevated position, they return to a more accessible location and nearly all meet face-to-face to question jockeys and trainers throughout the race day. Findings are published at the end of the day.

These reports should include key details provided to the stewards from regulatory veterinarians. Observations of bleeding, lameness, thrown shoes, reasons for scratches and voided claims must be published. Strange or unexplainable performances should get attention from the stewards and be shared with the public.

American racing cannot jump to the future and join the rest of the world with Lasix-free racing without the adoption of other key global standards of reporting which are commonplace.

It may be hay, oats and water before a race, but after a race, the public must be made aware of key observations from regulatory veterinarians whose roles are crucial for both equine welfare AND protection of the wagering public.

This level of transparency is standard in other major racing jurisdictions. North America should be no different. Anyone suggesting otherwise should be asked why.

Examples below, one from the British Horseracing Authority and one from the National Horseracing Authority of Southern Africa (South Africa) reflect the reports published from separate races in 2021, with details from regulatory veterinary officials.

Lingfield Park – Great Britain – March 6, 2021

20210306 - BHA Post-Race Report from Lingfield Park.PNG

Greyville Racecourse – South Africa – May 5, 2021 – Race 4

BREEZY GUST

A race at Pimlico on last week's Preakness undercard highlights the failings of the present system.

Breezy Gust was the 5-1 third choice in that day's Grade 3 Maryland Sprint Stakes, his first start in graded stakes company.

Claimed for $25,000 in October 2020, Breezy Gust had about three months off before returning for new trainer Daniel Velazquez to win three consecutive races by a combined 18.25 lengths with a monumental improvement in his Beyer Speed Figures and practically every other measure used to assess performance.

The gelding has a propensity to lead his races early, or at least be forwardly placed. Those tactics were executed in each of his four starts for Velazquez, whose horses were winning at a 24% clip in 2021 to that point.

Breezy Gust was judged the best turned out for his race last Saturday. That would be the only recognition he received. The chart comment from the Maryland Sprint Stakes notes the following.

“BREEZY GUST, pinched back leaving the starting gate, was pulled up near the half mile pole and walked off.”

A view of various replays of the race showed a slight brush at the start, but Breezy Gust was seemingly uninterested in running – the exact opposite of what he has shown in recent races, exhibiting no early speed.

No official record of the state veterinarian's findings, or an explanation provided to the stewards by the jockey, were provided to the public after the race.

Other jurisdictions do it differently.

Just a few hours after Breezy Gust's unexplained performance, Golden Mission was sent postward as the 2-1 favorite in the first race at Sha Tin in Hong Kong. Under leading jockey Joao Moreira, the gelding was under pressure early in the race and faded substantially to finish 11^th of 12, beaten nearly 15 lengths.

The stewards sought to inform the public about the performance. The post-race report included just about everything a horseplayer, or any other interested party, might want to know about Golden Mission's disappointing run.

“Despite being ridden along for some distance in the early stages, GOLDEN MISSION (J Moreira) was slow to muster speed and travelled wide and without cover until approaching the 600 Metres and in the Straight gave ground.

“After the race, J Moreira stated that GOLDEN MISSION did not travel strongly at any stage of the race and felt “flat”. A veterinary inspection of GOLDEN MISSION immediately following the race including an endoscopic examination showed a substantial amount of blood in the horse's trachea.

“The performance of GOLDEN MISSION, favourite for today's race and which finished towards the rear of the field, was considered unacceptable. Before being allowed to race again, GOLDEN MISSION will be required to perform to the satisfaction of the Stewards in a barrier trial and be subjected to an official veterinary examination.

A post-race sample was also collected from Golden Mission. Findings will be reported to the public when available, likely to be by the next race day on Wednesday, May 19.

North American jurisdictions may never rise to the level of Great Britain, South Africa or Hong Kong. But they need to try. “Pulled up and walked off” does not cut it.

C) INTEGRITY PLATFORMS AND BET MONITORING CAPABILITIES SHOULD BE CREATED.

The Asian Racing Federation's Council on Anti-Illegal Betting and Related Financial Crime (ARFCAIB) identifies several “good practices” in monitoring betting, all of which should be adopted.

“Critical components of a dedicated betting integrity team are a structured approach and a specialized central monitoring team, made up of experienced industry professionals who proactively assess and analyze betting information. These teams should comprise personnel with specialist skills such as form experts, race readers and statisticians, all with extensive betting knowledge and expertise and an understanding of the intelligence process.

“Direct communication between the sport and the betting industry supports the flow of relevant information to the analysts. In-house betting expertise strengthens the productivity of these relationships and avoids the misinterpretation of betting information. Regular communication between analysts and betting operators strengthens trust and understanding, which increases the flow of information to the sport.

“Betting experts may be required to provide expert witness statements forming part of the evidence in sports disciplinary hearings (i.e. against a jockey charged with corruption offenses). The betting analysis can make up a key part of the evidence in sports disciplinary hearings and therefore expert evidence is often required to explain findings.”

As outlined in Part 10 of this series, an awareness of the grey and illegal markets where betting occurs is also needed. Worldwide wagering on your races requires worldwide awareness of the threats racing faces.

Fixed odds betting on U.S. racing for domestic customers, should it occur, will introduce a different mix of betting businesses to the sport. Commercial bookmakers need to uncover betting malfeasance. There is no benefit to burying it.

In December 2020, Australian firm The BetMakers purchased the global tote business of Sportech, one of three tote companies providing services for North American racing. The BetMakers already provides integrity services for Racing Victoria, the regulators of racing in that Australian state, through their Racing Victoria Integrity Platform (RVIP).

RVIP is in use across Victoria's more than 500 annual race meetings, monitoring betting and serving as a portal for centralized reports for use by racing integrity officials.

According to this press release in 2019, RVIP capabilities include:

– Real-time tracking of data, such as price movements and associated betting patterns,

– A host engine that ingests ratings and performance indicators created by the racing authority and BetMakers, and matches these with actual performances,

– An alerts system to flag inconsistencies,

– Database and library functionality that stores and recalls any integrity comments associated with individual horses, trainers, jockeys, owners and wagering movements,

– Video analysis and management portal for tracking past performances, and

– Links to betting patterns and comments for recording and recall capabilities.

North American racing needs this kind of platform.

As a new service provider in the American space, The BetMakers may have a significant role to play. Their first foray into American racing has been in partnership with Monmouth Park to bring fixed odds betting on racing to New Jersey customers.

D) INTEGRITY IMPROVEMENTS FROM OTHER PROFESSIONAL SPORTS SHOULD BE ADAPTED TO RACING

Professional sports leagues, including the National Basketball Association (NBA) and National Football League (NFL) have been expanding their public interactions regarding officiating of games in a world where legal wagering is driving additional revenue streams. Leagues provide access to game officials for media members, publish head-office reviews of in-game incidents and their officiating, and have even admitted mistakes in past rules applications. The use of replay to adjust key officiating decisions, yielding more correct outcomes, has greatly increased.

In March, the National Hockey League (NHL) fired a long-time referee after a microphone caught him admitting he felt the need to, essentially, fabricate a penalty on one team. The Athletic's Sean Gentille called on the NHL to adopt a more transparent approach to officiating like the NBA.

“If they want an example, they can look at the NBA. Shielding refs – coddling refs, in fact – only creates space for conspiracy theories. Which, as we've learned, are sometimes true. Come up with an NHL version of the [NBA's final] two-minute report. Make officials explain themselves when the situation calls for it. Hold them accountable in a real, public way. If you're trying to fix anything, say so. Virtually every other big-time sport does this…

“The elephant in the room…is gambling.”

Some professional leagues, pro teams, collegiate conferences, universities, regulators, betting operators and technology providers are working with private integrity assurance firms, like U.S. Integrity, to provide services to monitor everything from betting markets to social media and irregular officiating.

As for American racing? Well, no, but it isn't because groups like U.S. Integrity weren't trying.

The growing firm met with one major American racing operator in 2017. U.S. Integrity's Chief Executive Officer Matthew Holt shared the experience with TIF.

“They told us better integrity does not help us bring in more customers and their main focus right now is on growing the customer base. There was no desire to connect pari-mutuel systems to any sort of integrity provider.”

Holt made it clear if the racing industry has interest, U.S. Integrity remains available.

In Australia, sports and racing actually work together in developing a modern approach to bet monitoring.

In 2018, Racing Victoria and the Australian Football League (AFL) formed a joint venture – Sports Wagering Integrity Monitoring Ltd (SWIM) – to introduce transaction-level bet monitoring platforms across the sporting landscape. The launch of SWIM was a response to the Wood Review, a nationwide study (a full copy can be reviewed here) of Australia's sports integrity arrangements commissioned by then Prime Minister Malcolm Turnbull.

The goal, of course, is to ensure a level playing field, both during the game or race for participants and in the betting markets on such events, maintaining confidence of all internal (teams, coaches, players, owners, management) and external (bettors and fans) stakeholders.

STEWART'S RULE

No group of well-intentioned racing stakeholders should be against any of the recommendations offered above. HISA provides an opportunity to accomplish far more than what has been done with a woefully-inadequate state-by-state approach. Racing in America in the 2020s has a regulatory structure more akin to the sport as it was in the 1970s.

That has to change and HISA enables such change.

Change, of course, frightens many long-time racing participants. There will be increased costs, new procedures and added scrutiny. Communication will be key.

It is easy to fret over how much transparency is enough, but North American racing desperately needs it while upgrading our provision of racing oversight in every facet. A delicate balance is required to satisfy integrity assurance and boost public confidence while not jeopardizing ongoing investigations or revealing specific trade practices.

As former U.S. Supreme Court Justice Potter Stewart famously expressed in a 1964 opinion related to a case about obscene material: “I know it when I see it.”

What exists in North American racing at present is not only not “it,” but is far from the standards of transparency that are needed to operate a professional sport to meet the expectations of modern betting customers in 2021. The recommendations offered in this series would yield substantial, desperately needed changes to the operation of American racing, but they are hardly ground-breaking – almost all of them are in place in major international racing jurisdictions.

With practical examples from abroad for the North American racing industry to follow, change may be within a more reasonable reach than many might realize.

NOTE

On March 15, 2021, the National Horsemen's Benevolent and Protective Association and 11 of its smaller state affiliates sued members of the nominating committee of HISA and the Commissioners of the Federal Trade Commission (FTC) in an attempt to stop HISA's launch.

On April 26, 2021, the states of Oklahoma and West Virginia, their racing commissions, three Oklahoma racetracks, United States Trotting Association and others, filed a separate suit.

The outcomes of both suits are pending.

Coming Thursday, May 20: Part 12 – Pravda

Miss a previous installment? Click on the links to read more.

Part 1 – Expectations

Part 2 – Intertwined

Part 3 – Volponi

Part 4 – Confidence

Part 5 – Bingo

Part 6 – Proof

Part 7 – Z

Part 8 – Damage

Part 9 – Alerts

Part 10 – Grey

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