Wagering Insecurity: Gen Z’s ‘Ethical Consumerism’

This is Part 7 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 7 – Z

Transparent oversight of racing has been defunded over decades and customer protection remains weak. North American Thoroughbred racing in the 2020s is saddled with a regulatory infrastructure designed for a sport in the 1970s.

Racing has to change.

Ten years ago, Jockey Club research conducted by McKinsey showed that a minority of racing fans, just 46% of those surveyed, said that they would recommend the sport to others.

“Thoroughbred fans are almost twice as likely to recommend baseball (81%), football (73%), or basketball (77%) to others as they are to recommend Thoroughbred racing.”

There are many reasons for racing's waning appeal among its own fans but the gambling experience is certainly a key one. Simply getting more eyes on racing is not going to be enough to sustain interest amongst future generations.

While many of racing's existing American customers have long been accustomed to a sport with substandard, haphazard and insufficient oversight, the next generation might not be as forgiving. A 2019 piece by Julie Arbit, Global Senior Vice President, Insights at VICE Media Group, highlighted this burgeoning need among Generation Z, whose oldest members are now in their mid-20s.

“Gen Z is coming of age in a world of infinite choice, and this affects everything from how they define themselves to how they love and how they buy…

“If brands want consumers to be committed to them, brands need to be committed to consumers. What brands say and do should demonstrate this dedication — showing that the satisfaction and happiness of their customers is of utmost importance. Trust is also paramount in relationships, and brand relationships are no exception. Authenticity, transparency and two-way dialogue with consumers are essential.”

The topic has been raised in racing too.

Dr. Jennifer Durenberger, Jockey Club Steward at the New York Racing Association, has served as both a regulator and regulatory veterinarian, among many other roles across racing. In a 2019 presentation at the University of Arizona's Global Symposium on Racing, she highlighted the growing interest consumers are showing in the values of companies they patronize.

“Ethical consumerism is when a consumer consciously chooses or avoids a product, or an experience based on the perceived ethics of the processes that are used to produce them.

“…this is not just a Millennial or a Gen-X phenomenon…this is consumers who actively consider company values when making a purchase and remember these are purchases of inanimate objects.”

How can American racing hope to compete in the future for market share if newer potential customers are turned-off by the sport's poor standards of oversight? Sports betting customers in America generally have confidence in the betting systems and oversight of major sports for which wagering is accepted.

At the time of this publication, 26 states and the District of Columbia, accounting for more than 45% of America's population, reside in a state where sports betting is legal. Nearly all of those states are currently accepting bets at present while others will launch soon.

While American horse racing is a laggard, others in the racing world are staying relevant and accomplishing this far better.

COMPREHENSIVE REVIEWS LED TO UPGRADES

North America is an outlier when it comes to monitoring wagering and uncovering malfeasance.

Two other major racing jurisdictions – Australia and Great Britain – have aggressively promoted racing and wagering integrity during the same two decades (2002-present) while America has floundered on such issues.

The British Horseracing Authority (BHA) has been a leader in monitoring wagering as a key component of its integrity services. Australia, which operates a state-by-state regulatory system similar in basic structure to America, has created independent statutory authorities to enhance integrity across all facets of racing.

The British racing industry studied the matter across 2002-2003, published the Neville Review in 2008 which, among other things, “assessed the role and procedures racing and sports governing bodies should adopt when dealing with matters that may involve breaches of the criminal law as well as its own rules in relation to corruption connected to betting.” In 2016, it followed-up with the Brickell Review.

In the foreword of the Brickell Review, then BHA chief executive Nick Rust outlined quite clearly the importance of the topic to the sport's regulators.

“It should come as no surprise that one of my priorities is to continually improve our integrity work to make sure we have the confidence of participants and the racing and betting public.”

Confidence is good for business.

Australia's focus is similar, but approaches it differently.

Victoria is Australia's second largest state and its capital, Melbourne, is home to one of the great racing festivals, headlined by the Melbourne Cup.

In 2007, Victoria's Minister for Racing commissioned Judge G.D. Lewis to:

“…lead a process of consultation with racing industry Controlling Bodies and stakeholders, with the objective of identifying options to ensure that integrity assurance within the industry is of the highest standard.”

“For the purposes of this Review, “integrity services and systems” were deemed to include: overall stewardship and associated investigations, race-day operations, betting compliance and regulation, veterinary services, drug control, licensing and registration.”

The finished product, known as the Lewis Report, can be read in its entirety here.

American racing has not seen anything similar to the Neville Review, the Brickell Review the Lewis Report, or a 2018 Australian update, the Wood Review.

That is part of the problem, according to global sport and racing integrity expert, Professor Jack Anderson:

“Thoroughbred racing in the U.S. urgently needs the equivalent of a Lewis Report and one that would follow a similar methodology to the integrity reviews undertaken [by both the BHA and Victoria].”

Anderson says that such reviews offer an opportunity to reset expectations and prepare the industry for a major boost to integrity that is most needed. For him, two key principles emerged from these reports:

“The greatest threat to the integrity of racing in the U.S. and elsewhere (be it race rigging for gambling purposes, doping, animal welfare) often comes from poor but engrained practices and culture within the sport itself and not external threats.

“The first, and most prominent recommendation in the Brickell Report, is related to engagement with participants in the industry and the need to consult continuously with the sport's stakeholders to better ensure 'buy-in' from the sport for integrity initiatives.

“Rewarding good behavior in the industry, consulting them on education initiatives and better communication between regulators and the industry's participants perpetuates long term trust and confidence in the integrity of the industry as a whole.”

Second, and similar to the Lewis report's recommendations in Australia, it is unlikely that any review of the thoroughbred industry in the United States would recommend either that the status quo in, or piecemeal reform to, current integrity services in the sport nationwide would be the way forward.

“Radical, comprehensive and, likely, federally mandated statutory reform is needed to better promote the integrity of thoroughbred racing in the U.S.”   

While it is unlikely that the Horseracing Integrity and Safety Authority (HISA) will take-up wagering systems integrity, bet monitoring and understanding wagering's role in rules violations and potential criminal infractions is a basic practice around the world. Communication around such incidents is routine.

Measures of transparency from international racing regulators far exceed America's standards at present.

Coming Thursday, May 5: Part 8 – Damage

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

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

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‘Complete Package’: 79-Year-Old Trainer Jim Bolger Celebrates Classic Success With Homebred Poetic Flare

The 2021 British Champions Series got off to a thrilling start on Saturday as Poetic Flare broke Godolphin hearts in the final stages to claim the first Classic of the season for Kevin Manning and Jim Bolger. Sired by 2013 QIPCO 2000 Guineas winner Dawn Approach, also trained by Bolger, Poetic Flare emulated his father – but was made to fight all the way by a gallant Master Of The Seas and William Buick.

It meant the QIPCO 2000 Guineas will head back to Ireland, but not to a stable with a trainer named “O'Brien” as many had predicted in the build up. Instead, 79-year-old trainer, owner (via his wife), and breeder Jim Bolger's colt took the prize in a compelling finish which saw Master Of The Seas, Poetic Flare and Luky Vega drawing clear to fight out the closing stages.

It was Master Of The Seas who looked the most likely winner in the final half furlong, however Poetic Flare dug in and got his head down right when it mattered. The photo finish went the way of a delighted Kevin Manning, also Bolger's son-in-law.

For Jim Bolger it means that he picks up the coveted prize for a second time in his training career, having previously won the race in 2013 with Dawn Approach.

“He's the most complete racehorse I've ever had,” Bolger told racingpost.com. “He's the complete package — you couldn't find a fault with him. If he was sent to a new trainer in the morning he'd just pick it up from there.”

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‘Aftercare Never Gets Old’: Wolfendale-Morley Dedicated To Finding Time For Retired Thoroughbreds

NYRA TV paddock analyst and third-generation horsewoman Maggie Wolfendale-Morley's commitment to horses kicks into gear most mornings before dawn. Awakened by an early alarm, she often accompanies her husband, trainer Tom Morley, to the Belmont Park backstretch for training. Once there, Wolfendale-Morley gallops horses and assists around the barn – all the while checking in on the couple's two daughters, 4-year-old Grace and Willow, who just turned 1.

Afternoons can get busier. On racing days, Wolfendale-Morley is stationed in Belmont Park's paddock, where she offers the kind of pre-race analysis that has made her one of the most respected broadcasters in the game. The many responsibilities – ensuring that both she and Morley get time with their daughters while also preparing for each broadcast – leads to a packed schedule.

So how does that leave time for Wolfendale-Morley's passion for equine-related causes, particularly Thoroughbred aftercare?

“That's always the challenge, and the simple answer is that I make the time,” Wolfendale-Morley said with a laugh. “My dedication to racing-related causes is just something I've always deeply cared about. We're not in this game for any other reason but the love of the horse. So, you find the time and make it work.”

Take a 9-year-old Off-the-Track Thoroughbred (OTTB) named Zandar, Wolfendale-Morley's self-described aftercare “project” of the moment and a horse who the Morleys owned and trained for a time in his racing days. They kept track of Zander and brought him back home last fall.

Now, Wolfendale-Morley rides Zandar most mornings in hopes of grooming him to be a horse she can use to ride out on the track during broadcasts to interview the winning jockey after a major stakes race.

Zandar is a work in progress – a “sweet-natured and kind-heated horse,” Wolfendale-Morley says, but still a little too skittish for broadcast duties. The hope is with enough training and personal attention, he'll succeed Wolfendale-Morley's longtime broadcast OTTB, Yeager, who passed away last winter from colic.

Wolfendale-Morley's commitment to Thoroughbred aftercare and other equine-related causes is deep. She serves on boards of the Belmont Child Care Association (BCCA) and the Thoroughbred Retirement Foundation (TRF), a Saratoga-based organization accredited by the Thoroughbred Aftercare Alliance (TAA). NYRA and its horsemen are committed supporters of the TAA, which accredits, inspects, and awards grants to approved aftercare organizations using industry-wide funding.

Every owner competing at NYRA racetracks donates $10 per start to the TAA, which funds the aftercare organizations that provide homes for retired racehorses. New York's horsemen also donate 1.5 percent of the purchase price of every horse claimed at a NYRA track to TAA and the New York Thoroughbred Horsemen's Association's TAKE THE LEAD (TTL) program, which provides preliminary vet exams and treatment, as well as costs related to transportation and rehabilitation or retraining.

At Saratoga, where summers can be filled with charity-related galas and events, Wolfendale is often on-hand at fundraisers to speak with fans, interview a panel, or host an auction that benefits racing-related non-profits.

In April, Wolfendale-Morley branched into yet another phase of her aftercare commitment by launching the podcast, “Off Track.” Coordinated with the TRF, “Off Track” (https://www.trfinc.org/offtrack/) details stories of Thoroughbreds who transitioned from the track to find successful and happy second careers – and the caring owners who helped them get there.

“Maggie is so passionate about Thoroughbred racing,” says BCCA Executive Director Joanne K. Adams. “She's exceedingly dedicated to the welfare of horses and supporting the backstretch community toward the goal of making our cherished sport the best it can be. We're so fortunate to benefit from Maggie's enthusiasm, knowledge, and talent, and most privileged to have her friendship.”

The daughter of Maryland-based trainer Howard Wolfendale, Wolfendale-Morley practically grew up at the barn – her father's barn 18 at Laurel Park, to be precise. First on a horse at age 2, she began riding a collection of aftercare horses at 10, which she continued to do in horse shows and dressage competition. At 16, Wolfendale-Morley turned to galloping horses at Laurel, all the while gaining a deep appreciation for the importance of giving OTTBs a second chance.

Attending college at Towson University, Wolfendale-Morley straddled two worlds by studying broadcasting, while continuing to gallop in the mornings: “I loved working with the horses, and realized with broadcasting, I might be able be able to marry the two. I feel like the luckiest girl in the world that I got to do that.”

After earning her degree from Towson, Wolfendale worked on-camera for both the Maryland Jockey Club and Colonial Downs in Virginia. Wolfendale-Morley joined the NYRA TV team in the fall of 2010 and quickly earned a reputation as one of racing's top analysts. Thanks to her early immersion in the sport, she is an expert on horse conformation, which she combines with considerable prep work in order to dispense tools and information from the paddock to horseplayers. And depending on the day, she often pulls double duty, interviewing the winning rider or trainer in the winner's circle.

“There is a lot of prep work, much of which I do in between the races and in homework in the evenings at home after the kids have gone to sleep,” Wolfendale-Morley says. “But I've been doing this for a while now, and the reps make you better, keep you in the zone.”

The key to making it all work, Wolfendale-Morley adds, is a supportive network. Wolfendale-Morley's mother, Tammy, is a rock in helping out with the Morleys' daughters. She and Tom are the same page in terms of child rearing; accordingly, Maggie's time at the barn in the mornings is often dependent on the needs of their girls.

“We're a case study in time management,” she jokes. “Some days, you're going to fail because there are never enough hours in the day. You accept that and keep going.”

All point back to the things that matter – family and horses – and the constant challenge of time. One look at Zandar, Wolfendale-Morley admits, is to realize that making it work is worth the commitment.

“Aftercare never gets old,” she says. “It's so rewarding to give a second chance and a second career to a horse. To see the change in them, well, it's time well-spent. We'll have to see if Zandar is up to the challenge.”

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$1,000 Medina Spirit Gives Baffert A Record Seventh Set Of Roses; Velazquez Rides Oaks-Derby Double

The roar of even the smaller crowd of 51,838 beneath the Twin Spires at Churchill Downs sounded louder than ever, after the global pandemic forced the delayed 2020 edition to be held without spectators on Sept. 5. Returning to it's rightful place on the first Saturday in May, the end result was the same: Hall of Famers Bob Baffert and John Velazquez teamed up to win the Run for the Roses.

Last year it was with Authentic, eventual Horse of the Year, tying Baffert with “Plain” Ben Jones for the most Kentucky Derby winners all time with six.

In this 147th edition, the horse was the bargain buy Medina Spirit ($26.20), owned by Derby first-timer Amr bin Fareer bin Mohammed bin Zedan. The son of Protonico cost just $1,000 as a yearling, and Zedan purchased him for $35,000 as a 2-year-old.

Medina Spirit grabbed the lead at the start from post position eight, set all the fractions, and fended off challenges from Mandaloun, Hot Rod Charlie, and the favored, previously undefeated champion Essential Quality through the length of the stretch to win by about a half-length. He ran 1 1/4 miles over Churchill Downs' fast main track in 2:01.02.

“That little horse has got a heart,” Baffert said. “(Velazquez) told me last night, 'Don't underestimate this horse, he's better than you think, Bob. Don't worry, we'll get the job done.'”

The victory was worth $1,860,000 and increased Medina Spirit's earnings to $2,175,200 with a record of 6-3-3-0. Velazquez has won four editions (Animal Kingdom (2011), Always Dreaming (2017), and Authentic, 2020), one shy of the record, and also captured this year's Kentucky Oaks with the Todd Pletcher-trained Malathaat. He is the eighth rider to win the Oaks and Derby in the same year, following most recently Calvin Borel in 2009.

Baffert has now saddled seven winners of the Kentucky Derby (Silver Charm (1997), Real Quiet (1998), War Emblem (2002), Triple Crown winner American Pharoah (2015), Triple Crown winner Justify (2018), and Authentic (2020)), more than any other trainer in history.

Baffert has also come under scrutiny over the past year with a spate of medication violations – two at Oaklawn Park that involved champion Gamine (who won the G1 Derby City Distaff earlier on the Kentucky Derby card) and G1 Arkansas Derby winner Charlatan, a second violation involving Gamine in the G1 Kentucky Oaks and a fourth violation at Del Mar with a filly named Merneith. The California Horse Racing Board also reviewed whether or not Triple Crown winner Justify should have been disqualified from the G1 Santa Anita Derby in 2018 after testing above the limit for scopolamine. The regulatory board opted not to disqualify Justify or charge Baffert with a violation.

Medina Spirit was bred in Florida by Gail Rice, mother of Eclipse Award finalist Taylor Rice (apprentice jockey) and mother-in-law to top jockey Jose Ortiz, out of the Brilliant Speed mare Mongolian Changa. The mare failed to produce milk when Medina Spirit was first born, and Rice had to turn to her only other broodmare, Scribbling Sarah, for assistance. The young Medina Spirit thrived, and his own mom started producing milk several hours later.

Unfortunately, Rice's divorce forced the sale of Medina Spirit as a yearling. He brought the bottom-dollar bid of $1,000 at the OBS Winter Mixed sale in early 2019, and she had no choice but to let him go.

“I kept telling people, 'This horse can run!'” Rice said. “Just his body and his leg, and the intelligent attitude he had; I always thought he was special.”

As it so happens, “Sarah” became the dam of Grade 1 Ashland winner Speech in 2020 (delayed to July due to the pandemic). Medina Spirit won the G3 Bob Lewis Stakes in late January of 2021.

“It's just crazy to think about,” Rice told the Paulick Report earlier this year. “I haven't had many broodmares in my whole career, only ever one or two at a time, just playing around. And to have this happen in back-to-back years? It's crazy.”

Gail Rice, breeder of Kentucky Derby winner Medina Spirit

Bloodstock agent Gary Young saw the 2-year-old Medina Spirit at the 2020 OBS July sale, and recommended the purchase to Zedan. The owner, who has been in racing for just five years, is a Los Angeles native, Saudi Arabian businessman, philanthropist, and an international polo player.

The small, nearly black colt broke his maiden at first asking at Los Alamitos in December, and was just three-quarters of a length behind his highly-touted stablemate Life Is Good in the G3 Sham Stakes Jan. 2 at Santa Anita.

Next out, Medina Spirit won the G3 Robert B. Lewis Stakes in an absolute dog fight over Roman Centurian and Hot Rod Charlie. Soundly defeated by Life Is Good in the G2 San Felipe, Baffert decided to perform a minor throat surgery on Medina Spirit, helping the colt to breathe a bit better.

Medina Spirit returned in the G1 Santa Anita Derby to run second to turf-to-dirt winner Rock Your World, after racing off the lead. Velazquez decided to change his tactics for the Kentucky Derby.

“We talked about it over and over,” Velazquez said. “He's all heart. Let's put him in the game and let him fight the whole way around.”

Essential Quality and Rock Your World slammed into one another at the start of the race, taking both out of their element and leaving them near the rear of the field racing toward the clubhouse turn. Meanwhile, Velazquez sent Medina Spirit straight to the lead, tracked by Soup and Sandwich through an opening quarter in 23.09 seconds.

Mandaloun got a perfect inside trip in third position alongside Helium, while Hot Rod Charlie was forwardly-placed as well. Jockey Luis Saez guided juvenile champion Essential Quality forward to take up sixth on the far outside, as much as five paths off the rail down the backstretch.

Medina Spirit continued under a confident ride from Velazquez, ticking off fractions of 46.70 seconds and 1:11.21 for six furlongs, not overly fast for the classic distance. Mandaloun and Hot Rod Charlie were both taking closer aim as Medina Spirit led through the final turn, as was the 5-wide Essential Quality. Velazquez held Medina Spirit well off the inside fence as the pair turned for home in front.

Mandaloun got first run on Medina Spirit, and Hot Rod Charlie was alongside him. Essential Quality made his move as well, making it a four-wide rush across the track from the eighth pole.

Leading group from left to right: Essential Quality, Hot Rod Charlie (red shadow roll), Mandaloun (pink cap), Medina Spirit (red cap), and O Besos (slightly behind leading four) at the sixteenth pole in the 147th Kentucky Derby

Despite everything that was against him, from his bargain-basement purchase price to the atypically humble opinion expressed by his Hall of Fame trainer leading up to the race, Medina Spirit dug deep and delivered the garland of roses to his connections.

Mandaloun and Florent Geroux, rebounding off a flat sixth-place effort in the Louisiana Derby, were hardly disgraced in second, while Hot Rod Charlie fought all the way to the wire as well to finish third, beaten just a length. Essential Quality, who perhaps had the longest trip of the 19-horse field, was also beaten just a length by the winner in finishing fourth.

The full order of finish was as follows: Medina Spirit, Mandaloun, Hot Rod Charlie, Essential Quality, O Besos, Midnight Bourbon, Keepmeinmind, Helium, Known Agenda, Highly Motivated, Sainthood, Like The King, Bourbonic, Hidden Stash, Brooklyn Strong, Super Stock, Rock Your World, Dynamic One, and Soup and Sandwich.

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