Jockeys’ Guild Tries To Ban HISA Enforcement Nationwide, Seeks Contempt Charge For CEO Lazarus

The Jockeys' Guild has delivered on its promise to take “immediate action” against the Horseracing Integrity and Safety Authority if the newly created national regulatory agency continued to enforce riding crop rules following a federal judge's order for an injunction blocking HISA from operating in Louisiana and West Virginia.

The injunction, ordered July 26 by U.S. District Court Judge Terry A. Doughty in the Western District of Louisiana, Lafayette Division, limited the HISA ban to the states of Louisiana and West Virginia, but added the phrase  “and as to all plaintiffs in this proceeding.”

Jockeys' Guild, Inc., interpreted Doughty's ruling to mean that all members of the Jockeys' Guild are exempt wherever they are riding. HISA interpreted the language as applying only to the organization as a plaintiff and not its individual members. One Guild member, Gerard Melancon, was listed as a plaintiff.

The California Horse Racing Board issued a statement concerning the injunction on July 29. It reads: “Unless and until a federal court clarifies an earlier ruling by indicating otherwise, the California Horse Racing Board will continue to honor its agreement with the Horseracing Integrity and Safety Authority by enforcing HISA safety rules, including the rules covering use of the riding crop, as the CHRB has been doing since HISA rules went into effect on July 1. California stewards are notifying all thoroughbred jockeys in the state of this decision.”

Kate Swearengen, general counsel for the Jockeys' Guild, issued a statement saying, “Should HISA, or any of its designated representatives, attempt to enforce any of the enjoined rules against a Guild member in any state, the Guild intends to take immediate action to ensure compliance with the Court's order.”

A statement from HISA said the Authority would continue to enforce its rules outside of Louisiana and West Virginia.

On Tuesday, Aug. 2, the Jockeys' Guild and other plaintiffs in the lawsuit against HISA, asked the court to deny a request by HISA and other defendants in the lawsuit to clarify the original injunction, claiming the court no longer has jurisdiction because HISA has taken the case to the Court of Appeals.

A separate filing from the Jockeys' Guild and its fellow plaintiffs asks the court to enforce the preliminary injunction and asks for an order to show cause why Lisa Lazarus, president and CEO of HISA, should not be held in contempt of court for “willfully violating” the order.

A declaration from Terry Meyocks, president and CEO of the Jockeys' Guild, cited three instances since the July 26 injunction that Guild members have been sanctioned for violating HISA's riding crop rules: Drayden Van Dyke at Del Mar July 29; Miguel Vazquez and Edwin Gonzalez, both at Gulfstream Park on July 31.

The plaintiffs have asked the court for an expedited decision on their motion to enforce the preliminary injunction.

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Lone Star Park Owner Files Lawsuit Challenging HISA’s Constitutionality

Lone Star Park owner Global Gaming LSP LLC is among four plaintiffs that filed a lawsuit in Texas challenging the constitutionality of the Horseracing Integrity and Safety Authority.

The suit, filed July 29 in U.S. District Court for the Northern District of Texas, Amarillo Division, is the fourth effort to derail the Authority, created through the December 2020 Congressional passage of the Horseracing Integrity and Safety Act.

A previous federal suit filed in Texas and a separate suit filed in Kentucky were dismissed by District Court judges and are under appeal. A third lawsuit, filed in Louisiana in June, led to a federal judge to issue an injunction barring the Authority from enforcing its regulations in Louisiana and West Virginia. That injunction is being appealed by HISA.

The latest filing was submitted by four entities, including the Chickasaw Nation's Global Gaming, owner of Remington Park racetrack and casino in Oklahoma City, Okla., and Lone Star Park in Grand Prairie.

Lone Star Park was ordered by the Texas Racing Commission to cease interstate simulcasting of its live races after HISA went into effect July 1, effectively freeing the track from having to follow HISA regulations. According to reports, wagering on Lone Star's races fell by more than 80 percent as a result.

The other three plaintiffs are:

-Gulf Coast Racing LLC, which operated a defunct greyhound racetrack in Corpus Christi and claims it is working with the Texas Racing Commission to re-designate its license as a Class 2 horseracing track. It currently offers simulcast wagering.

– LRP Group Ltd., which claims to be working toward operating a racetrack in South Texas. LRP Group held a license to operate Laredo Downs as long ago as 2008 but is inactive.

-Valle De Los Tesoros Ltd., which claims to be working toward operating a racetrack in McAllen. It applied for racing dates in 2009 and is inactive.

The suit claims that the three non-operating tracks have had business plans “stymied due to HISA's implementation and the regulatory chaos and confusion that has resulted.”

It's not clear what breed of horses Laredo and Valle De Los Tesoros would run if they were to seek racing dates. HISA Authority rules only apply to Thoroughbreds.

The latest suit alleges the creation of HISA is unconstitutional on many levels, from the appointment of a board of directors to the creation of regulations by a non-government entity, and violations of Seventh Amendment right to a fair trial and Fourth Amendment privacy rights.

Several of the allegations appear to overlap segments of previously dismissed lawsuits.

Calling the role of the Federal Trade Commission, which oversees HISA, “essentially ministerial,” the suit claims that if HISA is allowed to stand, Congress will have created “a new branch altogether, a sort of junior varsity Congress.”

The suit asks for preliminary and permanent injunctions prohibiting enforcement of HISA regulations.

A HISA spokesperson issued the following statement in response to the latest litigation: “HISA will defend itself in court while the Authority's focus remains on implementing the Racetrack Safety program and finalizing Anti-Doping and Medication Control rules for implementation in January 2023. The majority of racing participants support HISA's mission to protect those who play by the rules and hold those who fail to do so accountable in order to keep our equine and human athletes safe and the competition fair. The immense collaboration with state racing commissions, stewards, veterinarians, racetracks, trainers, and other horsemen that has taken place to date is evidence of this support, and we intend to continue to fulfill our mandate and work to make the industry safer.”

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HISA, FTC Seek Stay Of Federal Judge’s Injunction Blocking HISA In Louisiana, West Virginia

The Horseracing Integrity and Safety Authority and the Federal Trade Commission have each filed emergency motions seeking stays of a federal judge's injunction effectively blocking the Authority from enforcing its regulations in the states of Louisiana and West Virginia.

The motions were filed in the U.S. Court of Appeals for the Fifth Circuit in New Orleans.

The injunction, ordered July 26 by Judge Terry A. Doughty in U.S. District Court for the Western District of Louisiana, Lafayette Division, was in conjunction with a lawsuit filed against the FTC, HISA and its board members and CEO by the states of Louisiana and West Virginia, their respective racing commissions, Jockeys' Guild, Inc., Louisiana Horsemen's Benevolent and Protective Association, Louisiana Thoroughbred Breeders Association and five individuals.

The plaintiffs in the case alleged the FTC, which oversees HISA, approved rules without properly following guidelines from the federal Administrative Procedure Act and that were inconsistent with language in the Horseracing Integrity and Safety Act that created HISA. Specifically, the lawsuit stated, the FTC and HISA did not allow enough time for public comments on proposed regulations. It also claims the definition of covered horses under HISA regulations differs slightly  from language in the enabling legislation and alleges the funding formula that takes into account a state's total number of Thoroughbred starts and purse money is inconsistent with the legislative language.

Doughty's decision to issue the injunction, attorneys for the FTC said, was “based on the court's plainly mistaken understanding of the length of the period required for public comment. … A stay is warranted because the ruling rests on legal error.”

Attorneys for the Authority said Doughty's order for an injunction is “defective on its face and, if not stayed, will cause grave and irreparable harm to the horseracing industry and the public in contravention of Congress's clear intent.”

Calling Doughty's injunction “flagrant judicial overreach,” the Authority's attorneys said the court's advisory is “deeply flawed on the merits” and could have “drastic detrimental consequences” for racing participants.

“To make matters worse,” they wrote, “the district court's rushed order effectively ceases operation of the Act (implemented via the enjoined rules) in Louisiana and West Virginia, after the same plaintiffs have been challenging the validity of the Act unsuccessfully in two different federal courts for almost 18 months – including in a case now on appeal in this Court and scheduled for oral argument later this month.”

The emergency motions for a stay were filed with the Court of Appeals after Doughty denied an emergency motion for a stay pending appeal on July 29.

HISA and the FTC are seeking the stay “as soon as possible, but no later than Aug. 5.”

 

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House Of Cards? No Betamethasone In Medina Spirit’s Pre-Race Testing For Derby

As attorneys prepare for the Aug. 22 appeals hearing in the ongoing Medina Spirit case, a pre-race test result has now become public for the first time.

In response to a public information act request filed by the Paulick Report, the Kentucky Horse Racing Commission has released results of the out-of-competition testing performed on Medina Spirit ahead of the 2021 Kentucky Derby.

An Industrial Laboratories form dated April 18, 2021, indicates blood was drawn from Medina Spirit at Santa Anita Park and assigned sample number E42871. (It is common for the Kentucky commission to work with official veterinarians in other states to do pre-race sampling of likely Derby contenders ahead of the race.) An undated page titled “Screening Results By Sample” lists several sample numbers along with drug amounts and concentrations. E42871 was found to contain 13.269 ng/mL of omeprazole sulfide, which is a common ulcer medication permitted in racehorses. It does not show any concentrations for betamethasone, although a separate sample from another horse whose results appear elsewhere on the page did indicate a level for .319 ng/ml of “dexamethasone or betamethasone.”

The colt famously tested positive for betamethasone after the Derby and was disqualified from his win by Kentucky stewards, who also fined trainer Bob Baffert and suspended him 90 days. Baffert has served his suspension, but the appeal by Baffert and owner Zedan Racing of the other sanctions is ongoing.

Baffert announced eight days after the race that he had been informed of the positive test result, which at the time had not been confirmed by split sample analysis. At that time, he indicated he had no idea how betamethasone could have been present in the horse. Several days later, he said the horse had been treated daily with Otomax, a topical product formulated for dogs, to combat a skin rash. Otomax contains betamethasone valerate as one of its active ingredients, a fact that is notated on the exterior packaging and on the bottle. Baffert indicated that the horse had been battling the skin rash since just after his win in the Grade 1 Santa Anita Derby on April 3. A photo of the affected area released to media on May 11 showed skin lesions consistent with a healing rash.

Medical records for Medina Spirit show that Otomax was dispensed in the colt's name on April 9, 2021 and on April 19, 2021.

Baffert has long maintained that the colt received the ointment from his groom daily through the day before the May 1 Derby.

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Craig Robertson, attorney for Baffert, did not respond to a request for comment by press time.

Clark Brewster, who represents Zedan Racing, told the Paulick Report he thinks the lack of betamethasone finding is an example of how unpredictable topical drug administrations can be.

“That's the vagaries of using a salve or an ointment,” said Brewster. “Most vets, and I'm talking about leading vets, couldn't believe you could get a positive from a salve or an ointment. Vince Baker [Baffert's veterinarian who prescribed the drug] testified that he's had Otomax dispensed to horses literally hundreds, if not thousands of times, and nobody reported a positive.

“It depends on, was the horse washed that day before they took the test? Did the horse have more of a lesion on him as the days went on so they used more? Who's to say? But that's the arbitrariness and the unfairness of having a reported positive from a topical.”

Further, Brewster pointed out, there is nothing on the document listing the screening limit for betamethasone for the pre-race tests. He also indicated that other pre-race tests taken from Baffert horses ahead of that race did not find betamethasone.

Despite the test results, Brewster said he is confident ahead of the Aug. 22 hearing.

“I feel very good about the facts, and the rules,” he said. “Without a doubt, he will win. The question is when? And the answer is whenever someone applies the facts to the laws in an unbiased way.”

Read our previous reporting on discoveries from public information act requests in the case here and here.

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