NTRA President, CEO Rooney Joins Writers’ Room Podcast

Tom Rooney, a former Congressman, a lawyer and an Army veteran, was hired to take over as the top man at the NTRA because the NTRA Board knew he could make a difference in Washington. Some two years later and with the swinging pendulum that is the Horseracing Integrity and Safety Act (HISA), Rooney has his hands full. This week, Rooney sat down with the team on the TDN Writers' Room podcast presented by Keeneland to discuss what he and his staff are doing to advocate for the sport. Rooney was the Green Group Guest of the Week.

The NTRA is pro-HISA, which means that Rooney was working behind the scenes to lobby lawmakers to back legislation in which language that covered HISA was changed so that it would satisfy issues brought up by a federal appeals court that declared that HISA was unconstitutional. Had the language not been changed, HISA very well could have been dead. Rooney said his efforts included discussions with both Mitch McConnell and Chuck Schumer. Ultimately, the NTRA and pro-HISA forces got their wish.

“[Schumer and McConnell] both recognized that it was important for our industry to have uniform standards and to have racetrack safety and accountability and integrity for us to move forward,” Rooney said. “We made it incumbent upon those two men especially that we needed this language fixed and we were able to get it done despite a pretty good opposition with regard to people that opposed HISA. So we had to work very hard to make sure that we pressed the issue again with those two men and the rest of the members that were going to vote that had problems with it. I was making phone calls days before to members of the Senate that I'm friends with explaining this to them. A lot of people just didn't know what it meant. They thought it meant more of a government overreach rather than something that would help our industry. And I think that once they understood that, they moved on to the next thing.”

Despite his success, Rooney said he was worried that his efforts would fall short.

“I was not optimistic at all,” he said. “I think I told the people on the phone call that we met with on a daily basis or a weekly basis that we probably had a 5% chance of success.”

The key now, is whether or not the new language will mean that the Fifth Circuit Court of Appeals will be satisfied when it comes to the constitutionality issues and allow HISA to proceed.

“I'm confident and that's because I think that we addressed exactly what the court's problems were,” Rooney said. “There is going to be litigation and there's going to be shots taken in other parts of the bill that don't have to do with the ruling. I don't think that those are fatal. And even if they were ruled against, I think that they could be separated without having to try again with a legislative fix, which would be even more difficult with this Congress.”

Looking to the future, Rooney said horse racing needs to join forces with sports betting websites so that their customers can bet on racing and be exposed to the sport. Currently, most on-line wagering on racing is restricted to the traditional ADW outlets like TwinSpires, TVG and XpressBet and sports bettors do not have access to racing.

“The one thing that I'm focused on which will help reach the next generation is what I can do at the federal level to try to get what's called a single wallet on the sports betting apps,” he said. “One of my biggest focuses for the sake of the gambler is to try to figure out a way to integrate horse racing, which, as you all know, was the only legal sport in our country to gamble on for the longest time. And now we're competing in certain states with all sports. FanDuel is one of my board members, and we were able to work with them to get horse racing on a FanDuel shared application. So you don't have to go off one app to get on another one…I remember my son asking me, 'Dad, who's going to win the Kentucky Derby? And then he's like, 'Why can't find it on my app?'”

Elsewhere on the podcast, which is also sponsored by Coolmore, the Kentucky Thoroughbred Association, the Pennsylvania Horse Breeders Association, XBTV and https://www.threechimneys.com/ West Point Thoroughbreds, Zoe Cadman, Randy Moss and Bill Finley discussed the GIII Sham S. and the incredible amount of depth the Bob Baffert has in the 3-year-old male division. Baffert finished one-two-three in the Sham and has three of the top seven horses in T.D. Thornton's Derby Top 12. There was also talk of the 2022 year-end statistics released by Equibase in which purses were up by 10.92 percent even though handle fell, by 0.87 percent. The group noted that, unfortunately, the growth of purses is attributable not to growth of the sport but solely to outside revenue from casino games. The podcastended on an upbeat note with a discussion of the remarkable recovery of jockey Joree Scriver after it was feared she was paralyzed in a spill at Sunland Park.

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TAA Official Charity of Eclipse Awards

In-person attendees of the Eclipse Awards will have the opportunity to donate to the Thoroughbred Aftercare Alliance (TAA) and learn more about its mission through on-screen displays of TAA's messaging at the Eclipse Awards, to be held Jan. 26 at The Breakers, Palm Beach, Florida. The TAA is the official charity partner of the event.

“As we convene to recognize the most accomplished horses and humans of 2022, the NTRA is proud to recognize the Thoroughbred Aftercare Alliance as the Official Charity of the 52nd Eclipse Awards,” said NTRA President and CEO Tom Rooney. “The work of the TAA is vital to the longevity of our sport, and we hope everyone dependent on these magnificent creatures for their livelihood and enjoyment will join us in honoring them during this time of reflection and beyond.”

In conjunction with NTRA, Lilly Pulitzer will host a “Sip, Shop, and Support” event from 11 a.m.-3 p.m. with 10% of the proceeds to benefit the TAA. In addition to the free beverages provided by Lilly Pulitzer, the TAA will be raffling off a hand-painted Lilly Pulitzer purse. Raffle tickets are $20 with 100% of proceeds benefitting the nationwide aftercare nonprofit. Raffle tickets can be purchased during the in-store event in Palm Beach on Worth Avenue.

In addition to the in-person festivities, the TAA will kick off its second annual Off to the Races online auction Thursday, Jan. 26 consisting of VIP experience packages on major race days in 2023 and 2024. The online auction will remain open for 8 days, with more details to be announced by the TAA in the coming weeks.

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Purses Set Record In 2022 But Handle Drops Slightly

According to figures released Thursday by Equibase, a robust $1,309,837,841 in purse money was paid out during the year in the U.S., an increase of 10.92% and an all-time record for the sport.

Total handle on U.S. racing in 2022 was $12,108,807,335, a decrease of 0.87% when compared to 2021 numbers. The total bet in 2021 was $12,215,598,838.

“Thoroughbred racing purses and pari-mutuel handle continued to exhibit strength in 2022,” NTRA President and CEO Tom Rooney said in a statement. “Purses were up double-digits year-over year and reached an all-time high thanks in part to contributions from other gaming sources. Pari-mutuel handle was nearly equal to 2021 and the second highest since 2009. These business trends occurred during a year of unprecedented growth in legal, state regulated sports betting. The 2023 gaming landscape promises to be more competitive than ever for the sports wagering dollar. It also represents a huge opportunity to introduce pari-mutuel wagering and the sport of Thoroughbred racing to a vast new audience if we as an industry embrace the challenge.”

While wagering appears to be going through a period of relative stagnation, purses have never been better. The Jockey Club's Fact Book records purse data going back to 1988 when $676 million was paid out. Purses have nearly doubled since then and the 10.92% increase was the largest for the sport in a non-COVID year since the Jockey Club began collecting data.

Average purses paid out per day were $319,161, a 10.06% increase over 2021.

That purses are up in a year where handle fell is indicative of racing's increasing reliance on revenues from slot machines, Historical Horse Racing machines and other casino games. Kentucky, in particular, has seen huge increases in purses thanks to the popularity of the Historical Horse Racing Machines.

For reasons that remain unclear, betting fell significantly during the final quarter of the year and during December. Handle was off by 5.54% during the final quarter and by 7.52% in December.

Despite the drop, the news was not all bad. Handle broke the $12 billion mark for just the second time since 2009. After the betting numbers fell to $10.9 billion in 2020, when COVID-19 played havoc on racing schedules, handle was up 11.8% in 2021. Many have speculated that the increase was due to the sport attracting new customers while bettors were shut out from playing other sports during the pandemic.

The sport still has a long way to go before it can equal the type of handle figures that were being posted in the early 2000s. A record of $15.18 billion was wagered in 2003, the second year during a three-year stretch where handle eclipsed the $15 billion mark.

In the case of most other parameters, there was little movement between 2022 and 2021 figures. There were 33,453 races run during the year, a decline of just 0.33%. The total number of starts was 244,133, a drop of 1.31%. The average field size was 7.30, a slight drop from 2021 when the number was 7.37. The 7.30 number represented the smallest average field size since 1950 when the Jockey Club started keeping records.

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Bill That Includes New Language on HISA Passes in House

A $1.7-trillion omnibus spending bill that includes language that would give the Federal Trade Commission (FTC) more authority over the Horse Racing Integrity and Safety Authority (HISA) passed in the House of Representatives Friday. Friday's development came one day after the bill passed in the Senate. The bill will next go to President Joe Biden to be signed into law.

The language in the bill relating to HISA is meant to address issues raised by the Fifth Circuit Court of Appeals in November. That court ruled that HISA was unconstitutional because the FTC's powers were limited and that HISA had too big of a role. It is believed that the relevant language in the bill allows the FTC to “abrogate, add to, and modify the rules of the Authority promulgated in accordance with this Act as the Commission finds necessary or appropriate to ensure the fair administration of the Authority, to conform the rules of the Authority to requirements of this Act and applicable rules approved by the Commission, or otherwise in furtherance of the purposes of this Act.”

While Friday's development was a win for HISA, the battle between pro and anti-HISA forces is far from over and it's unclear what will happen next. However, it appears likely that the National HBPA and other groups fighting HISA will not back down and will continue to challenge the many issues that have been raised in the courts. It's also unclear what steps will now be taken by HISA and the FTC in order to get HISA back on track. Possibilities include asking the Fifth Circuit to reconsider its ruling in light of the fact that the FTC will have more power going forward. It's also possible that the FTC can essentially start the entire process over and ask HISA to resubmit its proposed rules.

Should the Fifth Circuit reverse itself and give HISA the green light to go forward, there are other lawsuits out there that could once again change the direction of the dispute. One is a case in which plaintiffs have made familiar arguments relating to the constitutionality of HISA that has been argued in the Sixth Circuit, which has yet to issue a ruling. Another case is pending in the U.S. District Court of Texas-Northern District, Amarillo Division, which raises several constitutional problems with the law, other than FTC rule-making input. The bottom line is that, from a legal standpoint, nothing yet is certain when it comes to HISA.

After the spending bill passed the house, the NTRA issued a press release celebrating the victory that included comments from several industry leaders.

“On behalf of NTRA members, which include broad representation of every aspect of the Thoroughbred industry, we welcome the successful bipartisan efforts of Congress to reaffirm Congressional support for HISA's mission,” said NTRA President and CEO Tom Rooney. “HISA is critical to our sport and we look forward to working collaboratively with every industry constituency to continue to support the essential role of HISA going forward. We especially want to thank Congressional leadership in Leader McConnell, Leader Schumer, and Speaker Pelosi, committee leadership in Chairman Pallone, Chairwoman Cantwell, and Rep. Schakowsky, and our longtime champions Reps. Tonko and Barr and Senators Feinstein and Gillibrand. Finally, I thank the many people from far and wide across the industry who advocated for this law with their elected officials.”

“The Jockey Club is extremely appreciative of the efforts Congress is making in support of the Horseracing Integrity and Safety Act,” said The Jockey Club President and COO Jim Gagliano. “The Jockey Club has supported nationwide, uniform rules and regulations for Thoroughbred racing for decades through numerous initiatives. HISA is Thoroughbred racing's best solution to greatly improve regulation of the sport and to help ensure our sport is clean and is safe for our athletes–both equine and human.”

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