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The ORI Conference includes a dozen speaker sessions scheduled for Monday and Tuesday, as presenters cover a variety of topics, including money laundering, regulatory oversight, medications, ethics, the media, human trafficking, licensing, drugs and alcohol on the backstretch, employee retention and barn surveillance. The final speaker on Tuesday will be Shawn Loehr, Director of Investigative Operations for the Horseracing Integrity & Welfare Unit (HIWU), who will give an overview of his office's program.

“We are extremely excited to welcome everyone to this year's ORI event and we want to thank all of our sponsors,” said Chairman Juan Estrada. “We expected around 45 to attend and we more than doubled that, so the interest and understanding about how important our network is can be interpreted as better than ever.”

To go along with this lineup, Monday afternoon will be devoted to a series of case studies and practical searches at Rillito Racetrack, which will be overseen by ORI Board Members. As an onsite teaching classroom, the setting will give participants a first-hand look into the latest techniques when it comes to investigation.

With students from the University of Arizona's Race Track Industry Program serving as volunteers during the conference, Chair Robert Hartman will deliver remarks at a dinner on Monday evening, which will be followed by author Melisa Del Bosque's keynote address. An awards ceremony intended to highlight the accomplishments of ORI members will conclude the banquet.

Click here, for the ORI Conference Program.

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On Monday night the annual awards dinner will feature a keynote address by Melissa Del Bosque, author of Bloodlines: The True Story of a Drug Cartel, the FBI and the Battle for a Horse-Racing Dynasty (2018). Remarks by Robert Hartman, Chairman, University of Arizona's Race Track Industry Program (RTIP) is also a part of the program. Additionally, an awards ceremony will include the John F. Wayne Lifetime Membership Award, and present Lifetime and ORI Board Members will also be recognized. A business meeting for members will take place on the final day of the conference. Click here, for the complete ORI Conference schedule. If you would like to receive Press Releases from ORI, please email: racinginvestigatormedia@gmail.com.

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“The TAA is very grateful to the team at Gulfstream Park and Peter Aiello for this unique and fun way to raise funds and awareness for aftercare. We hope fans of racing will embrace this experience to have an exciting birds-eye view of Thoroughbred racing while joining Pete and supporting a great cause,” said Stacie Clark-Rogers, TAA's Operation Consultant.

Aiello, a native of West Palm Beach, grew up attending the races at Gulfstream, Hialeah Park and Calder Race Course. A graduate of the University of Arizona Race Track Industry Program, he called races at River Downs, California fairs and Oaklawn Park before arriving at Gulfstream in 2016.

“I love meeting racing fans and I applaud the efforts of the TAA so it is a perfect marriage. I look forward to showing everyone a great time raising money for a great cause,” Aiello said.

For more information contact Stacy Nicks at stacy.nicks@gulfstreampark.com.

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On Wednesday, Pat Cummings, the TIF's executive director, told an audience at the Global Symposium on Racing hosted by the University of Arizona Race Track Industry Program in Tucson that this incident was one of more than 60 purported pool manipulations he has documented at North American racetracks since the spring.

“The reason we wrote about that particular incident was because it was easily the biggest of more than five dozen incidents that we've tracked in the last six or seven months affecting, really, a significant number of racetracks, most of whom don't seem to know any of this is going on,” Cummings said.

And in the cases where regulators and racetrack operators do acknowledge that pool manipulation exists, Cummings said, they often believe the practice is victimless, without harm to the sport, or beyond their power to change.

All of those ideas are incorrect, Cummings said in a panel discussion titled “Illegal Betting's Threat to the Racing Industry.”

“I've approached regulators across America with this,” Cummings said. “And they say, 'Well, it is handle, right?' I mean, the tracks want this money…”

Cummings trailed off midsentence, giving the impression that industry bigwigs often shrug when faced with evidence of pool manipulation (Gulfstream, however, did discontinue quinella wagering days after becoming aware of the Nov. 11 pool irregularities).     A recent report titled “The State of Illegal Betting,” compiled earlier this year by the Asian Racing Federation, exposed the proliferation of unlicensed and unregulated online horse racing and sports wagering companies. The report found the global demand for online wagering is increasing faster than industry's ability to react. The suspicious betting patterns detected by the TIF in American pools may have a connection to non-pari-mutuel bookmaking.

Wednesday's panel, which also included global perspectives from Matt Fowler, the London-based director of integrity for the International Betting Integrity Association, and Martin Purbrick, the chairman of the Asian Racing Federation's Council on Anti-Illegal Betting and Related Financial Crime, outlined some major threats and discussed what actions could be taken going forward.

But it was the presentation by Cummings–who isn't even a regulator or investigator, but is more akin to an ombudsman for U.S. wagering–that hit closest to home for most stateside racing stakeholders.

Cummings said the first fundamental step is to recognize that pool manipulation is never going to be eradicated entirely. It's not even explicitly illegal. A good chunk of it, he said, occurs with the aid of the “vast” gray-market global bet-booking business whose handle is “far in excess of the legal market, and it has infiltrated American racing. There is absolutely no question.”

Cummings gave an overview of how a manipulator might work, using show pools as an example. (If you want to read a more in-depth TIF writeup on the process, click here.)

A manipulator might bet $2,000 to show on a horse or horses who look certain to finish in the money at a track where the fields are uncompetitive and/or short and the show pools are miniscule. But instead of betting that money in the pools, he instead spreads it across a number of different offshore bookmakers in smaller increments. These are bets he intends to win, and it's important to note that the offshore outlets don't often “lay off” this money into the mutuel pools.

In the same race, the manipulator then bets, say, $4,500 into the show pool on one of the longest shots on the board, and this money does go through the mutuels, making a horse who is unlikely to hit the board based on past performances the overwhelming favorite in that pool. This bet he intends to lose–it's a business cost whose sole function is to abnormally drive up the show prices on the more likely horse(s) to hit the board that he backed with the offshore bookies who pay the on-track prices.

If the race unfolds as the manipulator envisioned it will, the hapless heavy show favorite runs out of the money, while the more talented horse(s) he backed via bookmakers cruises home in the top three, triggering something like a $21.00 show payoff.

“So they sacrificed $4,500 to win maybe $21,000,” Cummings said. “The manipulator is spreading his or her risk, likely across multiple accounts, because the offshore operator may not pay them. That's just part of the risk.”

Cummings continued: “I don't see a lot of [bettors] talking about this or noticing it. And the reason is, if you bet an even-money shot to show thinking you were going to get $2.20, and [instead] got $21.20, who's complaining?”

That's an obvious example that should stand out, Cummings said. But this pattern occurs with more subtlety using smaller dollar amounts, he explained, like when a manipulator might be content not to make a single big score, but instead routinely inflate 1-to-5 shots in the show pool so they pay off like a 4-5 shot would.

And occasionally, the horse who was supposed to be a dud wins or hits the board, Cummings said. That's when bettors do speak up and complain about the pools not being on the level, because the big long shot they legitimately bet in the mutuels returns a vastly underlaid show payout.

That can lead to image and integrity problems, Cummings said.

“You do not want a bad name associated with your product. And every time someone manipulates your pool, if it's noticed, it's bad for your product,” Cummings said.

Beyond creating bad perceptions, Cummings said, rampant pool rigging could also encourage manipulators to get a bit bolder with their actions, perhaps by spending a bit extra to bribe participants to ensure desired outcomes in races.

“If someone's willing to bet $4,500 to show in a race where the winning jockey is earning $900, what's an extra $500 to make sure they don't run in the money?” Cummings said. “Or an extra $500 to the trainer to tell the jockey to maybe be a little slow out of the gate today.”

Cummings stressed that to his knowledge, there is no current evidence that pool manipulators are reaching out to arrange fixed races.

“That's a good thing–for now. But it's out there. And it happens. And there is no reason that others might not try to copy this,” Cummings said.

Cummings explained that he's a proponent of the “best defense is a good offense” strategy to try to keep pool manipulation at bay. The industry can do this, he said, by recognizing that our pari-mutuel system is ripe for being controlled in the manner he described, and by increasing stewards' awareness and oversight so there is a better focus on pool-watching.

A fixed-odds system might be a better long-term solution. But that style of betting is not completely immune from manipulation, either, Cummings said.

Reinventing our wagering menus could be an option, Cummings said, with an eye on pruning off the low-volume pools.

“Should a track that has offered win, place and show betting for the last 60 years continue to do so when the place and the show pools only average $1,200?” he postulated.

In that case, maybe the solution is to get rid of the place and/or show pools.

The proliferation of rolling horizontal wagers on practically every race card on the continent is also a hazard waiting to happen, Cummings said, because those bets, too, draw very little mutuels action and have low base-bet increments.

“We have to rethink the way we're doing this, because every small pool is a way to manipulate the outcome, to corrupt a participant, to help exact these sorts of outcomes,” Cummings said.

Cummings said he has spoken with various groups of officials and regulators over the past year about the problem of pool manipulation.

Their reactions?

“Interested, but [there was] very little they thought they could do about this,” Cummings said.

“This falls back on track operators. It falls back on horsemen's groups,” Cummings said, pointing out that the idea of looking the other way when pool manipulation occurs is not justifiable simply because it increases handle and thus fuels purses.

“If you don't recognize it, [or] if you bury your head and say, 'I don't want to hear about it–not interested,' it's going to keep happening,” Cummings said.

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Yet Simon Fraser, the senior vice president in charge OF international simulcast signal distribution for 1/ST Content, made his case effectively by drawing upon his experiences in managing the content rights, data, odds and signals on behalf of a broad portfolio of global partners who work with the world's leading fixed-odds, spread-betting and commingled wagering companies.

“One of the points that I've learned over the years is that racing is an inherently local sport. It isn't a global sport. It's a very local sport,” Fraser said.

As example, he pointed out that racetrackers worldwide, “all speak a version of the same language, and we all can understand each other when we talk.”

But when a bettor from one part of the planet opens up a racing publication or looks at past-performance data from another corner of the globe, it can be very difficult for them to interpret the information with enough familiarity to confidently place a wager.

Other local/global differences exist. Think fixed odds-versus-mutuels, dirt-versus-turf, jumps-versus- flats. Now toss into the mix different rules and officiating styles, plus the inherent disorientation of working across multiple time zones.

“To take advantage of the fact that people really do like racing, and they like to bet on racing internationally, you have to react to what the local market needs,” Fraser said. “First of all, the local product has to be right. If the local product isn't right, then it doesn't matter what happens internationally. And all of the revenue that you're really going to make to make the local product right comes from the local market. Anything international is just the cherry on top.

“Now, when you do the local product right, you can take it to countries and you can adapt it, and you can work with local partners and local betting companies and local journalists to turn that product into a suitable product for that market.”

Fraser gave the specific example of selling North America simulcast signals to Turkey, where the only wager routinely attractive to players in that market is a Pick Six. That means his focus on providing content to that market revolves around providing six strongly bettable races.

“But that work for Turkey doesn't translate to Italy,” Fraser explained. “It doesn't translate to Australia. It's very specific for that market, and you have to do everything differently for each market.”

Bill Nader, currently the president and chief executive officer for the Thoroughbred Owners of California, drew upon his decades of executive-level experience with the New York Racing Association and the Hong Kong Jockey Club to remind his U.S.-based audience that global participation is a two-way street.

“Not just America trying to find out what it can gain from venturing outside the country, but also horses coming in and running in our races, and trying to capitalize, from their own way, on global participation,” Nader said.

As a prime example, Nader cited the recent rise in international prominence for Japan-based Thoroughbreds. He, too, tied in that global shift to what's happening locally in Japan.

“You don't really see the top Japanese horses running in the [GI] Breeders' Cup Turf, because at that time of the year they have their own races. But in the dirt program, they don't. So where will they go? They'll go to where dirt racing is at the center of the global universe, America, and target [Grade I] races like the [G] Kentucky Derby, the [GI] Belmont Stakes, and the Breeders' Cup,” Nader said. “In Japan, there's only one Grade I race on dirt. And I think that's their next chapter, and they'll develop more with their dirt program in the next five to 10 years.”

Maybe not so much in sprint races, Nader postulated. But because Japan's bloodstock program is adept at cultivating runners that excel between nine and 12 furlongs, their horses as a whole tend to be, “stronger in more [of] the staying races,” he said.

“You've seen the broodmares that they continue to buy, especially here in America. They're just getting stronger and stronger. But I do think that eventually, they'll come for us on the dirt. And when they do, it's a good thing.”

Why good for American entities?

“Because if a Japanese horse is running in those races, all of Japan is watching. The benefit of that is incredible,” Nader said, in terms of long-term, trickle-down economics.

At one point, Fraser was asked what a typical, mid-level American racetrack can do to stand out to international bettors.

“One thing to remember is internationally, people don't necessarily know what is a mid-range [American] track [or] what is a top track. I know that might come as a surprise,” he said.

“Some of what you would think of as mid-range tracks are very popular internationally because they run on the right days. They run on days when there is not much going on. So if you are in the winter on the East Coast, there's not a lot of evening racing happening in France, or the U.K., or in Ireland during the winter. So those tracks that run Tuesday are pretty prominent tracks [overseas]. Whereas some of the bigger tracks that all run on Saturday and are crowding against each other don't get much share or voice.”

Data compatibility across different cultures is a topic that has percolated at racing's international conferences since the advent of global simulcasting. Tuesday's panel discussion re-examined the issue.

Dean McKenzie, the managing director for McKenzie Sport International, Ltd. in New Zealand, noted that bettors in other parts of the world are baffled when they encounter an American equipment change listed simply as blinkers on or off. They're used to being able to find out exactly what type of blinkers are being used among the many variations. And if a trainer decides to tell his rider to switch running-style tactics, in many foreign jurisdictions that gets communicated to the public via stewards.

Nader noted that gamblers in other parts of the world are used to judging a horse's fitness based on its body weight, which is a standard and widely available stat outside of the U.S. but practically unheard of here except for a couple of brief experiments at various tracks.

Tallulah Wilson, the head of international partnerships for UK Tote, pointed out that global rules conflicts, such as a horse running for “purse money only” in a big race like the Breeders' Cup, can create significant confusion. (Such a concept is unheard of outside the U.S.)

But, Wilson added, stakeholders have to overcome these sorts of challenges.

“You have to adapt for the benefit of your customers,” she said.

When Fraser chimed in on the topic of what U.S. content providers need to do right to be more  internationally appealing, he pinpointed two nagging issues that the American racing industry has long debated but just can't seem to get right: offering decent field sizes and adhering to published post times.

“Eight-plus runners, and [going] off on time is crucial,” Fraser said.

Although the tie-in went unspoken by anyone on the panel, that final comment from Fraser dovetailed neatly with his initial point about racing entities needing to optimize local practices before trying to scale up to the global level.

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Dorman was born with the rare genetic disorder Wolf-Hirschhorn syndrome and is unable to walk or communicate without utilizing a tablet. The now 16-year-old first met an unnamed foal by champion Curlin when Godolphin hosted Cody and his family during Keeneland's Make-A-Wish Day in 2018. From their first meeting, the colt always showed an uncanny interest in Cody and those visits gave Cody the strength to continue through some incredibly tough times. And Cody's Wish has never lost a race with Cody in attendance.

“Cody has brought to the forefront what it means to be strong and brave in his personal life as well as highlighting the extraordinary interaction that occurs between horses and humans,” said Wendy Davis, TPA president. “He gives inspiration to us all.”

The Big Sport of Turfdom award will be presented at the University of Arizona Race Track Industry Program's annual awards luncheon Dec. 6. The luncheon is part of the 2022 Global Symposium on Racing at Loews Ventana Canyon Resort in Tucson, Arizona.

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The Symposium offers an opportunity to network with colleagues and interact with industry peers; all while supporting the University of Arizona Race Track Industry Program (RTIP). This year, all RTIP alumni will receive free registration to the conference and special events are planned to reconnect the broad alumni base.

To register for the Symposium, visit www.racingsymposium.com

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Here are some takeaways from the day's presentations and discussions, which included four segments focused on HISA, a keynote address from new National Thoroughbred Racing Associations president and CEO Tom Rooney, and a high-powered panel featuring the top executives of four major racetrack organizations: 1/ST Racing (The Stronach Group), Del Mar, Keeneland and the New York Racing Association.

HISA Drug Testing Will Be Phased In

Charles Scheeler, the chairman of HISA, outlined the progress the organization has made during a very compressed timeline from passage of the legislation in December 2020 until its mandated launch July 1. A board of directors and chairman was named in May 2021, interim staff including a CEO was hired in July, when meetings and collaboration with the presumed enforcement arm, the U.S. Anti-Doping Agency (USADA), began. In September, stakeholder talks started, along with meetings with current state regulators. HISA presented its draft of proposed safety regulations to the FTC on the eve of the Symposium. It requested and received a waiver from the FTC to delay submission of proposed anti-doping and medication policies for at least 10 days (until Dec. 16). Draft anti-doping/medication regulations shared with industry organizations were met with considerable feedback. The FTC will conduct public register review in January and February and the rules must be approved by March 1 – four months in advance of HISA's launch.

Scheeler said the final regulations approved “will not be perfect” or “written in stone.”

When HISA does begin operations on July 1, it will only conduct out-of-competition testing, leaving post-race testing and adjudication of any violations from those tests in the hands of the state racing commissions for the rest of the year. Scheeler said HISA would take over post-race testing on Jan. 1, 2023. HISA would adjudicate any violations detected from out-of-competition tests.

Scheeler said HISA also hopes to work with racing commissions when it begins post-race testing to use existing personnel for race-day blood and urine collections, adding that if something isn't broken HISA is not interested in fixing it.

Technology And Big Data Will Be Critical

Scheeler and Dr. Susan Stover, a HISA board member and chair of the Racetrack Safety Committee, spoke about the importance of technology and data to HISA's success. The “transformational database” referred to by Scheeler would include information on both covered persons and covered horses and provide trainers and owners an interface to report whenever a horse's location changes, an important component for out-of-competition testing.

Stover, whose breakthrough research at the University of California-Davis has led to greater understanding of injury prevention, said the opportunity to collect comprehensive data is extremely important for racing to reduce the rate of fatal or serious injuries and for the sport to maintain what she called its Social License to Operate (SLO) with the public.

Stover pointed out that the United States has in recent years reduced its rate of fatal injuries per thousand starts by 40% but still has a rate higher than in the United Kingdom, Australia/New Zealand and Hong Kong. “We have work to do,” she said.

Dr. Sue Stover (right) and Ann McGovern

Fatalities aren't the only concern to Stover, who said 3% of horses at the tracks are taken out of training each month, an attrition rate she estimated costs nearly $82 million to horse owners every month.

Some form of pre-existing condition was detected in almost 90% of fatally injured horses she has examined over the years, Stover said. Factors that led to increased risk included corticosteroid injections, recent lameness and abnormalities in pre-race exams. Stover said data collected on training intensity (speed works at longer distances) may help HISA develop best training practices, especially for horses coming off layoffs.

Racetrack accreditations by HISA will be phased in, with tracks currently accredited by the NTRA getting an interim three-year accreditation with HISA, provided they make good faith efforts in certain areas and adhere to data reporting requirements.

Ann McGovern, a racetrack safety committee member, said in response to a question from the audience that tracks that fail to be accredited will lose their ability to conduct interstate wagering.

HISA/USADA Price Tag Remains a Mystery

Scheeler said HISA was not yet in position to submit a budget for HISA operations, in part because it does not have a contract with USADA. Costs, he said, would also depend in part on how things are worked out with state racing commissions. “It will cost money,” Scheeler said, “but this is an investment.” He compared the industry's failure to advance safety and anti-doping programs to bridges and roads crumbling because of the lack of infrastructure investment. Some of that investment will be in what Scheeler described as a “powerful and rigorous investigation program” similar to the 5Stones Investigations unit hired by The Jockey Club that investigated many of the trainers, veterinarians and drug suppliers who were indicted on federal charges in March 2020.

In a separate panel, Ed Martin, president of the Association of Racing Commissioners International, said language in the bill that created HISA was flawed because it does not require state racing commissioners to help with funding. “They made a mistake with this bill,” said Martin. “They allowed the states to walk away.” Martin suggested that state budget directors will withdraw funding for horse racing regulations and drug testing once they find out they aren't required to help fund HISA.

Therapeutic Medication List Still Being Developed

A group that included Adolpho Birch, HISA board member and chair of the Anti-Doping and Medication Control Committee, reviewed how medication violations will be adjudicated, separating primary (most serious) and secondary (therapeutic) drug positives.

Jeff Cook, general counsel for USADA, said a goal will be to adjudicate cases more quickly: four weeks when doping violations for secondary medications are challenged and eight weeks for primary drugs. A national stewards panel will adjudicate the secondary cases with an arbitrator used for the more serious violations. Cases can also be appealed to an FTC administrative law judge.

Two notable changes from the current process are that split samples would not go to a lab of the trainer's choosing and public disclosure of complaints may come as soon as the trainer is notified.

Birch, general counsel for the Tennessee Titans, served previously as the NFL's top anti-doping officials and helped draft the league's drug policies. Birch said the NFL was struggling with controlling the widespread use of performance-enhancing drugs, with some players dying from drugs and others feeling the need to cheat to compete. “If we didn't change,” he said, “the sport was going to suffer irreparably.”

Dr. Tessa Muir, USADA's director of equine science, said the HISA Anti-Doping and Medication Control Committee is still in the process of drafting a therapeutic medication list and screening limits for those drugs.

Mr. Rooney Goes Back To Washington

In his keynote address – his first as NTRA president and CEO – former Florida Congressman Tom Rooney said his mission will be to represent the horse industry in Washington, D.C., where he served five terms in the House of Representatives, from 2009-'19.

Rooney succeeds Alex Waldrop, who served as NTRA chief executive for 15 years. Waldrop was honored on Tuesday by the Race Track Industry Program with the Clay Puett Award for outstanding contributions to the industry.

From a family that owns the NFL's Pittsburgh Steelers and has been involved in Thoroughbred, Standardbred and Greyhound racing, Rooney brings a solid resume to the position. As a former member of Congress, he understands how important it is to have an industry representative in the nation's capital.

That's never more important than today, he said, referencing high profile events like the sudden death of Medina Spirit, the first-place finisher in the Kentucky Derby, and the fact that “our opponents have not gone away and they never, ever will go away.”

Incoming NTRA president and CEO Tom Rooney

Rooney's family owns the Palm Beach Kennel Club in Florida, where Greyhound racing was recently eliminated in a state-wide vote.

Rooney said he will work to support a smooth transition to HISA, help racing benefit from sports betting and maintain favorable tax benefits for horse owners.

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“We are thrilled to stream the symposium to a global audience for the first time,” said RTIP Chair Robert Hartman. “While there will be a huge turnout of industry attendees, we also understand that travel may not be possible for some, and felt it was important to make these panel sessions available to everyone. We are very appreciative of RCN's help in this endeavor and especially their generosity in donating all of the proceeds back to the program.”

The agenda for this year's symposium includes panels on and/or reports from the Horseracing Integrity and Safety Act (HISA), industry leaders sharing their three-year plan, ways to increase field size, seizing the fixed odds and sports betting opportunities, growing sponsorship revenue, and more.

For more information on the symposium, including a full agenda, visit ua-rtip.org/symposium.

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