Posts Tagged ‘association of racing commissioners international’
Wednesday, January 7th, 2009
By Ray Paulick
Are betting exchanges a possible solution to the problems facing the U.S. Thoroughbred industry, which in 2008 saw its annual pari-mutuel handle fall for the fourth time in six years, dropping over 7% to a 10-year low? The Thoroughbred Owners of California thinks they may be, having recently signed a letter of agreement with betting exchange giant Betfair to have the UK-based company promote California racing abroad while TOC helps BetFair obtain statutory and regulatory approval to operate a betting exchange in California.
Betfair, which has been trying for several years to gain access to the U.S. market, is also believed to be a leading candidate to buy TVG, whose parent company, Macrovision, announced its intention to sell TVG last year. Though there are no confirmed suitors, others rumored to be potential buyers of the racing network and Advance Deposit Wagering platform include Churchill Downs Inc.; Marc Nathanson, a cable TV industry billionaire and father of TVG president David Nathanson; and an industry consortium that could include Keeneland, the New York Racing Association, former Hollywood Park chairman R.D. Hubbard, and Los Alamitos racetrack owner Edward Allred.
Betfair, a privately held company, was founded in June of 2000, using a technologically advanced platform permitting individuals to go online and bet against one another on a wide range of events, including horse racing, sports, politics and even reality television shows. By taking commissions of 2%-5% from winning bets, the company offers extremely low takeout and has built enormous volume: it claims to have over one million customers from 140 countries, with 100,000 or more active players in a given week. (UPDATE: Betfair said in October 2008 that it signed up its two millionth customer; see comments section, below) Its wagering platform handles over five million bets per day. In 2007, Betfair had 42 million English pounds in earnings before interest, depreciation, taxes and amortization on revenue of 240 million pounds. According to its annual report (which can be seen here), Betfair has 110 million pounds cash on hand.
CONCERNS ABOUT BETFAIR
The problem many see with Betfair is that the company pays a small percentage for the rights to races on which it handles wagers. In England, for example, it pays a bit over 10% of gross profits on racing wagers. In some cases, however, it pays no fees at all, as is currently the case with racing from the U.S. Betfair currently accepts bets on American racing, but only from customers outside of the U.S., and it does not have rights to any video signals. Betfair is acutely aware of concerns from racing interests in the U.S. who believe betting exchanges would cannibalize pari-mutuel betting and decrease revenue to tracks and purses. It addresses some of those fears in this pamphlet, which was designed to appease the racing industry in the United Kingdom.
Another concern raised about Betfair centers on wagers it accepts that a specific horse will lose, prompting worries about race-fixing. But Betfair has cooperated in several investigations involving horse racing and sports betting, giving authorities access to detailed betting information as part of its memorandum of understanding.
Drew Couto, the president of TOC, said the letter of agreement with BetFair was signed last month. He believes wagering will continue to suffer unless the industry distances itself from Albert Einstein’s definition of insanity: doing the same thing time after time and expecting a different result. “That really describes our industry’s approach to this sport and business over the last decade,” Couto said.
“Going forward,” he added, “we have to face two very important realities. “First, we have allowed the sport to basically disappear. It’s no longer a sport, but simply a justification to gamble and wager, and as a wagering proposition we know it’s not the most attractive. We have to go back and make it a sport. We have to give the sport some structure to have it make sense for the fans, make some very serious fundamental changes to focus on the sporting aspect of racing. We have left it largely to the tracks to be the stewards of the sport, and they only care about the financial side.
“Second,” Couto said, “we have to adopt new ways our fans can participate. New wagers, betting exchanges. We have to embrace these new ways of playing as ancillary to the way we currently operate, so it’s new and fresh. That includes tournament-style wagering that was approved by the RCI (Association of Racing Commissioners International) last summer. If we don’t begin to do things differently and find new ways to operate, we are bound to be the definitive example of what Einstein said.”
CAN RACING DEVELOP ITS OWN BETTING EXCHANGE?
Chris Scherf, executive vice president of the Thoroughbred Racing Associations of North America, a racetrack trade organization, for years has advocated that North American tracks consider developing their own betting exchange. He sees the trend in downward handle as a serious crisis.
“We’ve got to look into pricing (the takeout charge on pari-mutuel bets), the product that’s being provided and the convenience factor for wagering,” Scherf said. “We need to make the same kind of concerted effort on handle that is currently being made to improve the safety and welfare issues. Track by track, you can get swamped in a million problems, but this has to be at the top of the pile. We are losing bettors. What do we have to do to change that aspect of the business, the part that provides us revenue? Of course, the entire debacle of cutting off signals in the last year (due to contractual disagreements between tracks and horsemen over ADW splits) was extremely detrimental to any kind of sustained gambling business.
“The problem,” Scherf said, “is we’ve got tracks and horsemen both saying they need more money in this economy. But the first thing we need is an engaged gambling public, and they should be at the top of the list.”
Scherf said he is “somewhere in between fear and welcoming” Betfair into the industry. “We had no master plan for how ADW would fit in and now we are trying to retrofit it, which is causing a lot of angst and problems. We need to spend more time developing a strategy (for exchange betting), though it’s difficult to do that when you have a wide disparity throughout the industry in resources and markets.”
Lonny Powell, an industry consultant based in Lexington, Ky., who previously served in executive positions with racetracks (including head of Santa Anita Park), the ADW company Youbet.com and as president of the Association of Racing Commissioners International, said BetFair has done a good job of “mainstreaming themselves” in recent years by sharing more of its profits with the racing industry in Europe.
“It’s here to stay,” Powell said of Betfair and exchange betting. “When I was in the ADW world, I wished they would just go away, but I don’t feel that way anymore. We’re like an ice cream store that only sells vanilla, but you can go over to Baskin Robbins and get 33 flavors. We need variety.”
Powell, who said he is optimistic the industry will find a solution to its present challenges, believes racing interests should look at developing their own betting exchange. “If the industry could somehow take this wagering crisis a little more seriously and rather than find ways to kill something, find ways to make it work, we can grow the gambling dollar,” he said. “A Betfair type of platform can be operated by U.S. racing interests. The economic model that Betfair offers is flawed, but we all agree our current model is flawed, too. I’ve got to believe a Betfair type of platform would work. Our product is stale, and our wagering levels are stale.”
INTEGRITY ISSUES REMAIN A CONCERN
The reason for declines in handle go beyond a limited product line, said Mike Maloney, a professional gambler in Kentucky who has become an outspoken advocate for horseplayers at industry conferences and who served as an ad hoc member of a Kentucky Horse Racing Commission Task Force. “We are at a very significant crossroads in racing,” Maloney said, “probably the biggest one in my lifetime. The financial crisis is magnifying our problems, but the problems have to be dealt with before racing can recover. The economy may improve, but racing’s problems will still be there.
“Our customer base is aging, and they’ve lost a lot of their faith in the integrity of racing,” he said. “As they age, they aren’t being replaced. The second problem is the takeout is too high. We can’t attract new players and are having a hard time holding on to existing ones. It’s exacerbated because the takeout keeps going up. With competition from other gambling opportunities, you can’t get away with that any more. It’s roughly 5% in other forms of gambling – sports, table games, trading options – but it’s 20% for us. New York just raised takeouts; trifectas are 26% now, and I just refuse to play it. Kentucky wants to raise takeout. What other business in this economic climate would consider racing prices?
“Third,” Maloney said, “racing integrity problems are real, and they are not exaggerated. If anything, they probably are underplayed. Trainers who use drugs to cheat; unsecured wagering pools with outdated technology; unregulated participants allowed access into those pools. People are just beginning to learn about some of the problems in these areas. In the last couple of years the light is being shined on them. These are serious problems that need to be dealt with. Big players realize they can’t trust the pools they are playing money into.”
Finally, Maloney said, the corporate mentality of many racetracks has hurt the game. “There is a disconnect with customers with some of these racetrack holding companies. They don’t really understand their business, and there’s too much short-term bottom line thinking; cutting costs, worrying about the next quarterly report, and too little thought about long-term improvement of the product.”
Maloney, who called betting exchanges a “two-edged sword” because of how they would cannibalize pari-mutuel betting, said the industry has had a wake-up call after being “rocked by betting and drug scandals and threatened” by the federal government. “This crossroad we’re at, what we do from here, will determine the fate of racing.”
(Do you have an opinion on how the industry reverses the trend in declining handle? We’re interested in your comments below and in your thoughts about betting exchanges, the subject of the Daily Paulick Poll, which can be found on the left-hand column of the Paulick Report home page.)
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Tags: advance deposit wagering, ADW, association of racing commissioners international, betfair, betting exchange, chris scherf, churchill downs, david nathanson, drew couto, edward allred, gambling, Hollywood Park, horse race gambling, Horse Racing, horseplayer, integrity in racing, Keeneland, lonny powell, los alamitos, marc nathanson, mike maloney, New York Racing Association, nyra, pari-mutuel wagering, Paulick Report, powell strategy & solutions, professional gambler, R.D. Hubbard, Ray Paulick, RCI, santa anita, Thoroughbred industry, thoroughbred owners of california, thoroughbred racing associations, toc, tra, tvg, youbet
Posted in Account Wagering, Betting Exchanges, Industry Organizations, Industry Reform, Regulatory Issues, Wagering | 37 Comments »
Wednesday, November 5th, 2008
By Ray Paulick
The Delaware Thoroughbred Racing Commission has upheld a stewards ruling against trainer Larry Jones involving a test for a higher than permitted level of the bronchodilator Clenbuterol in Two Bucks Stable’s Stones River, who won a June 8 allowance race at Delaware Park.
The stewards have suspended Jones seven days, fined him $500 and ordered the purse money won by Stones River to be redistributed. The ruling was the first of any kind against Jones, who has trained horses for 25 years.
The hearing was conducted on Monday, and both Jones and Two Bucks owner Jim Squires appeared. Jones was represented by attorney Brent Caldwell, according to John Wayne, executive director of the commission. “The commissioners were very impressed and complimentary of Caldwell’s defense,” Wayne said. Nevertheless, the five commissioners voted unanimously in public deliberations to uphold the ruling, which was more lenient than the guidelines established by the Association of Racing Commissioners International. Those guidelines call for a suspension of 60 days to six months and up to a $1,500 fine. Clenbuterol is classified as a Class 3 drug by RCI.
"The commissioners felt that the stewards’ ruling fit the criteria as a first-time offense ever for Mr. Jones," Wayne said.
Wayne said the final decision and order prepared by the commission’s deputy attorney general will be forthcoming. “At that point,” he said, “Mr. Jones has the option to appeal the commission’s decision to Superior Court if he so desires.”
Copyright © 2008, The Paulick Report
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Tags: association of racing commissioners international, brent caldwell, clenbuterol, delaware thoroughbred racing commission, jim squires, john wayne, larry jones, RCI, stones river, two bucks stable
Posted in Medication, Regulatory Issues | Comments Off
Wednesday, October 15th, 2008
By Ray Paulick
The National Thoroughbred Racing Association announced a series of sweeping safety and integrity reforms and the hiring of a former governor and Bush administration official during a press conference in New York this morning.
The reforms, organized under the banner of the newly created NTRA Safety and Integrity Alliance, touch on a wide range of issues that have been bubbling under the surface for years but came to a head this spring in the wake of the death of the filly Eight Belles in the Kentucky Derby, the revelation that Derby winner Big Brown won while racing legally on anabolic steroids, and a damning Congressional hearing that left industry leaders red-faced and fearful of federal action. The reforms and the creation of the Safety and Integrity Alliance evolved over the last several months from a series of closed-door meetings and a confidential discussion document circulated throughout the industry and published in the Paulick Report in July.
The Alliance, to be funded by the financially challenged NTRA, consists of racetracks, owners, breeders, horsemen, jockeys, auction companies, veterinarians, fans, regulators and breed registries. The NTRA has retained the services of former Wisconsin Gov. Tommy Thompson, who also served as secretary of the Department of Health and Human Services for President George W. Bush and made a brief run for the 2008 presidential nomination of the Republican Party. Thompson will be charged with independently monitoring the program and annually providing public reports on the progress the Alliance has made in meeting its goals.
Thompson, incidentally, attended the 2005 Kentucky Derby and later joined a West Point Thoroughbred partnership that owned Flashy Bull, who was unplaced in the 2006 Derby but subsequently won the Grade 1 Stephen Foster at Churchill Downs. According to West Point president Terry Finley, Thompson "loves the racing game" and is in a partnership that currently owns a West Point 2-year-old named Tapit’s Brew.
Click here to read the complete text of the NTRA Safety and Integrity Alliance and Pledge.
For a list of tracks and racing organizations that have agreed to the pledge, click here.
Following is the NTRA’s press release on the formation of the Safety and Integrity Alliance and the hiring of Thompson as an independent monitor.
NTRA FORMS SAFETY AND INTEGRITY ALLIANCE AND ANNOUNCES SWEEPING REFORMS; TABS FORMER WISCONSIN GOVERNOR TOMMY THOMPSON TO PROVIDE OVERSIGHT
National Thoroughbred Racing Association (NTRA) President and CEO Alex Waldrop and Thoroughbred racing industry leaders outlined a series of industry-wide safety and integrity reforms at a press conference in New York today. The NTRA also announced the creation of a new Safety and Integrity Alliance, comprised of the largest tracks and horsemen’s groups in the U.S. and Canada, which will be responsible for implementing the reforms. The Honorable Tommy G. Thompson, former four-term Governor of Wisconsin and Secretary of Health and Human Services, will serve as independent counsel for the new NTRA Safety and Integrity Alliance. Governor Thompson will conduct an ongoing review and provide an annual independent and public assessment to the Alliance.
The reform initiatives are the broadest and most comprehensive in the sport’s history, including:
- uniform medication rules for each racing state
- ban of steroids from racing competition
- out-of-competition testing for blood and gene doping agents and pre-race testing
- uniform penalties for all medication infractions
- mandatory on-track and non-racing injury reporting
- mandatory installation of protective inner safety rail
- mandatory pre- and post-race security
- adoption of a placement program for Thoroughbreds no longer competing
The reforms were approved by the NTRA Board of Directors, representing North America’s leading racetracks, owners, breeders and horsemen, at a special Board Meeting in September and communicated via e-mail to fans just prior to the press conference. Waldrop, joined by NTRA Executive Chairman Robert Elliston, Thoroughbred Horsemen’s Association Chairman Alan Foreman and Governor Thompson, unveiled an ambitious timetable for implementing reforms, calling on NTRA Alliance member organizations to adopt house rules to enforce the measures until individual states and regulatory agencies can catch up via statute and regulations.
“Our industry is taking strong, positive steps to ensure the safety and integrity of our sport,” said Waldrop. “Despite challenges and significant short-term and long-term costs, there is an unprecedented level of commitment among Thoroughbred racing’s leadership to see these measures through.”
Governor Thompson—currently a partner in the Washington, D.C., offices of the law firm Akin, Gump, Strauss, Hauer and Feld—will lead a team that will independently review, monitor and assess the program and provide annual public reports of the industry’s progress toward achieving its goals in the area of human and equine health and safety.
"Our first priority is to insure the health and safety of the athletes and horses in the racing industry,” said Thompson. “On its own initiative, the NTRA has taken a great step forward in committing to reforms and the creation of an important new body to oversee implementation of the reforms. I will take my independent oversight role seriously and work to assure transparency in this process.”
The NTRA Safety and Integrity Alliance will be a standing organization whose purpose is to implement safety and integrity reforms. The Alliance also will function as a certification/accreditation body for the purpose of recognizing and incentivizing compliance by all stakeholders. Reforms will be undertaken using a phased approach that begins immediately—in some cases, under a House Rules format—and transitions to a broader strategy that relies on licensure requirements, continuing education programs and the state regulatory process.
“The health and safety of all participants in Thoroughbred racing – both human and equine – have always been top priorities at Churchill Downs, the home of the Kentucky Derby, and all of our company’s racetracks,” said Robert Evans, President and CEO of Churchill Downs, Inc. “We know that the job is never done where safety is concerned. We fully support the NTRA’s development of safety and integrity standards and the annual certification of tracks that meet those standards. On the issues of safety and integrity, we believe we must hold ourselves to only the highest standards. Our customers do.”
Virtually every leading racetrack and horsemen’s association in North America, representing some one million industry participants, has pledged its support to the Alliance and the reforms. Waldrop indicated that, in the coming weeks, the Alliance will be broadened to include other racing organizations, individuals and fans; and that additional reforms, including wagering integrity issues, will be addressed by the Alliance.
"The horsemen are the people who are ultimately responsible for the day-to-day care and safety of the Thoroughbred,” said Alan Foreman, Chairman of the national Thoroughbred Horsemen’s Association. “As such, the health and safety of our horses and the integrity of our sport are our highest priorities. We are committed to seeing that these reforms and standards are implemented across the nation."
The reforms include improvements to medication and testing policies, guidelines for injury reporting and prevention, safety research, providing a safer racing environment, and post-racing care for retired race horses. They are drawn from the recommendations that have emerged over the past several months from The Jockey Club’s Thoroughbred Safety Committee and Welfare and Safety of the Racehorse Summit, Breeders’ Cup Limited, the Thoroughbred Owners and Breeders Association’s Graded Stakes Committee and the long-standing work of the Racing Medication and Testing Consortium and the Association of Racing Commissioners International, among others.
“Fortunately, we have the excellent work of many industry organizations to build on, allowing us to focus on implementation, oversight, measurement and transparency,” said Waldrop. “The reforms and the plan for implementation have been conceived by those who have pledged to operate at a higher level of integrity.”
The NTRA is a broad-based coalition of horse racing interests consisting of leading thoroughbred racetracks, owners, breeders, trainers and affiliated horse racing associations, charged with increasing the popularity of horse racing and improving economic conditions for industry participants. The NTRA has offices in Lexington, Ky., and New York. NTRA press releases appear on the NTRA web site, NTRA.com.
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Tags: akin gump strauss hauer and feld, alan foreman, alex waldrop, american graded stakes committee, anabolic steroids, association of racing commissioners international, backstretch security, Barbaro, bob elliston, bob evans, Breeders' Cup, churchill downs, eight belles, former wisconsin governor, injury reporting, Jockey Club, National Thoroughbred Racing Association, NTRA, ntra safety and integrity alliance, out of competition testing, post-, post-race security, pre-race security, racing injuries, racing medication and testing consortium, RCI, rmtc, robert elliston, robert evans, safety rail, steroids ban, thoroughbred horsemen's association, Thoroughbred Owners and Breeders Association, thoroughbred safety committee, tommy g. thompson, tommy thompson, uniform medication, welfare and safety of the racehorse summit
Posted in Horse Racing, Horse Welfare, Industry, Industry Organizations, Industry Reform, National Thoroughbred Racing Association, Regulatory Issues | 9 Comments »
Wednesday, October 8th, 2008
By Ray Paulick
(UPDATED OCT. 10 TO REFLECT NEW POLICY FROM MAGNA ENTERTAINMENT)
When the Judiciary Committee in the U.S. House of Representatives held a markup hearing on Sept. 17 to discuss H.B. 6598, the Prevention of Equine Cruelty Act of 2008 that would ban slaughter and criminalize the transportation of horses for the purpose of having them slaughtered for human consumption, a letter from National Thoroughbred Racing Association president and CEO Alex Waldrop said his organization took a neutral position on H.B. 6598 despite supporting previous anti-slaughter legislation.
Waldrop’s position statement, read into the record by Republican Bob Goodlatte of Virginia, outraged a number of prominent Thoroughbred industry participants, including Pin Oak Stud’s Josephine Abercrombie, who wrote a letter signed by more than 40 individuals that was sent to the leadership of the Judiciary Committee stating that the NTRA did not speak for them on the issue. The Judiciary Committee passed the legislation on Sept. 23 and sent it to the full House.
On Oct. 3, however, House Speaker Nancy Pelosi (D-Calif.) referred the Prevention of Equine Cruelty Act to the Agriculture Committee, giving that committee until Jan. 3, 2009, to take action on the bill. Since the 110th Congress has adjourned, the bill will not pass unless it comes up during a lame duck session, which is highly unlikely.
Agriculture Committee chairman Collin Peterson (D-Minn.) and ranking Republican Goodlatte both have been recipients of contributions from the NTRA PAC, most recently receiving $5,000 for their 2008 campaigns. Peterson is a member of the Congressional Horse Caucus and Goodlatte has been a strong ally of the NTRA’s lobbying efforts concerning Internet gambling and tax incentives for breeders. Goodlatte has been an opponent of slaughter legislation. (Abercrombie, incidentally, is a “champion” level NTRA Horse PAC donor, giving $5,000.)
In the wake of the Judiciary Committee’s action on anti-slaughter legislation and the NTRA’s neutral position (the American Horse Council is also neutral), Paulick Report readers suggested we contact other major Thoroughbred industry associations and businesses to see if they have taken a position on the issue of slaughter and on the specific legislation (H.B. 6598).
Listed alphabetically by organization, here is what we learned:
ASSOCIATION OF RACING COMMISSIONERS INTERNATIONAL: According to RCI president/CEO Ed Martin, the RCI “normally does not take positions on pending legislation in Congress and has not been asked by any of its members to address the issue.”
BREEDERS’ CUP: Greg Avioli, president/CEO, said the Breeders’ Cup “has not issued a formal policy statement on the slaughter legislation before Congress. However, it is the strong consensus of our board that slaughter is inhumane and any and all reasonable options other than slaughter should be pursued. In furtherance of this position, proceeds from this year’s Championships will go to multiple retirement organizations.”
CHURCHILL DOWNS INC. Officials did not reply to requests for a position statement. Churchill Downs Inc, created the Greener Pastures program in conjunction with the Thoroughbred Retirement Foundation and supports other retirement and retraining programs.
FASIG-TIPTON: Did not reply to requests for a position statement. Under the leadership of the late John Hettinger, Fasig-Tipton’s majority shareholder, the company created Blue Horse Charities to offer support to various retirement and retraining organizations. Hettinger was the industry’s leading anti-slaughter advocate.
JOCKEY CLUB: Spokesman Bob Curran gave no position on H.B. 6598 but said the official breed registry “is opposed to the slaughter or processing of Thoroughbreds for consumption by humans or animals. This includes the sale and/or transportation of Thoroughbreds for slaughter or processing for consumption by humans or animals.” The Jockey Club is a member of the Unwanted Horse Coalition.
KEENELAND ASSOCIATION: Did not reply to requests for a position statement. Keeneland and its foundation have supported Thoroughbred retirement and retraining organizations, including the Thoroughbred Retirement Foundation and Rerun.
KENTUCKY EQUINE EDUCATION PROJECT: A statement from executive director Patrick Neely said: “It has been a topic of discussion in some of KEEP’s industry working groups but no formal position has been taken at this time.”
KENTUCKY THOROUGHBRED ASSOCIATION: Did not reply to requests for a position statement. KTA lists several Thoroughbred retirement organizations on its Web site.
MAGNA ENTERTAINMENT (owns Santa Anita, Gulfstream, Laurel, Pimlico, Lone Star Park, Remington Park, Golden Gate Fields): Does not have a position statement on slaughter or current anti-slaughter legislation, according to an official with the company. OCT. 10 UPDATE: MAGNA INSTITUTES NEW POLICY. CLICK HERE FOR DETAILS.
NATIONAL HORSEMEN’S BENEVOLENT AND PROTECTIVE ASSOCIATION: CEO Remi Bellocq said he could not provide a yes or no answer to whether the organization supports a ban on slaughter or H.B. 6598 because of the diversity of the 30 HBPA affiliates across North America. “Our horsemen and horsewomen fall across the spectrum on this issue,” Bellocq said. The National HBPA is a member of the Unwanted Horse Coalition. Bellocq said “this shouldn’t be defined necessarily as a ‘slaughter for human consumption’ issue but, rather, an ‘unwanted horses’ issue. To a person, if given a choice, horsemen would much prefer finding a home and/or second career for their horses as opposed to slaughter. Unfortunately, no matter what legislation (state or federal) is passed, the real problem – the number of unwanted horses – will still exist. To stem the number of unwanted horses, education and awareness are a key first step to successfully bring the number down.
“To that end, in 2005 National HBPA was one of the founding members of the Unwanted Horse and we continue working actively within the UHC to better educate horsemen about the options including, should all else fail, humane euthanasia. The UHC has set-up a big tent under which all the wonderful horse rescue programs can work together. If we truly made an industry-wide effort to centralize, for example, an ex-racehorse outplacement / adoption program, I am convinced many could be placed with willing owners. Why not, for instance, establish a national site modeled after Petfinder.com? Already, organizations like the Illinois HBPA have created similar approaches with success (see Illinois HBPA’s Horses Wanted link.”
NEW YORK RACING ASSOCIATION: Did not reply to requests for a position statement. NYRA offers support to the Exceller Fund, which helps place retired horses and has supported the Thoroughbred Retirement Foundation.
THOROUGHBRED HORSEMEN’S ASSOCIATION: CEO Alan Foreman said the organization has not taken a position on the current legislation. “There will be a new Congress in January and we will visit the issue then,” Foreman said.
THOROUGHBRED OWNERS AND BREEDERS ASSOCIATION: Position statement from TOBA president Dan Metzger: “We are categorically opposed to the slaughter of Thoroughbreds, and urge all those involved in the Thoroughbred industry to support rescue and adoption efforts and to work together to find humane means of dealing with the problems presented by Thoroughbreds no longer suitable for racing or breeding.” Metzger did not indicate whether or not TOBA has a position on H.B. 6598. TOBA is a member of the Unwanted Horse Coalition and is affiliated with Thoroughbred Charities of America, which supports numerous horse retirement and retraining operations.
THOROUGHBRED OWNERS OF CALIFORNIA: Did not reply to requests for a position statement. TOC’s Web site offers advice to a horse’s “last owner” and pushed for a first-of-its-kind charitable fund, the Calfornia Retirement Management Account (CARMA), to solicit and distribute purse checkoffs for retirement and retraining programs. Transport for slaughter is illegal in California.
THOROUGHBRED RACING ASSOCIATIONS: Executive vice president Chris Scherf said the organization of North American racetracks has adopted no official position.
Tags: agriculture committee, alex waldrop, anti-slaughter legi, association of racing commissioners international, blue horse charities, bob curran, bob goodlatte, Breeders' Cup, carma, chris scherf, churchill downs, collin peterson, congressional horse caucus, dan metzger, ed martin, fasig-tipton, greener pastures, Greg Avioli, h.b. 6598, hbpa, horse slaughter, Jockey Club, john hettinger, Josephine Abercrombie, judiciary committee, Keeneland, kentucky equine education project, kentucky thoroughbred association, kta, Magna Entertainment, nancy pelosi, national horsemen's benevolent and protective associati, National Thoroughbred Racing Association, New York Racing Association, nhbpa, NTRA, ntra pac, nyra, patrick neely, Paulick Report, prevention of equine cruelty act, Ray Paulick, RCI, remi bellocq, Thoroughbred Owners and Breeders Association, thoroughbred owners of california, thoroughbred racing associations, thoroughbred retirement foundation, TOBA, toc, tra, unwanted horse coalition
Posted in Horse Slaughter, Horse Welfare, Industry Organizations | 21 Comments »
Monday, October 6th, 2008
Ray Paulick is live blogging the Task Force on the Future of Horse Racing’s subcommittee on integrity of racing and pari-mutuel activities from the offices of the Kentucky Horse Racing Commission Monday afternoon, beginning at 1 p.m.
Edward (Ned) Bonnie, a member of the racing commission, is chairing the meeting, which is called to order at 1 p.m. "Hopefully we are going to be able to move this peanut down the sidewalk and take some action, however modest, by the end of this meeting."
1:05 p.m. … Hold your horses, Ned! There are six members of the subcommittee and four are needed for a quorum to take any action, acccording to racing commission executive director LIsa Underwood. Unfortunately, there are only three "voting members" of the task force on hand at the beginning of the meeting. Does that say anything about the task force’s commitment to integrity? Hmmmmmmm.
1:10 p.m. …Sounds like Ned Bonnie may be filibustering till someone else shows up to give this group a quorum. Bonnie is talking about various white papers he has written on integrity issues in Kentucky. Earth to Ned: No one with authority has acted on those white papers. Try a different color.
Bonnie states that Keeneland employs the Thoroughbred Racing Protective Bureau (TRPB), the so-called “security arm” of the Thoroughbred Racing Associations of North America (not to be confused with the National Thoroughbred Racing Association). However, it is revealed Turfway Park, which is owned in part by Keeneland, does not use the TRPB. Is no one on this task force subcommittee curious why Keeneland doesn’t use TRPB at Turfway?
Bonnie says Kentucky’s racing regulators have been understaffed for many years in the area of security. “Feet on the ground is the most effective way to produce security on the backside,” he says. Bonnie says New York has 12 investigators. When vets show up at the back gate at a New York track, Bonnie says, the security chief for the New York State Racing and Wagering Board assigns an investigator to ride with them. New York’s security arm recommends that each state have a good security staff, well paid, but that the industry also needs a group, not unlike the Big Event Team that provides stable area security at major events. “If we are going to have the integrity the industry accepts the need for, then we are going to have to have the tools to get that done," Bonnie says.
1:20 p.m. … First up is Isidore Sobkowski, an entrepreneur who said he has developed a system for wagering security in conjunction with the Association of Racing Commissioners International Integrity Services. Sobkowski said he used to nail insider traders on Wall Street and was an interim consultant to the NTRA on wagering integrity back when the organization hoped to have an Office of Wagering Security. Sobkowski told Bonnie he spent two years trying to sell his pari-mutuel security system to the NTRA, but it “became clear” they weren’t going to buy it. As of Jan. 1, 2009, Sobkowski said, totes will be subject to a rule in New York State for “independent monitoring.” He said California, Oregon and other states will follow suit. Totes may be able to pass on costs TO THE CUSTOMER (see 2:15 p.m. update), Sobkowski added.
Izzy (easier to type than his full name) has some proprietary software called MonitorPlus that he said detects “potentially inappropriate activity in the transactional stream and security database.”
1:25 p.m. … Bad guys who want to break into the tote systems are getting smarter, Izzy says. Reminds me of "when guns are outlawed only outlaws will have guns." He is offering a "turn-key solution. " Izzy says, "Plug it in, it works, take the plug out, it stops working."
1:30 p.m. … Still no quorum for this meeting.
1:35 p.m. … Sobkowski and RCI president Ed Martin came up with the idea of RCI Integrity Services at a diner outside of Saratoga. Now he is filibustering, talking about "artificial intelligence" and all the people who were too stupid to buy his services until now.
1:40 p.m. ,,, Denny Oelschluger (an associate of Izzy’s … can’t they hire someone with an easy name to type?) talks about some of the actual results the MonitorPlus system has detected. Examples: an advance deposit wagering account with computer assisted wagearing that has a rate of return of 1.5 on all bets (the normal is less than 0.80); in looking at 862 races (5,800 wagering pools, over six days), Monitor Plus detected multiple instances of cancel delays (bets canceled after the close of wagering). The canceled bets are losers, suggesting a similar pattern to past post wagering on winning bets; win pool odds are being manipulated by canceled transactions. The system also picks up suspicious wagering on "fixed" or "boat" races, Denny says.
1:50 p.m. … "How do we stop this?" Bonnie asks. I believe that’s why we are here, sir. I assume he is talking about the illegal wagering, but maybe he is talking about the presentation of MonitorPlus (see below).
2:00 p.m. … "We are not going to serve dinner here tonight," Bonnie says. In other words, isn’t 45 minutes enough time to deal with this issue of integrity? Please sir, just a little more time, Izzy begs after that remark. To her credit, Lisa Underwood steps in to say that it would be a good idea if the system could be explained further for the members of the task force subcommittee.
2:05 p.m. … It just occurred to me that this MonitorPlus system does not have the stamp of approval of the Jockey Club (no Jockey Club officials are at the meeting), which in my opinion is going to severely impact its chances of approval. Those Jockey Club tentacles have a long reach.
2:08 p.m. … Izzy does a quick "how the system works" presentation. It includes a national database that analyzes wagers everywhere. Bonnie questions whether a national data base has jurisdiction on account wagering systems based off-shore in places like St. Kitts (where many of the rebate shops are located). Izzy says on Oct. 18 those off-shores are going to be "read the riot act" in a meeting in Oregon. Not sure why. Again, it looks like this could meander down the path of "lack of national authority." Izzy says national legislation would help but then adds that the industry doesn’t seem to want that.
2:10 p.m. … "Clustering" is explained by Izzy as unusual things that happen in a betting stream. Once clusters are found, they are analyzed with such things as a SNA or social network analysis that looks at who is involved (jockeys, trainers, owners), what is their record, who are their associates …a who, what, when, and maybe a why the unusual cluster of betting activity occurred.
2:15 p.m. … Customers will be paid by the month; fees will be assessed by how much the MonitorPlus system is used, and its price is based on the handle. Mike Maloney, the horseplayer on the task force, asks how costs are passed on to customers. Industrywide it would cost $6 million, Izzy says, with the increase to be added to takeout (approximately .0004% of handle, based on $15 billion in national handle). Maloney says takeout is too high already, but that the small additional amount doesn’t bother him. A lot cheaper than the $50 million IBM wanted to charge a few years ago, Izzy says.
2:25 p.m. … Frank Kling, a member of the Kentucky Horse Racing Authority talks about the work his committee had done regarding problems related to the tote system before Kentucky Gov. Steve Beshear disbanded the authority and replaced it with the racing commission and mostly filled it with people who helped get him elected. Sounds like any good work that committee may have done will soon be forgotten.
2:35 p.m. … Horseplayer Mike ($10 million in bets a year) Maloney takes the floor. "I’ll rely on my 30 years of hard knocks at the racetrack to help expalin this." Maloney refers to a white paper he wrote for the commission and says a year ago no one was talking about wagering integrity. "We’re at the very beginning of this process," Maloney says. "This is an opportunity for Kentucky to take the lead. No one has really stepped forward." Maloney believes that increased wagering security will lead to greater confidence among bettors, who may bet more in the future. "Our wagering system is flawed," he says. "I hope everyone on this task force agrees with that. … Any reasonable person would have to agree with that." Maloney sees problems with past posting (accidental, part of a sophisticated plan, larceny, incompetence, human error). There are delayed cancellations. "When they are used to take advantage at the racetrack, it’s basically stealing," he says. "Since we don’t have a national authority, every bettor, every participant depends on the state racing commission to protect their interests. Today we fall far short of that mark, and it’s in the hands of the racing commission. The racing commission is the protector of the bettor’s rights."
"Tracks don’t record (in minutes and seconds) when their races begin," Maloney says. "Betting sites are allowed to participate in our wagering pools without proper oversight. In order to protect all bettors’ rights, no one should be allowed to participate in any Kentucky racing pool unless they agree to a certain level of oversight."
2:45 p.m. … Maloney is stunned that no American track (until recently) records the actual start time of a race, in order to compare it to when the betting is cut off, then says an average group of eighth graders would make that as a requirement if they were to set basic rules for racing. Tote companies do record when the betting stops, Maloney said. Kling said that Nick Nicholson of Keeneland added the start time to television monitors for Keeneland’s races. The times between tote companies and racetracks are not currently synchronized. "Lacking a national body of oversight I don’t know where we start on this," Maloney says. "How hard is it to do that?" Maloney asks. "You’d think we could do that with a conference call in an hour. We’re not asking to reinvent the wheel or split the atom."
2:50 (at least according to my clock) p.m. … Maloney is still stuck on time. He relates how Sunday at Keeneland a clock on Keeneland’s monitor showing the time in hours/minutes/seconds and a monitor with a Belmont Park race showing hours/minutes/seconds each had a different time of day. He relates to how the Nevada Gaming Control Board closely monitors the game of Keno and how that regulatory agency would crack down on the kinds of problems that horse racing has. "In racing we know we have these problems," he said, "we just let it go on. Nobody pays a fine, nobody loses their license. Who takes the brunt of that? The bettor. And the game of racing. The industry is hurting itself by not policing itself."
2:58 p.m. … Maloney still going after them, saying that past-posting incidents only come up when they are discovered by the press. The tracks and the tote companies won’t admit it until they have to, he says. It’s up to the commissions he repeats. His solutions: 1) "invest in technology to make the longest wagering cycle no more than 15 seconds" (he refers to a five-year old study done in the wake of the 2002 Pick Six scandal at the Breeders’ Cup that called for the 15-second cycle, and said it hasn’t been done yet); 2) "use technology to directly link the pressing of the starter’s button to the closing of the wagering system" (currently stewards push a button to close betting); 3) "require tracks to record when their races start. I would like to see that be in the regulations"; 4) "require all tracks and tote companies to synch their time systems to one industry standard." Maloney said he is "so encouraged" after years of banging his head against the wall on these issues.
3:05 p.m. … Bonnie looks a bit deflated when he says the subcommittee can’t take action on anything today for lack of a quorum.
3:10 p,m. … Bonnie asks Maloney why something hasn’t been done yet. "The industry lacks oversight," Maloney tells him. Duh.
3:13 p.m. … Owner/breeder Gary Biszantz, a member of the subcommittee speaks up. "I’m not sure why I’m here today," he says, then goes on to tell the story of how he told officials at the New York Racing Association five years ago that there was past posting going on and they said he was crazy. Biszantz pushes for a non-technological solultion. Close the pools at post time, before the horses are loaded into the gate, he says. "As a bettor, I’d have absolutely no problem with that," Maloney said. "But the tracks wouldn’t go for that," Biszantz answers back, then goes on about all the problems the industry faces because of the lack of oversight at nearly every level. "It’s total chaos," Biszantz emphasizes.
3:18 p.m. … Bonnie calls for a break. Maybe he can round up another committee member and get a quorum.
3:30 p.m. … Frank Fabian and Curtis Linnell from TRPB are introduced. Fabian, a former G-man who worked in the terrorism division of the FBI, is a smooth talker. He applauded the TRPB’s own wagering analysis program that the TRA funded to the tune of $600,000 and eventually fell into the lap of the Jockey Club. "For two years now, we have been doing quite a bit," he told Maloney. "We’ve been quite successful," Fabian said, adding the TRPB has the full support of all the Kentucky racetracks. Fabian said wagering anomalies have been identified and "reports have been filed" with the racetracks where those anomalies occurred. Maloney doesn’t look very convinced, and I am reminded of the reaction of one industry leader to Fabian’s similar presentation at a Jockey Club Round Table a couple of years ago in Saratoga Springs, N.Y. "That was total b.s." this person said to me after Fabian’s Round Table presentation.
"I think TRPB is doing all it can to bring the engagement of wagering integrity in the environment we are in now," Fabian told the commission subcommittee. Fabian said the TRPB has analyzed off-shore wagering activities and is putting these betting shops through a due diligence process, but would not comment when questioned on whether or not anything found in that analysis was "alarming." Malone presses Fabian on whether or not RGS (a major rebate shop) has agreed to a due diligence process. Fabian employs an artful dodge, then introduces Linnell.
3:45 p,m. … Linnell gives a history lesson about how the NTRA blew through $3 million after the Pick Six scandal of 2002 without solving the wagering problems it was charged to examine.
3:50 p.m. … Linnell focuses his report on "stop betting," showing the varous ways and times betting can be stopped. As a representatiive of the racetracks (it should be remembered), he reminds the commission that betting should be left open as long as possible. A nifty bar graph on the close of betting shows that 23% of the entire win pool of a race is wagered between the "off time" when a race is scheduled to go and the final close. Linnell calls it "counterproductive" to close wagering pools early because "betting device technology is improving."
4:00 p.m. … During a Q&A session on some of Linnell’s presentation, Biszantz complains that we are listening too much to the tote companies instead of doing the right thing. Malone shakes his head in agreement. Linnell returns to his presentation and focuses on factors that slow down the posting of final odds (which infuriate horse players who see the odds change midway through a race). One factor is the cancel-delay — the time that bets can be cancelled after betting has closed. Cancel delays are sometimes allowed for pari-mutuel clerks to make. Double hops from betting hub to betting hub can also slow odds, Linnell said, as can tracks who are not on-board an "almost final" tote update. (It’s all too complicated, which is probably the point of his presentation.)
4:05 p.m. The TRPB is investigating past-post incidents, Linnell said, using its wagering analysis tools. Those investigations are launched as a result of multiple points of contact, whether from tracks, commissions, major horseplayers and even England’s BetFair betting exchange, which takes bets on U.S. races. Linnell then explained several reasons for how past-post betting can occur, including human error or technology and hardware or software failure. Linnell is losing me again, talking about master systems, slave systems, and clones. It must mean something to someone.
The committee then discusses mistakes by tote companies that allow past posting and how they should be penalized in some way if the tote companies make a mistake similar to the kind that occurred several months ago when past-post wagering took place at Tampa Bay Downs on a race at Philadelphia Park that had already been run. "Every bet made was a winning bet!" Linnell joked.
4:20 p.m. … Linnell gave his solutions to the problems of the stop-betting issue: conduct daily testing of stop betting system; have a back-up to the stewards/judges function that currently stops betting; have a second stop-betting command; get rid of all cancel delays; and have tote time recorded on the video feed from every track.
4:25 p.m. … Maloney wants more accountability and transparency regarding the public disclosure of past-posting incidents and their causes. "I see this as a big problem with the confidence of bettors," he said. Linnell didn’t disagree, laying out a series of actions that TRPB recommends in the event of past-posting incidents, including more disclosure and transparency on the incidents, and the extent of wagering that took place after a race began.
4:35 p.m. … Linnell wraps up his presentation, and I’m afraid that Bonnie didn’t live up to his promise to move the peanut up the sidewalk. No quorum, no peanuts, and no sidewalks are in sight.
4:50 p.m. … Bonnie asks Fabian how Kentucky can improve its backstretch integrity related to the use of performance enhancing drugs in horses. "It’s through (on-track) investigators that helps us focus (TRPB’s) scant resources to work with commissions to have targeted investigations and targeted searches," Fabian said "We have to get back to some of the basics for our investigatve techniques. We have fallen short on having quality investigators."
5:00 p.m. … After a meandering discussing about the need for backstretch security to deal with catching cheaters who use performance enhancing drugs, Bonnie closes the meeting. "When we have a quorum we’ll take some action," he says.
Let’s hope someone holds the commission to that.
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Tags: association of racing commissioners international, bob beck, ed martin, edward bonnie, frank kling, gary biszantz, Horse Racing, isidore sobkowski, Keeneland, kentucky horse racing commission, lisa underwood, mike maloney, National Thoroughbred Racing Association, ned bonnie, nick nicholson, pari-mutuel wagering, past-post betting, Paulick Report, pick six scandal, Ray Paulick, RCI, subcommittee on integrity of racing and pari-mutuel act, task force on future of horse racing, thoroughbred racing associations, thoroughbred racing protective bureau
Posted in Kentucky, Regulatory Issues | 11 Comments »
Tuesday, September 30th, 2008
By Ray Paulick
The horse business is Kentucky’s signature industry, employing tens of thousands of people, generating over a billion dollars of revenue throughout the year, and putting the international spotlight on the Commonwealth each spring at the Kentucky Derby. Yet, in many ways, legislators and other government officials have been dealing with the industry almost as an afterthought.
Tax breaks given to lesser industries have not been granted to farmers whose agricultural product happens to be a horse instead of a cow. Kentucky’s legislature was late to the party to create an incentive fund to reward breeders for doing business in the Bluegrass State rather than shipping their breeding stock (and jobs) out of state where more lucrative incentives have been created. And now, one of the most troublesome challenges the racing industry faces – questions about the integrity of the sport and its pari-mutuel wagering foundation – has been hampered by ongoing budgetary shortfalls at the state agency that regulates racing.
Simply put, the integrity of racing in Kentucky is being jeopardized by indifference by some at the legislative and executive level to properly fund the Kentucky Horse Racing Commission.
The problem goes back nearly eight years ago to the administration of Gov. Paul Patton, who cut $1 million dollars – nearly one-third – out of what was then known as the Kentucky Horse Racing Authority. Frank Shoop, then the chairman of the regulatory body, told the Paulick Report he thought the cuts were temporary and would be restored; they weren’t. Instead, the Racing Authority began assessing racetracks as much as $3,500 a day to pay for many of the functions that would previously have been funded by the state. “It’s so important to the signature industry of the state,” Shoop said. “They should have proper money to regulate the industry: transportation, insurance and other departments have proper regulatory budgets. This department has been short of money and short of money for years.
“I don’t know what the proper funding action should be,” Shoop added, “but something needs to be done that the legislature and governor can agree on.”
If something isn’t done, the Kentucky Horse Racing Commission will run out of money by Jan. 1, according to Tracy Farmer, a Thoroughbred owner and breeder and high-level operative in the Democratic Party that helped elect Gov. Steve Beshear last November. Farmer was named by Beshear to the current horse racing commission, where he serves as vice chairman, and is heading up a special Task Force on the Future of Horse Racing examining numerous issues related to racing and breeding.
Farmer told the Paulick Report that Kentucky’s General Assembly had $2 million set aside for the racing commission for the current fiscal year but they subsequently “raided our accounts to balance the (state) budget.” Farmer said he and others are looking at ways to fund the commission through such revenue items as the tax on claiming horses, which he estimated generates $2 million per year. “Money is being generated that’s not being put back into the industry,” Farmer said. “We’re looking at several different methodologies and will recommend one of them. This is the largest industry in the state. We have to fund the people who oversee it.”
State Sen. Damon Thayer, a Republican from Georgetown and a consultant in the racing industry who helped create the breeders’ incentive fund through existing revenue drawn from the tax on stallion seasons, pushed for legislation that would have Kentucky’s General Fund provide for the commission’s budget. That legislation failed, Thayer said, despite bi-partisan efforts to get it passed.
“The racetracks are struggling, the commission is without money, and the state is in a budget crisis,” Thayer said. “We need more money for the commission to have boots on the ground to do their job. And we were saying this before Eight Belles and Big Brown.”
The death of Eight Belles in this year’s Kentucky Derby and the admission by trainer Rick Dutrow that Derby winner Big Brown raced on anabolic steroids (then legal) has prompted an outcry for tighter regulations, stricter medication rules, and more comprehensive drug testing. Anabolic steroids have recently been banned in Kentucky and several other states, and that ban requires additional testing be added to the existing drug testing program.
Thayer plans to introduce new legislation during the next session of the General Assembly.
“What needs to happen is Gov. Beshear needs to get behind legislation drafted by Sen. Ed Worley (D-Richmond) and me that would set up a reliable, recurring source of revenue for the racing commission so the tracks do not pay for drug testing and their own regulation. The racing commission needs to be funded by the pari-mutuel excise tax so we can expand drug testing to a respectable level.”
According to Thayer, the pari-mutuel tax currently helps fund the Kentucky Thoroughbred Development Fund, equine drug research and the University of Louisville’s equine business program.
The lack of funding came to a head at a recent meeting of the Kentucky Horse Racing Commission when it was disclosed testing was not conducted for performance-enhancing milkshakes (TCO2 levels or bicarbonate loading) at Ellis Park this summer because of a personnel shortage. Since that disclosure, the commission’s chief veterinarian resigned his position.
“We were shocked to learn that no testing was conducted,” said Farmer.
It may have taken weeks for commission members to learn that there was no testing for milkshakes, but trainers probably knew instantly, permitting cheaters to prosper. The absence of testing shook the confidence of many horseplayers about whether the state is doing enough to stop performance-enhancing drugs from giving an edge to some trainers.
The racing commission’s executive director, Lisa Underwood, who was hired during the previous administration of Republican Gov. Ernie Fletcher, has plans to expand the size of the staff if funding is provided. She has submitted a plan to add investigators, state veterinarians and other full and part-time staff to better regulate racing and ensure its integrity.
Ed Martin, president of the Association of Racing Commissioners International, told the Task Force on the Future of Horse Racing when he became aware of how little was committed to Kentucky’s commission that he was “shocked at how low a priority the integrity of racing apparently was, especially considering how important the racing industry is to the state’s economy and identity.”
Martin compiled a study of how much is committed to integrity issues in other major racing states and found that Kentucky, “instead of being first, is last.”
His study showed Kentucky commits $7,692 per race day, less than half of the $17,948 committed by Florida for integrity enforcement. Martin said the Kentucky commission is sorely lacking investigators to monitor backstretch activities. Kentucky has two investigators, he said, compared with 14 in New York, 15 in Pennsylvania, 17 in Florida, and 18 in California.
“ Perhaps the most glaring weakness in the funding can be seen in the fact that no resources have been dedicated to policing the pari-mutuel system,” Martin said.“Kentucky in the past has dedicated nothing in this area while other major racing states have made a considerable commitment in this area, not only in terms of staff, but to ensure that an independent computerized monitoring system is deployed to protect against past posting, odds manipulations, cyber crime, and larceny. In public forum after public forum, large bettors have expressed a growing concern about the lack of commitment to wagering security.
“ While some states have committed as many as six people to wagering security and made arrangements for independent monitoring, Kentucky has yet to commit one.”
Many bettors are convinced the technology used in today’s pari-mutuel wagering system is archaic and able to be exploited by techno-savvy players who are making bets after the gates to a race have been opened. One member of the Kentucky Racing Commission who asked not to be named agreed: “There is no question people are betting after the horses are out of the gate,” he said. “They are somehow getting into the pool. It’s frightening.”
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Tags: association of racing commissioners international, bicarbonate loading, Big Brown, bluegrass state, churchill downs, damon thayer, drug testing, ed martin, ed worley, eight belles, ellis park, ernie fletcher, frank shoop, Horse Racing, Keeneland, kentucky horse racing, kentucky horse racing authority, kentucky horse racing commission, kentucky thoroughbred development fund, lisa underwood, pari-mutuel wagering, paul patton, Paulick Report, Ray Paulick, RCI, steve beshear, task force on the future of horse racing, tco2, thoroughbred racing, tracy farmer, turfway park, university of louisville equiine business program, wagering integrity
Posted in Horse Racing, Industry Organizations, Kentucky, Medication, Regulatory Issues, Tote System, Wagering | 2 Comments »
Friday, September 19th, 2008
By Ray Paulick
Californian Mike Mitchell has produced a steady stream of winners – mostly in the claiming ranks – since taking out his trainer’s license in 1974. He also has been cited quite regularly for various rules violations, including numerous medication and medication procedural infractions, by track stewards and the California Horse Racing Board, the latest being a positive test for the Class 3 drug Procaine in Scat Thief, third-place finisher in a race at Del Mar Aug. 3.
Procaine is commonly found in the antibiotic Pencillin G.
The longtime California claiming king consistently ranks among meeting leaders at Santa Anita Park, Hollywood Park and Del Mar, and he usually cracks the top 50 in the national standings by earnings. Horses he trains have won $3.5 million thus far in 2008, and he’s winning at a 24% clip. Mitchell makes semi-frequent forays into graded stakes, as he did in 2007 when the $50,000 claim Sun Boat won Del Mar’s Grade 2 San Diego Handicap. Sun Boat died a month later after contracting laminitis.
Earlier this summer, Thoroughbred Times reported that Mitchell received 10 notifications for anabolic steroid positive tests during the transition period to ban the substance in California. The only trainer with more notifications, according to the article, was Del Mar’s leading trainer, John Sadler, who reportedly received 18 notifications. The article said there was a total of 38 notification letters to all trainers, which means Sadler and Mitchell allegedly accounted for 74% of them.
Those reported anabolic steroid notices do not go on Mitchell’s record at the CHRB or into the database of the Association of Racing Commissioners International, which compiles rulings from around the country. The RCI’s compilation of rulings involving Mitchell are shown below.
One of the more interesting rulings in the list of violations is a $5,000 fine in 2004 against Mitchell for an Acepromazine positive that occurred in 2003. Apparently, then CHRB executive director Roy Wood cut a deal with Mitchell for a fine and no suspension before the case even reached track stewards. According to a 2004 article in Bloodhorse magazine by Michael G. Wagner, Wood bargained for fines and no suspensions with trainers whose horses tested positive in order to save the racing board money spent on attorneys.
According to the article, when stewards conducted a hearing on the matter with Mitchell and asked him to discuss how the case was resolved, he told them: "Talking to some of the (CHRB) investigators, they said, ‘You know they really don’t like to suspend anybody now — if you acknowledge the fact that it happened, and you want to pay the fine.’ … So I went through Roy Wood, talked to him. … I felt I just — you know, a 30-day suspension just would have been devastating to me. It would have been terrible. The fine was great."
Wood is no longer with the CHRB.
A hearing for Mitchell has been scheduled Oct. 11 at Santa Anita on the Procaine charge.
Below is Comprehensive Ruling Report on Mitchell from the RCI.
Rulings Against: MICHAEL RAY MITCHELL
46 total ruling(s) listed.
________________________________________
Ruling Number: LATS090 Date: 3/16/2007
Issued By: California Racing Commission Facility: LOS ANGELES TURF CLUB
Ruling Type: Unknown
Division: Horse Breed: Thoroughbred
Drug(s):
Fine Amount: $ 300 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: ALTERATION OF SEX OF HORSE
________________________________________
Ruling Number: LATS083 Date: 3/14/2007
Issued By: California Racing Commission Facility: LOS ANGELES TURF CLUB
Ruling Type: Unknown
Division: Horse Breed: Thoroughbred
Drug(s):
Fine Amount: $ 3000 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: 06HP192/TC02 POSITIVE
________________________________________
Ruling Number: OTTS001 Date: 10/1/2006
Issued By: California Racing Commission Facility: Unknown
Ruling Type: Unknown
Division: Horse Breed: Thoroughbred
Drug(s):
Fine Amount: $ 500 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: 06DM072/1629 LATE DECLARATION
________________________________________
Ruling Number: OTTS005 Date: 10/1/2006
Issued By: California Racing Commission Facility: Unknown
Ruling Type: Unknown
Division: Horse Breed: Thoroughbred
Drug(s):
Fine Amount: $ 1000 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: 06DM075/1843 DICIOFENAC
________________________________________
Ruling Number: HRTH104 Date: 6/29/2006
Issued By: California Racing Commission Facility: HOLLYWOOD PARK
Ruling Type: Unknown
Division: Horse Breed: Thoroughbred
Drug(s):
Fine Amount: $ 300 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: HORSE INELIGIBLE TO START
________________________________________
Ruling Number: *N*10101543 Date: 6/29/2006
Issued By: California Racing Commission Facility: HOLLYWOOD PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 300 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: ENTERED AN INELIGIBLE HORSE.
________________________________________
Ruling Number: *N*10092082 Date: 5/5/2005
Issued By: California Racing Commission Facility: SANTA ANITA PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 300 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: METHOCRBAMOL - "ALPHABETIC", 2ND RACE, 3-72-05.
________________________________________
Ruling Number: *N*10080229 Date: 11/11/2004
Issued By: California Racing Commission Facility: HOLLYWOOD PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 100 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: IMPROPERLY SHOD FOR TURF COURSE.
________________________________________
Ruling Number: *N*10090571 Date: 11/11/2004
Issued By: California Racing Commission Facility: HOLLYWOOD PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 100 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: 04SA179/E0681/IMPROPERLY SHOD
________________________________________
Ruling Number: *N*10073956 Date: 3/27/2004
Issued By: California Racing Commission Facility: Unknown
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s): Promazine Promazine
Fine Amount: $ 5000 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: PROMAZINE, "SWEET STEPPER," 3RD RACE, 9/7/03.
________________________________________
Ruling Number: *N*10075126 Date: 2/29/2004
Issued By: California Racing Commission Facility: Unknown
Ruling Type: Positive Drug Test
Division: Unknown Breed: Unknown
Drug(s): Prednisolone Prednisolone
Fine Amount: $ 300 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: METHYPREDNISOLONE, "AREYOUTALKINTOME", 1ST RACE, 12-20-03, WINNER.
________________________________________
Ruling Number: *N*10065309 Date: 7/26/2003
Issued By: California Racing Commission Facility: DEL MAR
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 100 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: LATE TO THE RECEIVING BARN.
________________________________________
Ruling Number: *N*10054303 Date: 6/27/2002
Issued By: California Racing Commission Facility: HOLLYWOOD PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 100 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: LATE TO RECEIVING BARN.
________________________________________
Ruling Number: *N*10023128 Date: 3/17/2001
Issued By: California Racing Commission Facility: Unknown
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 200 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: PENALTY FOR LATE DECLARATION.
________________________________________
Ruling Number: *N*339217 Date: 5/8/1998
Issued By: California Racing Commission Facility: HOLLYWOOD PARK
Ruling Type: Positive Drug Test
Division: Unknown Breed: Unknown
Drug(s): Flunixin
Fine Amount: $ 300 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: EXCESS FLUNIXIN.
________________________________________
Ruling Number: *N*85390 Date: 6/8/1996
Issued By: California Racing Commission Facility: HOLLYWOOD PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 100 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: FAILED TO FILE A DECLARATION AT THE PROPER TIME.
________________________________________
Ruling Number: *N*85389 Date: 10/22/1995
Issued By: California Racing Commission Facility: Unknown
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s): Methocarbamol Methocarbamol
Fine Amount: $ 750 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: TWO POSITIVE TESTS FOR METHOCARBAMOL.
________________________________________
________________________________________
Ruling Number: *N*85372 Date: 2/13/1991
Issued By: California Racing Commission Facility: Unknown
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 100 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $100 - EMPLOYMENT OF UNLICENSED PERSON.
________________________________________
Ruling Number: *N*85391 Date: 2/13/1991
Issued By: California Racing Commission Facility: Unknown
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 200 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $200 - EXCESS BUTAZOLIDIN FOUND INSAMPLE TAKEN FROM "SILVER STRAND", 2ND RACE ON 2-1.
________________________________________
Ruling Number: *N*85398 Date: 7/31/1990
Issued By: California Racing Commission Facility: Unknown
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 200 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $200 - FAILURE TO FOLLOW INSTRUCTIONS OF AND DISRESPECT TO PADDOCK JUDGE.
________________________________________
Ruling Number: *N*85373 Date: 9/7/1989
Issued By: California Racing Commission Facility: DEL MAR
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $500 - FOUND EQUIPROXEN IN "BELLE MO", 1ST RACE, 8-30.
________________________________________
Ruling Number: *N*85374 Date: 9/1/1989
Issued By: California Racing Commission Facility: DEL MAR
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $500 - FOUND EQUIPROXEN IN "SPEEDRATIC", 8TH RACE, 8/17/89.
________________________________________
Ruling Number: *N*85375 Date: 7/15/1989
Issued By: California Racing Commission Facility: HOLLYWOOD PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $200 - FOUND ROBAXIN IN "SUCESS FORMULA", 3RD RACE, 7-4.
________________________________________
Ruling Number: *N*85376 Date: 1/28/1989
Issued By: California Racing Commission Facility: Unknown
Ruling Type: Positive Drug Test
Division: Unknown Breed: Unknown
Drug(s): Hydrocortisone Hydrocortisone Hydrocortisone
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $200 - VIOLATION OF RULE 1844 (MEDICATION-HYDROCORTISONE).
________________________________________
Ruling Number: *N*85399 Date: 8/22/1988
Issued By: California Racing Commission Facility: DEL MAR
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $100 - EXHIBITING CONDUCT UNBECOMING TO A LICENSEE.
________________________________________
Ruling Number: *N*85377 Date: 7/9/1988
Issued By: California Racing Commission Facility: HOLLYWOOD PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $100 - EMPLOYMENT OF UNLICENSED PERSON.
________________________________________
Ruling Number: *N*85392 Date: 12/5/1987
Issued By: California Racing Commission Facility: HOLLYWOOD PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $200 - NEGLIGENCE IN RACE DAY BLEEDER MEDICATION PROCEDURES.
________________________________________
Ruling Number: *N*85378 Date: 11/25/1987
Issued By: California Racing Commission Facility: HOLLYWOOD PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: 00$200 - FAILURE TO DELIVER HORSE TORECEIVING BARN AT PROPER TIME.
________________________________________
Ruling Number: *N*85393 Date: 1/15/1987
Issued By: California Racing Commission Facility: Unknown
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $300 - VIOLATION OF RULE 1844(C) (AUTHORIZED MEDICATION; MORE THAN ONE APPROVED DRUG SUBSTANCE, SECOND OFFENSE).
________________________________________
Ruling Number: *N*85400 Date: 1/3/1987
Issued By: California Racing Commission Facility: Unknown
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $200 - VIOLATION OF RULE 1843(D) (MEDICATION IN EXCESS OF PERMITTED LEVEL - BUTAZOLIDIN).
________________________________________
Ruling Number: *N*85379 Date: 10/3/1986
Issued By: California Racing Commission Facility: Unknown
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $200 - VIOLATION OF RULE 1843(D) (MEDICATION IN EXCESS OF PERMITTED LEVEL - BUTAZOLIDIN).
________________________________________
Ruling Number: *N*85401 Date: 6/11/1986
Issued By: California Racing Commission Facility: HOLLYWOOD PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $200 - VIOLATION OF RULE 1843(D) (MEDICATION IN EXCESS OF PERMITTED LEVEL - BANAMINE).
________________________________________
Ruling Number: *N*85380 Date: 2/22/1986
Issued By: California Racing Commission Facility: Unknown
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $200 - MEDICATION IN EXCESS OF PERMITTED LEVELS.
________________________________________
Ruling Number: *N*85381 Date: 3/28/1984
Issued By: California Racing Commission Facility: SANTA ANITA PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $200 - MEDICATION IN EXCESS OF LIMITS.
________________________________________
Ruling Number: *N*85382 Date: 9/7/1983
Issued By: California Racing Commission Facility: DEL MAR
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $200 - VIOLATION OF RULE #1845(E) (BLEEDER LIST).
________________________________________
Ruling Number: *N*85383 Date: 7/8/1982
Issued By: California Racing Commission Facility: HOLLYWOOD PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $100 - FAILURE TO HAVE HORSE, A CONFIRMED BLEEDER, TREATED FOR RACE.
________________________________________
Ruling Number: *N*85402 Date: 6/21/1981
Issued By: California Racing Commission Facility: HOLLYWOOD PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $300 - NEGLIGENCE IN PROCEDURE OF RACEDAY BLEEDER MEDICATION CONDITIONS.
________________________________________
Ruling Number: *N*85384 Date: 5/29/1981
Issued By: California Racing Commission Facility: HOLLYWOOD PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $100 - NEGLIGENCE IN PROCEDURE OF RACE DAY BLEEDER MEDICATION CONDITONS.
________________________________________
Ruling Number: *N*85394 Date: 9/14/1980
Issued By: California Racing Commission Facility: DEL MAR
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $50 - FAILURE TO BE PRESENT AT PADDOCK TO SUPERVISE SADDLINGOF HIS HORSE.
________________________________________
Ruling Number: *N*85385 Date: 5/23/1980
Issued By: California Racing Commission Facility: HOLLYWOOD PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $300 - NEGLIGENCE IN PROCEDURE FOR RACE DAY BLEEDERMEDICATION CONDITIONS.
________________________________________
Ruling Number: *N*85395 Date: 2/17/1979
Issued By: California Racing Commission Facility: SANTA ANITA PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $300 - NEGLIGENCE IN PROCEDURE OF RACE-DAY BLEEDER MEDICATIONCONDITIONS.
________________________________________
Ruling Number: *N*85386 Date: 1/25/1979
Issued By: California Racing Commission Facility: SANTA ANITA PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $100 - NEGLIGENCE IN PROCEDURE OF RACE-DAY BLEEDERMEDICATION.
________________________________________
Ruling Number: *N*85403 Date: 5/26/1978
Issued By: California Racing Commission Facility: HOLLYWOOD PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $100 - FAILURE TO PROPERLY REGISTER A HEEL NERVED HORSE.
________________________________________
Ruling Number: *N*85387 Date: 1/2/1978
Issued By: California Racing Commission Facility: SANTA ANITA PARK
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $150 - VIOLATION OF RULE 1895 (UNLICENSED GROOM IN RECEIVINGBARN).
________________________________________
Ruling Number: *N*85388 Date: 12/10/1975
Issued By: California Racing Commission Facility: BAY MEADOWS
Ruling Type: Unknown
Division: Unknown Breed: Unknown
Drug(s):
Fine Amount: $ 0 Fine Paid: Not Submitted
Suspension Start: None Suspension End: None
Description: $50.00 FOR VIOLATION OF CHRB RULE 1629 (PENALTY FOR LATEDECLARATION).
Copyright © 2008, The Paulick Report
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Tags: acepromazine, anabolic steroids, association of racing commissioners international, California Horse Racing Board, california racing, CHRB, Del Mar, drugs in racing, Hollywood Park, Horse Racing, john sadler, Medication, michael ray mitchell, michael wagner, mike mitchell, Paulick Report, procaine, Ray Paulick, RCI, roy wood, santa anita, scat thief, sun boat, thoroughbred trainer
Posted in California, California Horse Racing Board, Medication, Regulatory Issues | 7 Comments »
Thursday, September 18th, 2008
By Ray Paulick
Stewards at Delaware Park have suspended trainer Larry Jones for seven days, fined him $500 and ordered a purse redistribution following a hearing on Tuesday concerning the discovery of a higher than permitted level of Clenbuterol in a post-race test for Two Bucks Stable’s Stones River, who won a June 8 allowance race at Delaware Park.
John Wayne, executive director of the Delaware Thoroughbred Racing Commission, told the Paulick Report that Jones indicated he would appeal the ruling, which was handed down on Wednesday. The commission is expected to hear the appeal on Oct. 21. Jones was granted a stay until that time.
The ruling against Jones was the first of any kind during the trainer’s 25-year career, according to the data base at the Association of Racing Commissioners International.
The penalties assessed Jones are significantly lower than the model rules recommended last month by RCI, which Wayne said call for a suspension of 60 days to six months and up to a $1,500 fine for Clenbuterol, a Class 3 drug according to RCI guidelines. The seven-day suspension and $500 fine is in line with other first-offense Clenbuterol rulings in the Mid-Atlantic reguib, according to Wayne.
“The testimony given would be taken into consideration by the stewards,” said Wayne, who did not attend the hearing. Wayne said mitigating circumstances also may be taken into consideration by stewards when ruling on medication violations.
The Stones River case gained national attention when Jim Squires, co-owner with wife Mary Anne of Two Bucks Stable, issued a statement after being notified of the positive test, saying that it was a “highly suspicious” case and suggested it may have involved sabotage of the horse or drug test. Squires was notified of the result two days before a Congressional hearing examining drugs and welfare issues related to Thoroughbreds; a one-time member of the Kentucky Racing Commission, Squires has been an outspoken critic of the drugging of horses. An author and former editor of the Chicago Tribune, he also wrote a blog for the New York Times during this year’s Triple Crown in which he called for a ban on anabolic steroids.
Squires also wrote a New York Times commentary citing the need for widespread industry reforms in the wake of the death on national television of the Larry Jones-trained filly, Eight Belles, after she finished second to Big Brown in the Kentucky Derby. No illegal drugs or anabolic steroids were found in the filly’s system during post-mortem testing.
“That a Two Bucks Stable horse in his care has become the first drug positive in his career in the highly charged atmosphere during the week of a congressional investigation focusing on drugs and safety in horse racing is highly suspicious,” Squires said in the written statement in June . “It reeks of a deliberate effort to impugn our credibility on the subject of drugs and damage the reputation of a highly successful trainer who has been unfairly and mistakenly blamed by a few critics outside the industry for the death of Eight Belles. … Larry Jones and I have both been prominent in the media voicing our support for the banning of steroids in the Thoroughbred industry and of more vigorous, uniform regulation of therapeutic drugs such as Clenbuterol, which can have steroidal effects.
“This test result on Stones River appears to be another miscarriage of justice in the offing, which we plan to challenge in every legal way possible,” the statement continued. “Holding Jones responsible for something beyond his control only aids and abets criminal behavior by people intent on hurting a competitor in particular or our industry in general. It will demonstrate once again how easy it is in Thoroughbred racing to impact a trainer’s livelihood and discredit both a horse and its owners.
“We have faith in the integrity of Delaware racing authorities and their interest in fair treatment. But we also are aware how staff and budget resources limit the ability of regulators to conduct thorough, successful criminal investigations. If this were a case of cheating in NASCAR or the NFL, there would be a commissioner with full authority and investigative expertise to step in and get to the bottom of it. In view of the highly charged public atmosphere surrounding the credibility of racing, the full resources of the Jockey Club, the NTRA, Breeders’ Cup and the Thoroughbred Owners and Breeders Association should be offered to the Delaware Racing Commission and the Department of Agriculture to assure a fair and credible resolution of this matter. If necessary, the entire purse from the race should be used to supplement required resources. As an owner, Two Bucks Stable is far more interested in the credibility of our horse, our trainer and our industry than we are the money.”
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Tags: association of racing commissioners international, clenbuterol, Congressional Hearing, delaware park, delaware thoroughbred racing commission, eight belles, Horse Racing, jim squires, john wayne, larry jones, Medication, model rules, Paulick Report, Ray Paulick, RCI, stones river, trainer insurer rule, two bucks, two bucks stable
Posted in Congressional Hearing, Horse Welfare, Industry Reform, Medication, People, Regulatory Issues | 6 Comments »
Thursday, August 21st, 2008
By Ray Paulick
The definition of the term “illegal” has always been a bit fuzzy in the horse racing world, especially among trainers. Several years ago I asked a very prominent horseman point blank if he was giving the blood-doping agent EPO to his horses as racing’s rumor mill had it. His response was a non-answer. “It ain’t illegal.” I assured him that the drug was, in fact, quite illegal, and that there were harsh penalties for anyone who got caught using it.
His reply surprised me. “How can it be illegal if they can’t test for it?” he asked.
Reminded me a little of former President Bill Clinton’s testimony to a grand jury about his affair with Monica Lewinsky. “It depends on what the meaning of the word ‘is’ is,” Clinton said, explaining why he told White House aides there was nothing going on between he and the intern.
The definition of what’s illegal and when are legitimate questions concerning the phased-in ban of anabolic steroids by the California Horse Racing Board. Monday’s search of the barn of Del Mar’s leading trainer John Sadler and comments by state regulators indicate not everyone has been on the same page in regard to the ban on steroids. The CHRB and its medical director, Dr. Rick Arthur, hoped all trainers and veterinarians would follow the guidelines suggested during the process of reclassifying anabolic steroids from Class 4 to Class 3 drugs (according to Association of Racing Commissioners International guidelines). That apparently hasn’t been the case.
Sadler said he and his attorney, Donald Calabria, have discussed possible litigation as a result of the barn search.
The first directive was issued by the CHRB May 12. That was followed by a May 26 informational Q&A that suggested, among other things, that trainers and veterinarians “not use anabolic steroids beyond this point.” But the Q&A also said there would be a period beginning July 1 when testing for steroids would be conducted but nothing more than a warning letter would be sent for positive tests. On July 24, CHRB executive director Kirk Breed issued a directive saying, effective Aug. 1, the board would begin to “strictly enforce all regulations concerning anabolic steroids and will no longer issue ‘unofficial notices’ when the test samples reveal unauthorized levels of anabolic steroids …complaints will be filed against trainers or other licensees alleged to have violated the regulations.”
Then, on Aug. 8, Breed issued another advisory saying the CHRB “will begin enforcement of the amended (steroids) rule” effective with races run Sept. 4.
From my reading of those directives and advisories, steroids became “illegal” on Aug. 1, with violations going on a trainer’s record, but there would be no penalty for positive tests until Sept. 4 because of California’s bureaucratic process of adopting new regulations. Trainers would effectively be on an “honor system” between those two dates. That’s kind of like saying it’s illegal to go over the speed limit on a highway this month, but the police will only give you a warning if they catch you speeding. But next month, when they start issuing tickets with penalties, you’d better slow down!
“We are trying to implement this enforcement regulation in the most logical, timely way,” CHRB chairman Richard Shapiro said in one of the advisories. “We have given notice to the owners, trainers, veterinarians and other track personnel. It is part of the process. The administration of all anabolic steroids to horses in competition must stop immediately. Complaints will be issued. The hammer is coming down. In this way, we are protecting the public and all of those who are playing by the rules.”
Apparently it’s a velvet hammer that chairman Shapiro is wielding until Sept. 4. And I wonder how the public is being protected by having rules that have no teeth for enforcement. While most trainers followed the guidelines, some apparently have not, and the betting public has no way of knowing who is and who isn’t giving steroids to their horses.
One of Sadler’s principal owners is Gary Barber, who with his brother, Cecil, has won more races at Del Mar this season than anyone else. (Another of Sadler’s owners is CHRB commissioner Jerry Moss.) Barber was extremely upset about the barn search and any suggestions that Sadler is doing anything illegal.
“John is a stand-up guy and there is no reason to believe that there is anything he’s done beyond what’s in the rules and regulations,” Barber told the Paulick Report. “It’s quite shocking to me that these people without any evidence or knowledge have gone on a witch hunt and are trying to recover from the mistakes they made themselves.
“It’s all about steroids,” Barber continued. “I’m a total supporter for getting rid of them. We’re all for cleaning up the game. Lots of people have been receiving letters (warning of positive tests for steroids). These letters are purely notifications that in the future this will not be tolerated.
“You either should ban something or not; there’s no in between. They should have said ‘no use, period.’ But now they regret the decision they made and are trying to find scapegoats. Wait till Sept. 4 and go after everybody at the same time. Write the rules and abide by them.”
CHRB executive director Breed, commenting in a published report, admitted it was a “mistake” to phase in the ban on steroids.
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Tags: anabolic steroids, association of racing commissioners international, California Horse Racing Board, cecil barber, CHRB, Del Mar, donald calabria, gary barber, Horse Racing, jerry moss, john sadler, kirk breed, Medication, RCI, richard shapiro, rick arthur, steroids
Posted in California, California Horse Racing Board, Medication, Regulatory Issues | 11 Comments »
Tuesday, July 8th, 2008
Tommy Simon’s Vinery Stable has moved 21 horses from the barn of trainer Steve Asmussen, not long after an allegation of a positive test for traces of the therapeutic anesthetic lidocaine from an Asmussen-trained horse that won a maiden race at Lone Star Park in Texas May 10.
Tom Ludt, general manager of Vinery, confirmed the move to the Paulick Report but would not comment on why the change was made. Ludt said the horses have been distributed among the half-dozen other trainers Vinery employs: Josie Carroll, Larry Jones, Doug O’Neill, Todd Pletcher, Michael Stidham and Michael Trombetta.
Jones is currently awaiting results of a split sample in the wake of an alleged positive test in one of his horses that raced in Delaware for the therapeutic bronchodilator clenbuterol, a Class 3 drug according to the Association of Racing Commissioners International.
Asmussen received notice from the Texas Racing Commission late last month that Timber Trick, a 2-year-old filly owned by Gainesway Stable, tested positive for lidocaine, a Class 2 drug that can be used as a “blocker” but also is found in many non-pharmaceutical products. Texas prohibits any trace of the drug in test samples and is classified as a "zero tolerance" state. Asmussen has retained the legal services of prominent owner Maggi Moss, a trial attorney who put her law practice on hold several years ago to concentrate on her racing stable.
According to the Association of Racing Commissioners International database, Asmussen has a total of 74 rulings involving him, including a number of medication violations, dating back to 1990. He served a six-month suspension in late 2006-early 2007 for a mepivacaine positive in one of his horses racing in Louisiana.
Asmussen, the leading North American trainer by wins and earnings in 2008, is also the conditioner for 2007 Horse of the Year Curlin.
By Ray Paulick
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Tags: association of racing commissioners international, clenbuterol, Curlin, doug o'neill, gainesway, Horse Racing, josie carroll, larry jones, lidocaine, maggi moss, mepivacaine, michael stidham, michael trombetta, Paulick Report, Ray Paulick, RCI, steve asmussen, texas racing commission, todd pletcher, tom ludt, tommy simon, vinery
Posted in Curlin, Medication, People | 9 Comments »
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