Posts Tagged ‘kentucky horse racing authority’
Wednesday, December 3rd, 2008
By Ray Paulick
Attorneys for Rodney Stewart, the veterinarian suspended for five years by Kentucky racing authorities in the 2007 “cobra venom” case that also implicated trainer Patrick Biancone, said in opening statements in an appellate hearing on Wednesday morning the suspension against their client was excessive and should be lifted.
Mike Meuser and Karen Murphy are representing Stewart, who received a four-year ban for possession of prohibited substances and a one-year suspension for failure to cooperate in the investigation. The appeal is being heard by Bob Layton, a hearing officer for the Kentucky Horse Racing Commission, which is represented by attorney Bob Watt.
Click here to see the original ruling.
In his opening statements, Meuser said Stewart had no intention of using the prohibited substances found in a refrigerator and packed in a soft-sided cooler in one of three barns Biancone occupied and that they had been packed by Stewart’s wife in preparation for the couple’s move to New York. In fact, Meuser contended, Stewart wasn’t even aware of the cooler’s contents, which the attorney said were placed in the refrigerator because it was a “hot June day.”
Meuser said, the three vials of prohibited cobra toxin found in the bag were still shrink-wrapped. Another prohibited substance found, Carbidopa-Levodopa (a human drug to treat Parkinson’s disease), was still in its original container, Meuser said, and its usage date had expired. “There is no evidence there was any attempted use of any of these substances,” said Meuser, who added that the cooler also contained rabies vaccines for dogs and cats.
Watt, in his statement, said the cobra venom, a powerful painkiller, had been purchased from BioToxins, a Florida-based company that specialized in snake venom. Watt referred to other substances discovered in the June 22, 2007, barn searches conducted by investigators with the racing commission (then known as the Kentucky Horse Racing Authority) and Keeneland security, including Ketoconazole, “something called Throat RX, and one injectable honey colored solution marked ‘For Mythical Elmo.’”
Meuser did not address the latter substances in his opening statement.
Watt said Stewart and his attorneys failed to properly respond to requests that were made to Stewart for billing and computer records, which resulted in the one-year suspension for failure to cooperate. Murphy countered that the ban should be lifted because the commission failed to give Stewart a hearing within 48 hours of a request for a stay of the suspension. She also complained that the request for a home computer was unreasonable and that the commission “was fishing for further violations,” even going so far, she said, as conducting tests in Hong Kong.
Biancone, who recently returned to training in California, was out of racing about one year, accepting a six-month suspension and agreeing not to apply for his trainer’s license for another six months.
A number of witnesses are being called in the case. Layton is expected to make a ruling within 60 days of the completion of the hearing.
To read about some of the testimony in the hearing, click here.
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Tags: biotoxins, bob layton, bob watt, carbidopa-Levodopa, cobra venom, karen murphy, Keeneland, kentucky horse racing authority, kentucky horse racing commission, ketokonazole, michael meuser, mike meuser, mythial elmo, mythical elmo, parkinson's, patrick biancone, Paulick Report, Ray Paulick, rodney stewart, snake venom, throat rx
Posted in Horse Welfare, Medication, Regulatory Issues | 5 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 »
Thursday, July 10th, 2008
It’s become something of a tradition in Kentucky politics for newly elected governors to dissolve the regulatory body for horse racing and create their own racing board. It’s something Brereton Jones, Ernie Fletcher and now Steve Beshear have done.
Governors in most other states are content to merely fill racing commissions with their hand-picked appointees as terms expire. In Kentucky, where horse racing is the number one industry and racing commissioners can wield considerable clout, there is more of a sense of urgency by governors and their allies.
The downside to this maneuvering is continuity in the regulation of the sport, and this latest iteration by Gov. Beshear to dissolve the Kentucky Horse Racing Authority and create the Kentucky Horse Racing Commission left no indication as to whether people like John Veitch, the chief steward for racing, and executive director Lisa Underwood have job security in the new regime.
There was good work being done by some members of the KHRA, and we can only hope that it will not go by the wayside. For example, one of the Authority members who was not retained on the new board, Franklin Kling, put considerable time and effort into issues related to wagering security, particularly past-post betting, or perceptions of past-post betting. It is common now, because of delays in communications from wagering hubs to the host track, for odds to change midway through a horse race. Clearly, the tote systems are not on par with the technologies in place for online banking and securities transactions, and there remains the potential for fraud and pool manipulation.
Many horseplayers are concerned that bets are being made after the start of a race, and some racetrack executives privately fear the same thing. There have been instances in Kentucky where that’s happened on simulcast races, and professional horseplayer Mike Maloney was brought in by the Authority to advise them on the issue. The latest example appears to have occurred at Philadelphia Park recently, when the Scientific Games totalizator system malfunctioned, allowing simulcast bettors at Tampa Bay Downs and possibly other locations to place wagers during and after the running of the fourth race June 28.
Kling provided at no cost to the commission information technology personnel from his company to examine the issue of tote communications and past posting, and according to sources there was progress in that area. This is a serious issue that needs attention, and there is no reason to discard the work that Kling and other members of a wagering security committee have done.
Fortunately, the man who advised Gov. Beshear on the appointments to the new commission, Thoroughbred owner-breeder Tracy Farmer, is a sharp and highly ethical individual, knowledgeable about the industry, and perceptive about what the public expects from a regulatory body. Farmer and his wife Carol have been strong supporters of horse rescue and retraining operations, something that many people in the industry have ignored for too long.
The commission includes some members whose background does not appear to have any connection to racing and is probably nothing more than political patronage. However, the retention of attorney Robert Beck as chairman was a wise move, as was the appointment of several people with both knowledge and experience in racing matters.
One example is attorney Ned Bonnie of Louisville, who is an expert in the medication field, having helped develop regulations for the sport horse world. Bonnie has been involved in numerous industry committees and has strong opinions about cleaning up the game. His involvement in the Thoroughbred industry goes back many year and includes a close friendship and association with the late Kent Hollingsworth, the esteemed, longtime editor of Bloodhorse magazine whose "hat, oats and water" mantra Bonnie had emblazoned on a sweatshirt that he frequently wore while jogging.
Farmer appears to have advised Beshear to balance the board with diverse views. Trainer John Ward has fought for tighter restrictions on medications while heading the Kentucky Thoroughbred Association and Frank Jones has been a voice for the Kentucky Horsemen’s Benevolent and Protective Association, which tried to keep Kentucky’s permissive medication rules intact. The inclusion of a veterinarian, Foster Northrup, is another move that will diversify the board’s makeup.
The best news came on Wednesday, when the new commissioners were sworn in, and Beck and Farmer indicated that they intend to pursue regulations for anabolic steroids.Steroids have been one of the sport’s dirty little secrets. There will be efforts to keep their use legal in Kentucky, and some veterinarians may say that their use benefits the health and welfare of the horse. But public perception is very important, and right now horse racing is losing that battle in a very big way. It’s time for steroids to be banned: period.
The political tradition by newly elected Kentucky governors to dissolve racing commissions and create new spots for political supporters can lead to problems. Fortunately, the people involved in the process in 2008 have the best interests of racing at heart.
Let’s hope there is a seamless transition. People who regulate Kentucky racing should be looked upon as national leaders. That hasn’t always been the case.
By Ray Paulick
Copyright ©2008, The Paulick Report
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Tags: brereton jones, ernie fletcher, foster northrup, frank jones, franklin kling, john veitch, john ward, kent hollingsworth, kentucky horse racing authority, kentucky horse racing commission, lisa underwood, mike maloney, ned bonnie, past-posting, Paulick Report, ray paulick horse racing, robert beck, steve beshear, tracy farmer
Posted in Industry Organizations, Kentucky, Regulatory Issues | Comments Off
Sunday, July 6th, 2008
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I’m not sure how good of a poker player Ron Geary is, but the owner of Ellis Park was engaged in a high-stakes game with Kentucky horsemen this past week. On the one hand, Geary put up his money to play this game when he bought the track from Churchill Downs two years ago, so if he wants to take his ball and go home because horsemen want a more equitable percentage of dollars bet through account wagering, that’s his right, ultimately.
On the other hand, Geary should feel a responsibility – if not an obligation – to work with the people in Kentucky’s signature industry, and his last-minute decision to close Ellis Park before its scheduled July 4 opening looked an awful like a spoiled child running home to mommy when he couldn’t have his way.
Normally, one might look for leadership from the Kentucky Horse Racing Authority when a dispute like this occurs between racetracks and horsemen. What’s that, you say? There is no Kentucky Horse Racing Authority? Oh, that’s right. In the middle of this Ellis Park crisis, Kentucky Gov. Steve Beshear dissolved the regulatory body and replaced it with another regulatory body called the Kentucky Horse Racing Commission, which has yet to meet. Of course, it’s the same thing previous governors have done so they can pay off some campaign favors.
(Maybe that’s the real reason so many politically connected people detest the idea of any sort of federal regulation of racing. Governors and friends of governors would lose one of the spoils of victory that comes with the office.)
In his announcement about the formation of the new commission, Beshear issued some gibberish about how important the Thoroughbred industry is to Kentucky. Beshear, a Democrat, had the strong support of the Thoroughbred industry in his 2007 campaign to unseat Republican Gov. Ernie Fletcher, and one of the platforms of his campaign was expansion of the wagering menu at racetracks to include casino gambling. During the general assembly, however, Beshear was quiet as a church mouse on the issue, and the necessary legislation never got out of the starting gate.
Governor Steve’s “rediscovery” of the industry is curious, at best, and his timing to dismantle the old authority is terrible.
Fortunately for Kentucky’s blue-collar horsemen (the tiffany guys all go to Saratoga or Arlington), cooler heads have prevailed. A more equitable split of revenue has been agreed upon, and Ellis Park will open a week late on July 11.
WITH THE TURNING OF THE CALENDAR PAGE, Fasig-Tipton moves closer to its July yearling sale and the first under the new ownership of Synergy Investments. Buyers shouldn’t look for anything new, sale company officials told the Paulick Report, since the deal closed just over a month ago. But a survey we conducted of consignors and buyers showed great enthusiasm for what Fasig-Tipton’s new owners can bring, not just to the company’s sales rings in Lexington, Ky., and Saratoga Springs, NY, but to the industry at large. There also was much speculation that a stronger and more competitive Fasig-Tipton will have a humbling effect on the widely perceived arrogance of Keeneland. SPEAKING OF HUMBLING, this past week’s election results for the Breeders’ Cup board of members and trustees had to be particularly tough on Robert Clay, the owner of Three Chimneys Farm in Midway, Ky. Clay, the vice chairman of the Breeders’ Cup operating board of directors, didn’t receive enough votes from nominators, and will thus be ineligible to run for re-election to that 14 member board when the members and trustees vote on seven open positions this coming Friday. Three other incumbents were voted off the larger board of members and trustees in what is clearly a sea change for the board, a potential scenario discussed at the Paulick Report a few weeks back in a two-part series ( part one, part two). It will be interesting to see who is elected to the operating board of directors. My money is on Hill ‘n’ Dale Farm owner John Sikura to emerge as a powerful voice to represent the “new guard” at the Breeders’ Cup as the battle against the “old guard” Jockey Club types continues to evolve.
THERE WAS PLENTY OF ACTION ON THE RACETRACK THIS WEEK, but the headlines came from two workouts: one by Kentucky Derby-Preakness winner Big Brown, his first since being eased in the Belmont; and the other by Horse of the Year Curlin on the turf at Churchill Downs. Big Brown’s work was slow, but he’s got a month until he is expected to re-emerge in the Haskell Stakes at Monmouth. Curlin’s was more of a test drive for trainer Steve Asmussen to see how well the son of Smart Strike took to the grass. According to Asmussen, Curlin did everything right, and all systems are currently “go” for a turf debut, most likely in Belmont Park’s Man o’ War on July 12. If that goes well, Curlin’s majority owner, Jess Jackson, wants to challenge the world’s best grass runners in France’s Prix de l’Arc de Triomphe. I think Curlin will be up against it in France, but I probably wouldn’t have suggested Christopher Columbus sail west, either. It was a quiet week for Big Brown’s trainer, Rick Dutrow, aside from having Unrequited, a horse he raced twice in three days, be euthanized because of a fractured pelvis. This ordinarily wouldn’t be news, but only two days before the horse was injured at Monmouth Park, Dutrow challenged the media to find the last time he had a horse vanned off the track with an injury. The good news: the mouth that has roared so much this spring is being muzzled. We look for the week ahead to be a No Dutrow Zone.
FINALLY, ON THE MEDICATION FRONT, red-hot trainer Bruce Levine’s horses at Monmouth Park tested negative for blood-doping agents in testing conducted by the New Jersey Racing Commission. Frank Zanzuccki, the executive director of the commission, gave the Paulick Report some background on the regulatory agency’s out-of-competition testing program.
By Ray Paulick
Copyright ©2008, The Paulick Report
Tags: Big Brown, Breeders' Cup, bruce levine, Curlin, ellis park, fasig-tipton, frank zanzuccki, jess jackson, John Sikura, Keeneland, kentucky horse racing authority, kentucky horse racing commission, new jersey racing commission, out of competition testing, Paulick Report, Ray Paulick, rick dutrow, Robert Clay, ron geary, steve asmussen, steve beshear, unrequited
Posted in Big Brown, Breeders' Cup, Curlin, Medication, Thoroughbred Auctions, Week in Review | Comments Off
Wednesday, June 25th, 2008
The wise guys are out in force: “Knock me over with a feather,” they are saying in response to the latest news about Rick “No Show” Dutrow, who will be handed a 15-day suspension from the Kentucky Horse Racing Authority, which also will redistribute the $20,000 second-place purse won by Salute the Count in the Aegon Turf Sprint Stakes at Churchill Downs May 2. The former claiming horse owned by Michael Dubb and Robert Joscelyn tested positive for an extremely high level of clenbuterol, a bronchial dilator that has come into vogue as a training aid among many horsemen over the last 10 years but is not permitted on raceday.
The violation came one day before Dutrow-trained Big Brown won the Kentucky Derby.
Why just 15 days for Dutrow, who according to the Association of Racing Commissioners International has at least 72 previous rulings against him for a variety of violations since 1976? The New York Times, which broke the story, quotes former trainer John Veitch, the chief state steward for the Kentucky Horse Racing Authority , as saying 15 days and forfeiture of the purse would be Dutrow’s penalty for a first offense, according to Kentucky rules. Veitch told the paper the level detected (and confirmed by an independent lab of Dutrow’s choosing) was two times that of the legal threshold and the highest he had seen in four years as Kentucky’s top racing official.
First offense?
If I get speeding tickets in 25 states and am then caught in Kentucky going 10 miles over the limit, I hope I can get the same kid-glove treatment and am looked upon as a first-time offender. Somehow, I doubt that will happen. Why, then, is Dutrow’s track record of rules violations in multiple states being ignored in Kentucky?
Larry Jones, the trainer of star-crossed Kentucky Derby runner-up Eight Belles, recently had a positive test for clenbuterol in Delaware on a horse owned by Jim Squires. By all accounts, if confirmed in a split sample, this would be Jones’ first medication violation in 25 years of training. According to Delaware Park stewards, the standard penalty for a first offense would be a $500 fine, forfeiture of purse and a seven-day suspension of the trainer. Not much different than the sanctions that will be imposed on Dutrow.
Considering the number of violations Dutrow has had during his career (including a 2004 case involving clenbuterol in New York), the Kentucky penalty given him would be the proverbial slap on the wrist.
This is the kind of problem that federal lawmakers looked into last week, when Dutrow was among a group of owners, trainers, veterinarians, regulators and racing officials asked to testify before a House of Representatives subcommittee hearing on Thoroughbred racing and breeding. The trainer was the only no show, however, claiming to be ill. During the hearing, House members zeroed in on racing’s inability to enforce national standardized rules and penalties due to the structure that has 38 different state racing commissions regulating the sport and the absence of a league office that other major league sports have.
If the Congressional inquiry made racing industry leaders look impotent then, how do they look now, in the wake of the wrist slap against Dutrow?
This case is only going to further motivate Congress to take action, unless someone in the Thoroughbred industry moves beyond forming committees, making recommendations and pontificating about “consensus building” and the “power of persuasion.”
It is clear the Thoroughbred industry, as presently structured, is incapable of policing itself adequately.
By Ray Paulick
Copyright ©2008, The Paulick Report
Tags: association of racing commissioners international, Big Brown, clenbuterol, Congressional Hearing, john veitch, kentucky derby, kentucky horse racing authority, larry jones, Paulick Report, Ray Paulick, RCI, rick dutrow, salute the count
Posted in Big Brown, Congressional Hearing, Horse Welfare, Medication, People, Regulatory Issues | 25 Comments »
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