Feds Leaning Toward Horse Racing Regulation
Hancock Recalls Prior Warning that Congress Would Take Over Industry
Jul 14, 2008
The long, convoluted titles of committees investigating the state of the horse racing industry may be metaphors for the slow, and eventually dead-ended, progress of reform within the racing community. Hancock suggested as much when he reiterated the 30-year-old warning of then Senator Charles Mathias of Maryland that the Thoroughbred industry was leaving the door open to federal regulation by not taking care of its own business.
Hancock's Reminder At Federal Hearing
The Subcommittee on Commerce, Trade, and Consumer Protection (of the) House Committee on Energy and Commerce heard statements from Thoroughbred industry representatives at its June 19 hearing entitled, "Breeding, Drugs, and Breakdowns: The State of Thoroughbred Horseracing and the Welfare of the Thoroughbred".
The inexplicable death of the filly Eight Belles at this year's Kentucky Derby has catapulted the Thoroughbred industry into the arms of federal committees. The filly broke down completely as she galloped out following a second place finish in the Derby. Her immediate euthanization to end her suffering never came into question. The furor arose over why the breakdown occurred, leading to further inquiries of why so many Thoroughbreds are experiencing catastrophic injury.
The Interstate Horseracing Act
At the center of the congressional hearings is the Interstate Horseracing Act, which controls simulcasts over state lines. The Thoroughbred industry wanted Congress to enact IHA to stimulate wagering across state lines, as well as on the modern Internet. IHA allows interstate gambling for the industry, generating $15 billion a year in a deal that other gambling enterprises are forbidden.
As much as 85% to 90% of Thoroughbred racing's pari-mutuel handle is conducted off the broadcast track.
Kentucky Congressman Ed Whitefield reminded Thoroughbred leaders that IHA as is could be used to set minimum standards that would help the industry. Also, simulcasts can be refused if industry standards aren't being met, Congress warned.
Hancock said he believes industry changes "will never happen unless you (Congress) mandate it."
Support for An Industry Central Regulating Body
Some industry leaders, such as Horse of the Year Curlin owner Jess Jackson favor a central governing body within the industry, not federal control. "...an effective horse owners' association" should be able to set and control standards for the industry, he indicated.
National Thoroughbred Racing Association president and chief executive officer Alex Waldrop said many other group leaders should have been invited to give testimony at the June hearing. The Jockey Club president Alan Marzelli was present, but there were no representatives from the national Thoroughbred Owners and Breeders Association, nor from the National Horsemen's Benevolent and Protective Association.
Waldrop said the NTRA, which began in 1998, was supposed to develop a league office led by a chosen commissioner, but chronic disputes within the industry's divisions prevented it. "...great strides toward uniformity" are presently being made, he claimed.
Disputes concerning appropriate level drug testing and dividing simulcasting revenues remain unsolved, however.
Hancock believes the industry must resolve its drug controversy in order for the Thoroughbred to survive. "Chemical horses produce chemical babies," he said.
