New Mexico Horsemen File Ethics Complaint

The New Mexico Horsemen's Association added to its ongoing legal battle with state regulators when it announced Feb. 28 it had filed an ethics complaint related to what it sees as an unlawful diverting of purses to track expenses and retaliation by the racing commission through an effort to defund the organization.

The horsemen's group also has asked a judge to hold the New Mexico Racing Commission and New Mexico Gaming Commission in contempt for not following a court order that would resume horse owners' contributions to the NMHA out of their accounts at the racetrack.

The complaint was filed Feb. 24 with the New Mexico State Ethics Commission.

Gary Mitchell, general counsel for the NMHA, said the commission is trying to silence the horsemen's group, which represents 4,000 owners and trainers.

"If you start doing away with the advocates that appear before the various state agencies and you exact this kind of retribution, it sets a dangerous precedent," he said.

A hearing to address the multiple issues between the horsemen and state regulators is scheduled for multiple days starting April 21 with a Gaming Commission hearing officer.

With the hearing still to come, New Mexico Racing Commission executive director Ismael "Izzy" Trejo read the following statement when contacted about the ethics complaint:

"The New Mexico Horsemen's Association has been caught with their hand in the cookie jar by wrongfully taking money from purses and calling it member dues. The New Mexico Racing Commission will always follow state statute and that is what we are doing. I'm sure once the Ethics Commission looks at the substance of their complaint, it will be summarily dismissed."

Troubles between horsemen and regulators started in December 2020 when the NMHA filed suit in the Second Judicial District Court in Bernalillo County to stop the commission's years-long practice of taking horsemen's purse money to pay the racetracks' liability insurance on jockeys and exercise riders. The transfer of purse money to pay track operating expenses has cost horsemen to date more than $8 million.

The NMHA then alleged the racing commission sought retaliation by voting to prohibit purse money from being used In retribution, the New Mexico Racing Commission in May 2021 voted to defund the NMHA by cutting off its revenue stream, falsely asserting that purse money was improperly going to the horsemen's organization. The horsemen's association has said once purse money goes into accounts at the racetrack it is "earned income" and can be spent however the account holder chooses, including making a voluntary contribution to the NMHA. The commission has said the NMHA is illegally taking 1% from all purse accounts to support the association, sometimes without the owner knowing.

Another legal action was taken June 28 when the NMHA filed a suit alleging the racing commission filed its civil rights and claimed the association, at the time, had already lost $100,000 year to date and could lose up to $600,000 for the year.

KING: NM Horsemen's Group Files Third Suit Against Commission

The Gaming Commission backed the racing commission but in August 2021 District Court Judge Erin B. O'Connell ruled to stay the commission's action, meaning horsemen should have been getting those contributions, according to Mitchell. He said the racing commission has not complied with that ruling.

"We have not received any of those contributions," he said. "We're now asking the judge who issued that stay to hold the racing commission in contempt."