Asmussen Faces License Revocation Hearing in New York

Hall of Fame trainer Steve Asmussen is facing charges levied by the New York State Gaming Commission that could determine whether his license should be revoked.

Grounds for the action were released by NYSGC in a notice of hearing dated June 13. Clark Petschek was designated to act as hearing officer and will be responsible for taking testimony and making a nonbinding recommendation to NYSGC for disposition of the case. A hearing date is scheduled Sept. 18 at 10 a.m. ET.

The allegations against Asmussen are based on several findings of wage and hour law violations and one H-2B violation. Four of the five charges are tied to Asmussen's operations in New York, and the other arose in Kentucky. The United States Department of Labor was involved in each case alleged in the notice of hearing issued by NYSGC. Specific allegations are that:

• Asmussen was hit with reimbursement of overtime wages of $19,397.31 from July 2010 to December 2012 with $9,698.66 in liquidated damages;
• He incurred a 2021 civil penalty of $46,200 (reduced from $115,500) based on allegations that he failed to pay employees overtime wages;
• Asmussen paid back wages of $129,776.58 connected to H-2B provisions and civil penalties of $75,223.42 assessed in 2023.
• He reached an agreement with the Department of Labor to reimburse overtime wages for the period June 2016 to September 2020 in the amount of $281,900, with a similar sum added in liquidated damages.
• He lost the most recent case in Kentucky, still on appeal, assessing $243,260.13 in overtime wages with the same amount added in liquidated damages.

Attorney Clark Brewster, who represented Asmussen and continues to do so, said the trainer treats his employees well and pays them good wages.

"No employees (in horse racing) make more than those who work for Steve Asmussen," Brewster said. "These cases are based on technicalities all the way through. (The Department of Labor) is a government agency that has tailed Steve in court in cases where it's difficult to maintain records. We've gone the extra mile to avoid this (by upgrading recordkeeping mechanisms). These kinds of cases are almost impossible to defend."

Brewster, who is familiar with the racing business as co-owner of horses with Asmussen and who has a part-interest in recent Jaipur Stakes (G1T) winner and Asmussen trainee Cogburn , said his client is not alone among the trainers who have been affected by similar investigations. In Asmussen's case, Brewster said state regulators in New York found no violations, but federal investigators did not like the stable's recordkeeping.

"This is affecting a lot of trainers. Some trainers have gotten out of the business because of it," he said.

The NYSGC seeks to revoke Asmussen's license on the grounds his "financial responsibility, experience, character and general fitness are such that (his) participation would be inconsistent with the public interest, convenience or necessity and with the best interests of racing generally," that Asmussen "is financially irresponsible;" that he "has been guilty of or attempted any fraud or misrepresentation in connection with racing or otherwise or has been guilty of or engaged in similar, related or like practices;" that the trainer "has violated or attempted to violate any law with respect to racing;" and Asmussen "has engaged in one or more improper, corrupt or fraudulent acts or practices in relation to racing."

Brewster said there has never been a finding of fraud or misrepresentation against Asmussen in any of the wage cases cited by the NYSGC, and the trainer has paid every assessment issued against him in full.

Other trainers have felt a heavy hand when confronted by the NYSGC, including Rick Dutrow and Linda Rice.

In 2013, the NYSGC suspended Dutrow for 10 years, a ban that was honored by other racing jurisdictions after court challenges failed. Citing reciprocity, regulators largely honor suspensions issued by another state. 

In 2021, Linda Rice was suspended for three years and fined $50,000. After a state court in New York reversed what it called a "shockingly unfair" decision, the NYSGC doubled Rice's fine to $100,000.

More recently, the NYSGC suspended trainer Todd Pletcher for 10 days and disqualified Forte   from his win of the 2022 Hopeful Stakes (G1). A state court in New York almost immediately stayed both actions by issuing a temporary restraining order

Petschek, the hearing officer assigned to Asmussen's case, heard the Forte case as well. Pletcher's attorney, Drew Mollica, said the NYSGC departed from 40 years of precedent in its handling of the case.