Saratoga Law Panel: Changes Needed in Wagering

If the morning sessions at the 19th Saratoga Institute on Equine, Racing, and Gaming Law offered reasons for optimism about horse racing, the afternoon panels depicted an industry in disarray and unwilling to reinvent itself.

Speaking on a panel called "The Big Picture Issues in Gambling," Pat Cummings of the Thoroughbred Idea Foundation characterized stewards as lacking in preparation, using the disqualification of Maximum Security at the Kentucky Derby Presented by Woodford Reserve (G1) as his example.

Citing a variety of procedural errors by the stewards at Churchill Downs, he claimed, "This is one reason high on the list that people have less confidence in racing." He also chastised the Thoroughbred Racing Protective Bureau for dismissing the TIF's concerns about the superfecta payout in the Derby it considered suspicious.

Genaro: Saratoga Law Conference Focuses on Industry Survival

Cummings also called for Thoroughbred racing to institute fixed-odds wagering, a move also championed by Michele Fischer, founder of Darting Star LLC, a horse racing consulting firm. Depicting the industry with parasitic hopes of a stake from sports gambling, she insisted sports betting companies have little interest in horse racing, saying the one way for Thoroughbred racing to be a part of sports betting is to institute fixed-odds wagering.

"Pari-mutuel wagering is very intimidating," she said. "People don't grow up with horse racing, and they don't know the rules. Horse racing will be a filler product."

"Millennials aren't interested in betting on horse racing," said Chris Higgins, a New York state legislator representing Albany County. "They want to bet on games."

Leonard J. "L.J." D'Arrigo, partner and co-leader of the Immigration Practice Group at Harris Beach, PLLC, described the challenges faced by trainers seeking immigrant labor as barn help.

"A reliable immigrant workforce is necessary in a variety of industries," he said, "but there are a limited number of visas."

In 2019, 33,000 H-2B visas, the type commonly used by racing industry workers, were available. The Department of Agriculture received more than 96,000 applications for them. While an additional 30,000 visas were released, mostly to people who had previously worked in the U.S. under an H2-B visa, supply fell far short of demand.  

He also discussed the logistical difficulties unique to horse racing that could result in hefty fines, difficulties such as lack of a time clock or computerized payroll system, and the many rules and regulations of the visa system. Failure to comply results not only in fines but in civil penalties that quickly add up.

As her panel on Sports and Fantasy Gambling came to a close, Fischer offered one note of optimism.

"With sports betting," she said, "horse racing has a huge opportunity to develop new products that sports bettors understand and to increase distribution."