LEXINGTON, Ky. — Texas is, well, Texas, a state with a strong independent streak. Unfortunately, that streak may be working to the detriment of horse racing in the Lone Star State.
Earlier this week, Amy Cook, executive director of the Texas Racing Commission, put out a memo saying the state would not abide by the Horseracing Integrity and Safety Authority, the federally mandated program whose track safety standards are scheduled to begin July 1. HISA’s anti-doping and controlled medication protocol is to start Jan. 1, 2023.
Cook told the BloodHorse on Tuesday that Texas will allow wagering on out-of-state racing signals at simulcast locations in the state. It will not allow parimutuel wagering at a Texas meet that is HISA-compliant or the export of simulcast signals to other states, however.
“Effective immediately, all pending requests for approval for the import and export of pari-mutuel simulcast signals will be considered and approved on a case-by-case basis, in writing, signed by the Executive Director,” Cook said in the memo. “This policy change allows for the determination of whether the export or import signal invokes the jurisdiction of the Horseracing Integrity and Safety Authority created by the Horseracing Integrity and Safety Act of 2020 (‘HISA’), which is effective on July 1, 2022.”
In other words, Texas horse racing will be basically confined to Texas. “Texans supporting Texans,” Cook told horseracing.net.
Analysts predict the decision will result in a huge financial blow to the state that may cause top connections to move their racing operations to other states.
“RIP Texas horse racing,” tweeted Ray Paulick, publisher of the Paulick Report. “With racing commission ordering a shutdown of import/export simulcasting because they don’t like the federal law that created @hisa_us, with no advance deposit wagering and only a handful locations to make a legal bet, there will be no revenue.”
“It could have a dramatic negative impact on Texas horse racing,” equine lawyer Frank Becker told the Thoroughbred Daily News. “It’s hard to imagine it wouldn’t.”
The problem? Under the new paradigm, state racing commissions are to enforce the rules and guidelines put forth by HISA. Texas is a state with a long history of pushing back on what it considers federal overreach. And in this case, Texas says that under its own state law, only the Texas Racing Commission can make rules and regulations for Texas racing.
The Texas vs. HISA issue has been brewing for awhile. HISA reached an agreement with Lone Star Park and its horsemen, but the Texas Racing Commission has balked at any sort of alliance. Cook has called for HISA’s implementation to be delayed for 18 to 24 months. HISA chief executive officer Lisa Lazarus traveled to the state last week in hopes of ironing out an agreement with the commission. Alas, no deal was reached leading to Texas’ stand this week.
It is true that not everyone in the industry is happy about HISA’s arrival. Since lauding HISA last weekend, I’ve received feedback from opponents who say the new regulations are confusing and overly invasive. I’ve also received feedback from those who believe HISA is absolutely essential for the future of the sport.
It’s not as if Texas is an essential part of horse racing. The state adopted pari-mutuel wagering in 1987. The Breeders’ Cup was held at Lone Star Park outside Arlington, near Dallas, in 2004. Since then, however, critics contend the state has done little to promote or grow the sport.
Still, the Texas problem illustrates what HISA is up against. Racing has long been entrenched in its ways with jurisdictions protecting their own power base to the overall detriment of the game. They want to run their own show. In some places, that won’t stop without a fight.
When asked what is driving Texas’ decision, Becker said, “It doesn’t appear to be difficulty in complying with regulations. It appears to be somewhat philosophical. Texas has, traditionally, been averse to federal regulatory overreach into what it considers state business.”
