FTBOA STAKEHOLDERS STATEMENT TO HISA

The Florida Gaming Control Commission has solicited stakeholder comments on the Commission’s option to pay the federal Horseracing Integrity and Safety Authority assessment for the Anti-Doping and Medication Control and Racetrack Safety Programs.

The Florida Thoroughbred Breeders’ and Owners’ Association submitted the following comment on Nov. 9.

The $6.5 million HISA regulatory assessment on Florida horse racing, which amounts to 6.7% of total purses paid in Florida, creates a substantial new financial burden on this long-standing and important state industry. If shouldered by the industry alone as an added cost, we anticipate swift purse reductions at the tracks, with economic ripples that include reduced equine breeding, training, and ownership in Florida. Moreover, a reduction in Florida racing dates is a distinct possibility, in particular the important summer racing dates that allow many owners and trainers to operate in Florida year-round.

We urge the Commission to consider every mechanism available to the state to mitigate these effects. First, the state should “opt in” as soon as possible, after securing any necessary authorization from the Florida Legislature. This would allow all or most of the HISA assessment to be paid by the state through its existing budget and pari-mutuel tax collections, effectively redirecting existing Commission resources to HISA where the same regulatory functions are now being performed by HISA.

Second, where HISA offers credits against the assessment for the state’s performance of various HISA functions and where the state can perform those HISA functions less expensively, the Commission should maximize the state’s participation to achieve meaningful credits. A considerable portion of the HISA assessment covers functions that the state itself already performs. For example, state resources already sustain post-race sample collections, laboratory testing, positive test enforcement, and various other administrative components.

The state’s “opt in” most efficiently defers anticipated economic harms to a signature Florida industry. State funding of HISA costs would preserve current purses and forestall very damaging effects of even temporary industry uncertainty. The $6.5 million HISA cost is a miniscule fraction of the state’s $110 billion annual budget. It is a very small investment to keep the state’s $2.7 billion equine industry healthy and competitive on the national level, including with other major breeding states that compete with Florida and have previously “opted in,” like Kentucky and California.

HISA presents many opportunities to unify the national horse racing industry. However, the continued viability of horse racing in every state will depend upon the willingness of each individual state to help its industry navigate the transition to HISA as smoothly and predictably as possible. In states where that assistance is lacking, the state’s horse racing industry may well falter or be dealt a crippling blow. TFH