5033(2017/02)
I am pleased to release the Findings Report for the ‘Moving Ahead: Horse Racing Regulation in Ontario’ project.
We have come a long way since the merger of the Ontario Racing Com- mission (ORC) and the Alcohol and Gaming Commission of Ontario (AGCO) in April 2016, at which time the AGCO assumed responsibility for the regulation of Ontario’s Horse Racing Industry. The past eight months have been filled with stakeholder driven engagement, which has resulted in over 600 ideas being brought forward, both new and familiar, for regulatory reform in Ontario’s Horse Racing Industry. Industry participants from all three breeds, horseplayers, and government bodies have all come together to share ideas and work as a community, as the AGCO moves to modernize the regulation of horse racing.
The AGCO is no stranger to such engagement-driven modernization initiatives, in recent years the AGCO has overhauled its approach to gaming regulation by establishing a set of modern regulatory standards. In the beverage alcohol sector, the AGCO has consulted extensively with stakeholders to move ahead with a series of policy changes that remove barriers to new investment and innovation. Engagement in these sectors continues, as it will in horse racing.
I am pleased to say that the two-phased engagement process for Moving Ahead has brought forward many good ideas for regulatory reform, focusing on equine and participant health and safety, as well as consistency and transparency in officiating; all areas of interest and utmost importance to the AGCO, and to the general public. It is no surprise to me that the industry has focused on improving these areas as this industry is one of passion and historic dedication to its equine athletes, and the racing community.
Phase One of this initiative saw the AGCO receive 64 submissions in response to our consultation paper. Phase Two involved 17 Roundtable sessions over a three month period, attended by over 150 participants.
Of course, our consultation process does not end there. The following pages will summarize feedback on reform initiatives provided to the AGCO by industry; either through formal written submission, conversations, or discussions at Roundtables.
The AGCO is reviewing all the findings to identify areas where we can move ahead with reforms. We will be establishing industry Working Groups to discuss in greater depth, some of the more complex issues that were identified in the consultation. These discussions will provide input to the AGCO for the purpose of making positive regulatory reform by building policies, rules, and new procedures that make sense for Ontario’s Horse Racing Industry – further delivering on our “Made in Ontario” approach to horse racing regulation.
The AGCO is looking forward to starting off the 2017 racing season with further discussions with the industry to ensureregulation in Ontario continues to modernize. I encourage you to follow along at the Moving Ahead webpage.
The ‘Moving Ahead: Horse Racing Regulation in Ontario’ project began in June 2016 with the release of a detailed consultation paper. The consultation paper sought input and ideas on the steps the industry could take together to ensure fairness, integrity, and safety in Ontario’s Horse Racing Industry, while moving forward on opportunities to reduce the administrative burden on business, and support the long-term sustainability of Ontario’s Horse Racing Industry.
Since that time, the AGCO received 64 written submissions, engaged in over 50 conversations, and facilitated 17 Roundtable1 sessions across the province. The Roundtable sessions were attended by over 150 industry participants with representation from all three breeds and a broad range of industry positions, including owners, trainers, breeders, drivers, jockeys, grooms, and gate crew. The AGCO also hosted Roundtable sessions with veterinarians, horseplayers, equine welfare groups, breeders, track operators, the Canadian Pari-Mutuel Agency (CPMA), AGCO Inspectors and Race Officials, and industry-related government ministries and agencies.
This engagement across the industry and with other government partners has generated many policy reform recommendations that will support the AGCO’s goal to have a horse racing regulatory framework that is simple, flexible and effective for both the regulator and those being regulated. It has also provided the AGCO with valuable insight into how our policies and procedures are serving the public interest in the context of the fairness, integrity and safety of horse racing in Ontario.
This Findings Report reflects the feedback that the industry has brought forward, either through formal propos- als in response to the consultation paper, verbal conversations, or during roundtable discussions. This report has been distributed to individuals, businesses, associations, and government bodies. You can also access the Findings Report online at the Moving Ahead webpage.
We hope you take the time to review this document and reflect on what Ontario’s Horse Racing Industry has brought forward, and we would once again like to extend a collective thank you to all of the individuals and organizations that dedicated their time, effort and energy to provide their input and advice.
See Appendix A for a full list of Roundtables.
Infographic titled “Roundtable Sessions” October 2016 to January 2017.
Process starts with the Consultation Paper (June 2016): 64 written responses and 57 conversations.
The process then goes to an image of a round table with illustrated people sitting around it and this information: 17 Industry Roundtables, Over 150 Participants, 3 to 40 participants attended each roundtable
The process then goes to Industry Feedback.
Then it goes to the Findings Report (February 2017), which then goes to Working Groups and Policy Changes.
In a highly competitive and global horse racing market, it is essential that races at Ontario’s licensed racetracks are consistently conducted in a safe, fair, and honest fashion. This means ensuring that Ontario has the right rules, procedures, technology, and expertise in place to prevent and detect instances where a racehorse or race participant is at risk of injury, or has an unfair advantage or disadvantage.
Integrity, safety, and protecting the public interest is of the utmost importance to the AGCO. The AGCO has practices and procedures in place for race days and non-race days that focus on integrity and safety. Such practices and processes include:
The majority of the feedback received through the consultation paper and during Roundtables centred on enhancing integrity, improving safety protocols, and protecting public confidence. Feedback was focused on equine drug use, equine welfare, jockey and driver safety, and a need for more reliance on education, research, and information sharing.
Industry feedback on the positive test process, specifically the penalty structure related to positive tests, and repercussions for results that are perceived to be unlikely to enhance performance. The following feedback was repeated by industry:
Industry feedback included a particular interest in equine welfare. Seeking enhancements in this area would build public confidence through information sharing and ensure the public is aware of all the initiatives, practices, and protocols that take place to support equine welfare. Industry feedback included suggestions for:
The industry presented a drive towards better health tracking, and overall improvement of an equine’s total health index throughout its life – from birth, to racing, to post-racing career. Feedback to the AGCO included:
Pre-Race Career | Race Career | Post-Race Career |
---|---|---|
|
|
|
The AGCO’s Rules of Racing support the safety of jockeys, drivers and other participants, (e.g. the requirement that safety equipment be worn). Throughout the consultation process, participants requested that some higher standards be brought to racing, reflecting standards found in other racing jurisdictions and sporting leagues, including:
There was significant feedback from all three breed groups on the need to address racetrack maintenance and surfaces. Stakeholders indicated that there is little maintenance consistency between racetracks and that the rules should promote uniformity of racetrack conditions across the province. Specific feedback included:
Requests for improved education, research, and information sharing centred on transparency, clarification, and accountability in the industry as a whole. Such requests were intended not only for the betterment of industry participants, but for the enhancement of the general public’s understanding of Ontario’s practices, successes, and improvements in horse racing. Currently the AGCO website is the hub for regulatory information for Ontario horse racing and includes all the rules, directives, and information on licensing and officiating. In addition to the ideas found in other sections of this Report, requests included:
Under the Equine Death Registry program, the death of a racehorse must be reported to the AGCO with details regarding the death, including where it occurred, when, and how. The information within the Registry is used to inform policies to prevent future deaths and accidents and is analyzed by AGCO veterinarians. Industry feedback on the registry included:
Ontario’s Horse Racing Industry makes an important and valuable contribution to the provincial economy. This is particularly the case in the dozens of communities across the province which host racetracks, training and breeding facilities, or other businesses that supply goods and services to the industry. Running a business in the horse racing industry can be a costly, complex, and time-consuming experience, especially for those engaged in running the day-to-day business of a racetrack or managing the operations of a training or breeding facility. Rules and procedures should be reviewed to ensure that they are not overly complex, do not impose too many time-consuming steps, and remain relevant in today’s horse racing environment.
The AGCO issues over 15,000 licences to individuals and businesses involved in the horse racing industry.
A large part of the licensing function is performed at each racetrack facility and licensing agents are available during live racing for the convenience of licensees. The licensing process includes applications from racetracks, tele-theatres, and individuals involved in the industry such as grooms, jockeys, and trainers. Thoroughbred and Quarter Horse racing participants renew their licence prior to the start of the race season, whereas Standard- bred racing participants renew their licence on their birthdays. The AGCO also conducts eligibility reviews for suitability to be in the industry.
The AGCO is moving to electronic service delivery, and in the coming years horse racing participants will be able to apply for and renew licences online.
Industry feedback included ideas on licensing modernization, requirements, and ownership models. The current licensing process is viewed by some participants as burdensome in practice, but understandably necessary.
Many common ideas were brought forward on licensing modernization. During stakeholder Roundtables, participants were able to quickly reach agreement on what was needed to modernize horse racing licensing in Ontario. Many of the modernization ideas will be addressed as the AGCO moves to the electronic delivery of licensing.
Industry suggested new licensing requirements, or licensing changes to better fit the needs of the industry, and the needs of the AGCO. Such changes included:
Other responses suggested the AGCO cease licensing activities for certain groups:
The AGCO provides multiple options for the licensing of different partnership ownership regimes, including corporations, limited and general partners, and syndicates. The idea of better supporting fractional horse ownership in Ontario was widely suggested as a source of sustainability and viability for the industry. Numerous responses noted fractional horse ownership is a simple concept that makes investment in horse racing more affordable and fun, and is potentially lucrative for new and longtime owners alike. Suggestions included:
The AGCO continues to modernize its regulatory approach, demonstrating leadership, innovation and effectiveness in the regulation of horse racing, alcohol and gaming sectors. In order to achieve this objective, the AGCO is continuing its ongoing transition towards risk-based, outcomes-based, and compliance-focused regulation in all lines of business.
Under the standards-based approach, a key AGCO “modern regulator” initiative, the regulatory focus shifts from requiring licensees to comply with a prescriptive set of rules and regulations (a “command and control” regulatory approach) to providing standards that must be achieved.
An important component of the consultation process has been to engage the industry in a dialogue on regulatory modernization, specifically on moving towards a standards-based approach for horse racing. Such an approach would better enable business flexibilities and efficiencies, and support the economic growth of the industry. The transition to a standards-based approach takes time and will require ongoing dialogue and engagement with industry.
The AGCO is also continually modernizing to better reflect the maturity of its industries and evolving societal views. The AGCO continues to refine its role in the promotion of social responsibility in all of its lines of business. Greater public confidence in the gaming industry in general has led to a focus on responsible gambling, while the changing views of the liquor industry place a greater emphasis on responsible use and enjoyment. That is why as part of this consultation process, the AGCO also took the opportunity to discuss with stakeholders and partners its potential role in supporting responsible gambling in horse racing, a role which AGCO will explore going forward.
The AGCO provides Race Officials to supervise races conducted at Ontario’s 15 licensed racetracks. These Race Officials are responsible for the enforcement of the Rules of Racing. AGCO Officials direct inspections into alleged rule vio- lations, conduct reviews into regulatory matters, and issue decisions that may include suspensions and/or monetary penalties. They may also add terms and conditions to licences.
Licensees have the right to appeal the decisions made by the AGCO Race Officials under the Rules of Racing to the Horse Racing Appeal Panel (HRAP) an independent, and impartial adjudicative body. Appeals of AGCO proposed refusals, suspensions and revocations of licences under Notices of Proposed Order, are handled by the Licence Appeal Tribunal (LAT).
The majority of HRAP appeals relate to on-track and conduct violations, positive test cases, and related decisions made by AGCO Race Officials and the Registrar. The AGCO has shared all industry feedback regarding HRAP with the panel, and general feedback on the process is included in the following pages.
As the AGCO works with industry to move to a modern regulatory approach, maintaining the integrity of offici- ating will remain a priority. Officiating races and working with racetracks to ensure a good product is a role the AGCO takes seriously. The AGCO has a strong training and education program in place for its Race Officials, and is constantly looking for ways to improve processes and support the delivery of a sound horse racing product. The AGCO is undertaking a review to re-purpose the Central Adjudication Room (CAR) and is piloting the use of different video technologies (e.g. unmanned aerial vehicles, 4K quality mobile cameras, overhead angles). By reviewing the role of the CAR and by taking action to produce and review new camera angles afforded by mobile technologies, the AGCO can determine if new processes and angles can provide an enhanced view of a horse race, which could lead to the eventual removal of some in-race appeals for infractions called by Race Officials. These ideas were brought forward in consultation papers and were on the Roundtable agendas.
Although feedback focused on moving to a more modern regulatory approach, it did not have a significant fo- cus on the movement to standards. Stakeholders expressed a desire to modernize technology in the industry, and simplify the review and appeal processes. Ideas that were brought forward focused on easing burdens for industry participants, and enhancing the horse racing product while improving officiating practices.
A common theme raised throughout the consultation was the need to continuously work towards increasing consistency, and transparency in officiating to enhance Ontario’s racing product. It was widely expressed that enhanced video technologies are needed to support these outcomes. New technologies would also benefit racetracks that are looking to promote and grow the sport in a world where the use of social media and video is always growing. Ideas brought forward by the industry include:
Hand in hand with improving technology came feedback regarding a focus on consistency in officiating to enhance a participant’s ability to learn and grow in the industry, and to better serve the betting public.
Many participants felt that in-race appeal rights could not be removed without improved video technology that results in an increase in consistency of calls. Others still felt that they should not be removed at all. Feedback specific to officiating included:
Recommended racing requirement and eligibility rule changes included:
This request was made with the intent to provide racetracks with the flexibility to lower the restrictions and increase times on qualifiers so that fields can be filled, in recognition of the fact that horse supply is lower than at the time the current rules were implemented. Additional feedback related to qualifying included:
Stakeholders indicated some concerns with the appeals process, with a few suggesting the process is not impartial and is biased against participants. It was noted that the AGCO administration and Race Officials have access to legal advice, preparation, and representation at no cost to them, while participants are required to fund their own legal fees. Stakeholder reform ideas included:
The long-term sustainability and success of Ontario’s horse racing industry relies heavily on the ability of racetracks to offer a high-quality racing product that attracts a substantial wagering pool from multiple betting channels (i.e. on-site, inter-track, off-site, and online wagering). As Ontario’s horse racing regulatory authority, the AGCO can play a role in supporting economic development and innovation in Ontario’s Horse Racing Indus- try. Regulatory tools can, in appropriate circumstances, be used to advance the commercial success of horse racing in Ontario as a whole.
Many participants provided the AGCO feedback on economic factors and issues impacting the industry such as purse structure, betting products, and breeding programs—which do not fall within the AGCO’s mandate. Many ideas shared in this report are ideas which support the removal of regulatory barriers that prevent or inhibit businesses to grow, or allow for new businesses to enter into the industry.
Respondents indicated that to ensure economic sustainability of the industry going forward, public confidence in animal welfare practices for Ontario horse racing is critical. Stakeholders expressed that the public would likely not support an industry that is not taking action to prevent substandard animal care, limit injury, and provide for a full animal life expectancy. In addition it was suggested that backstretch and race paddock areas be open to the general public enabling fans to see horses close up and meet industry participants. Some partici- pants felt this concept was great in nature, but realistically could create safety issues and would require some management.
In addition to a focus on enhancing public confidence to improve industry support, the industry also requested increased on-going collaboration with the AGCO for the development, removal, and reform of rules, policies, and procedures. Recommended avenues for enhancing collaboration on reforms included:
With the consultation period now complete, the AGCO’s ‘Moving Ahead: Horse Racing Regulation in Ontario’ project will proceed to its next stage. In the weeks ahead, the AGCO will continue to closely review the insights and recommendations that have been provided by consultation participants as set out in this Findings Report. Thereafter, the AGCO will identify a number of areas where it is prepared to move ahead with initial reforms to its policies and procedures.
The AGCO is committed to collaborating with its partners and stakeholders as this project continues. Many of the ideas brought forward through the consultation are complex and require continued collaboration with industry to make meaningful policy changes. In this respect, the AGCO intends to strike a series of Working Groups that will be tasked with deliberating and carefully considering more complex public policy issues.
Throughout the consultation period, a range of recommendations were received that fall outside of the existing mandate of the AGCO, typically because the policy area is assigned to another government ministry or agency. These included issues relating to purse structure, industry funding, and federally regulated equine drug programs. These insights and recommendations were carefully noted and will be conveyed to officials in the relevant ministries and agencies and are available on the AGCO’s Moving Ahead webpage.
The AGCO would once again like to extend its sincere appreciation to the many stakeholders and partners that have committed their time, effort, insights and energy to this project to date. We have made great progress so far and look forward to continuing our work together.
Horse Racing Reform