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: