Moving Ahead: Horse Racing Regulation In Ontario -- Findings Report - February 2017

Last Updated

5033(2017/02)

Letter from the CEO

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.

Project Overview

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.

 

Roundtable Sessions October 2016 - January 2017

Roundtable Session Infographic. Description below.
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.

Integrity, Safety, and the Public Interest in Ontario Horse Racing

The Issue

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.

What We Do

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:

  • In partnership with the CPMA, post-race equine drug testing, out-of-competition drug testing, and inspections ensure appropriate use of therapeutic drugs. To prevent the misuse of equine drugs:
    • The CPMA establishes equine drug elimination guidelines, and tests official samples taken from equine athletes;
    • AGCO Race Officials determine which horses are called for testing;
    • The CPMA, upon testing, provides positive results to provincial regulators such as the AGCO; and,
    • AGCO Race Officials and inspectors conduct positive test reviews, inspections, and determine penalties and suspensions as per the AGCO Rules of Racing.
  • Veterinary presence during race days, conducting pre-race exams;
  • Legislative protection of racehorses to prevent neglect and abuse;
  • In-race specific rules, such as interference and over-urging; and,
  • Accident and death reviews and inspections.

What We Heard

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.

Equine Drugs

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:

  • Share information pertaining to positive tests to better educate the industry and the general public on: 
    • What is being tested for;
    • Statistics surrounding positive tests; and,
    • Explain therapeutic positives versus Class I and II positives.
  • Testing guidelines and fact sheets could be made more widely available and centralized on the AGCO website.
  • The AGCO and the CPMA should clarify their roles to industry and should find ways to avoid duplicating efforts to increase efficiencies. This includes improving participant access to the AGCO Rules of Racing and the CPMA’s Drug Guidelines booklet.
  • Establish a Positive Test Review Panel, which could include industry participants, veterinarians, chemists, or other relevant experts. The panel could review each positive test to help determine the cause of the positive, based on the evidence collected, and could help advise the AGCO of an appropriate penalty.
  • Review the current progressive discipline system, whereby each subsequent positive test results in stricter punishment.
  • Shared responsibility for a positive test to be passed on to owners or veterinarians, under some circumstances.
  • Eliminate the suspension of horses for 90 days after receipt of a positive test, or replacement of the penalty with:
    • A shorter suspension period;
    • A suspension period dependent on the class of drug; or,
    • The requirement that the horse can return to racing once it has tested clean for the drug in question.
  • Align penalties with evidence-based reviews of the intention to cheat, reflecting that some positive tests are the result of contamination or accidental medication overages.
    • Have more severe penalties for Class I and II (Prohibited substances in horse racing are divided into classifications, with Classes I and II containing more severe drugs that have a high likelihood of affecting performance, and are unlikely to be used for therapeutic purposes [i.e. opiates]) substances used with an intention to gain advantage in a race, and introduce education related penalties for lower Classes of drugs.

Additional Feedback On Equine Drug Use & Equine Drug Programs

  • Extend suspension penalties up to 100% for any offence where a horse’s health is shown to be at risk, on an extended basis, due to medication revealed through a positive test.
  • Any placement on the Stewards’ list should be automatically stayed on presentation of a “clean” test for the horse, except on application by the Registrar to the Horse Racing Appeal Panel (HRAP), thereby putting the onus on the Registrar to demonstrate why a stay is not appropriate.
  • Phase-out race day medication.
  • Align Ontario drug protocols and testing with other jurisdictions in the United States, including the adoption of the Association of Racing Commissioners International (ARCI) model rules.
  • Ban trainers with previous positives in the United States (U.S.) from racing in Ontario.
  • Create a provision for horses with allergic reactions to Lasix. The current program states that once a horse goes on the program it must remain on the program for 100 days. An added provision could ensure a suitable workaround for this current restriction.
  • Horses being treated with Lasix could be denoted as L on racing programs as opposed to L-, which gives the impression the drug has been discontinued. In general, Lasix program statuses could be better communicated.
  • Move to a policy of strict liability, rather than absolute liability, so that licensees are regulated for their actions.
  • Increase drug testing and institute a chargeback system effectively making participants responsible for additional testing costs.
  • Apply a portion of winner’s purse to the cost of drug testing.
  • In an effort to boost testing coverage and to better understand what substances are being used in racing, it was suggested the AGCO conduct a full drug screen on out-of-competition samples. This could further include more onsite farm inspections.
  • Horses with an abnormal improvement in performance and race times should be tested.
  • Race Officials should share why a horse has been picked for testing.
  • Positive test findings should be made public, with full details of the testing process – this information should be posted in every program, but should only be made public once due process has been completed.
  • Any horse that changes ownership should not be allowed entry into a race for 7 days. This would alleviate any responsibility of outstanding medication issues from the previous owner.
  • Reduce or better align Total Carbon Dioxide (TCO2) testing for Quarter Horses with other breeds or eliminating it outright.
  • Enhance the Standardbred and Thoroughbred TCO2 testing programs while lowering unit costs. The majority of TCO2 program expenses are fixed, therefore additional samples can be collected and tested with little incremental costs.
  • Remove the TCO2 20 minute “prior-to-post” sampling stipulation in favour of permitting testing at any time a horse is on race grounds.
  • Have an AGCO Veterinarian administer pre-race Lasix shots.
  • Restrict non-AGCO veterinarian access to stalls on race days unless for emergency purposes.

Equine Welfare

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 introduction of a horse passport system to consolidate all equine medical history and information as tracked by trainers and veterinarians.
    • Such a concept could be supported by the implementation of microchips.
  • More reliance on risk-based evaluations of drugs and emerging drug use.
  • Communications to the industry and the general public on neglect and abuse investigations, and an anonymous contact line so animal cruelty tips can be provided.
  • Enhanced partnerships between the AGCO, the industry, and animal welfare groups to promote equine welfare and to continuously improve compliance with equine welfare protocols.
  • Clarification of pre-race veterinary exams and transparency around when they are done, why, and how.
    • Mixed views on enhancing pre-race veterinary exams were noted, with some stakeholders seeking more veterinary exams, and others requesting fewer.
  • Enhanced control and surveillance measures, such as:
    • Participants providing documentation to racetracks within 24 hours prior to entering the grounds to ensure equine athletes have sound health;
    • Increasing surveillance cameras on the backstretch and in race paddocks; and,
    • Mandating racehorses to be on the racetrack grounds 24 hours prior to a race, or developing retention barns.
  • The requirement that all racetracks have publicly available biosecurity and emergency management protocols.
  • Stricter enforcement of rules that are currently in place to protect equine athletes, such as over-urging or ensuring tight reins over the finish line.
  • The AGCO, the College of Veterinarians of Ontario (CVO), and wider industry groups should work closely together to create support avenues for participants in financial difficulty who may be unable to afford veterinary care to deter participants from practicing veterinary medicine without a licence.
  • Implement an initiative similar to the “On Call” (“On Call” is an innovative media-assistance program developed to provide accurate veterinary information to the broadcast and print
    media during live-network races) program developed by the American Association of Equine Practitioners (AAEP).
  • The veterinarian list could be changed to accommodate Commission/Official veterinarian discretion to take horses off the list before the required 7 days.
  • Introduce standards for veterinary viewing offices, to ensure each location has reasonable sight lines, lighting, temperature control, and general freedom from distractions.
  • Introduce a limitation on intra-articular treatments within a certain number days of racing, and/or create a publicly available registry for all horses that have received intra-articular treatments to prevent the masking of joint issues, for the safety of participants and equine athletes.
  • Establish regulatory venipuncture maximums and support improvements in the administration of medical records.
  • Coggins testing every two years for every breed.

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 CareerRace CareerPost-Race Career
  • Government should make legislative amendments to the definition of a racehorse to better protect equine well-being.
  • Use of microchips in all breeds to track veterinary or biological-based data and history.
  • Standardization of weather cancellation protocols and racetrack surface requirements.
  • Ensure at least one veterinarian is available on racetrack grounds during all races and training hours.
  • Consider evidence-based “fitness-to-compete” assessments for horses.
  • Mandate a number of minimum rest days or cap on starts per race calendar.
  • Limit the use of shockwave machines to veterinarians, which should aid in the ability to ensure compliance.
  • Review the design and use of whips. Whips could be designated as driving/ riding safety tools, carried only for safety management. Or consider alternatives to whips, such as new, shorter devices with flappers.
  • Wand jockeys to prevent electronic shocking of Quarter Horses.
  • Support the development of retirement paths for racehorses, such as ensuring re-homing efforts are made prior to slaughter.
  • Ensure racehorses do not leave the racetrack to go directly to slaughter.
  • Owners and trainers should be made accountable for the after care of their horses.

Participant Safety For Jockeys And Drivers

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:

  • Increase permitted jockey weights and provide jockeys better access to weigh-in stations.
  • Introduce concussion protocols for riders reflecting increased attention to the issue in other professional sports, and research highlighting the dangers associated with brain injuries.
  • Increase oversight of exercise riders to ensure safety.
  • Further formalize safety standards in the backstretches, and race paddocks, such as mandatory boot requirements for participants handling horses.

Racetrack Maintenance And Operations

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:

  • Maintenance standards should be informed by a best-practices baseline study conducted by experts in the field, with the objective of producing a measurable standard for all racetracks.
  • The AGCO should improve enforcement of Policy Directive 2-2010, which outlines the current minimum surface standards for racetracks, and the AGCO should convene a meeting between racetrack maintenance staff and horse persons’ representatives to review the issue.
  • It was suggested that the AGCO develop regulatory standards to ensure a safer and healthier working environment (e.g. proper and better drainage, new stalls, more urine stalls) at all racetracks, as informed by baseline studies.
  • To better monitor racetrack surfaces and impact on participant safety – a database should be created to aggregate injury information from all Ontario racetracks in order to monitor horse welfare.
  • Certain surfaces were viewed by stakeholders as being detrimental to all athletes, and as such there was a call for changes to such surfaces.
  • Respondents voiced concerns about racetrack working conditions, infrastructure, and a general need for facility updates. There were calls for a greater focus on racetrack investments and backstretch maintenance.

Additional Ideas for Operational Changes at Racetracks

  • Post time adherence is something that could be reconciled. Customers need consistency on observing these because it affects betting.
  • Lengthen race cards.
  • Ban minors from the backstretch, and all smoking.
  • Use slanted start gates at half-mile racetracks to improve fairness.
  • Improve backstretch access areas so that workers can access properties from all sides throughout the day.
     

 Education, Research, Information Sharing

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:

  • Create a “bottom up” approach to education in the industry. Licensing requirements should be tied to education and development of a career path for participants.
  • Increase communications focused on how industry members and practitioners make equine health and welfare a priority, allowing the industry to focus on positive public perception.
  • Enhance education to industry on the rules to support ongoing compliance. For example, consistent with other lines of business at the AGCO, introduce a newsletter which provides timely information and news on the regulatory rules governing horse racing in Ontario to support increased compliance.
  • Promote the use of fact or tip sheets to educate the industry. For example, fact sheets on how and why medication is used to benefit racehorse health would be beneficial.
  • Simplify the Rules of Racing. They are currently onerous to understand due to their length and complexity. Rules also need to be evidence-based, with intended outcomes that are clear.
  • Make relevant rules and directives available online in a single location to ensure all participants can meet regulatory requirements. Consider consolidating rules and directives into one document.
  • Clearer, more accessible veterinarian lists with the removal of horses from the list at the end of the race season, and more communication with trainers when a horse is put on or removed from the list.

The Equine Death Registry

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:

  • The AGCO should report aggregated findings on deaths and accidents in an annual report, with consultation from certified specialists.
  • Gross post-mortem reports should be shared with the treating veterinarian.
  • Transparency surrounding the death registry and accident information could enhance knowledge within the industry, develop risk-based assessments, and build public confidence.
  • Notification of a racehorse’s death should be within 8 hours of demise, given that the current 48 hour time frame leads to body decay and a loss of information from diagnostics.

Reducing the Administrative Burden and Removing Unnecessary Barriers

The Issue

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.

What We Do

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.

What We Heard

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.

AGCO Licensing Modernization

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.

AGCO Racing Licence Modernization Ideas from Industry

  • Online licensing accessible through smartphones, with the option of filling out forms at the racetrack or a kiosk.
  • Multi-year licensing, with the option to maintain one year only.
  • Multi-breed licensing and multi-purpose licensing.
  • Easy-fill forms for returning participants.
  • Simplified processes and paperwork requirements for syndicates, partnerships, and tele-theatres.
  • Improve payment abilities, such as accepting Interac payments at all racetracks.
  • Review and explain licensing fees.
  • Streamline licencing with other racing jurisdictions, industry agencies, and with other AGCO lines of business.

Licensing Requirements

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:

  • License new trainers only after serving as an assistant under a journeyman trainer.
  • Require trainers to attend a “Business Short-Course” to better build business decision making principles into the racing industry.
  • Interview trainers who are sponsoring new exercise riders to ensure they are aware of first time applicant’s competency.
  • Require jockey participation in a mentor program, which would include formal film review with a mentor and Race Officials.
  • Verify foreign jockeys have appropriate work permits before granting a licence.
  • Conduct background checks on jockey agents before granting licensing.

Other responses suggested the AGCO cease licensing activities for certain groups:

  • Remove licensing of equine veterinarians to open the industry up to more practicing equine veterinarians, and enabling the OVC to appropriately handle any malpractice cases.
  • Remove horsepersons’ association as an AGCO licensing class.

Additional Licensing Reform Ideas

  • Consider granting temporary licences to owners who are unable to renew their licence the night of a race, but have a horse entered to race. Give owners 30 days to obtain a full licence.
  • Enhance communication with licensees. Forms should include a field for adding an email address in addition to standard telephone and address information.
  • Use licensing forms to request data from participants to help build economic indicators for performance measurement.
  • Enhance communication regarding work permits for foreign jockeys and accessibility to licensing.
  • Review licensing rules and procedures to reduce regulatory costs per race date to a level competitive with other jurisdictions. Current licensing fees
  • dissuade potential owners and should be lowered.
  • Initial Claim fees should only apply for participants that require eligibility reviews.
  • Align licensing renewal dates to birthdays in all breeds.

Licensing Fractional Ownership

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:

  • Simplify requirements for members of ownership groups who own minimal shares in the syndicates or partnerships.
  • A managing partner could be licensed, and fractional owners could participate without a licence.
  • A new licence class be created for fractional owners with less than 5% share in a horse, which would provide some privileges, such as access to the backstretch and race paddock during race days for viewing their racehorse.
  • Fractional ownership thresholds be increased to 25% over the current 5%, provided that there is a licensed person who has a greater interest, and that any person named in the program as a part-owner must be licensed.
  • More information be made available to new or existing owners that clarifies ownership expectations and best practices for partnerships.

Shifting to a Modern Regulatory Framework for Horse Racing in Ontario

The Issue

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.

What We Do

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.

What We Heard

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.

Officiating And Technological Enhancements

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:

  • Live-stream workout and training sessions to provide more information to the betting public.
  • Improve video footage to enhance race reviews. For example, as interference often occurs on the turns video footage could be improved here, making it easier for the Race Officials to review the race.
  • Future iterations of the Video Standards Directive should require higher quality camera shots and equipment.
  • Conversations between Race Officials and participants could be recorded in order to have an official record for appeal hearings.

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:

  • Provide post-race race reports that explain calls and decisions made by Race Officials, providing more transparency to the betting public and participants.
  • Provide information to the betting public using social media (i.e. Twitter), as many horseplayers are participating online, not at the racetrack.
  • Return to having Race Officials explain their calls via simulcast or in a public space so participants and the betting public better understand rulings.
  • Video reviews should be conducted by Race Officials weekly with jockeys and drivers at every racetrack to improve race etiquette and develop an understanding of expectations.
  • New Race Officials should be trained with sufficient, breed-specific experience to enable proper race reviews across all three breeds.
  • There is a need for greater consistency in Race Officials for specific breeds (e.g. having at least one Standardbred expert present during all Standardbred race cards).
  • To promote greater industry experience when hiring judges, restrictions limiting a horse owner from being a Race Official could be removed (The proposal assumes new Race Officials would be assigned to race cards without any conflicts of interest).
  • Continue to examine Race Official conflict of interest rules.
  • Training programs should be comprised of race experiences along with ongoing education and general industry business knowledge. Training programs should also include topics related to horse care and Race Officials should develop knowledge of “normal” equine practices, and welfare issues.
  • Race Offices should be required to provide transparent and immediate disclosure of entries, and the regulator should be exercising oversight and authority over the entry process to ensure there are no hidden entries or biased selections when filling races.
  • Move to a three-Race Official panel consisting of a representative from the AGCO, racetrack, and a horse person.
  • Move to having only one Race Secretary at B racetracks or remove the position entirely.
    • Alternatively, each racetrack should have its own Race Secretary.
  • Rules are not consistently or widely enforced. The AGCO should seek better ways to enforce rules, or re-evaluate whether or not these rules should remain in place when many participants do not follow them.
  • Penalties should be 50% less at Signature and Grassroots racetracks to reflect smaller purse levels.
  • Eliminate calling drivers involved in an incident to discuss the matter. No other sporting referees or officials deliberate with participants to make calls.
  • Increase regulatory oversight of industry affairs with a greater focus on racetrack accountability and transparency.
    • Others felt there should be less oversight of industry affairs.
  • Create an improved feedback system for bettors and racing participants.

Equipment Specific Revisions Requested by Industry

  • Provide live equipment change updates for the betting public.
  • Equipment allowed for foreign horses should be allowed for local horses.
  • Equipment changes subsequent to the time of entry should be approved by the Race Officials.
  • Any horse wearing designated equipment must be declared at the time of entry and this information should be noted in the official race program.
  • Rather than requiring an application for an equipment change one hour prior to the first post time, requests for equipment changes could be made to the paddock one hour prior to a race, given that all horses are required to be in the paddock at least one hour prior to their race.

 Recommended racing requirement and eligibility rule changes included:

  • Consider the removal of all conflict of interest rules for jockeys owning horses or running against a spouse or family member.
  • Consider implementing standards that give responsibility of security, and backstretch or race paddock oversight to racetracks.
  • Consistent with the movement to a standards- based approach, one racetrack suggested the AGCO could allow each racetrack to set their own qualifying times as part of their “racetrack rules”, contingent on Registrar review and approval, to provide more operational flexibility to operators.

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:

  • Following 30 days of not racing, a horse should need to qualify to rejoin fields.
  • Every entrant to a graded Thoroughbred stakes race should be present in an announced location in the province at the time of entry for the race.
  • Streamline Quarter Horse, first-time starter, and workout requirement timing, to be marked from time of entry.
  • Requiring a driver to be at the racetrack forty minutes in advance of a race is unnecessary.

Race Official Review Process & Appeals

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:

  • Enable the HRAP to waive the application of a rule in any given case.
  • Simplify AGCO processes for Race Official reviews in the interest of reducing paperwork and administrative burdens.
  • Allow stays to become automatic at the point of appeal.
  • Enhance video technology and officiating consistency in order to remove in-race appeals. Opinions on how this might work varied, including:
    • Eliminating appeals and deciding in-race issues during the race card.
    • Removing appeals for limited cases, such as for specific fine classes, suspensions of 3 days or less, or within races of a certain purse amount. Any decision that results in a placing should remain appealable.
    • Removing appeals for violations such as whipping, kicking, and talking on the racetrack during or after the post parade.

Supporting Economic Development and Industry Innovation

The Issue

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.

What We Heard

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.

Public Perception

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.

Industry Engagement On Rule Changes

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:

  • Collaborate with industry to ensure that regulatory functions fully consider economic development and innovation in the horse racing industry.
  • Consultations should strive to be transparent and inclusive of all racing participants, not just large racetracks and associations.
  • Formalize an ongoing rules review industry group. This could include a task-force staffed with industry representatives and AGCO employees charged with simplifying and streamlining AGCO’s Rules of Racing. The group could include a formal feedback process from the wider industry so reviews provide representative input.
  • Rule changes should be drafted with veterinary and animal welfare experts.
  • Horseplayers suggested the need for ongoing engagement with AGCO to ensure the customer’s perspective is captured. Horseplayer’s representation at the governance level within industry would be especially beneficial to the industry as a whole.

 

Next Steps

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

  • Initial Policy Reforms - Reforms that the AGCO is working to begin implementing in 2017.
  • Working Groups - Industry participants will review more complex policy reforms that require further discussion and industry input for development and implementation.
  • Policy Analysis and Review - The AGCO will continue to work with industry to de­velop and review new policies or rules in response to the findings found in this report.

Appendix A - Roundtables

  1. Quarter Horse Jockeys [October 17, 2016]
  2. Quarter Horse Participants [October 24, 2016]
  3. Horseplayers [October 25, 2016]
  4. Thoroughbred Participants [October 26, 2016]
  5. Thoroughbred Jockeys [October 26, 2016]
  6. Quarter Horse & Thoroughbred Trainers and Owners [November 3, 2016]
  7. Standardbred Participants- Central Ontario [November 15, 2016]
  8. Standardbred Participants- Western Ontario [November 16, 2016]
  9. Equine Welfare Groups & Veterinarians [November 21, 2016]
  10. Racetrack Operators [November 23, 2016]
  11. Breeders [November 28, 2016]
  12. Government Partners [December 5, 2016]
  13. Standardbred Participants- Ottawa [December 12, 2016]
  14. Horse Racing Appeal Panel [December 13, 2016]
  15. Internal AGCO Subject Matter Experts- Officials [December 14, 2016]
  16. Internal AGCO Subject Matter Experts- Inspectors [December 19, 2016]
  17. Canadian Pari-Mutuel Agency (CPMA) [January 20, 2017]