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.