The U.S. racing industry is once again facing the prospect of federal regulation, this time in a bill that would prohibit the raceday use of the diuretic furosemide (Lasix) and require lifetime bans for trainers whose horses have tested positive for illegal drugs three times.

According to officials, Sen. Tom Udall of New Mexico, a Democrat, and Rep. Ed Whitfield of Kentucky, a Republican, plan to introduce the legislation next week just before the Kentucky Derby, when racing is in the national spotlight. Both congressmen have supported federal regulation of the sport in the past.

LEXINGTON, Ky. – Officials of the National Horsemen’s Benevolent Protective Association and the British-based exchange-wagering company Betfair met on Wednesday in Lexington in what a horsemen’s representative called an “ongoing dialogue” on the company’s future plans in the United States.

The newly formed California Thoroughbred Horsemen’s Association, an organization of owners and trainers, filed paperwork with the California Horse Racing Board earlier this month in an effort to unseat the Thoroughbred Owners of California as the state’s official representatives of Thoroughbred horsemen in the state.

The paperwork was filed on April 15, according to trainer Darrell Vienna, a lawyer who is serving as a legal adviser to the new horsemen’s association. Racing board officials confirmed on Wednesday that the documents had been received.

The board of directors of the Association of Racing Commissioners International has formally adopted a resolution calling for the “re-examination” of policies linked to the raceday use of the diuretic furosemide to treat bleeding in the lungs, the association said on Thursday.

A study paid for by the exchange-betting pioneer Betfair has largely confirmed what the company has said in support of its efforts to launch betting exchanges in the United States.

The Jockeys’ Guild and the Colorado Horse Racing Association have reached an agreement that will raise losing mount fees at Colorado racetracks to a range of $50 to $110, depending on the purse of the race, according to the guild. The previous scale for losing mount fees was $40 to $105.

Battle lines are re-forming over the race-day use of the diuretic furosemide to treat bleeding in the lungs, 16 years after the last U.S. racing jurisdiction legalized the drug.

Breeders’ Cup Ltd. had total revenue of $50.1 million in 2010, a sharp increase over revenue of $43.6 million in 2009, largely on higher fees from its year-end event, held last year at Churchill Downs, according to financial statements released late on Thursday.

Revenue from the year-end event was $27.9 million, up from $20.2 million in 2009, when the event was held at Santa Anita Park in Southern California. The event is also scheduled to be held at Churchill Downs this year.

The Jockey Club would support an initiative proposed by the Association of Racing Commissioners International to eliminate the use of raceday medications within the next five years, according to a statement released on Monday quoting the organization’s chairman, Ogden Mills “Dinny” Phipps.

“We have often voiced concern and we sincerely believe that the overuse of medication endangers our human and equine athletes, threatens the integrity of our sport and erodes consumer confidence in our game,” Phipps said.

Wagering on U.S. horse races continued to plunge in March of this year when compared with the same month last year, dropping nearly 10 percent, or $100 million, even as purses rose significantly because of takeout increases in California and new casino subsidies in Florida.

Wagering in March was $899.3 million, down from $998.7 million in March of last year, according to figures released on Monday by Equibase, continuing a long stream of month-to-month declines affecting horse racing. The decline was exacerbated in part by a 4.2 percent reduction in race days during the month.