New era begins as FTC approves HISA medication rules
The Federal Trade Commission on Monday announced its approval of a tranche of new rules governing the Anti-Doping and Medication Control program of the Horseracing Integrity and Safety Authority, setting in motion a new era of horse-racing regulation in the U.S.
The FTC decision came on the last day of a 60-day deadline to review and consider the rules for approval. HISA, which has been conducting educational seminars and training sessions with industry constituencies for the past several months in anticipation of the approval, said that the ADMC – which covers a vast amount of regulatory territory, including sampling, testing, enforcement, and adjudications – would go into effect today at “the vast majority of racetracks that operate Thoroughbred horse races” in the U.S.
“Having a uniform anti-doping program in place for the first time ever will be a game changer for American horse racing,” said Lisa Lazarus, the chief executive officer of HISA, in a release. “HISA’s ADMC program is the modern, rigorous yet fair regulatory framework the sport deserves.”
Although HISA had expressed confidence that the FTC approval would be announced on Monday, there was some uncertainty over whether the agency would issue the approval given that it declined to approve substantially similar rules late last year, citing legal uncertainty. At that time, the U.S. Fifth Circuit Court of Appeals had issued a decision calling HISA’s enabling legislation “facially unconstitutional.”
At the end of the year, HISA supporters successfully lobbied for an amendment to the enabling legislation that sought to address the issues raised by the Fifth Circuit. Then, in early March, the U.S. Sixth Circuit, considering a case raising the same issues as the Fifth Circuit case, released a decision upholding HISA’s constitutionality. The conflicting opinions have raised the likelihood that the Supreme Court may consider the case.
Although the rules for the ADMC program were devised and promulgated by HISA, it will be administered by the Horseracing Integrity and Welfare Unit, a division of Drug Free Sport International, a private company hired by HISA last year. Drug Free Sport administers similar programs for several high-profile professional sporting leagues, including the National Football League and Major League Baseball.
HISA’s takeover of racing regulation has been opposed by a wide number of horsemen’s groups affiliated with the National Horsemen’s Benevolent and Protective Association, along with a handful of racetracks, racing commissions, and state attorneys general. The opponents of HISA have raised a broad range of concerns about HISA, including criticism over federal over-reach, excessive costs, and a perceived lack of input from horsemen.
That pushback has resulted in several favorable court rulings for the groups, including a decision last year in a Louisiana court that prohibited HISA from enforcing its rules in Louisiana and West Virginia (HISA has appealed the decision). In addition, tracks in Texas and Nebraska have declined to send their signals out-of-state in order to evade HISA regulations. As a result, the ADMC will not be enforced in those four states.
On Monday afternoon, the National HBPA said that it would file a motion in the Northern District of Texas seeking an injunction that would prevent the ADMC rules from going into effect. The Northern District of Texas had dismissed a legal challenge filed by the National HBPA against HISA last year, but the National HBPA’s appeal of that decision had led to the Fifth Circuit ruling calling HISA’s enabling legislation unconstitutional.
“The authority is barreling forward to implement HISA, and the FTC is enabling it by rubber-stamping another set of seriously flawed rules,” said Doug Daniels, the president of the National HBPA. “Industry concerns must be taken into account, and we believe no one at the FTC is listening.”
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