Federal horse racing safety regulations blocked in Louisiana, West Virginia
Louisiana and West Virginia have obtained preliminary injunctions from a U.S. District Judge in Lafayette to block enforcement of new federal rules regarding racetrack safety in both states. The Horseracing Integrity and Safety Act (HISA) will come into effect nationwide on July 1.
The ban will remain in effect until a broader lawsuit by two states challenging the constitutionality of the new law is resolved.
The law, passed by the U.S. Congress in December 2020, establishes National Safety Standards for the horse racing industry, replacing the federal regulatory system. A body has also been set up to oversee the industry and enforce the new rules: the Horseracing Integrity and Safety Agency (HISA).
This legislation was primarily driven by the recent high-profile doping scandal and the desire to develop a consistent anti-doping policy.
The 18-month gap between the new rules coming into force and being implemented is intended to give HISA and the United States Anti-Doping Agency (USADA) time to agree on a protocol for drug testing in sport. Those negotiations failed, which meant HISA turned to Missouri-based Drug Free Campaign International.
Racing commission covers expenses
Some states, their racing authorities and industry associations oppose the new regulations. In addition to Louisiana and West Virginia, Texas and Kentucky have also filed federal lawsuits challenging the law.
The plaintiffs' primary complaints involve the costs associated with more rigorous testing and the lack of federal funding to support HISA guidance.
Critics say without a financing mechanism, costs will be passed on to state racing commissions. The Knights Benevolent and Protective Society estimates the additional cost at about $780 million per year.
This could reduce prize money and increase financial pressure on owners and trainers. Betting pools could also take a hit, making horse racing less attractive to punters.
"Half-baked at best"
The plaintiffs also argued it was a states' rights issue. They say the law violates the nondelegation doctrine of the U.S. Constitution. This is because it transfers government power over the state to private organizations. HISA is a private, nonprofit organization regulated by the Federal Trade Commission.
"I firmly believe that the people of Louisiana, not political and economic elites in faraway places, should be in control of these activities," Louisiana Attorney General Jeff Landry said in a statement. It’s all because of the problems in California,” the statement said earlier this month.
HISA creates a regulatory system that is half-baked at best, harmful to everyone in the industry it is supposed to protect, and unconstitutional at worst,” he added.
Constitutional arguments did not prevail in Texas and Kentucky, where judges ruled that the law was not an illegal delegation of authority from Congress to federal agencies. Both found that the FTC had sufficient authority over HISA to subordinate it to the Commission, rather than the other way around.
Both cases are under appeal.
Steve Bitbender contributed to this report.
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