New York Racing Shutdown Averted

By T.D. Thornton
 
A Jan. 1 shutdown of New York racing and training over a lack of workers’ compensation insurance coverage for jockeys and exercise riders has been averted. 

According to Rick Violette Jr., president of the New York Jockey Injury Compensation Fund, the NYJICF will make the first quarterly premium payment for 2015 to the New York State Insurance Fund at the same level that the plan cost last year. 

At the same time, the NYJICF will shop around for a better quote on the open market so horsemen won’t have to face the steep 59 percent increase in premiums that would be spread out over the rest of the calendar year. 

If the NYJICF doesn’t move to a new carrier by Mar. 31, Violette said horsemen will be on the hook for the full amount of the quoted increase. Owners and trainers are responsible for workers’ compensation insurance under state law because riders are considered their employees. 

Blanket insurance coverage for jockeys and exercise riders, if bought through the NYSIF, would cost $6.7 million in 2015, up from $4.3 million in 2014. 

“I just think a 59% increase in nauseating,” Violette said. “[The NYSIF’s] reluctance to modify it even more than they’ve done is outrageous. We’re trying to make the best out of it without there being an issue to racing and racing dates, and we’re trying to make sure the jockeys and exercise riders have coverage.” 

Violette said that the stopgap plan will allow racing and training to continue without interruption, but it doesn’t provide any long-term comfort. 

“We used to be the favored son of the state [insurance fund],:” Violette said. “And the state fund used to look at us as if they kind of broke even [by underwriting the insurance], they were content with that. Basically, their executive levels and upper management have changed, and those days are off the board. Like a number of other industries, we’re getting treated in the same exorbitant manner.” 

According to a Dec. 19 letter sent by the NYJICF to the New York State Gaming Commission, if the NYJICF finds a commercial insurance carrier that can underwrite similar coverage at a lower premium before Mar. 31, the NYJICF “will be able to terminate the NYSIF coverage and will not be assessed a penalty associated with the termination of the 2015 policy.” 

Using worst-case costs that pertain to the current NYSIF quote for 2015, Violette said the New York Thoroughbred Horsemen’s Association will help defray costs by paying half the initial (quarterly) $2,475 workmen’s compensation premiums on behalf of individual trainers who are currently stabled and racing at Aqueduct and Belmont Park. 

The insurance cost increases will be further offset by a raise in daily stall rates from $.95 to $1.50, and an increase in the subsidy from purses from .95% to 1%. 

Violette said the debits from purses will come directly from the general purse account before races are written instead of subtracting from owners’ accounts once purse winnings have been paid to individuals.