ARC Day 2

‘BETTING’ ON RACING’S FUTURE
By Michele MacDonald 
Racing must reconnect and re-examine its relationship with betting as the sport moves to keep up in an increasingly competitive world environment, several speakers told delegates to the Asian Racing Conference. 

Winfried Engelbrecht-Bresges, chief executive of the Hong Kong Jockey Club as well as vice chairman of both the Asian Racing Federation and the International Federation of Horseracing Authorities, opened the first full day of the conference Tuesday by guiding some vigorous discussion during a session titled “Racing’s Lifeblood–the future landscape for wagering.” 

“Racing is losing market share in the global gaming market and as a result becoming less relevant not only to customers, but to independently run wagering operators,” Engelbrecht-Bresges warned. He displayed statistics showing that sports betting will surpass wagering on racing for the first time this year. 

In addition to racing being under pressure to grow wagering since the sport does not collect as much revenue from broadcast rights and sponsorships as do many other sports, leaders must also be cognizant of image issues that could dissuade younger fans from participating. 

“Racing providers have to be aware that we have to conduct our sport on the basis of fair competition and integrity,” Engelbrecht-Bresges said. “We have to ensure that issues like animal welfare and substance-free racing, not only regionally but on a global basis, have to be addressed. It’s an absolute must for customer confidence and for acceptance of our sport, especially among the younger customers.” 

To stimulate growth of wagering, the sport has to “create an attractive value proposition for people and owners to invest,” he continued. Furthermore, racing leaders must provide “world-class racing sport entertainment…to grow the customer base, especially among those who have a wagering propensity” in addition to strictly guiding race programs, field size and quality and fairness of competition to maximize betting. 

Investment in racecourse improvements and other customer service-related programs also is essential, Engelbrecht-Bresges said, noting that Hong Kong has spent about $451.5 million since 2009 under a “racecourse master plan” to improve facilities and offer more services and programs for customers. Wagering has since increased by 41%. 

In other discussions during the session, Jennifer Owen, an independent consultant to the gambling industry since 1996, delivered the findings of her study titled “The Future Landscape for Wagering: Market Analysis and Implications” with the warning that “racing has become disconnected from wagering” and has “lost control of the distribution.”? 

Philippe Germond, chairman and chief executive of France’s Pari Mutuel Urbain (PMU), gave both a “nice story” about PMU’s success, including its approximate $14.5 billion turnover last year and its six million customers, and “a wake-up call” for racing to take action. 

Horse racing betting is becoming more “obsolete” compared to other types of wagering, Germond stated. PMU has responded in part by increasing its presence in international markets, both as an exporter of racing for betting and an importer of major racing from other locales. 

Racing leaders must improve customers’ perceptions of the sport, invest in new track facilities, market jockeys and other participants as the sport’s stars, reward customer loyalty and lobby jointly on major issues, Germond said. 

“It is now time to invest in the future of racing and betting together,” he concluded, warning that “if we do not move quickly, we will face declines year after year.” 

The Welfare of the Equine Athletes 
By Michele MacDonald 
Proper care of racehorses must be of critical concern to racing leaders, delegates to the Asian Racing Conference were told Tuesday, if the sport is to survive and thrive. 

With public concern about animal welfare and racehorse care, both during and after racing careers, having been sharpened by reports of a wide range of abuses, deaths and alleged mismanagement, owners and trainers must be professional and careful in everything they do with their horses, declared Louis Romanet, chairman of the International Federation of Horseracing Authorities. 

“Any abuse of the horse must be punished because the welfare of the horse is paramount to us,” Romanet stated while also including that statement with an exclamation mark in his power point presentation. “It has to be a permanent attitude of trainers to take account of horse welfare,” Romanet continued, suggesting that racing authorities take a close look at individuals seeking to work with horses in racing by inspecting their stables and practices when they apply for trainer licenses. 

He also stated that the lives of racehorses at the end of their competitive careers “has to be one of our priorities” in order to maintain the confidence of racing’s fans and wagering participants who increasingly demand that horses be handled with care and consideration at every stage. 

Although the conference is being held in Hong Kong, far away from the United States, the recent allegations raised by the People for the Ethical Treatment of Animals (PETA) against trainer Steve Asmussen and his staff in a story carried by The New York Times were brought up more than once. 

James Gagliano, president and chief operating officer of The Jockey Club as well as an IFHA vice chairman, said, “I won’t pass judgment on what we saw” on the videotape PETA released that was shot at an Asmussen barn. He noted that the tape included coarse language and raised other questions, including some about inconsistencies in standards, but he emphasized that some good will come in the wake of the very negative reports from the Times and other news media while the situation is examined by officials and regulators. 

“Recent events have further galvanized our spirit to improve in all areas. The industry requires consumer confidence and trust, and the welfare of the horse is a high priority,” Gagliano said. 

Saudis Knocking on the Door 
By Michele MacDonald 
In a move that could affect both racing and social dynamics in the world, the kingdom of Saudi Arabia is poised to create a program of international races. 

Adel Almazroa, general manager of the Equestrian Club of Riyadh, revealed those plans during a brief presentation to the Asian Racing Conference session on “Pattern (racing)–now and in the future” Tuesday in Hong Kong. 

“We are not sure exactly,” Almazroa said when asked about when international racing would commence, “but it is coming soon. We are preparing a plan.” 

Almazroa was accompanied to the session by veteran Irish consultant Ciaran Kennelly, the former head of handicapping, race planning and international races for the Hong Kong Jockey Club who now is consulting with Saudi Arabian authorities. 

Over the last decade and the beginning of “the modern era of racing” that started with the opening of the current Riyadh racetrack in Al Janadriya in 2003, Saudi Arabian racing and breeding have improved markedly by the numbers. Almazroa presented several statistics outlining that growth, including: 

• The number of foals produced has increased from 723 in 2003 to 1,473 in 2013; 
• The number of race starters has swelled from 970 in 2003-’04 to 1,636 in 2013-’14, and; 
• The number of races and prize-money both have leapt significantly, with the former nearly doubling from 305 to 608, and the latter close to three times as high at SAR 43.18 million (approximately $11.5 million). 

Saudi Arabia also has been importing some outstanding horses to continue to improve the breed there, including American Grade I winners Premium Tap (Pleasant Tap) and Ron the Greek (Full Mandate) and multiple Grade 1-placed Fly Down (Mineshaft). 

Racing could be a major force for change in Saudi Arabia, where religious and cultural values have kept the nation relatively sequestered under regulations such as those denying women the right to drive. When international races are conducted, there will be a stream of visitors entering the kingdom to watch and participate in the sport, just as there are at all the major racing events created to showcase Thoroughbred competition in other parts of the world. 

International Transport Under the Spotlight 
by Liesl King 
Roughly 3500 years ago, the first transport of a horse occurred by boat. Travel by road followed next with a cart specially built to transport Eclipse, as the famous racehorse had problematic feet and found walking to his races rather difficult. During the last two weeks, eight international horses travelling in high-tech jet stalls, flew into Hong Kong in order to take part in the G1 Queen Elizabeth II Cup and the G1 Champions Mile. The international transportation of horses has come a long way since that first horse was coaxed onto a boat, but it is far from perfect. 

Variety Club’s victory in the Champions Mile, which took place in front of the 800 delegates of the 35th Asian Racing Conference, firmly placed the spotlight on the difficult quarantine requirements faced by South African racehorses. 
“I think if there is not already an incentive for the Asian Racing Conference to facilitate a better travel situation for South African horses to the great races of the world, then we saw one today”, concluded Hong Kong Jockey Club CEO Winfried Engelbrecht-Bresges after the Champions Mile. 

The Asian Racing Conference, currently underway in Hong Kong, started on Tuesday with a Plenary Session on “The Movement of Horses,” with specific emphasis placed on the travel restrictions encountered by horses competing internationally. The main topic of the session was the development of a ‘high health, high performance’ (HHP) concept by the World Organisation for Animal Health(OIE) in order to address the challenges of irregular and excessive health requirements for international competition horses, both racing and equestrian. 

The (OIE) project leader, Dr. Susanne Munstermann, explained how the OIE is working towards developing international standards for the movement of competition horses, travelling for the sole purpose of participating in racing or equestrian competitions. Dr. Munstermann also pointed out that competition horses are closely scrutinized, highly identifiable and traceable and enter countries on a temporary basis for competition purposes only. As such, they present a very low health risk. They are thus a unique subgroup of the global horse population, which the project has labelled the ‘High Health, High Performance’(HHP) horse. 

The OIE has engaged the FEI (Federation Equestre Internationale) and the IFHA (International Federation of Horse Racing) as project partners to assist in the development of new code chapters on the International Horse Movement for Equestrian Sport. The first chapter, which contains recommendations for the formation of a subgroup of horses with a high health status, that move internationally in order to compete, will be presented to the 178 OIE members in four weeks time. Its acceptance will be the first step towards the establishment of the HHP horse and the ease of its travel arrangements. 

Peter Gibson, CEO of Racing South Africa, followed on, reminding the delegates that not only do the South African racehorses fall in this high health, high performance category, but that African Horse Sickness is a seasonal disease. This means that competition horses can safely be exported during the winter months, from what is arguably the best vector protected quarantine station in the world. 

“If the importing countries are willing to consider the true risk of African Horse Sickness, within the current shortcomings of our current system, there is a means of exporting horses from South Africa in a completely safe and professional manner during the winter months”, Gibson explained. “What is required is a reliable, safe and regular delivery system of South African horses, in order to compete on the International stage”. 

Gibson pointed out that possible export solutions could include the upgrading of the current quarantine facilities to provide continuous vector protection, enhanced surveillance of the AHS control area and significant advances in diagnostic testing. 

Dr. Anthony Kettle, Head of the Veterinary Department at the Dubai Racing Club, enlightened the audience on the procedures used during the recent racing event at Chengdu in China, where racehorses from Dubai travelled safely to and from Chengdu. Kettle explained that it was an excellent collaboration between the Chinese and UAE ministries and relied heavily on extensive health testing and record keeping. The success of Chengdu can be seen as a positive step towards the concept of a HHP horse and the HHP proposal is clearly a vehicle that can solve many of the problems currently encountered by international horses such as Variety Club as they travel to racing events around the world. The Code chapters are far from complete and even when completed, the HHP concept may still not suit all the countries involved, but as Dr. Munstermann pointed out, at least it is a start.