Big Events Take the Spotlight at ARC

BIG EVENTS TAKE THE SPOTLIGHT AT ARC 
By Michele MacDonald 
The rise of international racing in all corners of the world, with big money, big media and big stars flashing over new horizons, could lead to the reinvention of a World Series of racing concept, as well as focused cross promotions of championship events. 
Several key racing leaders noted the connections between racing’s marquee days and suggested there are major opportunities that could be capitalized on by the sport. Their discussion proved to be one of the liveliest exchanges of ideas at the 35th Asian Racing Conference, which concluded in Hong Kong on May 8. 
“Intuitively, it feels right,” said Rod Street, chief executive of the British Champions Series, of linking together the world’s most brilliant racing events in an official series. 
“I think it will evolve again,” predicted Brian Kavanagh, chief executive of Horse Racing Ireland, who noted that the first attempt at a racing World Series about a decade ago ultimately failed on the issue of media rights and ownership of video pictures. 
“These [international race] meetings will link together informally and may create a more formal link. Certainly one of our priorities is to link the European [championship] days,” Kavanagh said. 
Horse Racing Ireland’s newly created Irish Champions Weekend will be inaugurated Sept. 13 & 14 and will be followed on the calendar by France’s Prix de l’Arc de Triomphe Weekend Oct. 4 & 5 and British Champions day Oct. 18. 
The three prestigious European events will wind up two weeks prior to the beginning of the two-day Breeders’ Cup on Oct. 31 at Santa Anita Park, and the key races in each of the European programs have at times delivered brilliant runners for Cup races. 
While the development of more big-race events in other parts of the world will provide competition for Breeders’ Cup in obtaining top runners, Cup President and Chief Executive Officer Craig Fravel also sees potential synergies. 
“There is a tremendous opportunity for us,” said Fravel, who was one of nine panelists during the session, titled “Big Events, Today and Tomorrow,” suggesting that “we can be a lot better” at promoting racing’s best occasions collaboratively. 
There already have been mutual efforts, Fravel noted, such as when French authorities worked together with Breeders’ Cup to promote sensational champion Goldikova (Ire) (Anabaa), who swept through three triumphs in the GI Breeders’ Cup Mile. The dual efforts encouraged betting in both France and the U.S., and thus boosted racing in both jurisdictions while stimulating more interest further abroad as well. 
Breeders’ Cup, with 30 runnings since its creation in 1984, has served as an example for other nations to follow in creating their own championships, Fravel said, adding that “imitation is the sincerest form of flattery.” 
“The interest is only going to continue to grow,” Fravel said in looking to the Cup’s future. He explained that one of Breeders’ Cup’s strategies for generating increased interest is this year’s new Challenge Series for television, which will have 11 American telecasts on NBC and NBCSN featuring 18 of the automatic “Win and You’re In” prep races for the Cup. 
“It’s going to be an extraordinary lead-in to the Breeders’ Cup. We are very optimistic it is going to drive interest in the Breeders’ Cup itself,” Fravel said. 
Big international championships events, with the world’s largest prizes that lure the most brilliant runners, are significant drivers of fan interest and involvement with racing, as well as important avenues for promoting host nations and their general racing programs. 
William Nader, Hong Kong Jockey Club executive director of racing and former New York Racing Association executive, noted that while the Hong Kong International Races program so far has not developed as the club’s biggest wagering day, it has been invaluable in lifting the recognition of Hong Kong racing around the world. 
“Our priorities for our International Races are much different than our business-as-usual race days,” said Nader. “We look at it as our flagship day; it’s about really showcasing the best of Hong Kong, international competition, fashion and lifestyle–a celebration of what the sport really is.” 
Domestic races in Hong Kong generate an average of US$17 million in handle per race; by way of comparison, a routine eight-race program at Happy Valley Racecourse during the ARC generated $135 million in handle, more than $10 million over the total bets on the GI Kentucky Derby. Hong Kong’s international races are growing in handle, although local bettors still prefer to play local horses in local races. 
Martin Talty, who directs international racing for the Dubai Racing Club, concurred with Nader that the major racing days “have gone beyond wagering–they are more international sporting events.” 
“We can proudly say of all the international [racing] events around the world, the international participation in the Dubai World Cup is probably at the top,” Talty said. 
Additionally, the eight-race World Cup program is the globe’s most lucrative racing event and next year will be worth $29 million following $1 million increases each for the GI Dubai Duty Free and GI Dubai Sheema Classic. Each of those turf races will now be worth $6 million while the World Cup remains the planet’s richest race at $10 million. 
While no wagering is allowed in Dubai itself, betting on the World Cup card is conducted around the globe, with revenues generated going toward funding Dubai racing. 
Wagering is extremely significant in other jurisdictions, as Kaoru Obata, director of customer service and public relations for the Japan Racing Association, noted. Japan’s G1 Arima Kinen, the season-ending championship contest, last year generated $350 million in handle, an amount equal to 1.5% of the total JRA turnover for the year. The G1 Tokyo Yushun (Japanese Derby) generated $240 million in betting, or 1% of the annual total. 
“It is critical to target and focus on big events. You have to tell the public how exciting it is to pick the winner and how beautiful the horses are,” Obata said. 

Mainland China Faces Challenges… 
By Michele MacDonald 
With hundreds of Asian Racing Conference delegates listening intently to every word, officials from mainland China and other analysts delivered what is essentially a very clouded forecast for the immediate future of racing in the world’s greatest remaining frontier for the sport. 
Current laws regulating the Chinese sports lottery indicate that racing would not be financially viable if subjected to the same rules, as the takeout rate is a minimum of 32%. Additionally, while the China Stud Book has been operational since 2002, only about 3000 Thoroughbreds are reported on the mainland, with only 400 registered, and veterinary care across the country is scant. 
“We have a long way to go. We are the very beginning stage,” said Tian Hua, deputy director of equestrian development for the General Administration of Sport of China, during part of a lengthy May 8 program on the potential of racing in China. 
China must enhance public awareness of horse sports including racing, develop an infrastructure, cultivate international cooperation and strengthen training programs for racing and other equine professionals, Hua said in pointing the way forward. 
“Chinese horse racing needs more international support–support from you and support from the Hong Kong Jockey Club,” she told the audience of racing leaders from around the world who listened through headphones to a translator. “We welcome joint promotions of horse racing and the horse culture.” 
Many of the over 800 registered delegates, a record for the ARC, have their eyes on China as a future partner or client in the development of racing. China’s huge economic clout will be of great assistance, but Hua indicated that is not enough to make racing, as it is conducted in other countries, a reality. 
Guoai Han, vice chairman of the Chinese Horse Industry Association, outlined both China’s lengthy and proud history with horses as well as its ambitious designs for the future. Chinese industry leaders want to organize racing with integrity and in fulfillment of international rules as well as join organizations such as the Asian Racing Federation and even host an ARC on mainland China, he said. 
Those kind of proclamations led Winfried Engelbrecht-Bresges, chief executive of the Hong Kong Jockey Club and newly elected chairman of the Asian Racing Federation (ARF), to applaud the clear interest expressed. But he noted that most of the statements were about racing, and he observed that racing would not be sustainable without a model that includes financial support through betting. 
Thus, he labeled the possibility of organized racing beginning on mainland China in the near future as a “longshot.” In the meantime, the ARF will welcome a relationship with the China Horse Industry Association and extend support in the development of a Chinese racing governance framework. 
“It’s going to be a very long way, and it will be a step-by-step process,” Engelbrecht-Bresges cautioned. “I would not be that optimistic about quick change–the complications definitely should not be understated.” 
Complex governmental laws, rules and structures are a tangled challenge, speakers reported. Further, central government authorities have not taken any steps to approve wagering on horse racing. 
Integrity and animal welfare issues also are essential in looking forward, Engelbrecht-Bresges said, with development of veterinary care professionals and facilities other keys that will take time to realize. 
Dr. Christopher Riggs, head of veterinary clinical services for the Hong Kong Jockey Club, stressed that while “veterinary care is critical for the sustainable development of racing,” there are only a very few experienced and skilled veterinarians working in mainland China along with few properly equipped facilities and little access to proper medications used regularly in other countries. 
China has a spotty record as far as its previous attempts at racing and care of Thoroughbreds goes. More than a dozen racetracks have been developed, but without wagering or other form of revenue, some have been converted to car parking lots and others have been redeveloped. 
On other occasions, horses brought in to compete in racing were killed when plans did not unfold as desired. 
Perhaps the most significant action concerning China and horse racing has been the ongoing construction of the Hong Kong Jockey Club’s new Conghua training center, which lies about four to five hours away by horse van in Guangzhou and is set to open in 2017 or 2018. The complex will offer stabling for up to 1500 horses, a main turf track, two dirt tracks, an uphill gallop with a synthetic surface, a media center and an equine pool, said William Nader, Hong Kong Jockey Club executive director of racing. 
“This will be an absolutely magnificent site and this will give us opportunities to train horses that we don’t have now,” said Nader, explaining that the HKJC’s only track with stabling, Sha Tin, has reached full capacity at 1200 and has no more room to offer. 
During Han’s presentation, delegates were told there were a total of 6,335,000 horses living in China as of 2012, the second highest number anywhere in the world, but only about 100 Thoroughbred foals had been reported to the Stud Book over the previous decade. 

Keeping Racing at the Forefront of Integrity… 
By Liesl King 
In a world where technological advances tend to assist criminals in staying one step ahead of the authorities and the integrity of racing is constantly under threat, the topic of ‘Sport Integrity–Racing as a frontrunner’ is extremely relevant. 
Mark Warby QC, Legal Advisor, British Horse Racing Authority, started off the session by taking the audience through a history of corruption in British Racing, pointing out the watershed moment in 2003 when betting exchanges became legal, allowing punters to lay horses, thus posing a new threat to the integrity of racing. Fortunately, industry found support from the betting exchanges themselves, many of whom were quite prepared to become the source of evidence. 
Citing several case studies, Warby explained how corruption in the industry is currently handled and where the flaws lie. The Integrity Services and Licensing Department (IS&LD) have to be constantly aware of new technology and its possible uses for or against corruption. In the much publicized Heffernan case, gaming consoles where used for communication purposes, while the use of sectional timing as evidence proved crucial in the recent Eddie Ahern case. 
Warby concluded by querying how one decides when conduct is in fact ‘corrupt’? Currently, the law, for example, does not consider the passing of information without reward as a corrupt activity. Communication systems are also constantly evolving, making it easy for corrupt parties to find new ways of making contact and passing information. The threat to horse racing is very real and Warby urged the racing industry to harmonize and collaborate in order to deal with the global challenge. 
One such possible collaboration is the Control Room Project that is currently being run as a pilot project by Racing Victoria. Dayle Brown, Executive Manager of Integrity, Racing Victoria, explained the concept of the Control Room to the audience. 
The Control Room project evolved from the initial Disciplinary process, where the role of the stewards was to act as accuser, detective, prosecutor and judge. Then in 2004 the Racing Appeals and Disciplinary Board (RAD Board) was created in Victoria. The RAD Board enabled the Stewards to present their case before a judge and their role became that of investigator and prosecutor only. 
The Control Room pilot was born out of the need for even tighter controls as integrity problems were no longer confined to the racetrack alone, with racing now under siege 24/7. The Control Room consists of a panel of betting and form analysts, often situated off site, who look at a variety of information such as betting moves, historical race data and video footage of previous races of the horse or jockey under discussion. A direct video link enables the stewards to have instant access to any information required, should a situation arise. 
The main benefit of the Control Room therefore is that the stewards can focus on their main task during racedays: the integrity of the race. The project is only in a pilot stage at present, but once implemented Statewide, it will certainly take racing integrity to another level and could become a valuable tool for other racing jurisdictions as well. 
Another issue Brown felt needed to be examined was the relationship with law enforcement authorities. Should the stewards wait for the completion of a criminal investigation and any subsequent proceedings before conducting their own investigation? Or should immediacy be the key to any investigation? It is far better for racing to be able to control and investigate issues as soon as they arise, rather than to constantly be playing catch up or putting out fires, as is so often the case. 
In summary, Patrick Jay, Director of Trading of the Hong Kong Jockey Club, listed some key issues that the industry should be aware of. These include setting up a strict risk management framework, exposing corruption as soon as it is discovered and to be cognisant of all aspects of an issue when it arises. “Often the ride can look perfectly normal, but the betting activity is most certainly not,” he noted. Racing may be the frontrunner when it comes to integrity and the fight against corruption, but there is no room for complacency, and worldwide threats need a global response. 

ARC 35 Comes To A Close… 
By Michele MacDonald 
Entertained by acrobats, dancers and singers while fed delectable dishes of lobster, shrimp and beef as red and white wines flowed, delegates to the 35th Asian Racing Conference in Hong Kong celebrated the conclusion of three days of business meetings on May 8 with a sense of accomplishment and a look ahead to India. 
In the traditional handing over of the Asian Racing Federation flag, Hong Kong officials announced that the next conference would take place in Mumbai in early 2016. 
Accepting the flag was Vivek Jain, chairman of the Royal West India Turf Club, who urged racing officials from around the world to visit his country while examining trends in racing with other leaders of the sport. 
“We will give you the sights and sounds of India as you have never seen before,” Jain declared. “You are bound to have a good time.” 
Hong Kong Jockey Club Chief Executive Winfried Engelbrecht-Bresges gave the flag to Jain after it was announced that the Hong Kong official had been elected chairman of the Asian Racing Federation for the second time, following his term from 2007-’09. Also a vice chairman of the International Federation of Horseracing Authorities, Engelbrecht-Bresges is one of the most powerful administrators in racing through his leadership positions and also due to the fact the HKJC presides over huge wagering that provide the club with tremendous resources. 
“I would like to thank my colleagues for the great support and trust they have put in me,” he said. “Racing has a major challenge ahead but I feel that the ARF has always taken great leadership in meeting such challenges, and I’m confident that with the great teamwork we have on the ARF executive council, we will manage these challenges.” 
Engelbrecht-Bresges then honored outgoing ARF Chairman Dr. Koji Sato of Japan and presented him with a sculpture of the stylized horse head that serves as the logo of the federation. The organization also elected a new vice chairman in Australian John Messara. 
“Racing is increasingly a globally integrated sport and Australia stands to benefit from being part of the fastest growing and dynamic racing region in the world,” Messara said. “We have much to contribute to the sport internationally but also much to learn from others jurisdictions.” 
In wrapping up the Asian Racing Conference, Engelbrecht-Bresges reported there were a record 837 delegates, 68 speakers, 31 credentialed media and 34 exhibitors as well as 15 business sessions. 
“There has been a very real sense that this week’s presentations have been geared towards material that has real practical applicability across the range of countries who are represented here,” said HKJC Chairman Brian Stevenson in farewell remarks. 
“Greater international collaboration is clearly a must for the racing industry to maintain its competitiveness and popular appeal in the face of so many other competing forms of gaming and entertainment today. I believe we can achieve that,” he said.