Premium Increases Could Halt NY Racing

by T.D. Thornton

The quiet of the current holiday break on the New York racing circuit was jarred on Friday afternoon by the news that a sharp increase in premiums that horsemen must pay to fund the New York Jockey Injury Compensation Fund could shut down racing and training at Aqueduct and Belmont Park as of Jan. 1. 

Daily Racing Form first reported that the horsemen are on the hook for a 59% increase in premiums to cover workers’ compensation insurance coverage for jockeys and exercise riders. DRF quoted the cost for blanket insurance at $6.7 million for 2015, up from $4.3 million in 2014. 

At 4:30 p.m. Friday, when TDN reached Rick Violette Jr., president of the New York Jockey Injury Compensation Fund, he said he was just about to take a conference call on the matter and deferred comment until Monday. 

“It’s a real flowing subject right now, with a lot of balls in the air,” Violette said. “And I’m not going to comment further until all the balls are in place.” 

According to a page on the website of the New York State Workers Compensation Board, any “jockey, apprentice jockey, or exercise person performing services for an owner or trainer in connection with the training or racing of a Thoroughbred horse at a facility of a racing association” is considered an employee of the owner and trainer, which is why the horsemen are responsible for providing workers’ compensation coverage. 

The DRF article explained that horsemen essentially have three choices: Pay the increased annual premium to the New York State Insurance Fund in full, make a partial payment for short-term coverage while seeking a deal with another insurance provider, or allow racing and training to go dark without any coverage at all. 

Either way, the Jockey Injury Compensation Fund must present a plan at Monday’s noon New York Gaming Commission meeting, where the subject is listed on the agenda under the heading “emergency and proposed rulemaking.”