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CHRB Defers ADW Licenses Over
Guild Insurance
Nov. 18, 2011 - The decision by Churchill Downs Inc.
to drop a longstanding insurance agreement with the Jockeys' Guild
could have ramifications in California for the company's advance
deposit wagering firm TwinSpires.com.
During its meeting at Hollywood Park Nov. 17, the California Horse
Racing Board, acting in response to a complaint from an attorney for
the jockeys, deferred until Dec. 15 renewal of an application by
TwinSpires.com to continue operating in the state.
The board also withheld two-year license extensions for the two
other ADW companies in the state, TVG and XpressBet.com, though CHRB
chairman Keith Brackpool made it clear the board's objection was
over CDI's decision. He said he wanted to give CDI "a couple of
weeks" to consider its stance, perhaps leading it to negotiate with
the guild.
CDI earlier said it is dropping its share of the annual contribution
to the riders' insurance fund, which amounts to $330,000 for the
company's four racetracks. Brackpool said he was "troubled" by CDI
dropping the coverage, which The Stronach Group and New York Racing
Association continued to support with a new three-year agreement for
the guild's "media rights."
"There was no communication (from CDI)," Brackpool said. "It was
just a decision they came to. I'm troubled by that. This board is
committed to doing whatever we have to do to protect jockeys."
Attorney Barry Broad urged the CHRB's decision, though he said
afterward he was surprised the renewals of the other two companies
were also affected. He earlier expressed support for both
XpressBet.com, including parent company The Stronach Group, and TVG,
due to their support of jockeys.
He told the board CDI took its action against the guild even though
there "was no precipitating event, no conflict with the guild,
nothing." He said the agreement with tracks around the country has
been in existence since 1967.
Broad said TwinSpires.com "is carpetbagging" in California,
siphoning ADW money while putting nothing back into the game. He
said CDI is guilty of undertaking "aggressive cost-cutting on the
backs of injured jockeys."
Brad Blackwell, vice president of TwinSpires.com, said the guild
insurance issue was being presented in an "improper forum." He noted
in response that the company is located in Mountain View, Calif.,
and that its parent company provides up to $1 million for
catastrophic coverage of jockey injuries.
"CDI does take responsibility for the health and safety of jockeys
at our facilities," Blackwell said.
TVG argued that since it does not own racetracks, its license
approval should not have been included. Afterward, TVG general
counsel John Hindman said: "It certainly was a surprise to us. We'll
come back next month and have some discussions in the meantime."
On Nov. 14 the Jockeys' Guild presented a petition signed by 240
members to CDI's board of directors in an effort to persuade the
company to renew the contract.
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