AUSTIN, TX–APRIL 14, 2022–The Texas Racing Commission formalized opposition to the Horseracing Integrity and Safety Act, which members say will hobble the already beleaguered parimutuel betting industry in Texas, at its regular meeting on Wednesday (Apr. 13) .

HISA, which goes into effect on July 1, would usurp a role the Texas Racing Commission traditionally has played: making sure horses on a racetrack are not doped.

According to posted regulations, HISA could delegate animal testing to state racing authorities, but that would not eliminate a $371,377 fee HISA has assessed for Texas.

Commission chair Robert Pate said that Texas state law does not allow the commission to pay a federal agency to do its job, and in fact, that doing so could force the commission to disallow wagering on those races.

“An unintended consequence of HISA—at least in Texas—may be the elimination of all parimutuel wagering and simulcast wager for HISA-covered horses and covered horse racing under the Texas Racing Act,” Pate said. “Any race or meet subject to HISA regulation—without state staffing to adequately implement state law—will not be a race or meet that meets Texas racing statute, and the Commission cannot allow parimutuel wager or simulcast wagering in those circumstances.”

In a letter dated today (Apr. 14), Texas Racing Commission Executive Director Amy Cook informed Lisa Lazarus, CEO of the Horseracing Integrity and Safety Authority, that the Texas Racing Commission would not pay a demand payment in the amount of $371,377 as well as expected monthly payments to the self-funded federal Authority.

Cook informed Lazarus the Texas Racing Act contains no statutory provision enabling the Texas Racing Commission to become an agent of the federal government to collect and remit fees to create uniform nationwide standards for horses only in "covered horse races."

Excerpts from the letter include:

We view your demand for payment as invalid attempt to preempt state laws specifically our authority to regulate pari-mutuel horseracing in the State of Texas. The effect of the law is that It effectively ends pari-mutuel wagering and creates imminent economic harm for the citizens of Texas.

Instead of treating state regulatory agencies like bill collectors for the Authority the FTC should partner with states and their congressional delegations, then return to Congress with the goal of replacing the Authority with a federal cooperative agreement program.

As the government agency charged with the protection of the horses, licensed participants and the public that engage in and attend the sport in Texas, we agree that increased uniformity of safety standards among the states is an appropriate direction for the future of the sport.

However, the Texas Racing Act passed by our state legislature is the only authority our agency is obligated to follow to license participants and regulate horseracing in the State of Texas. 4 Our agency, therefore, elects not to remit fees under 15 USC§3502, to the Authority.

Texas racing officials expressed their concerns to HISA representatives late last year, along with other state racing officials. According to vice chair Connie McNabb, HISA told the states their concerns were moot because HISA has the authority of the Federal Trade Commission.

The Texas Commission has also joined a legal case debating the constitutionality of HISA.