In a major move that could end the fractional regulation of racing in the United States, the Association of Racing Commissioners International has endorsed the creation of a new interstate compact as a way to centralize racing rule making in the United States

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The RCI board of directors has formally embraced the concept contained in pending legislation in New York which would reorganize how participating states enact rules, clearing the way for uniform rules and streamlined decision making.

“In a practical sense this uses the existing powers of the states to reorganize how certain regulatory decisions are made without creating an additional layer of oversight which would prove costly to all industry participants,” RCI president Ed Martin said. “In essence this can become the National Racing Commission that some have advocated while recognizing the fact that individual states have the ultimate authority in these matters. This marks a willingness of state regulators to act collectively on certain matters.”

The creation of a new interstate compact cannot be accomplished by the state racing commissions, it can only occur when a bill authorizing participation is passed by the legislature in each interested state and signed into law by that state’s governor. Martin acknowledged that the path may appear complicated and time consuming, but “this is an extremely practical way to address long standing issues and the result can be well worth the effort involved.”

RCI has been working informally with the Lexington based Council of State Governments National Centre for Interstate Compacts for the past 18 months providing information to its members to consider.

“The important thing to recognize is that the states maintain ultimate jurisdiction about what happens in their state. A compact is a way to organize certain decisions and can potentially streamline the process by which these decisions are made. All industry groups will maintain their ability to be involved in the rulemaking process and to have their positions heard and considered,” Martin noted, calling this “an important reform that RCI is proud to put forward for all to consider.”

The legal authority to form interstate compacts is contained in the U.S. constitution and the states have used this authority frequently to address matters that have multi-state impact.

“In the old days the local horses came to the local track and the local folks came to bet on their favourites. Simulcasting changed all that decades ago and it is time for the racing industry to embrace a way to update our regulatory scheme. The regulators are ready to be supportive of this initiative and my preliminary conversations with some industry leaders have all been positive,” he noted.

Martin indicated that the RCI Model Rules Committee will further analyze the pending New York legislation and the Association will begin working to bring together industry leaders to form a common effort. He acknowledged that not all states will participate initially and some legislatures will wait to see how it works for those that do.

“The quickest way to accomplish this is for the industry and its regulator in a particular state to be on the same page so that the legislative proposal is non-controversial and can pass in a timely manner,” he noted.

(RCI)