Lack of Optimism After Texas Racing Commission Meeting

Thoroughbred industry stakeholders in Texas, hopeful of a resumption of out-of-state domestic simulcasting amid the state's opposition to the Horseracing Integrity and Safety Authority, have less reason for optimism after receiving additional feedback from the Texas Racing Commission chairman during an Oct. 14 commission meeting. The remarks from the chair, Judge Robert Pate, are consistent with his earlier statements on HISA—that only the commission is authorized under Texas racing law to regulate the sport in the state. His views were expressed during a panel discussion during a TRC meeting called the "Status of Horse Racing in Texas," in which horsemen and track representatives spoke to the commission. The TRC, along with the Texas Horsemen's Partnership and Global Gaming—the owner of Lone Star Park—were among the plaintiffs that sued HISA, questioning the constitutionality, in one of numerous lawsuits that sprung up around the country. Conflicting opinions from courts are likely to require a decision from the United States Supreme Court whether it is constitutional. "So, until that's finally resolved, I'm afraid there's no real issue because, as we all know, the exporter signal is tied to—that is the hook that makes a state subject to the jurisdiction of HISA rules," Pate said. "And we're not going to, among many aspects of that rule—we're not going to put Texas employees under the direction of federal overseers while Texas is paying the bill. And it's just not going to happen." And if HISA is declared constitutional? "We have a real problem," Pate said. Panelists spotlighted other issues under the current environment. Thoroughbred racing interests painted the darkest picture, largely because HISA regulates only Thoroughbred racing, and other breeds that race in Texas, such as Quarter Horses, are unaffected by HISA regulations and therefore able to simulcast. But those from other breeds expressed that the entire equine industry performs best when all breeds are flourishing. That has not been the case for the Thoroughbred industry. Tracks such as Sam Houston Race Park and Lone Star Park have experienced dramatic drops in simulcast handle as a result of the TRC and HISA impasses, costing them and participating horsemen in the state millions of dollars. Only the state's Horse Industry Escrow Account, which directs sales tax collected on equine-related goods and services toward the industry, has allowed the industry to remain afloat by directing millions of dollars for purses. Even with that addition, tracks have reduced racing dates and purses because of lost simulcast revenue. Thoroughbred breeding has also declined. The effects have also reached the breeding sector. According to The Jockey Club's latest statistics, only 230 mares were bred in Texas in 2025 and that number is expected to total between 200-210 this year. The mares-bred numbers from 2019-23 were typically about twice that level. Quarter Horse breeding, meanwhile, has grown because HIEA money has boosted purses, rather than offset losses from diminished simulcasting. The Texas equine industry would like to address Texas racing law during the upcoming legislative session, modernizing the rules and the language, including redirecting cross-species money from the defunct greyhound racing industry. Such language could also clarify the state's regulatory role provided HISA is ultimately ruled to be the law of the land. That language would become moot if the federal law that created HISA, under enforcement from the Horseracing Integrity and Safety Unit, is declared unconstitutional. Sam Houston Race Park general manager Brian Pettigrew said absent legislative changes, the track "could even miss more years of (simulcasting) racing." It also could further provide greater certainty for the state's racing and breeding sectors. In an interview with BloodHorse after the meeting, Pate and vice chair Constance McNabb defended the state's position. Under the Supremacy Clause of the U.S. Constitution, however, federal law enacted after a state law typically overrides and invalidates conflicting state law, providing Congress in enacting the law within its constitutional powers. Preliminary injunctions, such as those secured in West Virginia and Louisiana in separate legal challenges from the one in which Texas is involved, have allowed Thoroughbred tracks in those states to race under state rules and still simulcast. No preliminary injunction was issued in the Texas case. Pate disagrees that federal law trumps state law, saying in part that the state has not appropriated money toward it. He said the TRC sought to reach a solution years ago during the early part of the HISA/Texas dispute. Tate, HISA CEO Lisa Lazarus, and other representatives met, at one point over a Texas barbecue, Tate said, to discuss a workable framework that would allow the two regulators to work together without compromising the state's position in ongoing litigation. But an agreement, such as Texas incorporating HISA rules into its Texas Racing Act but then enforced by it, couldn't be reached. Asked if the TRC could use Remington Park in Oklahoma as a model for simulcasting to resume—that state is also in opposition to HISA—Pate said, "I'm not familiar with their situation. It simply isn't Texas." Merlinda Gonzalez, a representative for Global Gaming, which owns Lone Star Park and Remington Park, declined comment after the meeting on the possibility of Lone Star simulcasting as Remington Park has done and what might not need to occur for that to happen. Gonzalez is vice president of operations at Lone Star. Pettigrew and other stakeholders were to speak with TRC executive director David Holmes and other officials later Wednesday afternoon for continued discussions. Pate said he is sympathetic to those affected by the simulcasting standoff. "We're well aware of the burden," he said.