Case 3:22-cv-00123-RGJ Document 1 Filed 02/28/22 Page 1 of 56 PageID #: 1
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`UNITED STATES DISTRICT COURT
`WESTERN DISTRICT OF KENTUCKY
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`BOB BAFFERT, and BOB BAFFERT
`RACING STABLES, INC.,
`Plaintiffs,
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`vs.
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`CHURCHILL DOWNS, INC., WILLIAM C.
`CARSTANJEN, and R. ALEX RANKIN,
`Defendants.
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`Serve: 600 North Hurstbourne Parkway, Suite
`400, Louisville, Kentucky 40222
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`3:22-cv-123-RGJ
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`) Jury Trial Demanded
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`COMPLAINT
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`COMES NOW the Plaintiffs, Bob Baffert (“Baffert”) and Bob Baffert Racing Stables, Inc.,
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`by and through counsel, and hereby state as follows for their Complaint against the Defendants,
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`Churchill Downs, Inc. (“CDI”), William C. Carstanjen (“Carstanjen”), and R. Alex Rankin
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`(“Rankin”):
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`PRELIMINARY STATEMENT
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`1.
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`This is an action brought pursuant to 42 U.S.C § 1983; 15 U.S.C. §§ 1, 2, 15, & 26;
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`the Fourteenth Amendment to the United States Constitution; and Kentucky State law, arising from
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`actions taken by CDI and its officers and directors, including Carstanjen and Rankin, under the
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`color of state law, which have unlawfully deprived and will continue to deprive Baffert of his right
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`to due process of law guaranteed under the Fourteenth Amendment and of his right to participate
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`in horseracing in Kentucky under Kentucky law. Specifically, Baffert maintains a right to enter
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`horses in races and apply for stall occupancy at CDI-owned racetracks. CDI has, without legal
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`authority and without any notice or opportunity to be heard, “suspended” Baffert’s right to race
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`horses on CDI properties, precluding him from practicing his chosen profession or using his license
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`on CDI properties. CDI’s actions also constitute an unlawful restraint on trade.
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`2.
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`Following the 147th running of the Kentucky Derby, Baffert-trained thoroughbred
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`horse MEDINA SPIRIT, the winner, was reported to have tested positive for betamethasone, an
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`anti-inflammatory drug that is commonly used as an approved therapeutic medication in the
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`routine care of horses. Mistakenly believing that Baffert injected the horse with a “prohibited”
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`medication, CDI immediately “suspended” Baffert from entering horses at any CDI racetrack and
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`barred Baffert-trained horses from receiving qualifying points (earned on non-CDI racetracks) for
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`subsequent runnings of the Kentucky Derby. On several occasions as the facts have developed,
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`Baffert asked CDI for an opportunity to rebut the allegations. Each time, it denied those requests.
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`3.
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`The governmental agency that oversees horse racing in Kentucky, the Kentucky
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`Horse Racing Commission (the “Racing Commission” or “KHRC”), regulates betamethasone in
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`its injectable form: betamethasone acetate. Betamethasone acetate poses possible risks to a horse
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`because it is injected directly into an articular joint and is subject to a mandatory fourteen-day
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`standdown period in Kentucky. The Racing Commission does not regulate or prohibit
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`betamethasone in its topical form, betamethasone valerate. Betamethasone valerate is a common,
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`FDA-approved, ethical medication used to increase the efficacy of antibiotics and antifungal
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`medications applied as topical salves or ointments. Betamethasone valerate solutions (typically
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`with gentamycin) are commonly prescribed not only to horses but also to household pets like cats
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`and dogs to treat skin, eye, and ear infections. Betamethasone valerate ointments are in the same
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`class of medications available to humans for minor rashes and skin irritations associated with
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`insect bites or contact with plants like poison oak, ivy, and sumac. Surprisingly, the Racing
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`Commission’s post-race testing did not distinguish between the two varieties of betamethasone.
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`Subsequent scientific analysis on MEDINA SPIRIT’s post-race biological samples, however, have
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`definitively proven that the betamethasone detected in the post-race testing was from the topical
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`betamethasone valerate. The picogram-level amount (a picogram is one-trillionth of a gram) of
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`betamethasone absorbed through the skin (as opposed to injected) is biologically irrelevant, has no
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`potential to enhance a horse’s performance, has no potential to mask joint pain, and poses no
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`danger to the safety and welfare of the horse. Most importantly, whereas a finding of
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`betamethasone acetate could serve as proof of a violation of the KHRC rules of racing, a finding
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`of betamethasone valerate cannot.1
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`4.
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`On those facts, Baffert is currently availing himself of the legal regulatory system
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`established by the Commonwealth of Kentucky, which makes this case about who gets to hold
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`Baffert accountable, for what (if anything), and how. Baffert expressly agreed to cooperate with
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`the Racing Commission’s regulatory process when he entered horses at Churchill Downs and to
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`submit to any penalties imposed after a final order issued by that body. Baffert’s culpability, if
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`any, will be determined in that forum. The first step of that process, an initial hearing before the
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`stewards, occurred on February 14, 2022. CDI participated in that hearing by nominating Tyler
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`Pickelsimer, a CDI employee, as one of the three stewards. The stewards recommended imposing
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`a 90-day suspension and disqualifying Medina Spirit, which initiated the administrative
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`adjudicatory process. The next step is a full evidentiary hearing before an administrative law judge,
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`who will recommend a decision to the full board of the Racing Commission. A judicial appeal may
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`follow. Although a final decision is pending, CDI’s suspension purports to be independent of that
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`regulatory process and is not contingent on its outcome.
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`1 The Kentucky Rules of Racing hold a trainer strictly responsible for the presence of any substance in the horse
`“except as permitted in 810 KAR Chapter 8.” 810 KAR 8:010 Section 2(2). The use of antiseptic/antifungal ointments
`is expressly permitted by 810 KAR Chapter 8 under a rule captioned “Certain Permitted Substances.” 810 KAR 8:010
`Section 4. A rule violation in Kentucky for the use of betamethasone is limited to a violation of the “restricted
`administration time” rule, which prohibits the injection of betamethasone acetate within fourteen days of a race.
`Betamethasone acetate is not covered by the exception for “products used in the daily care of horses” because it is
`injected. 810 KAR 8:010 Section 4(2).
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`5.
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`In this action, Baffert seeks, among other relief, a declaration pursuant to 28 U.S.C.
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`§ 2201, et seq., that CDI is prohibited from a) denying racehorses owned and/or trained by Baffert
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`or those racing and/or training racehorses under Bob Baffert Racing Stables, Inc., entry into races
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`contested at CDI racetracks, including, but not limited to, Churchill Downs, Oak Grove, and
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`Turfway Park; b) denying Baffert the privileges of the grounds of the foregoing Kentucky
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`racetracks; c) denying Baffert or those racing and/or training under Bob Baffert Racing Stables,
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`Inc., stall space at Kentucky racetracks; d) prohibiting Baffert and/or any horse trained directly or
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`indirectly by him and/or Bob Baffert Racing Stables, Inc., from earning points to qualify for the
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`Kentucky Derby; and e) refusing to recognize qualifying points Baffert-trained horses have already
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`earned for the upcoming Kentucky Derby.
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`6.
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`Baffert also seeks, among other relief, entry of a preliminary and permanent
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`injunction enjoining CDI from further barring (either by denying entry or refusing to recognize
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`qualifying points) him and those racing and/or training racehorses under Bob Baffert Racing
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`Stables, Inc., into races contested at CDI racetracks, including but not limited to Churchill Downs,
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`Oak Grove, and Turfway Park. If CDI is not immediately enjoined, Baffert will suffer immediate
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`and irreparable harm.
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`JURISDICTION AND VENUE
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`7.
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`This Court has jurisdiction over Baffert’s claims brought under 42 U.S.C. § 1983
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`pursuant to its original jurisdiction as set forth in 28 U.S.C. § 1331 and 1343. Baffert’s claims arise
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`under the Constitution and laws of the United States, and he alleges that an entity acting under
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`color of Kentucky State law violated his civil rights protected under the Fourteenth Amendment
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`to the United States Constitution.
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`8.
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`This Court has jurisdiction over Baffert’s claims brought under 15 U.S.C. §§ 1, 2,
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`15, and 26 pursuant to its original jurisdiction as set forth in 28 U.S.C. § 1331, given that such
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`claims arise under the laws of the United States.
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`9.
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`This Court has jurisdiction over this matter pursuant to its original jurisdiction as
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`set forth in 28 U.S.C. § 1332. This is a civil action between parties of diverse citizenship, seeking
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`relief and damages in excess of $75,000.
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`10.
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`This Court has supplemental jurisdiction over Baffert’s state and common law
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`claims by virtue of the provisions of 28 U.S.C. § 1367(a) because those claims form part of the
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`same case or controversy under Article III of the United States Constitution.
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`11.
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`Venue is proper in this district under 28 U.S.C. § 1391 because a substantial part
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`of the events or omissions giving rise to Baffert’s claims, set forth herein, have occurred and
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`continue to occur within this district — specifically within the County of Jefferson.
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`PARTIES
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`12.
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`Baffert is an individual and resident of the State of California who is a nationally
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`recognized thoroughbred trainer at the top of his field. He has been a trainer for over 46 years, and
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`the horses he has trained have won races at the highest level of the sport. His horses have won the
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`Kentucky Derby seven times (contested over CDI operated Churchill Downs Park); the Preakness
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`Stakes seven times; the Belmont Stakes three times; and Breeders Cup Races eighteen times. Of
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`the thirteen American Triple Crown Winners in history, Baffert has trained two of them:
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`AMERICAN PHAROAH in 2015 and JUSTIFY in 2018. Baffert has since won the Kentucky
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`Derby with AUTHENTIC in 2020 and MEDINA SPIRIT in 2021 to push his record number of
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`Triple Crown race wins to seventeen, including a record seven editions of the Derby. Through
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`early May 2021, Baffert has won more than 3,100 races, with purse earnings of $320,410,647 (the
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`third highest of all time). Baffert was elected to the National Thoroughbred Hall of Fame in 2009.
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`13.
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`Baffert holds a license issued by the Racing Commission to enter horses into races
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`and to apply for stall occupancy at all racetracks in Kentucky, including CDI racetracks. The
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`stewards have recommended a temporary (90-day) suspension of his license, pending a full
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`evidentiary hearing before an administrative law judge.
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`14.
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`CDI is a Kentucky for-profit corporation with its principal place of business at 600
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`N. Hurstbourne Pkwy, Suite 400, Louisville, KY, 40222.
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`15.
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`CDI is a licensed racing association under Kentucky law. It owns or leases three of
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`the major racetracks in Kentucky: Churchill Downs, Turfway Park, and Oak Grove. Churchill
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`Downs is the host track for CDI’s annual flagship event, the Kentucky Derby. CDI also owns,
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`operates, and/or leases racetracks in Illinois, Louisiana, Florida, Ohio, Maryland, and
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`Pennsylvania.
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`16.
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`CDI conducts its business subject to the Racing Commission’s strict regulations
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`and under its supervision. It is an entity that is legally subservient to the Racing Commission in all
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`respects relating to the management, operation, and regulation of race meetings, and it operates in
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`Kentucky only because the Racing Commission has granted it a license to conduct pari-mutuel
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`racing dates annually at its three Kentucky locations. By statute, CDI may host race meetings in
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`Kentucky only if it holds a valid license issued by the Racing Commission to conduct thoroughbred
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`racing. CDI and the Racing Commission delegate to each other responsibilities related to the actual
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`conduct of hosting a race meeting to their mutual benefit. Through this arrangement, the
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`relationship between the Racing Commission and CDI is deeply entwined, and CDI’s actions with
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`regard to Baffert cannot be considered “purely private.”
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`17. William C. Carstanjen is a New York lawyer and the Chief Executive Officer of
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`CDI, whose registered address is 600 N. Hurstbourne Pkwy, Suite 400, Louisville, KY, 40222.
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`18.
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`R. Alex Rankin is the Chairman of the CDI Board of Directors, whose registered
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`address is 600 N. Hurstbourne Pkwy, Suite 400, Louisville, KY, 40222.
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`19.
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`In addition to his position at CDI, Rankin is the Chairman for Sterling & Thompson,
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`a firm that provides, among other products, insurance for equine operations.
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`20.
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`Rankin is also the founder of Upson Downs, a thoroughbred farm in Kentucky that
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`breeds, owns, and markets thoroughbred yearlings. Rankin owns several thoroughbred horses,
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`which he and members of his family (sometimes through partnerships or fictitious names) race at
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`CDI racetracks and elsewhere for their personal financial profit. Horses bred at Upson Downs (in
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`addition to other horses in which other officers, directors, and/or agents of CDI have a beneficial
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`interest) compete with the progeny of Baffert-trained horses at yearling sales nationally.
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`OPERATIVE FACTS
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`21.
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`Plaintiff hereby incorporates by reference paragraphs 1 through 20 above as though
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`fully set forth herein.
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`Horse Racing in Kentucky
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`22.
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`Horse racing is a century’s-old tradition with a proud history in Kentucky.
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`Kentucky racetracks host race meetings throughout the year. These race meetings are open to
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`public viewing and, like any sport, are primarily for public amusement. In Kentucky, the Racing
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`Commission permits the public (within certain parameters) to wager on the outcome of races. The
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`Racing Commission likewise permits private racing associations (i.e., the licensed entities that
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`host race meetings) to facilitate and profit from pari-mutuel wagering activities on race days.
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`23.
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`In the sport of horse racing, there are several types of races. One type is known as
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`a stakes race, in which trainers and owners run their horses for a purse of prize money composed,
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`in part, of entry fees paid by the owners and trainers. Other types are known as “overnight racing,”
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`such as a claiming race, in which a horse’s owner must declare in advance of the race a price at
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`which the horse will be offered for sale. Race meetings offer a venue for owners and trainers to
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`compete for purse money, as well as provide a marketplace to sell horses for profit. Both types of
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`races are structured to make horse racing, ownership, and training more competitive.
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`24.
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`Horse races are “graded” by the American Graded Stakes Committee of the
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`Thoroughbred Owners and Breeders Association based on a number of criteria that reflect the
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`importance of the race and the quality of the horses involved. Races are often delineated as
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`Grade 1, Grade 2, and Grade 3 races, with Grade 1 being the most prestigious. Grading races is to
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`provides a reference point for a particular horse’s value based on its success in a given race. A
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`horse’s record in graded races likewise determines the value of the horse’s progeny in the breeding
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`market for Thoroughbred racehorses. In the words of the Thoroughbred Owners and Breeders’
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`Association, “Horses winning these graded races may reliably be considered as superior racing
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`stock, and the breeding stock producing them as superior breeding stock.”2 The Kentucky Derby
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`has historically been a prototypical Grade 1 stakes race.
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`25.
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`The grading procedure is subject to strict criteria that make certain types of races
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`ineligible for grading. One such ineligible race is a “restricted race.” As the American Graded
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`Stakes Committee has explained,
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`Races will be ineligible for grading if conditions for competing in
`them include restrictive provisions relative to which horses may
`enter, other than by sex or age. A race is regarded as a restricted race
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`2 https://toba.org/graded-stakes/
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`if any of its conditions for entry would tend to exclude better horses
`while allowing participation by lesser horses.3
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`Changing which horses are eligible for a given race is a ground to reconsider and revoke that race’s
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`graded status.
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`CDI and Churchill Downs Racetrack
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`26.
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`CDI runs overnight entries and stakes races at Churchill Downs, Turfway Park, and
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`Oak Grove (hereinafter, “CDI racetracks”) on assigned days throughout the year.
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`27.
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`Baffert regularly entered horses in stakes and claiming races on CDI racetracks —
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`particularly, the Churchill Downs racetrack.
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`28.
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`Rankin and his family members race horses in stakes and claiming races on CDI
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`racetracks throughout Kentucky and elsewhere, including Churchill Downs.
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`29.
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`In the 2021 calendar year, the Racing Commission granted CDI the exclusive right
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`to host race meetings for 154 days, which is more than half the total racing days allotted to all
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`licensed racing associations in Kentucky.
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`30.
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`Although CDI operates a nominally private business at Churchill Downs racetrack,
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`CDI does not own the track. In 2002, CDI transferred the title to Churchill Downs to the City of
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`Louisville, Kentucky, which currently leases the property to CDI as a mere tenant on the grounds.
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`The lease term is for thirty years and expires on December 31, 2032.
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`31.
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`The lease was part of a tax increment financing agreement between CDI, the
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`Louisville/Jefferson County Metro Government, and the Louisville Development Authority (d/b/a
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`Metropolitan Development Authority), for the redevelopment and expansion of the Churchill
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`Downs Racetrack. The lease explains that the City advanced the funds to CDI for the express
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`purpose of making horseracing and pari-mutuel wagering available to the public.
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`3 Id.
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`32.
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`As part of the lease, the City designated the Churchill Downs racetrack as a
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`“‘recreation park’ within the meaning of Chapter 103 of the Kentucky Revised Statutes.” See
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`K.R.S. § 103.200(1)(e).
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`33.
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`On June 11, 2002, the City of Louisville passed Ordinance No. 73 (Series 2002),
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`which declared Churchill Downs “a unique asset of the City of Louisville, being both a world-
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`famous cultural icon and a thriving business which contributes significantly to the economy of the
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`City through employment, tourism, and tax dollars.” The ordinance authorized the City to assume
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`title to the Churchill Downs racetrack and create the “Churchill Downs Development Area.”
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`34.
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`Under the terms of the lease and Churchill Downs’s designation as a development
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`area, the racetrack is exempt from taxation by the City “and other political subdivisions in
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`Kentucky to the same extent as other public property used for public purposes.”
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`35.
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`CDI also operates online wagering and casinos, several of which are connected to
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`CDI racetracks. CDI owns, operates, and profits from the wagering platform, TWINSPIRES, that
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`facilitates pari-mutuel wagering on races run on CDI properties, including the Kentucky Derby.
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`Like race meetings, casinos situated upon CDI racetrack facilities require a license and are subject
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`to extensive regulation and oversight. Typically, a state regulatory environment is established by
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`statute and administered by a regulatory agency with broad discretion to regulate the affairs of
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`owners, managers, and persons with financial interests in casino operations.
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`36.
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`The ownership, operation, and management of CDI’s racing, online wagering, and
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`gaming segments, as well as its other operations, are subject to regulation under the laws and
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`regulations of each jurisdiction in which it operates. The ownership, operation, and management
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`of CDI businesses and properties are also subject to legislative actions at the federal and state level.
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`Racing Commission Oversight of Horse Race Meetings
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`37.
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`Throughout the United States, individual states control the operations of racetracks
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`located within their respective jurisdictions with the intent of, among other things, protecting the
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`public from unfair and illegal gambling practices, generating tax revenue, licensing racetracks and
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`operators, and preventing organized crime in horse racing. State regulation of horse races extends
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`to virtually every aspect of racing and usually extends to details such as the presence and placement
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`of specific race officials, including timers, placing judges, starters, and patrol judges.
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`38.
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`Horse racing tracks and horse race meetings in Kentucky are controlled and
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`supervised by the Racing Commission, which is responsible for regulating the state equine industry
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`and overseeing the annual licensing and operations of horse race meetings. K.R.S. § 230.215.
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`39.
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`The Racing Commission, in its sole discretion, authorizes a limited number of
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`entities to race horses under restricted circumstances, under the personal supervision of Racing
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`Commission agents, and under the Racing Commission’s immediate control. All licensed horse
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`racing must comply with the statutes and regulations governing horse racing. K.R.S. §§ 230.215
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`& 230.290(2).
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`40.
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`Private horse racing in Kentucky is outlawed as a public nuisance. K.R.S.
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`§§ 230.215 & 230.290(2). Kentucky’s prohibition against unlicensed, private race meetings began
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`in 1906, when the Kentucky General Assembly established the Racing Commission (called the
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`“State Racing Commission” at the time). The move came in response to racing’s “moral laxity,”
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`including the pervasiveness of fraud, bribery, and “other pernicious practices.” See State Racing
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`Comm’n v. Latonia Agric. Ass’n, 136 Ky. 173, 123 S.W. 681, 684 (1909) (discussing legislative
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`history). The ultimate concern with private horse racing was that its unhindered indulgence “would
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`grow to be unlimited in its possibilities for mischief.” Id. The General Assembly was faced with a
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`choice to prohibit racing altogether or to prohibit all races except those conducted by persons
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`selected by the Racing Commission, during dates and times selected by the Racing Commission,
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`and under conditions established by the Racing Commission. Id. at 685-86. The General Assembly
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`elected the latter option and outlawed purely private racing as a public nuisance. Id.
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`41.
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`That general framework continues today; however, the Racing Commission’s
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`involvement in the actual conduct of racing has grown to be much more intimate: Kentucky law
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`vests the Racing Commission with “forceful control of horse racing.” K.R.S. § 230.215(2).
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`42.
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`Apart from marketing, facility maintenance, and financing, there is virtually no
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`aspect of CDI’s involvement with horse racing that the Racing Commission does not ultimately
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`control.
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`43.
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`Today, as in 1906, the Racing Commission assigns racing days. 810 KAR 3:010
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`Section 5. Racing associations like CDI do not have the power to choose their own racing days
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`and, therefore, do not have the power to select which days they conduct their nominally private
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`business activities. When assigning racing days, the Racing Commission considers a number of
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`factors, including “[w]hether the assignment of racing dates will maximize revenues to the state.”
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`810 KAR 3:010 Section 5(7).
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`44.
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`The Racing Commission sets default and minimum purse values, must approve all
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`proposed distributions of purses, can order purses to be redistributed, limits the number of races
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`that can be held on association grounds on a given day, and requires certain types of races to be
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`run each week. 810 KAR 2:070 Sections 31, 32, & 33; 811 KAR 1:040 Sections 1 & 7.
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`45.
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`The Racing Commission requires CDI to maintain Racing Commission office
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`spaces, Racing Commission parking spaces, preferred parking for Racing Commission vehicles,
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`and a clearly marked “KHRC” season box for Racing Commission members at all CDI racetracks.
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`810 KAR 2:070 Section 10.
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`46.
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`The Racing Commission requires CDI to maintain an office space for a licensing
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`administrator employed by the Racing Commission to accept applications for licenses on behalf
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`of the Racing Commission during CDI-hosted race meetings. 810 KAR 2:010 Section 2.
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`47.
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`The Racing Commission requires CDI to maintain a “test barn” at all CDI
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`racetracks to facilitate post-race collections of biological samples for testing. The test barn is a
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`fenced enclosure under the supervision and control of the Racing Commission’s Chief Racing
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`Veterinarian. CDI personnel have no right to access the test barn except with the Chief Racing
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`Veterinarian’s permission or in the case of an emergency (such as a fire). 810 KAR 8:010
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`Section 11.
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`48.
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`CDI is forbidden from materially altering the racetrack or any part of the grounds
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`without the Racing Commission’s prior written approval. 810 KAR 3:010 Section 9.
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`49.
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`The Racing Commission requires CDI to maintain security services on association
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`grounds. 810 KAR 2:070 Section 20. CDI security must report any disturbances or disorderly
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`conduct to the stewards and the Racing Commission Director of Enforcement, all of whom are
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`Racing Commission agents. 810 KAR 2:070 Section 22(3)(a). The Racing Commission Director
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`of Enforcement is a Racing Commission employee who participates and cooperates with CDI’s
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`track security on “investigations and conduct pertaining to racing.” 810 KAR 2:010 Section 5. The
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`Racing Commission Director of Enforcement acts under the direction of the stewards. 810 KAR
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`2:010 Section 5(3). CDI security must exclude from association grounds any person designated by
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`the stewards to be denied access. 810 KAR 2:070 Section 20(3).
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`50.
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`The Racing Commission forbids CDI to allow any trainer to race who is not
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`licensed to race or whose license to race has been suspended by the appropriate regulatory body
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`in any jurisdiction. CDI must honor any license suspensions or revocations levied by the Racing
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`Commission. 810 KAR 8:030 Section 2(16).
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`51.
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`As part of its forceful control over horse racing, the Racing Commission is “vested
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`with jurisdiction and supervision over all horse race meetings in [Kentucky] and over all
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`associations and all persons on association grounds.” K.R.S. § 230.260 (emphasis added).
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`52.
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`The Racing Commission oversees racing first and foremost through three stewards
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`(sometimes referred to as judges). The stewards exercise immediate supervision and control of
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`racing at each licensed race meeting on behalf of and responsible to only the Racing Commission.
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`810 KAR 2:040 Section 4.
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`53.
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`The Racing Commission employs and compensates two of the three stewards for
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`each race meeting. 810 KAR 2:040 Section 3(1). One is the Chief State Steward, an office currently
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`held by Barbara Borden. The second is the State Steward, an office currently held by Brooks
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`“Butch” Becraft. The Racing Commission employs no other stewards.
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`54.
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`The association hosting the race meeting (i.e., CDI) selects the third steward subject
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`to the Racing Commission’s approval. CDI is responsible for that steward’s compensation, but the
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`association steward is ultimately answerable to the Racing Commission. 810 KAR 2:040 Section
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`3(2); 810 KAR 2:010 Section 1.
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`55.
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`Horse racing in Kentucky is forbidden without the stewards’ physical presence on
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`association grounds on race day. All three stewards must be physically present at any CDI
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`racetrack hosting a race before the first race, during each race, and until the final race’s conclusion.
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`810 KAR 2:040 Section 5(2). At least one steward must be present at the racetrack from scratch
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`time. Further, at least one steward must be present at CDI racetracks when entries are first taken
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`and until entries are closed. Id.
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`56.
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`Because the two stewards employed by the Racing Commission must be physically
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`present at each race, only one race in Kentucky can lawfully occur at any one time.
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`57.
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`On race days, the stewards police the conduct of horse racing by calling fouls and
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`determining rule violations. 810 KAR 4:040 Sections 12 & 13. The stewards can order the
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`withdrawal of any horse at any time, inspect the horses and their riders prior to the race, can require
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`jockeys to dismount, and can require horses to unload at the start gate. 810 KAR 4:040 Sections
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`4, 6, & 8. The stewards also issue the official order of finish for each race. 810 KAR 4:040
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`Section 17. But the stewards’ powers and duties on race day go beyond that of mere referees.
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`58.
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`The stewards possess an absolute power to veto any decision CDI officials make
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`“pertaining to racing.” 810 KAR 2:040 Section 4(5). The stewards can also eject or exclude any
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`person from CDI grounds, which necessarily includes the power to exclude CDI officers and
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`directors. K.R.S. § 230.260(1).
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`59.
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`A number of assistant racing “officials” assist the stewards in discharging their
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`supervisory and managerial roles. Some assistant racing officials include the racing secretary, an
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`assistant racing secretary, a clerk of scales, paddock judges, starters, a placing judge, timers,
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`identifiers, veterinarians, assistant starters, jockey room custodians, jockey room employees,
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`valets, and outriders. Some of these officials are compensated by the Racing Commission, and
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`others are compensated by the association. See 810 KAR 2:010 & 2:020.
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`60.
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`Regardless who compensates them, each racing official must be approved by the
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`stewards before working in any capacity at a race meeting. 810 KAR 2:020 Section 1.
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`61.
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`Regardless who compensates them, every racing official on CDI grounds is under
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`the stewards’ supervision and control in the performance of their administrative duties. 810 KAR
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`2:020 Section 1(1) & (2).
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`62.
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`Regardless who compensates them, racing officials are forbidden from owning
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`(directly or indirectly) a beneficial interest in a horse of the breed in which the person is engaged
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`as a racing official or in an association under his or her supervision; causing to be bought or sold
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`(for themselves or someone else) a horse under his or her supervision; buying or selling the right
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`to, or a contract with, a jockey under his or her supervision; wagering on a race under his or her
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`supervision; writing or soliciting horse insurance; or having any monetary interest in a business
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`which seeks the patronage of horsemen or racing associations. 810 KAR 2:020 Section 1(3).
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`63.
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`Every racing official’s and assistant racing official’s duties are established by law
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`(not by CDI) and include as follows:
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`a.
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`The racing secretary is responsible for (among other responsibilities)
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`programming races during race meetings, receiving entries, compiling and publishing the
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`condition book, maintaining a record of monies received incident to the race meeting,
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`assigning stabling, and publishing the official daily program. 810 KAR 2:020 Section 2.
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`The racing secretary assigns stall applicants stabling only after consultation with the
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`stewards. 810 KAR 2:020 Section 2(9). The stewards may “advise the association of
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`undesirable persons” applying for stall applications. 810 KAR 2:040 Section 5(7). The
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`stewards retain, however, the ultimate say in whether a particular applicant should be
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`denied stall space. 810 KAR 2:04