Churchill Downs Calls for FTC Review of HISA Amid Trainer Suspension and Data Security Concerns

Churchill Downs Incorporated has formally requested the Federal Trade Commission (FTC) to initiate an independent review of the Horseracing Integrity and Safety Authority (HISA). This request comes in the wake of heightened scrutiny regarding the authority's practices, particularly following the provisional suspension of trainer Angel Quiroz due to alleged infractions related to medication and horse welfare.

In an August 28 letter addressed to FTC Chairman Andrew Ferguson and Commissioner Mark Meador, Churchill Downs expressed concerns about HISA’s governance, transparency, technology controls, and accountability. The urgency of this inquiry has been amplified by recent controversies, including the so-called “Fair Hill Five” betting scandal, and issues surrounding access to sensitive veterinary data.

On August 31, HISA took action against Quiroz, alleging violations of various rules after three of his horses tested positive for Albuterol, a substance banned unless administered under specific conditions. Quiroz's provisional suspension came just hours before the regulatory authority's formal notice, which claimed there was substantial evidence to suggest imminent risk to horses or riders due to his actions.

Details on Quiroz's Suspension

The investigations revealed that Albuterol was detected in the blood sample of Bonita Rough, one of Quiroz's horses, following a workout on July 10 at the Fair Hill Training Center in Maryland. HISA’s documentation indicated no prescription or administration records existed during the time Quiroz was responsible for the horse. When questioned, Quiroz admitted to nebulizing Bonita Rough with Albuterol obtained from the veterinarian, yet did so without adhering to proper veterinarian-client-patient protocols.

Following this discovery, a series of adverse analytical findings emerged, involving additional horses under Quiroz's care—Scootaloo and Tepeyac. The first infraction was reported to Quiroz on July 28, yet just days later, both additional horses tested positive for the same banned substance during out-of-competition testing.

These revelations prompted HISA to deem the violations serious, asserting that they posed an immediate threat to the welfare of the horses and the safety of jockeys. Quiroz is also facing allegations connected to Bonita Rough’s training during her provisional suspension, which suggests a failure to comply with established regulations.

The Broader Implications for HISA

As Churchill Downs scrutinizes the incident surrounding Quiroz, the company is raising broader questions about HISA's oversight practices and technological integrity. The issues regarding confidentiality breaches about veterinary health records have underscored vulnerabilities in HISA's systems, particularly highlighted by the “Fair Hill Five” case involving data analyst Marshall Gramm, who allegedly accessed unauthorized information related to horse health.

HISA had initially announced charges against Gramm, involving claims of fraud and unauthorized access to confidential horse information. The authority stated that an investigation, inclusive of forensic cybersecurity analysis, revealed that Gramm employed automated methods to extract confidential data over several weeks, ostensibly mimicking authorized access to avoid detection.

Gramm has sought to defend his actions, asserting that he accessed information through his official HISA account without any malicious intent and further criticized the focus on his actions as a distraction from systemic weaknesses within HISA’s infrastructure.

Questions About HISA's Controls

In its correspondence with the FTC, Churchill Downs emphasizes that its request is not intended to sidestep the accountability required for any wrongdoing by individuals. However, the company pointedly questions the underlying systemic issues that allowed for such data breaches to occur.

Key inquiries include how an authorized user was able to access veterinary records without any legitimate connection to those horses and whether similar security vulnerabilities are present elsewhere in HISA's operations. These questions extend to whether other user information might have been compromised, how long these vulnerabilities existed, and the absence of earlier detection mechanisms.

HISA has stated that it is taking measures to bolster its technology systems to prevent unauthorized access, indicating that it will be allocating further resources toward the protection of sensitive information. HISA’s CEO, Lisa Lazarus, stressed the significance of maintaining integrity in racing and vowed to take necessary actions against those who violate the rules.

The Call for Independent Review

Churchill Downs insists that the FTC's review should encompass more than just the incident involving Gramm. The letter outlines a request for a thorough investigation into various aspects of HISA’s governance. This includes an examination of the Fair Hill Five scenario, transparency on the handling of undisclosed banned substances, and evaluations of the technical relationships HISA maintains with its technology providers.

The company also highlighted concerns over HISA’s processes for procurement and vendor supervision regarding their adequacy for an organization wielding federal regulatory powers. Churchill Downs stated, “HISA’s legitimacy hinges on public confidence in its transparency, accountability, and technological capability.”

To restore this confidence, Churchill Downs calls for a comprehensive understanding of the circumstances that led to recent controversies. This includes seeking clarity on accountability for past failures and evaluating whether HISA’s existing governance and technological frameworks are sound enough to uphold its responsibilities.

Featured image: HISA via press release

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