Welcome to What’s Racing Through Washington newsletter, your one stop shop for all things Thoroughbred racing in Washington, D.C. With a new Congress on the horizon, it is increasingly important to understand the latest policy developments and potential impacts to our industry. We hope you will enjoy the newsletter and we look forward to engaging with you more on issues impacting our industry.
Midterm Election Recap
Republicans are set to take over the House of Representatives — but it was not the blowout victory that some predicted. The GOP saw gains in Iowa, New Jersey, New York, and Virginia. And in the Senate, Democrats remain in control. Democrats retained Arizona and Nevada in highly competitive races and won a key race in Pennsylvania where Lt. Gov. John Fetterman defeated Republican candidate Mehmet Oz, flipping the seat currently held by retiring GOP Senator Pat Toomey into Democratic hands. Republicans held their seats in Florida, Ohio, North Carolina, and Wisconsin. Still left undecided in the Senate is the race in Georgia. Senator Warnock and Hershel Walker both failed to get over 50 percent of the vote which will make their race come down to a runoff election, set to take place on December 6.
Under a Democratic majority in the Senate, they will spend a hefty amount of time focused on confirming the President’s nominees and to advance any legislation going forward, bipartisanship will be necessary. Majority Leader Chuck Schumer will once again have the luxury of controlling what bills and nominees get time on the floor for a vote.
With the election past us…sort of… congressional leaders have a month until another government shutdown deadline. Outgoing Democrats will push to pass a yearlong omnibus funding package before December 16. An omnibus would provide an opportunity to clear out tax extenders, such as 3-year and bonus deprecation. Despite a bipartisan push by Senate appropriators to secure a lame-duck funding deal, conservatives are pressuring GOP leadership to reject any deal while Democrats still hold power. That could mean punting an omnibus into next year and keeping spending on autopilot at the previous year’s levels even longer.
ICYMI: Tom Rooney’s Recap of the Year “Entering the Final Turn”
NTRA President and CEO penned an opinion piece, reflecting on his first year as leader of the organization.
Excerpt: While I’ve been a Thoroughbred enthusiast my entire life, this is the first year where I’ve lived, ate, and breathed Thoroughbred breeding and racing like the so many other stakeholders, customers, and fans. The year has been filled with great racing, record sales, incredible enthusiasm, and strong handle and on-track attendance. These and other metrics make me more excited than ever to see what the future holds for the Thoroughbred industry. This year was a strong one for racing. Coming out of the COVID-19 pandemic where many of the biggest races were run without fans or in limited numbers, this year’s Kentucky Derby welcomed nearly 150,000 people to Churchill Downs on Derby Day alone and delivered an almost unfathomable fairytale ending. Attendance and handle figures at racing’s premier meets were as strong as they’ve ever been. Prize money is also up significantly, more than 10% higher than where we were at this point last year. Like in all aspects of life after COVID, people were ready to get back to the racetrack, or at least they were ready to get back to enjoying their favorite horse betting app.
California Votes No on Sports Betting
California voters overwhelmingly rejected sports betting on Tuesday, November 8, 2022, voting no on initiatives backed by Native American tribes and the gaming industry, keeping the largest market in America closed to legal sports betting. Proposition 26, backed by dozens of California’s Native American tribal governments, would have legalized sports betting at tribal casinos and the state’s four major horse racing tracks. It was opposed by operators of card rooms, who worried about a provision allowing individuals to bring civil lawsuits against the card clubs over disputes in state gaming law. Proposition 27 would have legalized online and mobile sports betting. It was put on the ballot by sports betting companies such as DraftKings and FanDuel, which have expanded their business across the state since the U.S. Supreme Court overturned a federal ban on sports wagering in 2018. The proposition was opposed by Native American tribes who feared the measure would cut them out of a booming gambling market. The campaign was the most expensive ballot measure fight in U.S. history, with the various factions supporting and opposing Proposition 26 and Proposition 27 spending roughly $450 million.
DHS Announces Countries Eligible for H-2A and H-2B Visa Programs
The Department of Homeland Security (DHS), in consultation with the Department of State (DOS), announced recently the lists of countries whose nationals are eligible to participate in the H-2A and H-2B visa programs in the next year. The notice listing the eligible countries has been published in the Federal Register.
The H-2A and H-2B visa programs allow U.S. employers to bring foreign nationals to the United States to fill temporary agricultural and nonagricultural jobs, respectively. For the horse racing industry, trainers rely heavily on the H-2B program to fill various backside positions.