The New Mexico Horsemen’s Association (NMHA) is not happy with the New Mexico Racing Commission’s (NMRC) new rule regarding the management of casino subsidy accounts, used to supplement racetrack purses; state racetracks are entitled to 20 percent of net casino revenue.
The NMHA previously held the accounts, but the new rule puts individual racetracks in charge. As a result, the Horsemen’s group may no longer contribute funds from the accounts to itself, and funding for state racetrack purses will be more consistent.
To keep from losing control of the accounts, the NMHA filed a federal lawsuit in June 2021, plus two state lawsuits and an ethics complaint against the NMRC. Among other allegations, the NMHA said the NMRC violated members’ civil rights by barring them from communicating with commissioners and attending commission meetings.
The Horsemen’s group also alleges the commission is trying to destroy the association. Its attorneys said the new rules that prohibit members from contributing purse money to the association amounts to “deliberately trying to do away with the group.”
Last June, Commission Chairman Sam Bregman said, “The New Mexico Racing Commission has stopped the New Mexico Horsemen’s Association’s gravy train of redirecting the purses and the New Mexico Horsemen’s Association has now chosen to spend the horsemen’s money on legal fees. New Mexico horse racing will continue to prosper with or without the New Mexico Horsemen’s Association.”
The NMRC also asked New Mexico Attorney General Hector H. Balderas for an opinion on the situation. Balderas recently determined the NMHA has no legal authority to ignore and not comply with the new rule. Balderas’ ruling may or may not impact the group.
It could comply with the rules while court battles play out, or it could cite ongoing litigation as a reason for continued non-compliance; in that case, the attorney general could cite non-compliance as a reason to ask a judge to freeze the NHMA’s assets or take control of them.
