NSW jockey Adam Hyeronimus guilty for illegal wagers

New South Wales (NSW) jockey Adam Hyeronimus has been found guilty of 30 out of 31 illegal betting charges, dating back to illegal bets that took place over three years beginning in 2016. Stablehand Blake Paine was found guilty alongside the Hyeronimus by Racing New South Wales stewards. The group one-winning jockey faces a potentially long suspension from racing for his part in the scandal.

Racing NSW stewards successfully proved that Hyeronimus had an interest in a $500 bet on ride Lucky Metor at Canterbury in 2016. He was also found to have placed a $500 bet on Limbo Soul, another ride that won on debut at Rosehill in February 2017.

The guilty verdict carries serious implications, with both charges carrying a minimum two-year ban from racing.

The NSW hoop was found guilty of a further 29 bets from 2016 to 2019, all on thoroughbred horse racing. Stablehand Blake Paine was found to have played a part in 31 cases and was convicted of 31 counts of betting for a jockey. Both men will also face additional charges of supplying false evidence to the enquiry.

The enquiry showed that Hyeronimus transferred funds to Blake Paine, who then deposited the funds into a Sportsbet account under his name on at least 22 occasions. Stewards also found that winning bets from the same account were used to place additional bets with nearly $21,000 USD changing hands over three years.

Stewards provided details of the conversations between the pair, that also included exchanges with cricketers and NRL players. The SMS conversations between the pair included details on potential bets, with one discussion over a potential bet in the Golden Slipper. Hyeronimus and Paine then switched the discussion to Snapchat in an attempt to ensure the conversation couldn’t be traced. Snapchat picture messages are deleted from servers regularly.

In their policies, Racing NSW rules forbid jockeys from having any interest in facilitating “betting, or have any interest in a bet on any race.”

Hyeronimus pleaded not guilty to all charges during the hearing, but will be free to ride until his sentencing hearing in August. The NSW jockey has been in stunning form this year riding 49 winners, including a Group One win in the Vinery Stud Stakes at Rosehill in March.

Tory MPs took £2,400 of Cheltenham Festival freebies days before coronavirus lockdown

Two Tory MPs accepted £2,400 worth of tickets to the Cheltenham Festival just days before the UK went into coronavirus lockdown.

It's feared the gathering of more than 250,000 people helped spread the virus widely across the country.

Shipley MP Philip Davies and former minister Caroline Nokes accepted eight tickets between them to the horse racing event from GVC Holdings, the sports betting giant which owns Ladbrokes and Coral.

Mr Davies accepted six tickets, worth £300 each, but refused to say whether he had used them.

He said: "I have absolutely nothing to say to the Daily Mirror."

Ms Nokes accepted two tickets, also worth £300 each.

She was photographed at the event, wearing a grey suit with pink checks and a shocking pink hat and matching scarf.

Both MPs registered the gifts with Commons authorities - stating they would have access to a VIP hospitality box during their visit.

Ms Nokes said: “I accepted the tickets and declared them in accordance with the rules, which clearly you can establish from the register of members’ interests.

“As you know it was prior to the lockdown being declared and there were no restrictions on movement.”

Ms Nokes added a number of other MPs also attended the races on the same day, including Shadow Security Minister Conor McGinn.

Mr McGinn confirmed he attended the event in his capacity as chair of the All Party Parliamentary Group on Racing.

He said: "I get an annual metal badge from the Racecourse Association which allows me admittance to race meetings across Britain over the course of the year, including Cheltenham, which is owned by the Jockey Club."

Mr McGinn registers the badge as a benefit with Commons authorities at the start of each year.

He added: "I’m heavily involved in horse racing, not least because Haydock Park Is in my constituency. It is currently being used as a COVID-19 testing site for NHS staff in the North West."

Professor Sir David King said yesterday (WED) that the government had waited too late to ban large gatherings like Cheltenham, and that delay had cost lives.

He told LBC Radio: “Imagine, 16th March (sic), having a horse race go on with a massive crowd at Cheltenham.

“We didn’t manage this until too late and every day’s delay has resulted in further deaths in the United Kingdom.”

The Cheltenham Festival ran from Tuesday, March 10 to Friday, March 13.

At the time, Boris Johnson was still holding out on banning large gatherings, despite Scotland issuing such an order on March 12.

The Government eventually banned gatherings of more than 500 people the following weekend.

The Organisers of the horse racing festival defended their decision to go ahead when concerns were raised that attendees had reported symptoms after the event.

Comedian Lee Mack tested positive for Covid-19 after spending two days at the festival - with a friend reportedly saying he believed he caught it from a driver on his way to the event.

And the Times reported Andrew Parker Bowles, the former husband of the Duchess of Cornwall said he believes he “probably got it on the Wednesday or Friday I attended Cheltenham”.

A spokesperson said: “The Festival concluded three weeks ago and went ahead under the clear and ongoing guidance from the government and its science experts throughout, like other popular sports events at Twickenham [and] Murrayfield, 10 Premier League matches and the Uefa Champions League [between Liverpool and Atlético Madrid] at Anfield that same week.

“We promoted the latest public health advice and introduced a range of additional hygiene measures at the event, including hundreds of hand sanitiser dispensers and extra wash basins.”

Betting firms’ deals with trainers and jockeys treble

The number of trainers and jockeys signing up to links with betting firms has trebled in three years. A British Horseracing Authority register lists the names of 19 trainers and 24 jockeys as having commercial arrangements with bookmakers. The authority said on Thursday that in 2016 the register had six trainers and eight jockeys.

Some of the links on the list are with long-established bookies, such as Frankie Dettori’s arrangement with Ladbrokes, Paul Nicholls’s with Betfair or Colin Tizzard’s stable with Coral, but most involve newer firms striving to build market share in the lucrative British and Irish betting markets. Flat rider Josephine Gordon writes a blog for Unibet, for instance, while the Gloucestershire trainer Fergal O’Brien is on the register alongside 32Red, the online casino that brokered a deal to bring Wayne Rooney to Derby County.

A well-known sports professional writing for a betting site, or helping to promote it, raises its profile and attracts punters. Riding racehorses, and training them, can be a very precarious career – so maximising earnings when possible is an understandable pursuit.

However, links to bookmakers, although perfectly legal, could adversely affect public perception of racing. Bookie sponsorship is forever widening its scope – William Hill sponsor ITV Racing, while several of that channel’s presenters write blogs for, or are ambassadors for, various other firms. An ITV Racing spokesperson said: “Promotional work that any of our pundits undertake for betting companies is separate to their work for us and cannot be promoted through ITV.”

Photographs of a winning jockey after a Grand National, Derby or other big race – with a highly visible brand name or logo on silks and breeches – is invaluable publicity for bookies. And while not exactly resembling Lewis Hamilton on an F1 podium, more trainers are starting to sport promotional logos.

Before entering an arrangement with a betting company, all trainers and jockeys must notify the BHA of the details, under rules governing “payment for non-riding or non-training services”.

There is no suggestion of bookmakers acting improperly. The kind of control mechanism they have introduced includes one from Betfair that obliges staff who “ghostwrite” blogs for racing people to sign agreements not to act on information they receive until it is in the public domain.

Asked for a response to the increase in the register, the BHA stated: “Guidelines are provided to trainers and riders as and when they enter into an arrangement with a betting organisation.

“We monitor the arrangements on an ongoing basis, as well as public perception. Services to betting organisations include blog posts, social media work, company functions, photo-shoots, video content, yard visits and a commitment to wear branded clothing.”

The authority’s guidelines display concern to prevent any suspicion of insider dealing. Trainers are advised: “For ‘high-profile’ horses, those running in graded races, feature handicaps or any races where there is a known ante-post betting market, the appropriateness of market-sensitive information should be strongly considered before it is first made available to the public through media hosted by a betting operator. Such information, could include, but is not limited to: jockey bookings, changes to publicly stated running plans, equine injuries and fatalities.

“If in doubt, it is highly likely the most appropriate means of communicating the information to the public is either through the media (PA, Racing Post etc.) or through the trainer’s own channels (e.g. website or social media).”

Online betting sites crashed in lead-up to Melbourne Cup

Online sports-betting sites crashed nationwide in the lead-up to the Melbourne Cup, the busiest betting event of the year.

Wagering services run by Sportsbet, Ladbrokes and online betting exchange Betfair all went down, with punters temporarily unable to place bets on their smartphone apps or computers.

Twenty minutes before the main race on Tuesday, Tabcorp also reported problems with its third-party payment providers. It is understood the payment issues were fully restored just before the Cup.

Online bookmaker BetEasy, the third-largest provider behind Sportsbet and Tabcorp, was signing up as many as 500 new customers a minute in the lead-up to the 3pm race as a result of its competitors’ technical problems.

Ladbrokes told punters, via its social media channels, that it was doing all it could to bring services back online as soon as possible, but it was unable guarantee they would be available in time for the main race at 3pm. Ladbrokes’ website and app also went down in the run-up to last year’s Melbourne Cup Day, setting off a storm of social media complaints from punters.

Shortly after 2.15pm on Tuesday, Sportsbet’s mobile betting platform was back up and running, while technical teams were continuing to work on the desktop platform. In a statement, Sportsbet said it had experienced technical issues due to “unprecedented demand and we fixed these issues as a priority”. “Hundreds of thousands of our customers enjoyed a punt on the big race,” a spokesman said. “We sincerely apologise to those who experienced issues or inconvenience.”

Betfair’s site crashed temporarily just before 2pm but the company said it was back working again within about five minutes.

For the nation’s wagering industry, Melbourne Cup Day is easily the biggest betting day on the calendar.

Australian sports-betting companies ramp up staffing and technology to cater for the extraordinary volume of bets placed on the day. Australia’s biggest gambling company, Tabcorp, which runs retail and online wagering services, said it expected to process 15 million bets on Tuesday, with a peak of 4300 bets in the busiest single second.

Wagering data from last year's Melbourne Cup Day showed that, in the immediate lead-up to the main race, a peak of 850 bets a second were being placed through the largest online bookmaker, Sportsbet. The busiest single minute saw 26,000 bets placed.

Punters took to social media to vent their frustration at the meltdown on Tuesday afternoon, with some claiming their deposits were taken in the moments before the betting apps crashed.

“So I placed a bet online 10 mins ago and my deposit is gone but bet is stuck in pending telling me to 'check back in a few minutes,” one punter tweeted. “Did it go through or is it lost?”

Ladbrokes apologised for the crash, and said it understood that the timing “couldn't be worse”

One furious punter demanded his bets be refunded, and for his account with Sportsbet to be closed.

According to figures released on Tuesday afternoon, the biggest bet placed via Tabcorp on the Cup was $100,000 on Yucatan at $6/$2.25. The largest placed on the winner, Cross Counter, was $50,000 at $10.

Ladbrokes attacks rivals for 'losing their minds' at Cheltenham

The boss of Ladbrokes has launched an extraordinary attack on his bookmaking rivals by slamming the “race-to-the bottom offers” they offered during what was the worst Cheltenham Festival in “living memory”.

Jim Mullen, chief executive, fired the broadside as Ladbrokes unveiled first-quarter results that showed the company was able to weather the Cheltenham storm in part because favourable football results offset its horseracing losses. But he was critical of other bookies, whom he claimed had “abandoned bookmaking principles” in pursuit of punters.

“There were some real race-to-the bottom offers which was a race we were not going to get involved with,” he said. “The difference in offers between Cheltenham and Aintree highlighted the fact that some of the sector lost their mind during that festival.”

The bookmaking industry, which fared better at this month’s Aintree Grand National meeting, is estimated to have lost more than £60m during Cheltenham in March after a host of favourites galloped home. Less than a week after the festival finished, William Hill, Ladbrokes’ bigger rival, rattled investors by sounding a profit warning that it partly blamed on the racing results.

Mr Mullen claimed that as “a well-managed, well-governed business” Ladbrokes had expected to suffer heavy losses at Cheltenham. In what appeared to be a thinly veiled reference to William Hill he added: “We managed to absorb it, therefore after the Cheltenham Festival we didn’t have to go back to analysts and investors.”

A William Hill spokesman said: “Bigger companies will suffer a bigger impact when events like Cheltenham go against you – and as one of the bigger players in the market we did see a bigger impact.”

William Hill also blamed its profit warning on new anti-problem gambling measures that allow online punters to take short time-outs or longer exclusions from betting. Ladbrokes, however, said the impact of those measures had not taken it by surprise.

“That’s all been fully blended into our numbers, that’s why we don’t talk about it,” Mr Mullen said. “It’s well within the plan and we’ve managed the business accordingly.”

He warned that if Leicester City, which were 5,000-1 outsiders at the start of the football season, keep up their current form and win the Premier League it will cost Ladbrokes about £3m. Despite that, shares in the bookie rose 4.6pc to 121.9p after it pleased investors with its first-quarter numbers that showed the turnaround plan Mr Mullen started last year is on course.

Ladbrokes, which last year suffered its first annual pre-tax loss in a decade, said net revenue was up 10.6pc in the three months to the end of March, including a 36.5pc surge in digital revenues, an area Mr Mullen hopes to grow.

Key to Ladbrokes’ future is its ambitious £2bn tie-up with rival Coral, which is being investigated by the Competition and Markets Authority (CMA) and could be blocked because the merged company will have too many betting shops. The CMA had been due to issue its provisional findings this month but has now delayed publication until mid-May.

“I think they’re being thorough,” Mr Mullen said of the postponement. “The most important thing to me is the relationship [with the CMA], that’s still strong.”

Ladbrokes has almost 300 shops in Belgium, where the government has suggested gaming taxes might be hiked.

“I was in Belgium on Monday, meeting with the team,” the Ladbrokes chief said. “We’re fully prepared, ready for an appeal if need be, ready to offer other counter proposals.”

Punters’ forum to tackle bookies on restricting and closing accounts

The newly created body that represents racing’s punters is to tackle bookmakers over the way firms close and restrict the accounts of successful gamblers. The issue has been a hot topic in racing’s corner of the social media world for months on end and concern that it may be undermining the sport’s appeal has spread as far as the corridors of the British Horseracing Authority.

“That’s certainly far and away the thing that’s been brought up most with us,” said Simon Rowlands, a Timeform veteran who chairs the Horserace Bettors Forum (HBF) and has been gathering the views and concerns of punters since the summer. As the Forum’s second meeting drew to a close this week, he said: “We’re not imagining that people will dance to our tune but we’ve got a few recommendations. We will be contacting bookmakers and running those ideas past them.

“Punters should know in advance what sort of activity is likely to get them restricted or closed and ideally should have a right of review if action is taken against them. The individual suddenly being knocked back is an existing or potential customer of horse racing, not just of the bookmaker in question, after all.”

Rowlands and his colleagues are concerned bookmakers are putting too much faith in “rigid trading algorithms” designed to highlight “arbitrageurs”, whose business is seen as unprofitable and unattractive by the betting industry. The fear is many of what may be termed “innocent punters” are being denied a bet for no good reason.

A “more nuanced approach” is called for by Rowlands, who added: “Should anyone be prevented from betting £100 on the Grand National just because they successfully arbed a bet on football? Racing needs that turnover and that engaged customer.

“We would also like to establish the magnitude of the problem of restrictions and closures, which would require assistance from within betting. Judged by HBF’s mail bag, it is a major concern for many punters of many different kinds but that is not sure to be representative.”

Officials at the British Horseracing Authority acknowledge account closures and restrictions as a matter of concern but feel there is little chance of a positive response, should they try to tell bookmakers how to handle their business, particularly in the present climate of tension between racing and betting over funding. So it will be up to the HBF to press racing’s case.

The Forum was set up in August as the result of a determination by the BHA’s new chief executive, Nick Rust, that punters should be given a public voice. Its first two meetings have been at the BHA’s London office but they will be elsewhere from this point as the HBF moves to assert its independence, which will also involve the creation of its own website.

“There are certain things we would want to make statements on that may not necessarily represent BHA policy,” said the HBF’s Jason Brautigam, the chief executive of British Dressage in his day job. “If it appears on their website, there’s implicit endorsement, so we’ve got to try to make sure the two are seen as slightly separate.”

The Forum’s nine members, all unpaid, still seemed enthused about the project of advancing the interests of racing punters as their lengthy discussion ended on Monday, more than one voice insisting this will not be “just another talking shop” and that they hope to have real influence over time.

“It’s not going to happen in five minutes but we all knew that in the first place,” said Steven Tilley, a local councillor. “The amazing thing is, you’ve got a whole group of people who bet, all who are opinionated and all of whom actually seem to get along together and seem to be coming up with a consensus view a lot of the time, which I think is amazing. We’re a group of contrarians here and yet we’ve managed to get a consensus.”

UK jockeys allowed to wear individual betting sponsorship

The Board of the British Horseracing Authority (BHA) has approved a proposal from the Professional Jockeys Association (PJA) that the Code of Conduct regarding sponsorship of professional jockeys by bookmakers should be relaxed, on a trial basis.

Betting operators will now be permitted to sponsor individual jockeys, as opposed to the previous regulation which only permitted sponsorship agreements involving 50 or more jockeys.The Board provided approval of this at the end of 2014, and such deals will be permitted to commence as of 1 April 2015. The trial will be reviewed after nine months.

Sponsorship agreements will only be permitted with betting organisations with broad funding deals in place with British Racing, in particular those paying the full Horserace Betting Levy or equivalent through commercial or voluntary arrangements, including Additional Voluntary Contributions.

The terms of all such contracts will be subject to registration with and final approval by the BHA. The Rules preventing a jockey associating with betting organisation representatives on a racecourse remain in place and non-riding commercial agreements with betting organisations will continue to be registered separately.

Will Lambe, Director of Public Affairs and Policy for the BHA, said: “The move to permit sponsorship of individual jockeys by bookmakers will hopefully have a beneficial financial impact on riders at all levels. The previous regulations only allowed for block sponsorship of 50 or more jockeys by a bookmaker, and these terms obviously proved overly prohibitive as no such deals were signed. In approving this proposal the Board gave careful consideration to integrity concerns, particularly around perception. We have already permitted individual non-riding promotional deals with bookmakers for two years with no integrity or perception concerns having arisen, while bookmaker branding presence is of course already widespread on British racecourses.”

Nigel Payne, Chairman of the PJA: “We have been working closely with the BHA on this project for some time. We are particularly delighted as this offers new earning potential for our members and excellent sponsorship opportunities for bookmakers. We will be urging our members and their sponsors who enter new contracts to respect our ongoing arrangement with Stobarts. Co-existence with the Stobart posteria site will help protect this company’s immense contribution to the vital area of Career Ending Insurance, which addresses a significant issue of jockey welfare.”

Unibet strengthens horseracing ties

Sportsbook Unibet is putting further investment behind racing by becoming ARC’s official starting stall sponsor for 2014. The new sponsorship will see Unibet branded starting stalls at ARC’s portfolio of racecourses across the length and breadth of the country. In addition, over 90 stall handlers will also wear Unibet branded clothing throughout the year. This sponsorship will run alongside Unibet’s freshly announced official betting and gaming partnership with Royal Windsor Racecourse.

This significant sponsorship will see Unibet’s eye catching logo’s prominently displayed on front and rear of the starting stalls at Royal Windsor, Wolverhampton, Lingfield, Ffos Las, Bath, Yarmouth, Newcastle, Brighton, Chepstow and Southwell throughout the flat season.

Unibet announced last week that it was embarking on a programme of horse racing associations and marketing initiatives in the coming months, and less than a week into the flat season the Wimbledon based company has announced sponsorships at Chepstow, Royal Windsor and this new starting stall initiative.

Ed Nicholson, Head of Unibet’s UK Marketing Operations, said: “This sponsorship is an extremely simple but effective way of informing those who like to bet on horse racing that Unibet now offers a fully comprehensive horse racing offering.

“Unibet’s sole racing product aim in 2014 is to ensure that those who like to bet on horse racing are aware that Unibet have launched a new racing odds line and have a comprehensive product that matches and exceeds our competitors offering. We would like this group to consider opening an account with us, and then to enjoy placing their horse racing bets with us on a regular basis.”

ARC’s Jo Mapletoft, Group Sponsorship Manager said: “ARC is delighted to be working with Unibet to develop its racing proposition. The exposure and reach that Unibet will gain through the brand being seen on Sky Sports At The Races and from the thousands of visitors at the ARC courses will be sure to gain positive results.”

Bookmaker's darkest day: Failed coup or another gamble?

24 hours after an inspired and successful £2m gamble on four horses with links to legendary punter Barney Curley, bookmakers were on red alert when another horse with similar associations was the plunge of the day in Kempton’s 5.00 last night.

Pipers Piping, trained in his previous races by John Butler, was backed from 20-1 to 6-4 favourite with BetVictor.

Butler was responsible for one of the gambled-on quartet the previous day, Low Key, who returned from a 350-day lay-off to win at 4-7 having been backed in from 7-1.

Pipers Piping bore a similar profile, a eight-time winner who had fallen from grace and was having his first run for almost a year.

But Pipers Piping could finish no better than seventh so the gamble failed – or did it.

The race was won by 16-1 chance Prohibition, like Pipers Piping previously trained by Butler and having its first run for Mandy Rowland.

Prohibition had been favourite for its last race but due to the interest in its stablemate drifted to 16-1.

The betting patterns resembled an ‘SP job’, a tactic not in breach of any rules of racing, where one horse is backed to improve the odds and disguise interest in another.

Of Wednesday’s infamous quartet, Eye Of The Tiger (Lingfield, 1.30) and Secret Summit (Catterick, 1.40) were once trained by Curley, Low Key is trained by Butler, a former Curley assistant, while Des Donovan, responsible for saddling both Eye Of The Tiger and Indus Valley (Kempton, 4.25) is based in Curley’s old yard at Exning outside Newmarket.

The quartet was available at combined odds of 14,783-1 on Tuesday night, but post-gamble the combined SP odds became a mere 16-1.

The sensational gamble was reminiscent of the £4m coup Curley famously engineered in 2010.

A spokesman for Irish bookmaker Paddy Power said on Wednesday: “There’s no doubt this is one of the blackest days in the history of bookmaking.

“The horses have been backed in singles, doubles, trebles and four-folds and punters who have heard about the gamble have clambered aboard the bandwagon.”

Each of the horses was placed in races they could justifiably win on their best form but due to their lack of recent form they were priced up as outsiders.

ATR agrees new media rights deal with Irish racing bodies

UK and Irish horse racing broadcaster At the Races (ATR) has agreed a deal with Horse Racing Ireland (HRI) and the Association of Irish Racecourses (AIR) to gain exclusive cross-platform media rights to all Irish fixtures.

The two-year agreement, which begins in January 2014, is described as including “significantly improved terms” for multiple media rights with ATR expecting returns to racecourses to more than double next year. Revenue is also expected to be positively impacted by the option to offer domestic and international distribution through online and new media.

ATR’s partner, broadcaster and data supplier SIS will retain all domestic and international betting shop rights under its existing contract with HRI.

As part of the agreement ATR will offer HRI and AIR a seat on its board of directors, described as “a significant and important new development that will help further the effort to coordinate and align strategies and keep the Irish racing industry integrally involved in the management and direction of its rights exploitation.”

The company’s chief executive Matthew Imi said he was “delighted” that the relationship with the two associations would continue, describing Irish racing as “a significant part of [ATR’s] business.”

“HRI and AIR made it very clear that not only did they feel ATR had done a great job monetising their rights across our current distribution platforms but that they were also excited about the long term potential of the business and we look forward to welcoming their representative onto the ATR Board as we start to roll out our growth strategy,” he explained.

AIR CEO Paddy Walsh added that he was “very pleased” to have agreed the new deal with ATR and SIS, saying that he looked forward to “all parties benefiting from the partnership approach that we have always adopted in the past.”

Mexican Drug Cartel’s Connection to US Horse Racing

In the stables at a prominent quarter horse track in New Mexico, workers quietly nicknamed Jose Trevino Morales's stables as the "Zetas' stables" and say they often saw people show up with bags of cash to buy the horses.

On Tuesday, authorities raided those stables and a horse ranch in Oklahoma accusing Trevino and others of running a sophisticated money-laundering operation connected to one of Mexico's most powerful and ruthless drug cartels.

Federal authorities accuse Trevino's older brother, Miguel Angel Trevino Morales, a key figure in the Zetas drug operation, of setting up the horse operation that the younger brother ran from the sprawling ranch near Lexington, Okla., south of Oklahoma City. Millions of dollars went through the operation, which bought, trained, bred and raced quarter horses throughout the southwest United States, including at the famed Ruidoso Downs track in New Mexico.

Jose Trevino, his wife and five others were arrested and charged with one count each of money laundering. Seven others, including another Trevino brother, were charged but remain at large. They could face up to 20 years in prison if convicted.


AP
In this photo taken Sept. 6, 2010, owner Jose... View Full Caption

"This case is a prime example of the ability of Mexican drug cartels to establish footholds in legitimate U.S. industries and highlights the serious threat money laundering causes to our financial system," said Richard Weber, the chief of the IRS' criminal investigation unit.

The indictment, unsealed Tuesday, describes how the Trevino brothers and a network quietly arranged to purchase quarter horses with drug money at auction and disguise the source of the funds used to buy them so that the Zetas' involvement would be masked. They would often pay in cash, or use fake names, which helped keep the owners and the money a secret.

Since 2008, the operation racked up millions of dollars in transactions in California, New Mexico, Oklahoma and Texas, prosecutors said. The New York Times first reported the raids and the alleged connection to the Zetas cartel, citing a months-long investigation and several anonymous sources.

The operation, Tremor Enterprises LLC, started small, but worked in plain sight. Some horses carried names with drug references, like Number One Cartel and Coronita Cartel. Over time, the horses and the operation earned a place on some of the most elite stages in the industry. One horse named Mr. Piloto won a $1 million prize at Ruidoso Downs on Labor Day 2010, going off at odds of 22-1. His trainer, Felipe Quintero, 28, was one of the seven arrested Tuesday.

The Zetas are one of Mexico's most powerful drug cartels, with a reputation for being willing to commit atrocities including kidnapping, decapitating and dismembering enemies. The elder Trevino is the second-in-command and one of the U.S. and Mexican governments' most wanted men, known for his brutality. One technique favored by Miguel Angel Trevino Morales is the "guiso," or stew, in which enemies are placed in 55-gallon drums and burned alive.

Underscoring the violence, the U.S. Embassy in Mexico issued a travel advisory Tuesday, warning that the arrests could result in some form of retaliation and urged U.S. citizens in Mexico to maintain a low profile.

Jose Trevino and his horse operation in the United States appeared to work with little fear of getting caught by authorities. Three stable workers at the Ruidoso Downs Race Track and Casino told The Associated Press on Tuesday that Trevino's stables were known as the "Zetas' stables," and two of the workers described seeing people from Mexico show up to the stables with duffel bags of cash to purchase horses. The AP agreed to let the workers, who refused to give their names, speak anonymously because they feared retaliation from the Zetas cartel.

It wasn't just the cash purchases that caught the attention of those in the quarter horse racing industry. The amount of money Trevino and his network paid for horses also raised eyebrows.

Debbie Schauf, the director of the Oklahoma Quarter Horse Racing Association, said Jose Trevino showed up a few years ago and quickly earned a reputation for always paying his bills and shelling out handsome prices for some of the top horses in the country. Quarter horses are smaller but more muscular than thoroughbreds and can run short distances faster than other horses.

"They were also recognized for taking care of their business. They paid their bills and didn't cause any trouble. You didn't have a food vendor or veterinarian calling to say they couldn't get these guys to pay their bills. They were good citizens in the horse industry," she said.

While it was common for buyers based out of the country to pay cash for horses, she said several transactions were noteworthy for their value.

"It didn't raise a lot of eyebrows when these guys came to the sales and started paying cash. What raised eyebrows was the quality of the horses they were buying and the amount of money these mares cost," Schauf said.

Prosecutors asked that no bond be set for Trevino fearing he would either flee or intimidate witnesses. Neither Trevino nor his lawyer, Tony Lacy, commented, and a lawyer for Zulema Trevino said he knew little about the case.

U.S. Magistrate Robert Bacharach appointed lawyers for the pair after they said the government was trying to seize all their property.

"I don't have any assets as of today," Trevino told the judge.

During the raids Tuesday, dozens of federal agents swarmed the New Mexico race track, wearing bulletproof vests and collecting evidence. At least two horses were taken away. Shaun Hubbard, general manager of the Ruidoso Downs Race Track and Casino, said the track officials are cooperating with federal authorities.

Seizure warrants were issued for 41 horses deemed the operations' most valuable, in an effort to prevent their being taken to Mexico. Among those was Mr. Piloto. The government sought an order to ensure the care of 384 other horses at the ranch, which sits among rolling hills about 40 miles south of Oklahoma City.

At least a half-dozen agents wearing military-style fatigues and baseball caps emblazoned with FBI stood by at the ranch Tuesday afternoon as horses roamed on crisply manicured lawns. Telephone messages left at the ranch were not immediately returned.

Neighbors said the ranch changed hands about a year ago, but few knew the couple well.

Chelsey Krueger, a student at Oklahoma City Community College who lives just south of the ranch, said she had never met the owners but knew when they were around.

"They were always in a Suburban, driving around with really loud music. They had a spotlight (at the ranch) that would be on late at night and light up the whole area," she said.

Channel 4 replaces BBC as exclusive UK racing broadcaster

British horseracing will continue to be broadcast on UK terrestrial television but will switch from the BBC to Channel 4 from 2013 following an exclusive domestic rights deal which includes the Grand National, the Derby and Royal Ascot.

Channel 4’s financial commitment to racing over the next four years amounts to one of its largest programming outlays and continues its 28-year association with British racing.

“We are delighted Channel 4 is to become the sole destination for British horseracing after securing such iconic events as Royal Ascot, the John Smith’s Grand National and the Investec Derby,” said Jay Hunt, Channel 4’s chief creative officer. “These will sit alongside our established coverage of The Cheltenham Festival and major Flat meetings such as Glorious Goodwood and the Ebor Festival and means we can extend our distinctive approach to all the crown jewels of the sport.”

A highly competitive domestic TV rights bidding process saw interest from a range of broadcasters, with Channel 4 winning the rights to a number of popular races which are currently televised by the BBC, which will be shown alongside the channel’s existing 80 days of racing it broadcasts.

“Our coverage this year will mark the end of a partnership covering some of the key events of British racing that extends over 50 years,” said BBC director of sport Barbara Slater. “The BBC are proud of their long heritage of broadcasting horse racing and put in as competitive a bid as possible in the current climate.”

Negotiations were headed by Racecourse Media Group (RMG), alongside The Jockey Club, Ascot Racecourse and British Champions Series Ltd as rights holders, with Martin Baker, director of commercial affairs, at the helm of the Channel 4 team.

“Channel 4 has shown a total commitment to our sport,” said Richard FitzGerald, chief executive of RMG, who headed racing’s negotiating team. “This new deal will not only deliver increased revenues for British racing, but with all of our sport’s crown jewels in its portfolio, Channel 4 offers a compelling vision to innovate the way racing is broadcast. They have also committed to use diverse programming platforms to promote our sport more widely. This is a great opportunity for racing in the long-term.

“The BBC has been a fantastic partner for British racing and helped the sport to grow its attendances and TV audience in recent times. We look forward to continuing to work together through radio, online and TV news coverage over the next four years until the next TV negotiation period.”

Jamie Aitchison, Channel 4’s Sports Editor, added: “This is an opportunity for us to work together to grow the sport, painting the full picture of both the Flat and Jumps seasons to attract new viewers whilst rewarding those loyal viewers we value so highly. Channel 4 fully understands the heritage and cultural importance of British racing, but also the sport’s thirst for a bright future, and we relish the challenge ahead.”

The new arrangement will see all 35 races in the QIPCO British Champions Series of premier Flat racing broadcast on Channel 4.

“Since its inception, we’ve aimed to showcase the very best of British Flat racing within the QIPCO British Champions Series via a single domestic terrestrial broadcaster,” said Rod Street, chief executive of British Champions Series. “We believe this new deal with Channel 4 will make the Series even easier to follow for the racing and wider sports fan. Hugely exciting times lie ahead.”

Betfair secures naming rights deal for California racetrack

Betfair US, the Los Angeles-based subsidiary of leading online betting exchange Betfair, has entered into a five-year agreement with Hollywood Park Racing Association (HPRA), operator of the Hollywood Park Racetrack which has been renamed Betfair Hollywood Park.

The HPRA said the deal was a “groundbreaking agreement intended to transform the customer experience for racing fans at the historic venue, online and on television.”

The association claims that the renaming of its venue as Betfair Hollywood Park marks the first naming rights agreement ever for a horseracing venue in the United States.

“We realize that US racing, and California racing in particular, simply cannot continue on as it has,” said Jack Liebau, president of Hollywood Park Racing Association. “We need to look at the way we do everything in presenting our product to the public and not be afraid to embrace change, particularly if we are going to generate a younger fan base.”

Subject to Hollywood Park receiving assurances regarding its racing dates for 2013, Betfair will also make significant infrastructure investments and improvements at the Hollywood Park facility to create the Betfair Club and Betfair Lounge, which will offer customers modern surroundings and access to state-of-the-art technologies to interact with the racing product.

Betfair said that this will build on the success of its innovative Betfair Lounge at Ascot Racecourse in the UK. The company said that it will utilise its own marketing initiatives to drive younger demographics to the racing venue and monetise them, supported by traditional marketing campaigns on TVG and in the Los Angeles market.

“We are deeply committed to changing US horseracing for the better and are delighted to find a partner in Hollywood Park Racing Association willing to take the bold step of trying to change every facet of the racing experience to appeal to a broader, younger audience,” said Stephen Burn, CEO of Betfair US and TVG. “Horseracing is a wonderful sport, but it must embrace cultural change and utilize advancements in technology and presentation to survive and thrive just as other sports and entertainment industries have done.

“We hope this is the first of many examples of using the assets of technology companies, such as Betfair, to revitalise historic venues such as Betfair Hollywood Park.”

Betfair subsidiary TVG will produce the Betfair Hollywood Park simulcast signal and related TVG television programming, as well as introduce advanced graphics packages similar to those used in network broadcasts of major US sporting events to enhance the user experience and data available from the product.

“We believe that partnering with Betfair to modernise the product will benefit California racing,” continued Liebau. “Exchange wagering is another possibly transformative technological change for horseracing. However, it will only be introduced after a thorough consultation with our Horsemen and Horsewomen and, of course, its implementation is ultimately subject to the approval of the Thoroughbred Owners of California.”

The California Horse Racing Board is currently considering regulations that would make possible the implementation of exchange wagering on horseracing by California residents.

Betfred agree to payout on Barney Curley coup

Betfred have paid out on the 'Barney Curley coup', ending a 21-month dispute that followed a £4 million paper profit landed by five relatives and friends of the Newmarket trainer in May 2010.

Those involved linked four horses in combination bets. Three of the horses, Agapanthus, Savaronola and Sommersturm, were trained by Curley, who had also once trained the fourth horse, Jeu De Roseau, subsequently trained by Chris Grant. The odds on all four tumbled as the coup unfolded, with three horses winning and Sommersturm losing.

UK bookmakers, including Betfred's betting shop division, and some Gibraltar-based online operators, including Ladbrokes and Stan James, paid out but Betfred.com withheld the £823,000 claimed from them, while 888sport withheld a further £29,000, pending an investigation by the Gibraltar Regulatory Authority (predecessor of the Gibraltar Gambling Commissioner).

In a dramatic conclusion, a joint statement issued by the interested parties on Monday announced that Gibraltar’s Gambling Commissioner had “decided to pursue the matter no further”, prompting Betfred’s Gibraltar-based online operation to pay out and the claimants to discontinue their legal action against the Gambling Commissioner. 888sport, although not a party to the settlement, has alsoagreed to pay the bets.

The settlement prohibits the parties from divulging further details or commenting on the agreement, but represents a victory for Curley and the claimants and a blow to the reputation of Gibraltar’s Gambling Commissioner.

Despite a declaration by the BHA that no rules of racing had been breached, and a ruling favourable to the claimants by the Independent Betting Arbitration Service in respect of a related dispute involving Sportingbet, the GRA instructed operators to withhold payment until its own investigation was completed, an instruction withdrawn in February 2011. Betfred decided to wait until the investigation had been concluded.

In a letter dated May 27, 2011, Phill Brear, the GRA’s head of gambling regulation, criticised the BHA’s stance, asserted that the claimants’ behaviour was “fraudulent” and accused Curley and the claimants of orchestrating “a complex and longstanding deceit”.

Five days later, citing Brear’s letter, Betfred voided the bets under a rule stating “Any person or group of persons acting in an attempt to defraud Betfred.com will have their bets voided”.

The claimants responded by applying to the Supreme Court of Gibraltar for a judicial review of the actions and decisions of the GRA, alleging, in part, that Brear was not impartial and had pre-judged the case.

The episode generated unwelcome publicity for Betfred and soured relations between the GRA and BHA. Paul Struthers, at that time the BHA spokesman, stated: “It is not for the GRA to tellus that we are wrong in our interpretation of the rules. This highlights our concerns in relation to offshore betting operators being outside British gambling legislation.”

Given the Gibraltar Gambling Commissioner’s forcefully stated views on the coup, which Brear described as a “fraudulent enterprise”, the settlement represents a reversal for Gibraltar’s regulatory body.

Betfair face backlash as punters miss out on millions after in-play betting error

Betfair face a backlash from punters after the bookmakers declared all bets are void following an incredible in-play betting error.

The gambling firm faced an unprecedented multi-million pay-out after odds of 28-1 were offered in-play on a runaway 13-8 favourite at Leopardstown.

There were bizarre scenes in the in-running betting world with a freakish amount traded on Betfair in the 2pm woodiesdiy.com Christmas Hurdle.

A total of £1,642,094 was matched at 28-1 on Voler La Vedette, who went off the 13-8 favourite on-course and won very easily.

Even more strangely, the Betfair graph showed over £21million was offered to back Colm Murphy's mare at those odds, even though she was always in contention and looked the obvious winner even before the final flight.

This meant one layer could potentially have lost £600million in only a few minutes if all of the money had been matched.

Betfair suspended the market in order to investigate, with many of the exchange's members in a state of shock on the website's forum.

After lengthy discussions, it was revealed this was due to a technical error, and that all bets on the event would be cancelled.

A statement from Betfair customer services read: 'Customers betting in-play on this race will have seen that Voler La Vedette was available to back at 29 when the in-running market was suspended, and that a considerable sum was matched on the clear winner at that price.

'An investigation has revealed that this was due to an obvious technical failure which allowed a customer to exceed their exposure limit.

'In accordance with our terms and conditions, all in running bets on this race, both win and place, will be made void.

'We fully appreciate the dissatisfaction this will cause many customers, and apologise for a very poor customer and betting experience.'

UK cold snap hits racing bets

Bookmakers with major racing markets including Betfair, Coral and Ladbrokes have been hit hard by Britain’s cold snap, the December figures from top odds comparison site Oddschecker reveal, with the weather having caused a wave of racing abandonments.

The data from the site, which boast more than 600,000 unique users a month, has been seen exclusively by EGRmagazine.com, and shows racing cancellations having diminished Betfair’s strong lead in referrals from the site over Bet365 and having allowed SkyBet to overtake Coral.

The abandonments also saw Ladbrokes lose the ground it won on Oddschecker in November, when its traditional strength in horseracing saw it overtake Stan James and arch rival William Hill.

Oddschecker commercial manager Simon Miller said: “The gap at the top has shrunk to its smallest ever level. Bet365 kept its market share static but Betfair saw its share slide by 1.2% and now only stand 0.4% ahead of Bet365. Betfair always perform strongly in months full of racing but with abandonments around, especially on Boxing Day, this blunted Betfair’s strongest weapon and saw it fall back.

“On the flip side, Skybet used this opportunity to jump above Coral for the first time since June. Relatively weak in racing without Best Odds Guaranteed, Skybet weren’t harmed as much as the others and its strength in football saw its market share rally. As abandonments continue into January, it will be interesting to see which bookmakers have come out on top in testing times.”

With the cold weather intensifying this month and with a new cold snap hitting Wales, south east and south west England only last night, the impact on racing-heavy bookmakers is likely to be even greater in January.

Miller added: “Attracting racing customers in January has been more competitive than ever, but bookmakers who are competitive on markets such as specials, darts and golf could see their market share on Oddschecker increase.”

British horse racing seeks to broaden industry's appeal

s part of an initiative to revamp the UK horse racing industry and broaden the sport’s appeal with the general public, the industry taskforce programme Racing For Change has unveiled ten trial measures to be implemented during the first half of 2010, including the use of decimal odds instead of fractions on several racecourses for one weekend this Spring.

The Racing For Change taskforce, which features representatives from the sports’ major organisations, has proposed a number of new initiatives to modernise the image of British horseracing, some of which were long overdue, such as the listing of first names as well as surnames for all jockeys and trainers in race cards, while race names are to be simplified and racecourse announcements modernised.

Other initiatives include encouraging on-course bookmakers to offer standard each-way terms and enhanced customer services, a new website to be launched to promote horseracing as well as a central public relations campaign to promote racing to a wider audience, and a new free membership club for younger adults offering discounted admission to courses and shares in racehorses.

The trial of decimal odds for starting prices is the most striking and controversial of the initiatives, since fractional odds have been used by racecourses and bookmakers for hundreds of years. However racing officials have long championed the use of decimals as a simpler method for attracting a wider audience to bet on horses.

“British horseracing is the envy of the racing world with our abundance of outstanding horses, trainers and jockeys as well as a host of first class racetracks,” said Chris McFadden, the Racing For Change Chairman. “Yet, despite the likes of Sea The Stars and Kauto Star, the sport needs to work harder to connect, as it did in the past, with the wider public. This is a result of a significantly more competitive betting and leisure environment - so we have to raise our game.

“What has encouraged us during the research and consultation stages of the project is that, fundamentally, there is little wrong with the racing as an entertainment, leisure and betting medium."

McFadden said that the industry needed a clearer structure and better presentation of its strengths - its drama, spectacle and heritage as well as its equine and human stars.

“What we need to do is promote the sport in a way that makes it relevant to a much bigger audience and these 10 initiatives are the first steps in that process. Most thriving customer facing organizations, having optimized their core product, build on their success by doing hundreds of small things consistently well. This is what racing must set out to achieve,” added McFadden.

“Work to overhaul the fixture list and to develop racing’s prize assets is well underway and we expect to make further announcements on this over the next couple of months.”