The Kentucky Derby is the premier event on the horse racing betting calendar, but in a sport already known for scandal, the Derby has been the recent recipient of multiple black eyes. A failed post-race drug test from Derby winner Medina Spirit means that the results are in question for the second time in three years.

The Medina Spirit Kentucky Derby Controversy

Medina Spirit crossed the finish line in the first position on May 1 at Churchill Downs, but a post-race drug test revealed the horse had “21 picograms of the steroid betamethasone, double the legal threshold in Kentucky racing, in a post-race sample,” according to a .

The fallout from the positive sample saw legendary trainer Bob Baffert handed a temporary suspension from racing activities at Churchill Downs – likely influenced by several Baffert horses . If a second test confirms the initial test, it will disqualify Medina Spirit, elevating runner-up Mandaloun to the winner’s circle. That would deny Baffert his seventh Kentucky Derby win.

“It is our understanding that Kentucky Derby winner Medina Spirit’s post-race blood sample indicated a violation of the Commonwealth of Kentucky’s equine medication protocols,” . “The connections of Medina Spirit have the right to request a test of a split sample, and we understand they intend to do so.

The statement goes on to say, “To be clear, if the findings are upheld, Medina Spirit’s results in the Kentucky Derby will be invalidated and Mandaloun will be declared the winner.”

However, if Mandaloun is announced as the winner, bettors who backed the horse will still be holding losing tickets. The precedent is from 1968 when . The Kentucky Racing Commission stripped the horse of its Kentucky Derby win but exempted parimutuel wagers from being changed.

Jay Kornegay was following the Maximum Security fiasco from the 2019 Kentucky Derby as saying, “bookmakers are protected by an established standard. They do not recognize results reversed on appeal or protest more than 24 hours after an event.”

Essentially, the race result for parimutuel betting is the result, even if the winner is later stripped of the title.

The Maximum Security Case File

In 2019, Maximum Security crossed the finish line in first place, but the result was immediately challenged, and Maximum Security was disqualified for impeding other horses. The difference for bettors was the immediate objection prevented the race results from becoming official.

However, the Maximum Security situation also differs in a key way, and that is the ambiguity of rules regarding fouls in racing. As Bennett Liebman, Government Lawyer in Residence at Albany Law School and an adjunct professor of law (paywall):

We’ve forced them into a Justice Potter Stewart world. Supreme Court Justice Stewart was known for saying “I know it when I see it” in reference to pornography. Racing has left the stewards with this same standard. There are no guidelines. Each foul claim is your first foul claim. The stewards are left to calling fouls when they know it.

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Horse racing needs uniform rules and, frankly, the issue of uniformity should be low-hanging fruit.

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The sport also needs rules that are comprehensible by both the stewards and the betting public. It needs to establish guidelines that can help stewards navigate the practices of its 350-year history. While everyone involved in racing should understand that stewarding will be an imprecise art, racing needs uniform enforceable and explicit guidelines to help judge races… The Potter Stewart standard is not enough. It is not sufficient to call a foul when the stewards think they know it. Everyone must know why the stewards are calling fouls.

What Does The Kentucky Derby Scandal Mean For The Racing Industry?

First, the last thing horse racing needs is a scandal. The sport is already struggling and dealing with criticisms on everything from doping to horsewhips. Having its premier event marred with questions and controversies and bettors (the lifeblood of horse racing) feeling jaded by results is more likely to push them away than bring them into the fold.

Second, horse racing is inextricably linked with legal sports betting, as most would consider them different sides of the same coin. As such, these “black eyes” are likely to permeate the sports betting debate and could serve as fodder for lawmakers opposed to legalization or over-strict regulations.