Wagering Integrity
Alan Marzelli Alan Marzelli - President & COO, The Jockey Club

Ogden Mills Phipps: With the possible exception of medication, I don't think there is a topic that has been discussed at this conference more often than wagering integrity over the course of the past few years. And really with good reason.

Illegal off-shore betting, unregulated rebate shops, betting exchanges and data piracy all pose an ongoing threat to our industry.

Alan Marzelli, the president of The Jockey Club and chairman of both Equibase and InCompass, was a strong proponent of wagering security and protection of intellectual property, both here and abroad, long before those terms became catch phrases in our industry. He has some news to share with you and he will introduce our next two speakers.


Alan Marzelli: Thank you, Dinny, and good morning, ladies and gentlemen.

When Mayor Giuliani delivered the keynote address at this forum three years ago he spoke at length about employing "best business practices in electronic commerce."

He reminded us that while the attempted Breeders' Cup Pick 6 wagering fraud in 2002 may have been peculiar to this industry, it really wasn't that unusual. Crimes involving electronic commerce took place every single day in the business world.

Now you've heard me, probably more than you care to, as I've expressed concern, here and elsewhere, about the time it is taking this industry to develop and build its "next generation wagering system," but today I'm pleased to announce something a little different. There is significant progress being made in regard to other aspects of wagering integrity, both domestically and internationally. You'll hear about that progress in detail from representatives of the Thoroughbred Racing Protective Bureau and the International Federation of Horseracing Authorities in a few minutes.

Before I introduce our two speakers, I would like to announce that Thoroughbred Racing Protective Bureau, or TRPB, which you all know is a subsidiary of TRA, has contracted with InCompass to provide the technological capability that will enable the TRPB to perform monitoring and analysis of wagering and participant activity.

It is a vivid example of two industry organizations working together to enhance wagering security, based on what's possible today, and The Jockey Club, its board of stewards and its entire family of companies are proud to play a supporting role in this initiative.

The TRPB, as Frank Fabian will tell you, has taken several meaningful steps recently to secure the pari-mutuel pools of their member racetracks to improve the integrity of wagering within those pools.

Frank was named president of TRPB in February 2005, and he knows a little bit about security and integrity.

He was the assistant section chief in the FBI's Counterterrorism Division. That's the division that is responsible for the investigation and dismantling of international terrorist groups and their funding mechanisms. His promotion to that position in the wake of the September 11 terrorist attacks capped a 20-year career with the FBI that included numerous investigations within the FBI's organized crime, drug, violent crime, white-collar crime, and public corruption programs.

He is no stranger to the backstretch either. When he was a member of the New Jersey State Police Detectives before joining the FBI, he was engaged in several racing-related investigations on the backstretch at Monmouth Park.

The IFHA, as Maurits Bruggink will point out, is determined to minimize piracy of our racing product and the theft of our intellectual property. He has been making his case to the appropriate authorities at the World Trade Organization as well as government officials in dozens of countries around the world.

Like Frank, Maurits is well qualified for his assignment. He is an attorney with a wealth of experience at several European consulting firms. He spent five years as the director general of the European slot machine industry association and three more as the Brussels representative of the European Casino Association. He has been on the job for more than two years now and he represents the interests of over 50 racing nations around the world. I can assure you that he is using each of the five languages he speaks fluently on a regular basis.

The Thoroughbred industry is indeed fortunate — both domestically and globally — to have these two men on the job. And you'll hear from them now. First up is Frank. Frank, welcome to the Round Table.

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