A federal judge in Kentucky has dismissed a lawsuit filed by bettors who alleged that the disqualification of Medina Spirit nine months after he crossed the finish line first in the 2021 Kentucky Derby unjustly deprived them of their rightful payoffs under the revised official order of finish.
As first reported by BloodHorse, U.S. district judge David J. Hale of the Western Kentucky District on Thursday dismissed the suit filed in February 2022 by 19 bettors against Bob Baffert, Bob Baffert Racing Inc. and Churchill Downs Inc.
The lawsuit alleged that the defendants were guilty of negligence, breach of contract, violation of the Kentucky Consumer Protection Act and unjust enrichment as a result of the belated disqualification after betamethasone was detected in split blood samples taken from Medina Spirit immediately after the race.
But Hale found fault with each of the grounds for the suit, finding that in each instance the plaintiffs had not did made claims recognized under Kentucky law.
He also noted the Kentucky horse racing regulations specifically state that racetracks are not required to redistribute wagers based on a disqualification after a race is declared official.
“Once the stewards declare the official order of finish for the race, the results are final for the purpose of paying out any pari-mutuel wagers,” Haley wrote in his order. “ If a horse is disqualified after a race, “Kentucky laws and regulations ... do not require racetrack associations to reverse (pari-mutuel) payouts and/or redistribute money” based on the new, official order.
BloodHorse also reported that a similar gamblers' suit pending in federal court in New Jersey remains undecided, but that a recent filing by the presiding judge indicates the case could be transferred to California.
