In the Paddock: Kyle Gustafson

SHAKOPEE, MN – Though he grew up in nearby River Falls, WI, new Executive Director of the Minnesota Racing Commission, Kyle Gustafson, spent many of the afternoons of his childhood at Canterbury Park.

“My parents’ friends owned horses so we would come up a few times a summer,” recalled Gustafson. “I was very interested and asked them a lot of questions.  They taught me the sport and how it works for owners. I’ve loved coming to the track ever since.”

Gustafson has spent years coming to the track with his own family and enjoying the vibrant racing scene in Minnesota.

When Gustafson was appointed Executive Director by Governor Tim Walz in December, the William Mitchell College of Law graduate was serving as the interim director of the Property Tax Division at the Minnesota Department of Revenue.

A career civil servant, Gustafson began his career as an Assistant Attorney General with the Minnesota Attorney General’s Office and litigated cases on behalf of the Department of Revenue and Department of Public Safety.

“One of the things I bring to the table is the ability to navigate the government bureaucracy,” he said.

More bureaucracy just is what racing got when the U.S. Congress passed the Horseracing Integrity and Safety Act in late 2020.  The Act, championed by then-Senate Majority Leader Mitch McConnell (R-KY) and signed into law by then-President Donald J. Trump, promised to protect racing by setting up uniform rules and regulations.  The new Authority has certainly had its bumps getting started and is currently battling court challenges in several states.

Gustafson understands the confusion and uncertainty voiced by horsemen and will be working to help industry participants navigate the labyrinth of new rules and regulations.

“Minnesota has always been on the forefront of testing and safety so that hasn’t been much of a change,” said Gustafson. “But there is definitely a reporting element that will take some time and resources.”

“It will take some time for the dust to settle, but we’ve seen in our communications with HISA that there is a willingness to make adjustments based on our suggestions.”

A recent example of that is the payout of purses prior to receipt of the post-race test results.  HISA mandated that purse money be withheld until the results are back.  The Minnesota HBPA had negotiated immediate payout of purse money several years ago and, when made aware of the agreement, the Authority allowed Minnesota to operate as usual.

“It’s important to have consistency from state to state,” said Gustafson. “It’s important for bettors in Minnesota who are betting on races in other states should know that those races are being run under the same rules and that there’s a level playing field.”

One initiative that Gustafson is looking at re-starting is the Breeders’ Advisory Committee, “They’ll be looking for ways in which breeders can have confidence in the future of Minnesota racing,” he said.

With the expiration of the joint marketing agreement with the Shakopee Mdewakanton Sioux Community (SMSC) that helped fund Canterbury purses over the past 10-years, breeding in Minnesota has slowed as breeders are unsure of what the future will bring to the purse account at Canterbury. Restoring their confidence in the future and giving them a reason to breed horses is key to the future of racing in the Gopher State.

With the dual challenges of HISA and the need for Canterbury to supplant the expired joint marketing agreement with the SMSC, Gustafson has his work cut out for him.  His lifetime of navigating government bureaucracy and politics will be necessary skills to help guide Minnesota racing through this turbulent phase and towards a brighter future.