Insider trading in the stock market has been ruled to be fraud because it involves breach of a fiduciary duty or a duty to disclose. I am not seeing any duty to disclose in horse racing. The claiming game could not exist otherwise.

Regarding appropriate penalties, if Patrick Biancone gets one or two horses in the gate for the Kentucky Derby, what is the over/under on the number of times the words "cobra venom" appear in the same paragraph with his name?