Marshall Gramm, a Rhodes College economics professor and racehorse owner, has chosen to suspend himself from horse racing voluntarily while he contests charges brought by the Horseracing Integrity and Safety Authority (HISA).

Gramm teaches The Economics of Racetrack Wagering Markets at Rhodes in Memphis, Tenn., while operating horse-racing ownership syndicate Ten Strike Racing. The course uses handicapping to explore concepts including probability, decision-making, price discovery, economics, and finance.

Advantage Play

On August 17, HISA accused Gramm of fraud, alleging that he obtained confidential health information on thousands of racehorses and used it to gain an advantage in betting and claiming horses, allegations he denies.

HISA said he “deliberately and methodically” extracted the data during a six-week period beginning in early May after developing an automated method to download records at scale “in a manner designed to mimic authorized activity to avoid detection.”

The organization added that Gramm had authorized access to its portal but was not entitled to view the records of horses with which he had no legitimate connection.

Gramm has acknowledged accessing the data and being the source of past-performance reports for horses Deterministic and Griffin’s Wharf, but disputes HISA’s characterization of his actions.

He said in a statement the information was available through his authorized account and that he had not initially understood the scope of the data he obtained. He added that he accessed the system using his own credentials, made no attempt to hide his identity, and “bypassed no security protocols or other safeguards.”

Gramm accepted a provisional suspension effective Sunday, Aug. 23, under which he must relinquish his ownership interests in racehorses and stay away from racetracks.

HISA has said it will seek restitution of proceeds Gramm earned from handicapping contests, pari-mutuel wagering, and claiming horses during the period in which he allegedly had access to the confidential information. The authority alleges he claimed nine horses during that time, while also participating in wagering and handicapping competitions.

Gramm has also returned earnings from handicapping contests and said he is working to return purse money and horses connected to the period under investigation.

Hopes To Be Cleared

The suspension is not an admission that Gramm violated HISA rules, and the agreement specifically leaves open the possibility that he could ultimately be cleared.

Any time served provisionally would count toward a suspension imposed if he is found to have committed violations.

Gramm said Monday that he was continuing to work with HISA “in good faith” while preserving his right to defend himself.

Caption 1: Rhodes College economics professor Marshall Gramm has voluntarily stepped away from horse racing while fighting allegations he improperly accessed confidential horse-health data.