In the good old days of horse racing in America... the major racetracks would bar the entry of horses who bled:
The rules would look like this:
Going one step further -- they could also suspend horses who have "raced inconsistently" for no other reason at all.
This is when the racing associations actually had power.
The idea was to protect the bettor and the image of the sport.
Politicians never got involved with anything. It was simply a matter of the individual racing associations doing what they felt was in the best interest of the bettors and the overall image of the sport.
This topic hasn't helped the image of the sport (NY Times coverage) and no one with even a morsel of power in this industry ever asks or cares to ask 'what is in the best interest of the bettor?'