A transgender golfer is suing two big women's golf entities for the right to play as a woman. Lana Lawless won the 2009 Long Drivers of America title in 2009; The group then changed their rules to state that a player must have been born a biological woman to participate. The LPGA is also only open to people who were biological women at birth. Despite Lawless being a post-operative transsexual, recognized legally as female with her birth certificate saying female, she has been banned from playing.
Many sports entities allow transgender male-to-female women to compete as women if they meet various criteria, including hormone treatment. In fact, NCLR has a fantastic new report about the state of transgender athletes in the NCAA, including recommendations and best practices for tackling the issue. The LPGA and LDA would do well to read the report.