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Kentucky Supreme Court Declines To Review Historical Horse Racing Decision

The Kentucky Supreme Court issued a brief statement on Thursday in which it declined to reconsider the unanimous decision on historical horse racing machines issued on Sept. 24, 2020, reports the Courier-Journal. The request was issued by the Kentucky Horse Racing Commission and state's racetracks.

Meanwhile, legislative solutions to legalize historical racing machines are in the process of being crafted. Among the supporters of historical racing are Gov. Andy Beshear and Kentucky Senate Majority Floor Leader Damon Thayer.

“Our top priority for the 2021 legislative session is maintaining the status quo to ensure historical horse racing can continue operating in Kentucky as it has for the past decade,” Tonya Abeln, vice president of communications for Churchill Downs, Inc., told courierjournal.com. The preservation of the associated $5.2 billion economic impact statewide as well as the direct and indirect jobs of 60,000 Kentuckians impacted by HHR is now in the hands of the Kentucky General Assembly.”

After HHR Decision from Court, Racing Considers Next Steps

Still reeling from a decision by the Kentucky Supreme Court that ruled that Historical Horse Racing (HHR) machines are illegal, the racing and breeding industries in the state have continued to work behind the scenes to find a way to keep the gaming machines operating. The machines have proved so popular that they handled $2.2 billion during the most recent fiscal year and contribute tens of millions annually to purses.

The court ruled that the machines, which resemble slot machines, did not fall under the legal definition of pari-mutuel gambling and, therefore, could not be approved by the Kentucky Racing Commission.

Kentucky Thoroughbred Association Executive Director Chauncey Morris said the sport’s best hope now rests with the state’s General Assembly, which could approve legislation that would make the machines legal. One way of doing so would be to pass legislation that changed the definition of pari-mutuel gambling so that it covers HHR. HHR allows bettors to wager on replays of races that have already been run.

“By the looks of it, this may need a legislative fix,” Morris said. “I know that everybody is sitting back and crafting their strategies on how to accomplish that.”

Morris said that he does not expect anything to happen within state government until after the November election.

“I suspect we will learn a lot more about the prospects for this after the election,” he said. “In the absence of a special session you’re going to have to wait for the natural beginning of the General Assembly. To be clear, it was a shocking and disappointing decision, but the decision did provide a road map on how the legislature, if they are so motivated, can change their definitions. Beyond that, everybody can speculate on what is going to happen but it will begin and end with the Kentucky General Assembly.”

Morris said it is hard to predict what the General Assembly would do, but added that some of the most influential lawmakers in the state have always supported horse racing.

“We have had some conversations but you never know what is going to happen until the General Assembly starts and takes up the issue,” he said. “It’s not dissimilar to what we saw with the Horse Racing Integrity and Safety Act that was introduced five years ago and it just cleared a first hurdle in the House. Legislation, it works in strange ways. I will say that it is no secret that our industry has some very meaningful friendships and allies in the Kentucky General Assembly, not the least of which is Senator Damon Thayer, the Speaker and others.”

Thayer, the Senate Majority Leader, is a former racing executive who has been one of the sport’s biggest supporters in the state capital of Frankfort. But Thayer said he was not ready to commit to an effort to craft legislation that would legalize HH.

“I’m just not ready or willing to talk about a legislative fix at this time,” he said..

“I don’t have a strong level of confidence that a legislative solution is a possibility,” he added.

HHR could be a thorny issue for some legislators. The push to have them declared illegal was led by the Kentucky Family Foundation, a socially conservative group that says it works on behalf of “families and the values that make families strong.” In a conservative state where religious organizations have a lot of clout, there will likely be many politicians who don’t want to come off as pro-gambling.

“This is a conservative state and this kind of caught everybody by surprise and now we have to find another alternative,” Morris said.

Thayer said he was keeping an eye on what steps might be taken by Exacta Systems, an HHR manufacturer. The Boynton Beach, Fla.-based company issued a press release last week that said it will introduce a new HHR system that will be legal based on the guidelines set forth in the Kentucky Supreme Court ruing.

“While we are disappointed with the Court’s decision, we do appreciate the clarity that the Court has provided as it pertains to HHR in Kentucky,” Exacta Systems President Jeremy Stein said in a statement . “After several years of litigation, we now have certainty on how HHR systems must operate in the state. In anticipation of this ruling, Exacta has devoted several months of development time to produce an alternate HHR system that complies with the Supreme Court decision. After reading opposing legal briefs and hearing the questions asked at oral arguments, we wanted to have an alternative system in place that addressed the objections raised by opposing counsel and the various Justices, as a contingency in the case of a negative ruling. The updated Exacta system is fully compliant with the requirements as articulated by the Supreme Court, and we are excited to present our updated system to the Kentucky Horse Racing Commission in the coming days.”

The Supreme Court decision was announced last Thursday, but the state’s HHR operations have yet to be discontinued. The Family Foundation has called on the tracks to cease operating the HHR machines. Kentucky Horse Racing Commission Executive Director Marc Guilfoil was not available Tuesday to clarify why the machines were still in operation.

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The Friday Show Presented By Woodbine: Historical Setback In Kentucky?

The shockwaves felt on Thursday when the Kentucky Supreme Court unanimously ruled against the claim that certain historical horse racing (HHR) machines constitute pari-mutuel wagering were felt all the way from the state capitol in Frankfort to financial markets on Wall Street.

In the immediate aftermath of the ruling – in a case brought to the courts by the anti-gambling Family Foundation – Kentucky Gov. Andy Beshear and state Senate majority floor leader Damon Thayer spoke out in support of historical horse racing wagering that has helped lift Kentucky purses to among the best in the nation.

Share prices in Churchill Downs Inc. – whose Derby City Gaming facility in Louisville generated the largest market share of the $2.2 billion wagered on historical racing in the last fiscal year – took a nearly 10% fall after the news broke. CDI officials issued a statement suggesting legislative relief may be needed in the wake of the Supreme Court ruling.

In this week's edition of the Friday Show, publisher Ray Paulick and editor-in-chief Natalie Voss assess what may happen next with historical horse racing in Kentucky.

Watch the Friday Show below.

The post The Friday Show Presented By Woodbine: Historical Setback In Kentucky? appeared first on Horse Racing News | Paulick Report.

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Kentucky Legislative Committee Approves Partial Lasix Ban

The Kentucky Legislature’s Interim Joint Committee on Licensing, Occupations, and Administrative Regulations met Tuesday and took measures that allowed regulations that ban the use of Lasix in 2-year-old races this year and also in graded stakes next year to go into effect.

The committee did not hold a vote, a procedure that produced the same results as if had voted to approve the regulations.

Tuesday’s hearing was the latest in what has been a contentious battle between pro and anti-Lasix forces in Kentucky, a fight that may now be over as the committee has the final say on racing regulations in the state.

The Kentucky tracks are among a number of racing jurisdictions that have taken steps to cut back on the use of the controversial drug that is used to control bleeding.

Led by the Kentucky HBPA and the National HBPA, the pro-Lasix forces expressed their displeasure with how the meeting was handled. Each side was allowed only one witness. Dr. Clara Fenger, who spoke on behalf of the horsemen, said she was told that each side was allowed to have three speakers. She also said her testimony was cut off before she had a chance to read her entire statement.

“This was a done deal and we had no shot,” Fenger said. “We knew that going in.”

Committee member Damon Thayer, who is the majority floor leader, said there was nothing unusual about the number of people who were permitted to speak.

“Both sides had equal time to present their case, including the racing commission and a representative of the HBPA and some veterinarians,” Thayer said. “Their complaints are much ado about nothing. This was just the final obligatory step in a long process that has included two meetings of the equine drug research council, meetings of the Kentucky Horse Racing Commission and public comments periods that every regulation has to go through. There’s really nothing to that complaint. This is the process that every regulation goes through and there was nothing abnormal about it.”

Fenger, a practicing vet in Central Kentucky, said that any steps to cut back on the use of Lasix would be detrimental to the overall health of the horse.

“The banning of the therapeutic medication, Lasix, is one of the most dangerous proposals ever concocted by our racing commissioners,” she said. “Two horses perished from exercise induced pulmonary hemorrhage in Kentucky since the KHRC has begun posting these deaths on their website. Banning Lasix in any group of horses will guarantee a higher number of such deaths.”

Dr. Bruce Howard, the equine medical director for the Kentucky Horse Racing Commission, was the lone speaker allowed to talk on behalf of the proposed new medication rules.

“By adopting this compromise and moving away from the use of race day furosemide we can come into alignment with the rest of the racing world and help lessen the negative public perception that exists surrounding medication issues in racing,” Howard said. “We will minimize the argument that furosemide enhances performance by causing fluid elimination which reduces a horses weight by an estimated 10 to 20 pounds.”

Howard added that there have been 60 2-year-old races run so far this year in Kentucky without Lasix and that out of 532 starters only one had been observed bleeding from the nostrils after the race.

“This is a compromise between those who want to eliminate Lasix all together and those who want to keep the status quo,” Thayer said. “I think it is a good compromise, by eliminating Lasix use in 2 year-old-races and stakes races. It’s a good starting point for other states to consider and I am happy that Kentucky is leading the way. As the great Lasix debate rages I’d like to think this is a good middle ground.”

Lasix was not the only medication dealt with in the new regulations. New rules include a ban on bisphosphonate use in horses under 4-years-old; non-steroidal anti-inflammatories (NSAIDs), may be given no closer than 48 hours pre-race instead of 24; the race day use of electronic therapeutics has been banned; trainers must make veterinary records available if they are asked for by racing officials.

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